SOURCE: Liberty Mines Inc.

February 07, 2007 09:00 ET

Liberty Adds to Its Extensive Shaw Dome Nickel Claims and Provides Corporate Update

TIMMINS, ON -- (MARKET WIRE) -- February 7, 2007 -- Liberty Mines Inc. (TSX-V: LBE) ("Liberty" or the "Corporation") is pleased to announce the purchase of two additional mining claims and one mining patent in the Shaw Dome nickel belt near Timmins.

The claim adjacent to the western boundary of the McWatters Mine was purchased for $100,000 and is subject to a net smelter royalty ("NSR") of 2%, of which half or 1% of the NSR can be purchased for $1 million. The McWatters west claim is an excellent target for additional exploration and allows a road to the McWatters Mine to be constructed at a lesser cost.

The second claim purchased is adjacent to the Galata nickel showing, where historical and recent grab samples of a surface exposure have yielded 5%-7% Ni. The claim was purchased for $6,000 and 5,000 shares of the Corporation and is subject to a 2% NSR, of which half or 1% can be purchased for $750,000. A drill program to investigate the structure of the deposit will begin after drilling of the Hart nickel project is completed. The issuance of the shares is subject to TSX Venture Exchange approval.

The mining patent is located about 500m east of the McWatters Mine and is also a target to be explored in 2007.

Drilling at the Hart nickel project is slated to begin very soon. The pilot hole for the Redstone shaft is complete and the drill will be moved to the Hart deposit or continue at the Redstone mine as a second drill to investigate the potential of the deeper ore at the mine, in which case a third drill would move to the Hart project. Drilling from the drill drift in the mine at Redstone, with a view to establishing a NI 43-101 reserve calculation, should be completed this month. An update will be released shortly.

The Redstone Mill is progressing nicely. The crusher building is completely finished and the concrete foundations for the mill building should be completed in the third week of this month. The crane and building structure are scheduled to be delivered in stages from Feb 16 to Feb 26. The three ball mills and two thickeners will be installed this month so that the building will not have to be disturbed at a later date for installation of that large heavy equipment.

The new mill will enable Liberty to have complete control over the concentrating of its ore. As explained in the September 30 MD&A, there was a mechanical break-down at the custom mill which was processing the Redstone ore. While actual results will not be known until completion of the Corporation's year end audit, the projections of revenue for the fourth quarter will not be met because of the mechanical break-down. The mill was operational again in early December and ran quite well throughout January 2007. Liberty stock-piled some of the ore on surface and left ore in the completed stopes during the time that the custom mill was installing its new ball mill liners. Ore not delivered to the custom mill by mid March will be processed at the Redstone Mill after its commissioning, which is expected to occur in the spring.

About Liberty Mines Inc.

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


No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. This News Release includes certain "forward-looking statements" regarding the expected progress of construction of the Redstone Mill and timing of commissioning, regarding potential mineralization and reserves, exploration plans and other future plans and objectives of Liberty. Actual results may differ materially from those contemplated by these statements depending upon, among other things, any unforeseen difficulty with the completion and commissioning of the Redstone Mill. 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. Other important factors that could cause actual results to differ materially from Liberty's expectations are exploration risks, commodity prices and assumed startup and operating costs detailed 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