Liberty Mines Inc.
TSX : LBE

Liberty Mines Inc.

January 29, 2008 08:00 ET

Liberty Provides Update on Project Developments

EDMONTON, ALBERTA--(Marketwire - Jan. 29, 2008) - Liberty Mines Inc. (TSX:LBE) ("Liberty or the Corporation") is pleased to present a report on the recent and planned activities at some of its projects.

Redstone Mine

Drilling commenced in November 2007 from an underground drill drift at the 366m level to target the nickel bearing horizon down to at least the 670m level. This phase of drilling is scheduled to be completed by April 2008. To date, approximately 4,616m of diamond drill core have been produced and logged, and a total of 485 samples were sent to the laboratory for analysis. This drilling will enable the existing NI 43-101 measured and indicated resource of 418,931 tonnes of 2.32% nickel ("Ni")) within the upper 508m of the deposit to be amended to include the drilling between the 508m and 670m levels of the mine. For completeness the measured resource was 274,085 tonnes of 2.64% Ni and the indicated resource was 144,846 tonnes at 1.70% Ni.

The report will also include an inferred resource from the 670m level to approximately 1150m below surface in the Redstone channel. Deep drilling from surface has been completed with the three final drill holes returning intersections as follows:



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Hole From To Interval Ni %
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RS-07-10 1016.40 1023.00 6.60 1.34
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Including 0.70 3.27
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RS-07-10A 1040.65 1040.95 0.30 5.98
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RS-07-10B 1080.60 1082.35 1.75 2.01
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Eleven of the eleven boreholes targeting the deeper ore within the projected Redstone channel have encountered nickel mineralization. Given the vein-type mineralization style of the nickel sulphides in the Redstone Mine, the high percentage of intercepts suggests excellent continuity of the mineable resource to depth, and further proof that the "INCO anomaly" is primarily associated with nickeliferous massive sulphides. The new 43-101 resource report is scheduled to be produced early in the third quarter of 2008.

The surface structures for a shaft at the mine are nearing completion which includes the head frame and hoist, hoist and collar houses, and the first section of the ore and waste bins. Sinking of the shaft will begin soon after the McWatters Mine comes into pre-production.

Production at the mine is targeted at a monthly average of 6,000 tonnes per month which will increase to 9,000 tonnes per month upon completion of the shaft sinking.

Redstone Mill

The hydraulic filter press at the mill is now operational with new hydraulic components and a complete overhaul of the press plates, rollers and scrapers. The second ball mill is scheduled to be operational in February with the third ball mill to be running by mid year in time to handle 1500 tonnes per day from the combined Redstone-McWatters Mines. A concentrate conveying system has been constructed to directly load the trucks carrying nickel in concentrate to the Xstrata smelter in Sudbury.

A Laser Induced Plasma Spectrometer online analyzer will be installed in April. It has the ability to measure the amount of lighter elements such as magnesium entering the flotation cells. This enables the operators to proactively handle the varying amounts of talc in the floatation circuits which interfere with the floatation of nickel sulphides. This installation, combined with the existing controls, will enable the mill to be fully automated.

McWatters Mine

As mentioned in the press release dated December 17, 2007, diamond drilling designed to define and expand the McWatters ore zone has been completed. A total of 10,759m of drill core was produced and 3,961 samples were analyzed for nickel and copper. A geological model based on this drilling, plus previous drilling completed during 2002-2006 drill campaigns, has been completed and sent to SRK Consulting in Toronto for final resource calculations. The resultant resource will then be used by Liberty's engineering staff to complete a reserve calculation, final mine plan, and economic projections for the life of mine. After a final review by SRK Consulting, the Feasibility Study is scheduled for release during this first quarter of 2008.

Further exploration has already been assessed, with maximum potential thought to be at depth. The strike potential of the ultramafic body has been adequately tested over the years, while there are indications of significant mineralization in the only two drill holes to venture below 200m below surface. A drill will be mobilized to the site when logistically convenient to test the depth potential of the deposit.

The portal at the mine is complete and the settling and treatment ponds will be complete after installation of the liners this week. The shop and compressor buildings have been constructed and the power line to the site is nearing completion. A generator will be used to facilitate ramp construction until the power is energized in February. Ramp construction is scheduled to begin February 4, with pre-production to follow in May of this year. Full production of 1200 tonnes per day from the lower rich zone of the deposit is on target for November 2008.

Hart Nickel Project

The Hart deposit was acquired by Liberty on July 17, 2006 with only a marginal number of diamond drill holes primarily targeting mineralization above 75m below surface and within a strike length of 90m. Liberty has subsequently drilled approximately 16,723m of core and sent 2,012 samples to the laboratory for analysis. This drilling has served to define a continuous mineralized body of predominantly massive to semi-massive sulphides down to 450m below surface with an average strike length of approximately 190m. The strike length varies between 275m and 100m, and still remains open to the west at various depth horizons, especially below 250m. Significant intersections from this orebody include 2.05% Ni over 11.45m, 1.37% Ni over 14.1m, 2.15% Ni over 14.55m, and 1.17% Ni over 27.4m of drill core as reported in previous news releases.

Liberty will continue to focus on expanding this deposit by diamond drilling in view of producing a 43-101 compliant resource towards the end of second quarter ("Q2") of 2008. Metallurgical testing, acid base accounting, and environmental base line studies have already commenced in view of future requirements for a Preliminary Feasibility Study and subsequent mine permitting.

Exploration

During 2007 Liberty conducted test work to determine the most efficient geophysical tool at detecting sulphide bodies both close to surface and at depth. Tests were performed over the McWatters deposit, where conductive massive sulphide zones are found at approximate 150m below surface. The VTEM airborne electromagnetic survey was the only system able to register an observable signature over the orebody. In view of this, the Shaw Dome claims and the recently acquired Groves Township claims are to be surveyed using VTEM, commencing January 28, 2008. These results, in conjunction with extensive lithogeochemical sampling, mapping, and an extensive drill hole compilation, will enable Liberty's geological staff to determine the most prospective exploration targets for the upcoming campaign. Grass roots exploration is scheduled to commence once drilling at the Hart project is sufficiently advanced which is anticipated to be later in Q2 2008.

- Shaw Dome - Once the three existing drills currently turning on the Hart Project have adequately defined the deposit, two of these will remain in the area for the remainder of the year. They will focus on evaluating the potential of a large quantity of untested grassroots targets and anomalies. The areas to be covered during this year include, but are not limited to, the West Redstone, Langmuir South, Galata, and Carman claims.

- Groves - Access and camp logistics are currently being assessed to initiate an exploration campaign in the early spring. This will include initial large scale geological mapping and prospecting over the entire claim package, and detailed mapping of the known deposit. Once these results have been compiled and evaluated a diamond drill will be mobilized to the area, sometime towards early to mid-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.

- McAra - A diamond drill is currently sitting idle on the property. During the spring and summer of 2008 a geological team will thoroughly evaluate the potential of the McAra Lake cobalt deposit and surrounding properties. The surrounding claims that extend north into Ray Township have had negligible exploration conducted on them, a situation that will be remedied this year. Sampling by Liberty in previous years has shown this claim package to be prospective and warrants further attention.

The projects are supervised by Liberty's Vice President of Exploration, William Randall MSc (Geology), Tyron Breytenbach BSc (Geology) and by Richard Allard P. Geo., a qualified person as defined by National Instrument 43-101. 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, 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