SOURCE: Liberty Mines Inc.

October 30, 2006 09:00 ET

New Zone Discovered at the Redstone Mine

TIMMINS, ON -- (MARKET WIRE) -- October 30, 2006 --Liberty Mines Inc. (TSX-V: LBE) ("Liberty or the Corporation") is pleased to announce the discovery of a new zone of massive pentlandite pyrrhotite veined mineralization in the hanging wall of the 800 foot (244m) drift. The currently known limit of this mineralization extends 30m East-West along strike and 24m up-dip as determined by drilling from the 700 foot (213m) drill and ore drifts. Drill core intersections that delimited the mineralization returned the following assay results: 3.1% nickel ("Ni") over 1.8m; 2% Ni over 2m; 2.5% Ni over 4m; and 3.3% Ni over 3.4m. All results were corrected for true width. This mineralization is hosted primarily by intermediate to felsic footwall volcanics in the form of injection and fracture filling veining at or near the contact with the komatiitic footwall rocks. Current and previous drilling have identified similar hanging wall structures 50m down-dip and confirmation of the grade associated with this part of the structure is awaiting assay results. The full down-dip extent of the structure is unknown at this time.

The underground electric diamond drilling program is the basis for a reserve calculation to be completed by Mr. Glen Cole MSc (Geo) MSc (Eng) B.Com of SRK Consulting, who is the Qualified Person for the reserve determination as defined by National Instrument 43-101. A total of 16,000m of drilling is required to test the continuity of the mineable, mineralized horizon down to at least the 1500 foot (457m) level. To date, 2,200m of drilling has been completed.

Liberty is also pleased to announce the appointment of Mr. William Randall BSc MSc (Geology) as Vice President of Exploration. "Will brings to Liberty a great deal of expertise in the exploration and mine development of nickel sulphide deposits, and we are very glad to have him on board," said Liberty's President, Gary Nash.

Drilling at the Hart nickel project is slated to begin immediately after approval of a new road into the McWatters nickel mine, as the road passes through the Hart project. This drill program will involve at least 3,000m to 5,000m of diamond drilling with the goal to provide a mineable resource to 43-101 standards. Successful drilling will subsequently lead to a production decision at the Hart project to follow the completion of the McWatters Mine. An update on the McWatters open pit-underground mine scheduled for production in the summer of 2007 will be forthcoming in the near future.

Liberty Mines Inc. is owned substantially by many investors in Edmonton, Alberta who were unable to attend the annual meeting in Toronto June 6, 2006. A public meeting was held on Saturday, October 28 as an update for all news and developments to date as posted on Sedar. The power point presentation used for the meeting is posted on Liberty's website to be available for all investors.

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