Mahogany ups reserves at Tuina copper project

A recent hole on International Mahogany’s (TSE) Tuina copper property in Chile encountered a 90-metre intercept grading 1.55% oxide copper in the San Martin open pit.

The company says the most recent program has added one million tonnes of reserves to the San Martin pit, one of two pits on the property. Still open at depth and to the north, the shallow deposit was previously estimated to contain preliminary reserves of 2.1 million tonnes grading 1.8% copper. The property is jointly owned by International Mahogany and its parent North Lily Mining (NASDAQ)

Plans to commence copper production in January, 1992, are on target, the partners say. Current projections indicate that the heap leach operation will generate an annual cash flow of more than $5 million.

Although the mine facilities are designed to process 1,500 tonnes of ore per day, Mahogany plans to expand to 2,500 tonnes per day during the third quarter of 1992.