Liberty Mines Inc.
TSX : LBE

Liberty Mines Inc.

July 16, 2008 08:00 ET

Liberty Provides Projects Update

EDMONTON, ALBERTA--(Marketwire - July 16, 2008) - Liberty Mines Inc. (TSX:LBE) ("Liberty or the Corporation") is pleased to present a report on the exploration or development at some of its projects.

McWatters Mine

Ramp development at the mine has progressed slower than anticipated. After spring thaw in April, the brow of the portal required repairs as a safety precaution to prevent injuries from potentially loose rock. A fault structure was encountered in late May which was responsible for the percolation of significant water into the ramp development area. Grouting, rock bolting and screening with shotcrete has been successfully employed to advance through the structure. The crews are now through the fault structure and pre-production from the upper level sills is projected to commence in September 2008.

Hart Mine

The Hart resource calculation was released on June 24, 2008 after a year of successful exploration. A feasibility study is anticipated to be complete in Q4 2008 which will quantify the economics of the deposit.

An application for a mining lease has been submitted to the Ministry of Northern Development and Mines. Metallurgical testing, acid base accounting, hydrogeological, archeological and environmental base line studies have been or are soon to be completed. An application for a Certificate of Approval for Air/Noise has been submitted to the Ministry of the Environment. The newly constructed block model has been delivered to the mining department where preliminary mine planning and scheduling is being addressed. Management has committed its best efforts to begin construction of the mine in Q2 2009, well before the McWatters Mine is exploited.

Diamond drilling will recommence latter this year to bring the inferred resource into the indicated category and to attempt to extend the resource at depth.

Redstone Mine

The ramp is complete to the 1600' (488m) level and a drill drift is being developed from that level to drill to the 2200' (671m) level. Upon completion of the infill drilling, a resource calculation will be released. The updated resource calculation for Redstone was originally scheduled for August 2008 but would not have included this drilling. As a result, the update should be available in Q1 2009.

Redstone Mill

The second ball mill was successfully commissioned in June and the mill is now capable of processing over 1000 tonnes per day. The third ball mill is being readied for operation in September and a second Larox filter press will be installed in Q4 2008.

Exploration

Exploration is underway in all of Liberty's grassroots nickel properties. VTEM surveys have been completed, compiled and reviewed for the Shaw Dome and Groves properties. These results have enabled Liberty's geological staff to identify new, untested targets that will be addressed in more detail in subsequent sections of this press release. Management is extremely pleased with the results and the high quality of the various outstanding anomalies detected.

Shaw Dome - One drill is being used to evaluate numerous untested grassroots targets and anomalies. After incorporating the latest VTEM survey results Liberty's geological staff has identified a series of high priority targets. These include, but are not limited to, the West and East Redstone, Langmuir South, Galata, and Carman claims.

Groves - A crew has been mobilized to the property, and has initiated an exploration program that will continue over the course of this year's summer. This will include initial large scale geological mapping and prospecting of target areas determined by the recently completed VTEM survey. Numerous anomalies with favourable responses have been identified, including three high priority targets with coincident magnetic and EM responses.

The program will also include detailed mapping and reconnaissance of the known deposit. Once these results have been compiled and evaluated a diamond drill will be mobilized to the area, sometime towards mid to late-summer. It will initially serve to confirm the historical resource while attempting to expand the known mineralization. This drill will subsequently be used to test the selected targets that will be concentrated on the large, highly prospective mafic-ultramafic intrusive body.

Sothman - Details of an exploration program have been submitted to Xstrata and approved by the governing committee. This program consists of line-cutting, mapping, prospecting, and diamond drilling. Initial diamond drilling, now nearly complete, will serve to confirm historically identified mineralization at the 100m below surface level with four 100m spaced holes and test deeper mineralization by targeting 300m below surface with one additional drill hole. All these holes will be subsequently tested with downhole geophysics in an attempt to outline heavily mineralized areas.

The diamond drill will then be moved to test grassroots targets along the same ultramafic body that hosts the historical deposit.

McAra - Diamond drilling is expected to begin at the surrounding claims that extend north into Ray Township later this month. Sampling by Liberty in previous years has shown this claim package to be prospective and warrants further attention. Exploration campaigns throughout this summer will not be restricted to the Co-Ag-Cu McAra Lake deposit, but also test prospective areas within the claims package.

The projects are supervised by Liberty's Vice President of Exploration, William Randall MSc (Geology) a qualified person as defined by National Instrument 43-101, Tyron Breytenbach BSc (Geology), and Tim Dunnett MSc (Geology). According to the company sampling protocol, half of the diamond drill core is sampled and sent to ALS CHEMEX in Timmins to be prepared for analysis. The prepared samples are then forwarded to the ALS CHEMEX Laboratory in Vancouver for analysis. Base metal values are analyzed by aqua regia digestion and ICP-AES finish. A rigorous QA/QC program is implemented consisting of regular insertion of standards and blanks to ensure laboratory integrity.

About Liberty Mines Inc.

Liberty Mines Inc. is a producer of nickel and is focused on the exploration, development and production of nickel, copper, cobalt and platinum group metals from its properties in Ontario, Canada.

CAUTIONARY STATEMENT

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, receipt of mining permits and leases and assumed startup and operating costs detailed herein and from time to time in the filings made by Liberty with securities regulators.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Contact Information

  • Liberty Mines Inc.
    Dr. Gary Nash, PhD (Physics)
    President & CEO
    (416) 238-9736
    (780) 437-7898 (FAX)
    Email: gnash@libertymines.com
    or
    Liberty Mines Inc.
    Chris Simister
    Manager Investor Relations
    (780) 485-2299
    (780) 485-2253 (FAX)
    Email: csimister@libertymines.com