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As a result of reviews by the Alberta and British Columbia Securities Commissions, Liberty Mines Inc. (TSX:LBE) ("Liberty" or the "Company") is issuing the following news release to further clarify its disclosure following its press release dated October 14, 2008.
As stated in the press release dated October 14, 2008 Liberty has undertaken to have National Instrument 43-101 compliant technical reports for the Redstone and McWatters mines to be completed in approximately six months of the release date. These reports will include resource and reserve estimates based on completed drilling and the results of the economic analysis performed on the deposits. Please refer to the above mentioned press release for further details.
Pursuant to agreements with the Alberta Securities Commission ("ASC"), Liberty has completed two "interim" technical reports (Redstone and McWatters) whose purpose is to rectify the deficiencies noted by the review and provide an update to the status of the planned work. The results of the work performed to date are summarized in this press release.
Redstone Project
The current SRK Consulting (Canada) Inc ("SRK") mineral resource statement reports a Measured and Indicated resource of 419,000 tonnes of mineralization grading an average of 2.32% nickel ("Ni"), within the upper 508m of the deposit (as at June 30, 2007). Table 1 shows the mineral resource statement for the Redstone mine effective July 11, 2008:
Table 1: Redstone Deposit: Mineral Resource Statement(1), SRK Consulting
July 11, 2007.
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Classification Tonnage Nickel Copper Contained
(000's t) (%) (%) Nickel (t)
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Measured 274 2.64 0.01 7,236
Indicated 145 1.70 0.02 2,462
Total Measured
& Indicated 419 2.32 0.01 9,698
Inferred 148 3.44 0.00 5,099
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(1) Mineral Resources are not Mineral Reserves and do not have demonstrated
economic viability. Reported at 0.7% nickel cut-off. All figures have
been rounded to reflect the accuracy of the estimate.
The Redstone mineral resources have been classified according to Canadian Institute of Mining ("CIM") Definition Standards for Mineral Resources and Mineral Reserves (December 2005) on the basis of data density and geological uncertainty, as follows: Measured (above the 2750 metre level) and Indicated (between the 2750 metre and 2525 metre levels), and Inferred (below the 2525 metre level). All resource blocks are informed by a minimum of 2 and maximum of 20 samples.
The Redstone database, which forms the basis for the mineral resource estimate, is comprised of 190 diamond drill holes and 2,718 underground development sampling records. This allowed for a basal massive sulphide zone and overlying stringer zone to be modeled. A 3m by 2m by 2m block model was created in Datamine with grade estimated using an inverse distance squared algorithm. Search ellipses for grade estimation were derived from variography completed on 1m composite data. Volumes were converted into tonnages by assigning an average specific gravity to each block as follows: 2.93 cmg/t for the massive sulphide mineralization, and 2.87 cmg/t for the stringer type mineralization. All mining depletions from mining operations have been excluded from the resource estimate.
Liberty with the assistance of SRK, and other third parties as required, is undertaking economic analysis, geotechnical studies, and an environmental review of the property. As of December 2, 2008, work related to these studies had not advanced to a stage at which material changes about mineral reserve estimates, mining and environmental considerations, financial analysis, and other components required by National Instrument 43-101 for development and production properties can be reported. The results will be released in a future technical report and summarized in a related press release.
McWatters Project
The January 28, 2008 SRK Mineral Resource Statement for the McWatters Nickel Deposit is summarized in Table 1.
Table 1: McWatters Mineral Resources Statement, SRK Consulting as at 28
January 2008.
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Classification Tonnage Nickel Contained Ni
(000's t) (%) (t) (000's lbs)
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Indicated(1)
Upper Zone 665 0.72 4,790 10,558
Lower Zone 50 3.93 1,948 4,293
Total Measured
& Indicated
Inferred(1) 715 0.94 6,738 14,851
Upper Zone - - - -
Lower Zone 14 3.39 469 1,033
Total Inferred 14 3.39 469 1,033
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(1) Mineral Resources are not Mineral Reserves and do not have demonstrated
economic viability. Resources are reported at a cut off grade of 0.5%
Ni. All figures have been rounded to reflect the accuracy of the
estimate.
The independent mineral resource statement prepared by SRK is reported in accordance with National Instrument 43-101 and was classified according to the CIM Definition Standards for Mineral Resources and Mineral Reserves (December 2005).
Nickel mineralization is broadly confined to a higher grade lower massive zone and to lower grade overlaying disseminated zone. The resource estimate is based on a three dimensional geological interpretation of the sulphide mineralization from a total of 153 diamond drill holes largely drilled on 25m centres. Drill data was appropriately composited and capped prior to grade estimation.
The McWatters block model was created using Datamine using a 2.5x2.5x2.5m block size. Block grades were estimated using ordinary kriging (OK). Resource blocks situated within the primary ranges defined by variography are assigned an Indicated classification; all other resource blocks inside the modelled mineralization wireframes and within four times the primary variography ranges are assigned an Inferred classification.
First principle estimates (SRK, May 16, 2008) have been excluded from Section 17 "Additional Requirements for Technical Reports on Development Properties and Production Properties" of the "interim" technical report.
The excluded information relates to previously disclosed estimates of the mine production plan, operating and capital costs, financial analysis, and an estimate of Mineral Reserves. This information was based on first principle estimates, assumed ground conditions, and estimated productivities.
The first principle estimates have been superseded by the actual results being achieved on the site during development of the underground mine, and SRK considers them no longer reliable.
Liberty with the assistance of SRK, and other third parties as required, is undertaking economic analysis, geotechnical studies, and an environmental review of the property. As of December 2, 2008, work related to these studies had not advanced to a stage at which material changes about mineral reserve estimates, mining and environmental considerations, financial analysis, and other components required by National Instrument 43-101 for development and production properties can be reported. The results will be released in a future technical report.
This news release was prepared by Mr. William Randall MSc (Geology) Vice President of Exploration, a Qualified Person as defined under NI 43-101. The independent qualified person for the Redstone and Mc Watters mineral resource statements is Mr. Glen Cole, P.Geo (APGO#1416). Mr. Cole has reviewed the technical content of this news release.
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.
SOURCE: Liberty Mines Inc.
Liberty Mines Inc.
Dr. Gary Nash, PhD (Physics)
President & CEO
(416) 238-9736
(780) 437-7898 (FAX)
Email: gnash@libertymines.com
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