by Nancy Gardiner
Northern News Services

NNSL (Sep 03/97) - Echo Bay Mines Ltd. is deferring further development of the Ulu gold deposit -- adjacent to the Lupin mine -- until gold prices improve from a 12-year low.

"And the company has found a way to extend the life of the Lupin mine, so Ulu is not so critical," said Robbin Lee, manager of investor relations for the company.

A new mining concept at Lupin will enable the mine to go deeper than originally anticipated.

Ulu has been a source of supplemental mill feed for the Lupin mine.

The deferral will reduce planned 1997 capital expenditures from $12.5 million to $8.5 million, according to an Echo Bay Mines press release.

Echo Bay has also deferred construction decisions at two planned gold mines -- the Aquarius mine in Timmins, Ont., and Paredones Amarillos in Mexico. That deferral reduces the company's expenditure requirements from $114 million to $49 million for the two new mines.

Lupin has made improvements to benefit from cost savings, with new mining and blasting methods.

These improvements are proving successful in reducing waste rock dilution, improving mill-head ore grade and controlling costs, according to a recent press release.

With these initiatives, "mining can continue economically below the 1,400-metre level into mineralization, previously identified but considered uneconomical," the statement said.

A revision of the mine plan is being finalized, with details expected by late 1997.

Echo Bay is a major gold producer with mines in Canada and the United States. Its shares are listed on the Toronto, American, Swiss, French, German and Belgium stock exchanges.