ENGLEWOOD, Colo., Nov. 2 /PRNewswire/ -- Echo Bay Mines Ltd.
(Amex: ECO; Toronto) today announced it has decided to reopen the Lupin mine,
located in the Nunavut Territory of Canada. Given a five-month startup and
restaffing period, first gold production is expected to occur in April 2000.
Robert L. Leclerc, Chairman and CEO of Echo Bay, stated, "We are very
pleased with this decision. Lupin is a valuable asset with an existing
infrastructure, a consistent ore body and an excellent history of gold
production. With a cash investment of around $12 million to cover primarily
working capital requirements, Lupin is expected to add 150,000 ounces of gold
to the company's production profile for at least the next five years."
First mined in 1982, Lupin was placed on care and maintenance in early
1998 due to falling gold prices and a high cost structure. A reengineering
study, completed late in 1998, identified savings that helped lower costs.
The new life of mine average cash operating costs are now anticipated to be at
or better than $245 per ounce. Based on current reserves of 543,000 ounces
and other mineralization of 221,000 ounces, the mine plan projects production
through 2004. Drilling indicates additional mineralization at depth and
confirmation drilling will be done once the site is back in operation. The
Ulu satellite deposit, located approximately 100 miles north of Lupin,
represents the potential for additional mill feed for the site.
Echo Bay mines gold and silver in North America. The primary markets for
its shares are the American and Toronto stock exchanges.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995: The statements herein that are not historical facts are
forward-looking statements. They involve risks and uncertainties that could
cause actual results to differ materially from targeted results. These risks
and uncertainties include but are not limited to future changes in gold
prices, which could render projects uneconomic; differences in ore grades,
recovery rates, and tons mined from those expected; changes in mining and
milling rates from currently planned rates; the results of future exploration
activities and new exploration opportunities; conclusions of feasibility
studies now under way; changes in project parameters as plans continue to be
refined; and other factors detailed in the company's filings with the
Securities and Exchange Commission.
SOURCE Echo Bay Mines Ltd.
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Related links:
http://www.echobay.com
Company News On-Call:
http://www.prnewswire.com/comp/269609.html or fax,
800-758-5804, ext. 269609
CONTACT:
Robbin Lee of Echo Bay Mines Ltd.,
303-714-8829
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