Echo Bay advancing Paredones Amarillos

Drilling and prefeasibility work are continuing on the Paredones Amarillos property in Baja California Sur, Mexico.

Since optioning the property from Baja Gold (TSE) two years ago, Echo Bay Mines (TSE) has drilled 173 holes for a total of 35,211 metres. The company holds a 60% interest in the property.

Baja, which retains a 40% interest, expects to receive a cash payment of US$1 million from Echo Bay in the near future as part of the original earn-in agreement.

Much of Echo Bay’s drilling was aimed at defining the Main zone, which, Baja estimates, contains 1.9 million oz. The estimate is based on roughly 31 million tonnes grading 1.9 grams gold per tonne.

Preliminary metallurgical work on the Main zone mineralization returned recoveries of greater than 60% from column leach tests, while flotation tests netted recoveries exceeding 90%.

Echo Bay is conducting infill drilling on the western portion of the Main deposit in order to bring down the spacing to 35 metres.

The company is also drilling on stepouts along the open trend of the zone.

William Meek, vice-president of Baja, is confident Echo Bay’s prefeasibility work will lead to a full-scale feasibility study in the new year.

Recent drill results are as

follows:

HoleInterval(m)Width(m)Gold(g/t)

146R282.0-289.57.50.87

292.5-303.010.52.43

306.0-318.012.01.15

148R24.0-31.57.51.05

36.0-40.54.51.46

60.0-72.012.00.67

151R186.0-193.57.50.87

153R253.5-264.010.51.15

156R37.5-45.07.50.71

159R9.0-63.054.00.80

161R9.0-42.033.00.72

162R21.0-39.018.01.10

165R165.0-175.510.50.87

166R0-15.015.01.30

167R0-18.018.03.68

169R4.5-15.010.51.17

170R3.0-16.513.51.38