Tuina resumes operations

Following an extended shutdown, mining operations resumed in December at the Tuina operation in Chile owned 50% by International Mahogany (TSE).

Mahogany and joint venture partner North Lily Mining (NASDAQ) were forced to suspend mining operations in August after a Chilean court ordered a halt to shipments of copper precipitates from the open-pit heap-leach mine. The injunction resulted from a dispute between the owners and the mining contractor. Claiming the contractor provided inadequate work and inaccurate and excessive billing, the joint venture refused to pay.

With the dispute now settled, Mahogany reports that the first export of copper precipitate from Chile has been received in the United States. The joint venture does not currently have an electrowinning plant at the operation and must ship copper precipitates to the U.S. for plating to a copper cathode product. Planning for an on-site plant is continuing with detailed engineering and equipment proposals expected in early 1993. Mahogany expects to release drilling results from a recent program on the nearby San Martin copper property shortly.

The company is also in discussions with a number of small copper mines in the Tuina area for the purchase of their ore.

Since the beginning, 1992, Mahogany has increased its property position in the area by 88% to a total of 6,987 acres. Of the total, 6,469 acres are held directly, while the balance falls under the joint venture.