EXPLORATION 1997 — Ulu to provide feed for Lupin mine

An underground ramp being driven at the Ulu gold deposit in the Northwest Territories will allow operator Echo Bay Mines (ECO-T) to begin mining later this year.

Situated north of the Arctic Circle, about 500 miles northeast of Yellowknife, the deposit was sold to Echo Bay by BHP Minerals Canada in 1995.

Echo Bay plans to develop the operation as a satellite deposit of its producing Lupin gold mine. Ore will be stockpiled and trucked 160 km south to Lupin during the winter months. The first shipment is expected in late 1998.

At last report, Ulu hosted a resource of 1.9 million tons grading 0.32 oz.

gold per ton, equivalent to 608,000 contained ounces.

The deposit is in the Archean Slave province in the High Lake greenstone belt. The bulk of the current resource is found in the Flood zone, a structurally controlled, mesothermal lode system hosted by metabasalts.

Echo Bay says several showings bearing characteristics similar to the Flood zone have been identified elsewhere on the property and are targeted for further exploration.

Earlier this year, Echo Bay announced plans to build one mine in each of Canada and Mexico. The Aquarius project near Timmins, Ont., and the Paredones Amarillos project in Mexico are expected to add up to 250,000 oz. to the company’s annual production, which currently stands at 725,000-750,000 oz.