Round Mountain powers Echo Bay

Record quarterly production at the Round Mountain mine in central Nevada helped Echo Bay Mines (ECO-X) continue where it left off at the end of 2000 and post a profit for the first three months of 2001.

During the quarter ended March 31, the company earned US$3.8 million (or nil per share) on revenue of US$64.5 million, compared with a year-ago loss of US$2.7 million (4 per share) on US$51.8 million. In the last quarter of 2000, the company earned US$2.1 million (2 per share).

Echo Bay produced 173,470 oz. gold during the latest quarter, up 24% over the previous year. Silver production fell 58% to 1.6 million oz., due to the cessation of mining at the McCoyCove operation in Nevada.

The company realized an average price of US$310 per oz. for its gold production (US$320 per oz. a year earlier), a US$46-per-oz. premium over the quarter’s average spot price, and US$5.28 per oz. for its silver (US$5.80 per oz.).

The bulk of the quarter’s gold production came from Echo Bay’s half-interest in the Round Mountain mine, which poured a quarterly record 100,368 oz., up from 71,954 oz. the previous year. Cash costs rang in at US$185 per oz., unchanged from a year earlier.

At the Lupin mine in Nunavut, production totalled 37,954 oz. gold at a cash cost of US$217 per oz. An underground winze was completed at Lupin in late April. This reduces costs and allows for development and mining of the orebody, which is defined to 200 metres below the bottom of the hoist position. Development below the winze continues to prove continuity of the orebody. Exploration continues in the upper part of the mine.

At McCoy-Cove operation, gold production tallied 22,303 oz., down from the year-ago 43,146 oz. Cash costs were US$257 per oz., up from US$149. Open-pit mining at McCoy-Cove wrapped up in 2000. Production is now limited to a large stockpile of low-grade ore.

Underground mining at Cove South Deep should end by the second quarter of 2001 with total production hitting 40,000 oz. gold-equivalent.

Reclamation activities on more than 1,500 acres are under way and will continue for the next several years.

Gold production at the Kettle River mine in northeastern Washington fell to 12,845 oz. from the year-ago 25,070 oz. Cash costs rose US$15 to US$242 per oz. In order to allow the company to sell power back to the local power authority, the mill operated for only two months of the three-month period. The company still expects the mine to meet its 2001 production target.

At March 31, Echo Bay Mines had US$14.6 million in cash and equivalents.