ENGLEWOOD, Colo., Aug. 19 /PRNewswire/ -- Echo Bay Mines Ltd.
(Toronto; AMEX: ECO) announced today that it plans to establish a provision of
up to $30 million, or $0.22 per share, in the third quarter of 1996 for the
estimated costs of removing up to 30 million tons of waste rock from an
unstable portion of the Cove pit wall at the McCoy/Cove mine in Nevada.  The
estimate of the provision is based on a preliminary evaluation of the total
tons to be removed and the associated costs, both of which will be further
refined as McCoy/Cove completes its stabilization plan.
    The unstable pit wall has had no effect on production or reserves, and no
future impact is anticipated.  Existing ore stockpiles of 4.5 million tons,
together with ore to be mined from other areas of the pit, will provide
production sources until the stabilization of this area is complete.  The only
impact on the life-of-mine plan for McCoy/Cove relates to the removal of the
unstable block.  The removal work is expected to occur during 1997 and 1998
following completion of the stabilization plan anticipated in early 1997.
Upon completion of the removal program, mining will recommence in the affected
area.
    In early August, ground monitoring sensors indicated some movement of the
pit wall, limited to a portion of the northwest side of the pit.  During the
period of the preliminary investigation, a five-million-ton block failed and
slid into the pit behind a newly constructed berm, with no effect on safety,
mining or equipment.  Continued investigation and recent further ground
movement now indicate that all or a portion of a 30-million-ton block of
material must be removed in order to stabilize the pit wall.
    The area under investigation consists of a block of volcanic tuff
overlying sediments of a prehistoric lake bed.  It is believed that
compression or plasticizing of the sediments has resulted in a shifting of the
pit wall material.  While drilling had identified the geologic structures, a
slope stability study completed in connection with mine plan design, as well
as the results of previous mining activities, had not indicated any reason for
concern over the wall's long term integrity.  The pit wall slope in this area
averages 40 degrees.
    Echo Bay is a major gold producer with mines in Canada and the United
States and with exploration and development projects on four continents.
    "Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995:  The above forward-looking statements involve risks and uncertainties
including a possible significant change in tons to be moved caused by an
expanded or reduced area of instability or the costs related to the removal of
the area of instability.  Please refer to a discussion of these and other
factors in the company's 10-K, 10-Q and other Securities and Exchange
Commission filings.

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