SOURCE: Liberty Mines Inc.

March 19, 2007 09:00 ET

Liberty Signs Off-Take Agreement for Cobalt Deposit

EDMONTON, AB -- (MARKET WIRE) -- March 19, 2007 -- Liberty Mines Inc. (TSX-V: LBE) ("Liberty" or the "Corporation") is pleased to announce the signing of an off-take agreement for the McAra Lake cobalt deposit located about 200 km south of Timmins Ontario with Jilin Jien Nickel Industry Company Ltd ("JJNICL") of China. The agreement also includes the construction of a hydrometallurgical facility either in China or Canada to process a cobalt-nickel concentrate from a mill to be built by Liberty at a site near the deposit. JJNICL will provide some financial backing to Liberty according to the scale and scope of the project.

"This agreement potentially accelerates Liberty's desire to be a primary producer of both nickel and cobalt," said President Gary Nash. "JJNICL has proven to be an excellent strategic partner and we are honored by their continued commitment to support our projects," he added.

As reported in previous press releases in 2004 and 2006, the cobalt deposit at McAra Lake consists of rich veins of cobaltite typically grading up to 11% cobalt over 1m-1.5m with intersections of 19.46m averaging 1.1% cobalt. It also contains significant copper with intersections of chalcopyrite containing 11.9% copper over 3.1m as well as varying credits of nickel up to 1%. An extensive drill program for the McAra deposit and the adjacent Ray Township surface trenches will begin when the properties can be accessed in the late spring. The goal for 2007 will be to perform enough drilling to allow an NI 43-101 resource to be calculated for these deposits.

Because cobaltite is a cobalt arsenic sulphide, the arsenic must be removed by either a smelter or a hydrometallurgical facility to produce a finished product. A hydrometallurgical process is much more environmentally friendly. The arsenic residue along with the gangue material of the ore is mixed with cement and backfilled in the mine to produce a concrete like material which is buried and environmentally safe.

Cobalt and nickel are metals of the future with both playing a fundamental role as basic materials to make batteries for use in hybrid vehicles. Cobalt alloys are used to produce high temperature steels, magnets, catalytic converters and in the medical industry for joint replacements. Cobalt uniquely retains its magnetic properties at a higher temperature than any other element. Pure nickel is needed to make corrosion resistant pipes and vessels which contain fluids used in nuclear reactors.

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.

CAUTIONARY STATEMENT

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 permitting and construction of the McAra Mill and hydrometallurgical facility, potential mineralization and reserves at the McAra and Ray projects 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 permitting and completion of the McAra Mill and hydrometallurgical facility. 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


    Press Release 9-07