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INTERNATIONAL MAHOGANY CORP. ANNOUNCES INTEREST IN GOLD PROPERTY

 INTERNATIONAL MAHOGANY CORP. ANNOUNCES INTEREST IN GOLD PROPERTY
 VANCOUVER, British Columbia, March 20 /PRNewswire/ -- International Mahogany Corp. (Toronto: IMY.B) and its parent, North Lily Mining Co., have acquired an interest in a gold and molybdenum property in Humboldt County, Nev. called the Ashdown Property. The company and North Lily will each own a 50 percent interest in this property. A letter of intent has been executed with Win-Eldrich Mines Ltd., a Toronto-based resource development company, for the acquisition of this property. The company expects to have the property into production within 18 months of signing the final agreement. The permitting process is currently underway on the property.
 To date Win-Eldrich, American Copper and Nickel Co., Outokumpu Mines Inc. and Billiton Minerals U.S.A. have spent approximately U.S. $8 million on the exploration and evaluation of the property. The property contains 279 unpatented lode claims, totalling approximately 5,640 acres. Two hundred and sixty-five holes totalling 68,855 feet have been drilled on the property. Based on drilling to date, the property contains 1.1 million tons of gold ore at a mine diluted grade of 0.12 opt gold within 200 feet of the surface. The gold occurs in quartz veins which roughly parallel the ground surface. Additional gold-bearing veins are known to occur below the 200 foot cut-off. The company plans to conduct exploration of these deeper veins and of other veins which are suspected to exist outside of the currently defined reserve. These gold reserves are open ended on strike and depth and the company is confident of increasing reserves. Extensive test work has strongly indicated that the ore is amenable to an open pit, heap leaching operation.
 Under the terms of the letter of intent a final agreement is subject to satisfactory completion of a due diligence review. On signing of a formal agreement the company is required to make lease payments of approximately U.S. $160,000 over 18 months. Win-Eldrich will retain an ongoing royalty of between 3 percent and 5 percent.
 In addition to the defined gold reserves the property contains a high-grade molybdenum reserve which occurs adjacent to and below the gold-bearing veins. Currently defined molybdenum reserves are estimated to be in excess of 20 million pounds of molybdenum at an average grade of 1.4 percent. This represents a significant molybdenum resource. The company is evaluating the construction of a separate molybdenum recovery plant in addition to the currently planned gold facility.
 -0- 3/20/92
 /CONTACT: Anton R. Hendriksz, president of International Mahagony, 604-685-9316/
 (IMY.B.) CO: International Mahogany Corp.; North Lily Mining Co. ST: British Columbia IN: MNG SU:


EH -- LA003 -- 9963 03/20/92 08:01 EST
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Publication:PR Newswire
Date:Mar 20, 1992
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