Marking 25th year, Echo Bay set to produce 725,000 oz

The company, celebrating its 25th anniversary in 1989, also produced more than one million oz silver last year. Echo Bay is adding three new mining operations this year to the 11 mines in which it currently has interests.

By the end of 1990, the company is projecting output of more than 900,000 oz gold and more than 6.5 million oz silver.

While increasing its net earnings in 1988 to $54.4 million from $48.5 million the year previously, Echo Bay saw its average cash production cost rise, to $212(US) per oz from $207 in 1987. For 1989, the company is projecting a cash production cost of $210.

In Canada, Echo Bay last year turned out a record 202,440 oz gold at its Lupin mine in the Northwest Territories, which has been undergoing a shaft deepening. Lupin geologists have confirmed the downward extension of the West zone at the 2,920-ft level. Drifting into the main Centre zone should commence in the near future.

Last year Echo Bay acquired about a 30% interest in three Muscocho group companies: Muscocho Explorations, Flanagan McAdam Resources and McNellen Resources. Among the projects in which the Muscocho group is involved a re two new gold mines near Wawa in northern Ontario: the Magino, placed into production late in 1988, and the Magnacon, which was officially opened last month.

The company has become extremely active in Nevada, where at the McCoy/Cove operation, heap leach mine capacity has been expanded to 10,000 tons per day. A new 7,500-ton-per-day mill is expected to be in commercial production in the near future. Underground development at the project continues.

Elsewhere in the state, two development projects scheduled for production this year are the Golden Butte and Easy Junior properties. Each project is expected to produce about 30,000 oz gold annually; Echo Bay has a 40% interest in both projects.

In Washington state, the company reports the Kettle River gold project is shaping up, with production scheduled to commence in 1990. Echo Bay has a 70% interest in the project, which is expected to produce a total of 110,000 oz during the first two years of operation and 85,000 oz thereafter.

During the first quarter of this year, Echo Bay produced 142,301 oz gold and 404,854 oz silver.

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