MCCOY / COVE MINE | Company/Property Mine

Location

Location:	Nevada, USA
Nearest Landmark:	BATTLE MOUNTAIN
Distance:	50 Km SW of BATTLE MOUNTAIN
Latitude:	40° 19' (North)
Longitude:	117° 13' (West)
Type of Working:	Open-Pit
Status:	Past Producer

Summary

The property consists of approximately 946 unpatented and 9 patented claims covering approximately 19,000 acres (7,687 ha) of United States federal land administered by the Bureau of Land Management of the Department of the Interior, Lander County, Nevada, USA (Dec/01).

* Review (Mar/93) on microfiche C2776 G18.

GOLD in skarn stockwork fracture zones and in permeable beds.

Open pit, mill and heap leach past producing gold mine.

Geology

Mesozoic quartzites, conglomerates and limestones intruded by a Tertiary quartz diorite stock (McCoy) and by argillic-altered felsite dykes (Cove). Gold and silver are contained in contact skarn and in a stockwork deposits at McCoy and within a ring around the dykes and in permeable beds and fracture zones. The upper zone is oxidized. Cove ore is found in clay altered upper oxide ore which is found in Triassic Augusta Mountain Formation limestone and shale and contains a higher grade core and lower grade fringes. Gold and silver is associated with clay which developed along fractures and permeable horizons during hydrothermal alteration of the host rock. Lower sulphide ore is separated from the oxide by 60 m of barren rock and is contained in Panther Canyon conglomerate and sandstone.

Sulphide ore was mined from the bottom of the McCoy pit and from ramp access underground mining below both pit zones.

The Cove South Deep target has 2 zones of mineralization. The upper zone is smaller and relatively well defined. Economics for the upper zone appear favorable and warrant development. Approximately 45,000 gold-equivalent ounces of production from this area is anticipated starting in early 2000. Additional work is required to determine the economic viability of the lower zone of mineralization. Other underground targets have also been identified.

Property News

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April 25, 2002

North American gold miner Echo Bay has posted net earnings of USD5.5 million in the first quarter compared with net earnings of USD3.8 million a year ago. Revenue reported for the period was USD55.2 million, down from USD64.5 million the previous year as a result of lower production offset by the recognition of deferred revenue (USD7.5 million) in the quarter. The deferred revenue relates to hedging contracts that were closed in prior years. The average price realized during the quarter was USD345 per ounce of gold compared with USD310 per ounce in the same quarter the previous year. Gold production in the quarter was 149,276 ounces compared with 173,470 ounces in the same quarter the previous year. Silver production from McCoy/Cove mine in Nevada during the quarter was 1.5 million ounces compared with 1.6 million ounces produced in 2001. Gold production from all the company's mines decreased for the quarter, compared to a year ago, as a result of from lower grades and fewer tons milled. Gold and silver production at the company's McCoy/Cove mine fell with an increase in cash operating costs to USD225 per ounce from USD257 in 2001, reflecting no mining costs and the reduction of infrastructure costs during the quarter. The property is in full reclamation mode. At the Lupin mine in Nunavut, cash operating costs increased to USD283 per ounce from USD217 per ounce in 2001 reflecting the lower production and the difference in the exchange rate. Echo Bay reports that its hedge book represents approximately 38% of this year's remaining planned gold production, leaving the company unhedged beyond 2002.

March 31, 2002

The property was in full reclamation mode. Re-contouring waste dumps and seeding were expected to continue for another two years.

March 31, 2002

The property was in full reclamation mode. Re-contouring waste dumps and seeding were expected to continue for another two years.

November 1, 2001

Echo Bay has reported net earnings of US$3.2 million, or a $0.07 loss per share on revenues of US$186.7 million for the nine months ended September 30, 2001. Over the comparable period in 2000, net earnings of US$16.5 million, or $0.04 per share on revenues of US$212.5 were recorded. Total gold production for the nine months ended September 30, 2001 was 521,287 ounces, slightly higher than the 513,094 ounces produced in the same period of 2000. Silver production from McCoy/Cove was 5.0 million ounces compared with the production of 10.1 million ounces in the same period of 2000. Revenues in the nine months were lower than in the same quarter in 2000 because the company realized lower average gold and silver prices and significantly lower silver production was reported. Round Mountain had an increase in mining production for the third quarter bringing down cash costs despite increases in reagent and power costs.

September 30, 2001

Gold and silver production was down in the quarter from last year reflecting the processing of low grade stockpiles as open pit mining was completed in 2000. With the lower production, cash operating costs for the quarter were $239 per ounce, compared with $189 per ounce in 2000. Reclamation activities continued during the quarter with the contouring of rock stockpiles, infiltration basins, and leach pads.

September 30, 2001

Gold and silver production was down in the quarter from last year reflecting the processing of low grade stockpiles as open pit mining was completed in 2000. With the lower production, cash operating costs for the quarter were $239 per ounce, compared with $189 per ounce in 2000. Reclamation activities continued during the quarter with the contouring of rock stockpiles, infiltration basins, and leach pads.

December 31, 2000

For the year end; gold production was 162,784 ounces, compared with 124,536 ounces in 1999, and silver production amounted to 12.3 million ounces, compared with 8.4 million ounces in the prior year, as a result of higher mill grades. Cash operating costs were $179 per ounce, down $42 per ounce resulting from the 31% increase in gold production and the 46% increase in silver production. Underground mining of the Cove South Deep is expected to be completed by the second quarter of 2001 with total production meeting the target of 40,000 equivalent gold ounces. The mining of the open pits was completed in October 2000. In 2001, lower grade stockpiles will be processed and this will continue through mid 2002.Accordingly, production will decrease significantly. The production target for McCoy/Cove in 2001 is 60,000 ounces of gold and five million ounces of silver. Cash operating costs are expected to increase to approximately $275 per ounce as a result of the lower production. Reclamation activities are underway and will continue for the next several years.

