SOURCE: Liberty Mines Inc.

January 27, 2006 09:00 ET

Drilling Underway at the Redstone Mine; Update at McWatters and McAra

TIMMINS, ON -- (MARKET WIRE) -- January 27, 2006 -- Liberty Mines Inc. ("Liberty") (TSX-V: LBE) is pleased to announce that drilling at the Redstone nickel mine is well underway. A permit to cross a small creek was received January 11, 2006, enabling the installation of a bridge and the mobilization of the drilling equipment. Bore hole R06-01 is approximately half complete with a projected pierce point into the Redstone channel of 2000 feet (610m) below surface. As stated in the news release of Jan 4, 2006, bore holes R06-01, R06-02 and R06-03 will test the continuity of nickel mineralization in the Redstone channel down to the 2500 foot (762m) level. An extended drill program is currently being planned.

The new electrical facilities at the Redstone mine are nearly complete including the installation of a 1 kva underground sub-panel. Following electrical inspection and the installation of a power meter by Hydro One, the mine will be fully energized.

Geophysics at McWatters has outlined a possible extension of the known ore body 140m to the west and 250m to the east with additional data due shortly on a study over a further 1 km easterly section of the komatiite flow. The anomaly also extended in a horse-show shape north east from the known zone turning back toward the west and ending to the north of the most westerly section of the main zone. A drill program to test the new targets will begin shortly with the goal to increase tonnage in the lower zone resource.

Permitting to bring the McWatters deposit into production later this year is also underway. A Permit to Take Water, Certificate of Approval for industrial sewage works and a Closure Plan for the mine and settling pond are in progress. The application to bring the claims to lease is in the hands of the Surveyor General's office where they are preparing the instructions for a perimeter survey.

At McAra Lake, an application to bring the cobalt claims to lease has been submitted. The existing drill data has been studied by Liberty's geologist, Mr. Douglas Robinson P.Eng., who has recommended extending previously drilled holes 04-5 and 03-3 to attempt to hit the cobalt/copper structures at depth. Furthermore, it is apparent that previous operators had located mineralization that was never reported, so the purported holes will be re-drilled. Additional step out drilling will also be a part of the exploration plan, which will be ongoing throughout 2006 with the goal to prove up additional resources. Construction of a 5 km road into the deposit is planned for the spring of 2006.

Hydrometallurgical and petrological studies of the McAra cobalt ore are also in progress. Successful results will elucidate the most feasible way to concentrate or refine the ore. It may be possible to refine the ore directly without concentration because of its unusually high cobalt content which runs over 10% in the intersected veins as reported in previous news releases. The anticipated results will also allow an off-take agreement for the ore to be completed. Upon receipt of necessary permitting, a substantial bulk sample is planned as a lucrative source of cash for further mine development and related investments.

About Liberty Mines Inc.

Liberty Mines Inc. is a mineral exploration and development company with a focus on the development and production of nickel, cobalt and platinum group metals from its properties in Ontario.

CAUTIONARY STATEMENT

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements." All statements other than statements of historical fact included in this release, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Liberty, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Liberty's expectations are exploration risks, commodity prices, assumed startup and operating costs detailed herein and from time to time in the filings made by Liberty with securities regulators.

Contact Information

  • For further information please contact:
    Dr. Gary Nash, PhD (Physics)
    President & CEO
    Liberty Mines Inc.
    Phone (416) 238-9736
    Fax 780-437-7898
    e-mail: Email Contact