ENGLEWOOD, Colo., July 24 /PRNewswire/ -- Echo Bay Mines Ltd.
(Toronto; AMEX: ECO) announced today that the Round Mountain gold mine in
Nevada -- one of the largest open pit, heap leach gold mines in the world --
has approved a new mining plan that will increase cash flow and profitability
and reduce cash operating costs.
    Echo Bay is the operator and owns a 50% interest in the mine.  Homestake
Mining Corp. (NYSE: HM) and Case Pomeroy & Company, Inc., a closely held firm,
own 25% each.
    The new, optimized open pit design will eliminate the mining of
lower-grade, higher-cost sulfide material.  Total material removed from the
pit will be reduced by over 250 million tons during the life of the mine,
lowering up-front waste stripping by approximately 40% and enhancing the
economics significantly.
    The net result will be an increase of 30-40% in cash flow over the life of
the mine and a near-doubling of the net present value of the project.
    The optimized pit will reduce the mine's current ore reserves by
approximately 1.2 million ounces of gold (Echo Bay's 50% share, 600,000
ounces).  This revision will result in mining being completed in 10 years,
with ore processing continuing from stockpiles for another five years,
compared with the previous plan of 14 years of mining plus seven years of
stockpile processing.  However, this life-of-mine plan is based on no more
gold ever being discovered at Round Mountain (which is unlikely -- given the
growth in reserves seen at the site over the last 12 years).  In July, Round
Mountain produced its four millionth ounce of gold since Echo Bay became the
operator.  The mine had less than half that much gold in reserves -- only
1.8 million ounces -- when Echo Bay acquired its interest in 1985.  Annual
production is currently planned to remain at present levels until additional
reserves are proved up.
    Round Mountain will also expand its exploration efforts.  Ongoing
exploration efforts at the site will be two-fold.  An in-fill drill program
will be directed at upgrading material within the pit, currently categorized
as "other mineralization," to reserves.  The "North Feeder" program is focused
on a deep target to the north believed to be one of the deposit's feeder
structures.  This zone is believed to have good potential for significant ore
reserve additions over the next few years.  Several additional exploration
sites have been identified on the 380,000+ acre Round Mountain area of mutual
interest, only a small portion of which has been adequately explored.
    Echo Bay is a major gold producer with mines in Canada and the United
States.  The primary markets for its shares are the American and Toronto stock
exchanges.  Its shares are also listed on stock exchanges in Switzerland,
France, Germany and Belgium.

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