December 31, 2000

For the year end; gold production was 162,784 ounces, compared with 124,536 ounces in 1999, and silver production amounted to 12.3 million ounces, compared with 8.4 million ounces in the prior year, as a result of higher mill grades. Cash operating costs were $179 per ounce, down $42 per ounce resulting from the 31% increase in gold production and the 46% increase in silver production. Underground mining of the Cove South Deep is expected to be completed by the second quarter of 2001 with total production meeting the target of 40,000 equivalent gold ounces. The mining of the open pits was completed in October 2000. In 2001, lower grade stockpiles will be processed and this will continue through mid 2002.Accordingly, production will decrease significantly. The production target for McCoy/Cove in 2001 is 60,000 ounces of gold and five million ounces of silver. Cash operating costs are expected to increase to approximately $275 per ounce as a result of the lower production. Reclamation activities are underway and will continue for the next several years.

November 30, 2000

Heap leach operations continued even though crushing was completed. Open pit operations were completed in Oct/00. Underground operations at Cove South Deep encountered higher than expected water flows, but the issue was resolved.

November 30, 2000

Heap leach operations continued even though crushing was completed. Open pit operations were completed in Oct/00. Underground operations at Cove South Deep encountered higher than expected water flows, but the issue was resolved.

Reserves

Commodity	Class	Tonnage	Grade	Note	Reference Date
GOLD	Proven & Probable	4,282,000	1.17 g	Proven and probable reserves. Containing 161,000 ounces.	December 31, 2001
SILVER	Proven & Probable	4,282,000	79.17 g	Proven and probable. Containing 10.9 million ounces.	December 31, 2001

Production

All production data are sorted first by Commodity and then by Year into reverse chronological order.

Commodity	Year	Quantity	Cash Cost	Currency	Note
GOLD	2002	513,200 g	7.23	U.S. Dollars	For the 3 months ended Mar31/02. Production was completed in Mar31/02 and the mine property is being reclaimed.
GOLD	2001	2,943,408 g	8.10	U.S. Dollars	For the 12 months ending Dec 31/01.
GOLD	2000	5,063,000 g	5.75	U.S. Dollars	For the 12 month ended Dec31/00.
GOLD	1999	3,873,493 g	7.11	U.S. Dollars	For the 12 months ended Dec 31/99.
GOLD	1999	3,873,493 g	N/A	U.S. Dollars	1990 FISCAL YEAR (Apr/90-Mar/91) 1,474,255 G Au produced (APR 01-JUN 30, 1990 PROD 1,028,550 G Au)
GOLD	1998	5,209,646 g	6.53	U.S. Dollars	For the year ended Dec 31/98.
GOLD	1997	5,817,408 g	8.71	U.S. Dollars	For the year ended Dec 31/97.
GOLD	1996	8,451,649 g	9.45	U.S. Dollars	For the year ended Dec 31/96.
GOLD	1995	9,642,427 g	7.14	U.S. Dollars	For the year ended Dec 31/95.
GOLD	1994	11,177,200 g	6.40	U.S. Dollars	For the year ended Dec 31/94.
GOLD	1993	12,304,600 g	6.27	U.S. Dollars	For the year ended Dec 31/93.
GOLD	1992	9,377,930 g	7.52	U.S. Dollars	For the year ended Dec 31/92.
GOLD	1991	8,843,420 g	8.13	U.S. Dollars	For the year ended Dec 31/91.
GOLD	1991	8,843,420 g	N/A	U.S. Dollars	12 months to 31.12.91
GOLD	1990	7,932,600 g	N/A	U.S. Dollars	12 months to 31.12.91 from 1,365 kt leached @ 1.75 g/t Au, 72% recovery and 2.95:1 strip ratio.
GOLD	1990	7,932,600 g	8.68	U.S. Dollars	For the year ended Dec 31/90.
GOLD	1989	6,673,700 g	6.79	U.S. Dollars	For the year ended Dec 31/89.
SILVER	2002	47,000,000 g	7.23	U.S. Dollars	For the 3 months ended Mar31/02.
SILVER	2001	202,172,100 g	N/A	U.S. Dollars	For the 12 months ending Dec 31/01.
SILVER	2000	382,571,800 g	N/A	U.S. Dollars	For the year ended Dec 31/00
SILVER	1999	261,268,560 g	N/A	U.S. Dollars	For the 12 months ended Dec 31/99.
SILVER	1998	292,771,521 g	0.12	U.S. Dollars	For the year ended Dec 31/98. Cash operating costs stated per g of silver are based on average gold-to-silver price ratio of 53.8:1.
SILVER	1997	342,813,439 g	0.13	U.S. Dollars	For the year ended Dec 31/97. Cash operating costs stated per g of silver are based on average gold-to-silver price ratio of 67.1:1.
SILVER	1996	220,831,300 g	N/A	U.S. Dollars	For the year ended Dec 31/96.
SILVER	1995	370,125,700 g	N/A	U.S. Dollars	For the year ended Dec 31/95.
SILVER	1994	324,816,300 g	N/A	U.S. Dollars	For the year ended Dec 31/94.
SILVER	1993	387,367,270 g	N/A	U.S. Dollars	For the year ended Dec 31/93.
SILVER	1992	245,713,700 g	N/A	U.S. Dollars	For the year ended Dec 31/92.
SILVER	1991	174,767,980 g	N/A	U.S. Dollars	For the year ended Dec 31/91.
SILVER	1990	61,660,300 g	0.11	U.S. Dollars	For the year ended Dec 31/90.
SILVER	1989	70,282,000 g	0.10	U.S. Dollars	For the year ended Dec 31/89.