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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): August 19, 1996
ECHO BAY MINES LTD.
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(Exact Name of Registrant as Specified in Charter)
Canada 1-8542 None
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(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
Suite 1000, 6400 S. Fiddler's Green Circle,
Englewood, Colorado 80111-4957
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: 303-714-8600
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ITEM 5. OTHER EVENTS
See Exhibit 99.1 for description of event.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(C) EXHIBITS
99.1 Press Release dated August 19, 1996.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
ECHO BAY MINES LTD.
Dated: August 19, 1996 By GERRY TYWONIUK
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Gerry Tywoniuk
Vice President, Controller and
Principal Accounting Officer
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ECHO BAY MINES Media Contact: Jill Paukert
6400 S. Fiddlers Green Circle 303 714-8825
Suite 1000 Investor Contact: Ted Sheldon
Englewood, CO 80111-4957 303 714-8813
FOR IMMEDIATE RELEASE
PROVISION MADE FOR UNSTABLE WASTE ROCK REMOVAL AT MCCOY/COVE
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Monday, August 19, 1996 -- Echo Bay Mines Ltd. (Amex and TSE: ECO)
announced today that it plans to establish a provision of up to
$30 million, or $0.22 per share, in the third quarter of 1996 for the
estimated costs of removing up to 30 million tons of waste rock from
an unstable portion of the Cove pit wall at the McCoy/Cove mine in
Nevada. The estimate of the provision is based on a preliminary
evaluation of the total tons to be removed and the associated costs,
both of which will be further refined as McCoy/Cove completes its
stabilization plan.
The unstable pit wall has had no effect on production or
reserves, and no future impact is anticipated. Existing ore
stockpiles of 4.5 million tons, together with ore to be mined from
other areas of the pit, will provide production sources until the
stabilization of this area is complete. The only impact on the life-
of-mine plan for McCoy/Cove relates to the removal of the unstable
block. The removal work is expected to occur during 1997 and 1998
following completion of the stabilization plan anticipated in early
1997. Upon completion of the removal program, mining will recommence
in the affected area.
In early August, ground monitoring sensors indicated some
movement in the pit wall, limited to a portion of the northwest
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side of the pit. During the period of a preliminary investigation, a
five-million-ton block failed and slumped along a portion of the
northwest pit wall, with no effect on safety, production or equipment.
Continued investigation and recent further ground movement now
indicate that all or a portion of a 30-million-ton-block of material
must be removed in order to stabilize the pit wall.
The area under investigation consists of a block of volcanic tuff
overlying sediments of a prehistoric lake bed. It is believed that
compression or plasticizing of the sediments has resulted in a
shifting of the pit wall material. While drilling had identified the
geologic structures, a slope stability study completed in connection
with mine plan design, as well as the results of previous mining
activities, had not indicated any reason for concern over the wall's
long-term integrity. The pit wall slope in this area averages
40 degrees.
Echo Bay is a major gold producer with mines in Canada and the
United States and with exploration and development projects on four
continents.
"Safe Harbor" Statement under the Private Securities Litigation Reform
Act of 1995: The above forward-looking statements involve risks and
uncertainties including a possible significant change in tons to be
moved caused by an expanded or reduced area of instability or the
costs related to the removal of the area of instability. Please refer
to a discussion of these and other factors in the company's 10-K, 10-Q
and other Securities and Exchange Commission filings.
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