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INTERNATIONAL MAHOGANY CORP. EXECUTES FORMAL AGREEMENT TO ACQUIRE WIN-ELDRICH MINES LTD. INTEREST IN MINING CLAIMS

 INTERNATIONAL MAHOGANY CORP. EXECUTES FORMAL AGREEMENT
 TO ACQUIRE WIN-ELDRICH MINES LTD. INTEREST IN MINING CLAIMS
 VANCOUVER, British Columbia, Aug. 6 /PRNewswire/ -- International Mahogany Corp. (Toronto: IMY.B) and its parent, North Lily Mining Co., have executed a formal agreement to acquire all of Win-Eldrich Mines Ltd.'s interest, subject to certain royalties, in 29 unpatented mining claims located in Humboldt County, Nev.
 Pursuant to the terms of the agreement, the following property payments are required:
 -- $50,000 U.S. on execution (paid);
 -- $50,000 U.S. on or before 60 days after execution; and
 -- $5,000 U.S. per month from the date of execution for a period of 18 months.
 In addition to the above property payments, a royalty of between 3 percent to 5 percent (minimum $12,000), commencing 19 months from the date of execution, will be payable to Win-Eldrich. Upon making payments totalling $1 million U.S., the company and North Lily will acquire a 100 percent right, title and interest in and to precious metals and a 72 percent interest in and to base metals on these claims.
 To date, $8 million U.S. has been expended 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. 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. These gold reserves are open ended on strike and depth. 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. The current market price of molybdenum is $2.20 per pound resulting in an in situ molybdenum reserve of $44 million U.S.
 The initial exploration program has been approved and field crews are being mobilized. This initial program consists primarily of in fill drilling for confirmation of ore reserves and will require approximately 15 days to complete. Test work conducted to date indicates that the gold can be economically recovered by an open pit heap leaching facility. The company is evaluating the construction of a separate molybdenum recovery plant in addition to the currently planned gold facility.
 -0- 8/6/92
 /CONTACT: Anton R. Hendriksz, president of International Mahogany Corp., 604-685-9316/
 (IMY.B) CO: International Mahogany Corp. ST: British Columbia IN: MNG SU: TNM


JB -- LA036 -- 7838 08/06/92 19:52 EDT
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Publication:PR Newswire
Date:Aug 6, 1992
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