Well you can only dig slopes to a certain depth before they become too steep. But AFAIK if you keep digging out the surrounding dirt you should be able to keep digging out lime indefinitely.
On a related note, can you "re-stock" a lime deposit by dropping dirt on it to push the ground level back up? Or does that turn the Lime into dirt? This also applies to clay deposits.
Just note that this IS a bug and will be fixed at some point.
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JohnCarver wrote:anybody who argues to remove a mechanic that allows "yet another" way to summon somebody is really a carebear in disguise trying to save his own hide.