Why not consider Ancient Stone precast stone to update your fireplace? Take a look at our workmanship, maybe we can help.

I would lay natural stone right onto the brick.

It depends, Is this a brick, stone, marble etc. veneer. A typical brick fireplace is a good candidate for a parge coat before tile application.

Not sure what your fireplace looks like but we painted ours. It was ugly red brick circa 1988. I followed aLowes tutorial and boy what a difference! We love it. I'll post a pic in a bit with the tutorial link.

Sorry, I don't have a photo of the original brick. Lost it on my old computer.

Here is the link to the tutorial/instructions. All you need is two paint colors, a roller and a sponge. Very easy to do! http://www.lowes.com/creative-ideas/other-areas/modern-fireplace-makeover/project

Now all I need to do is figure out how to remove the cemented/built in fireplace insert. It's also dated but we figure it will be major work.

Anyway, good Luck if you are still trying to decide what to do. Out living room is much more bright now.