Exploration ’88 ECHO BAY

Echo Bay Mines’ explorationists had their best year ever in 1987, adding nearly seven million proven and probable mineable ounces of gold to the company’s 1986 reserve of 5.6 million oz. This was accomplished with a budget of $11 million, which is a finding cost of $2 per mineable ounce, says Neil Muncaster, vice- president, exploration. Much of the 1987 success was attributable to the discovery of Cove, a major gold and silver deposit near the company’s McCoy mine in Nevada. The anticipated exploration budget in 1988 is $10.8 million, excluding exploration declines and drifting at the McCoy/Cove and Round Mountain mines, and at projects near Republic, Wash., Congress, Ariz. and Cameron Lake, Ont. Also, it does not allow for the company’s past record of providing rapid funding for unique, but unidentified, exploration opportunities that might develop or be brought to the company in 1988. All exploration will be for precious metal deposits.

Expenditures in Canada will be about $1.45 million. A significant portion of this will be directed to the Northwest Territories, where Echo Bay’s Lupin mine and year-round transportation system provide extra incentive for the discovery of new ounces and a decided edge over competitors. The company will aggressively broaden its interest in other parts of Canada, with active programs in British Columbia and the search for new, advanced-stage projects in other provinces, especially Quebec and Ontario.

Exploration expenditures of $8.15 million are anticipated in the southwestern U.S., where Echo Bay has five mines in production. These dollars will be spent in district exploration in the vicinity of the mines, as well as on grassroots projects to evaluate some of the advanced-stage properties acquired from Tenneco Minerals in late 1986. Submittals and acquisition opportunities are expected to continue to add to the company’s exploration project inventory in 1988.

Muncaster points out that Echo Bay actively seeks joint-venture properties and that it now has four of these that are at or near the development phase.