Consider removing the white traditional molding and replace with a fitted raw wood, salvaged simple mantle. Remove sconces and clock. Replace sconces with something current that coordinates with rest of house decor. Otherwise start all over with a gut job.....the fireplace will always be what it is; tuscan design, I think. But that is OK! Also, if you get the cable show, no demo reno, she does a lot of fireplaces in her design work. She might inspire you. And she had a blog. Look up Jenn Todryk.

My contractor is ready to remove demo everything but the fireplace just not sure what to put where but I do like the salvage wood mantle thank you.

It would help if we could see the rest of the room to see your style. If the fireplace is still going to stick out after the tile is removed I wouldn't put stone on it. Keep it simple. Is the hearth going to be the same size and shape?

Yes we were thinking of granite for hearth? Here is a other pic.

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This is more transitional, but does show bump out fireplace with granite, marble, and or quartz cladding.....so many pics on houzz.