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What is it gonna take to wake this one up... $50 Silver?
Added more... at some point this puppy gotta run free.
Golden Tag and ECU Silver Initiate Work Program on San Diego Property, Mexico
Tuesday February 22, 2011, 8:49 am
MONTREAL, QUEBEC--(Marketwire - Feb. 22, 2011) - Golden Tag Resources Ltd. (TSX VENTURE:GOG - News; "GOG") and ECU Silver Mining Inc. (TSX:ECU; OTC:ECUXF - News; "ECU") are pleased to announce that initial work on a Phase 5 program of exploration has been initiated by Chemrox Technologies, an experienced mining consulting group based out of Denver, Colorado. A Contract has been signed by the parties for the term of the drilling program which allows Chemrox to act as Operator on the 50/50 joint venture San Diego Property (the JV). Chemrox will report to, and act under the direction of the joint venture committee.
The exploration team from Chemrox will be led by Sean Muller, P.Geo. a Qualified Person (QP). Mr. Muller has over 37 years of experience in a variety of geological settings and deposits across North, Central and South America, including experience with economic evaluations and advancing projects through exploration, development to production.
The Phase V exploration program on the San Diego Property in Durango State, Mexico is expected to commence in the first quarter of 2011. The program will include 10,000 to 15,000 meters of surface diamond drilling with a budget of up to US$3,000,000. Chemrox have mobilized to site and are developing drilling and service contracts, required logistical support and infrastructure and are familiarizing themselves with the geology and previous work. Their review will conclude with 3D modeling of mineralization and with proposals for exploration during Phase V. Exploration shall include:
-- Delineation Drilling on recognized Mantos- and Chimney-type massive sulphide replacement zones where significant, high grade, polymetallic intercepts have been returned in previous drilling. Previous drilling was conducted in 2007-2008 and results include:
-- 437 grams per tonne (g/t) silver (Ag) 10.3% Lead (Pb) and 11.8% Zinc (Zn) over core length of 5.9 meters (m) in hole SD-07- 21A, a silver equivalent grade of 1,080 g/t Ag over a true width of 5.0 m. Mineralization occurs in a chimney-type massive sulphide zone in an extension of hole -21 drilled to the south during Phase IV. The replacement zone occurs in undeformed, hornfelsed and altered, grey limestone on the eastern extension of the San Jose Vein.
-- 382 g/t Ag, 6.81 % Pb and 12.65% Zn over 6.55 m in hole SD 08-34, a silver equivalent grade of 958 g/t Ag over a true width of 2.6 m. A Massive Sulphide replacement zone (Chimney?) 10 m below an intersection in the La Rata Zone of 157 g/t Ag, 2.19 % Pb and 9.89% Zn over 2.37 m, a silver equivalent grade of 524 g/t Ag, over 1.40 m True Width.
-- 102 g/t Ag, 2.69 % Pb and 2.89% Zn over 15.10 m in hole SD-08-33, a silver equivalent grade of 400 g/t Ag over a true width of 7.5 m.
-- Exploration Drilling to further expand Inferred Resources and to evaluate highly prospective targets that have seen limited exploration drilling to date, including:
-- The western contact of the Central Intrusion, where additional Mantos-like, replacement and Skarn-type mineralized zones may occur in a mirror image to those that are the foundation of the current Resources;
-- Areas south of, and along the southern side of, the property where exploratory drill holes in phase IV intersected up to 300- meter wide zones of mineralized Skarn at modest (400m) depths in association with a previously unknown Monzenite Sill. The sill appears to potentially replicate the metal depositional environment on the central and eastern part of the property where current resources are predominantly established.
-- Areas in current exploration that may demonstrate increasing gold content at depth, including:
-- La Cruz Vein confirmed to a depth of 500m with 1,100 g/t Ag, 2.4 g/t Au over 0.65 m with 12.6% Pb, 6% Zn, 0.6% Cu in hole SD-07-24.
-- La Cruz Zone confirmed to a depth of 600 m with 2.42 g/t Au, 23 g/t Ag over 0.60m with 5.6% Pb and 12.7% Zn in hole SD-07-18.
-- Associated with Montanez Zone 4.89 g/t Au, 188 g/t Ag over 1.83 m with 4.35 % Pb and 2.58 % Zn in hole SD-07-11.
-- Centre Zone: 89 g/t Ag over 7.10 m with 1.34% Pb and 2.59% Zn, including: 10.39 g/t Au, 129 Ag g/t 2.02 % Pb and 7.70 % Zn over 0.30 m in hole SD-07-11.
-- New Polymetallic Green Skarns as wide zones in limestone exoskarns- true widths not determined) around the central Diorite Intrusion containing high Grade Ag Stringers north of Montanez Vein, including follow up on:
-- 104 g/t Ag over 8.03 m with 3.36% Pb and 2.50% Zn in hole SD-07-22
-- 344 g/t Ag over 1.51 m with 1.30% Pb and 2.41% Zn in hole SD-07-20
-- 4,420 g/t Ag over 0.58 m with 5.26% Pb and 7.11% Zn in hole SD-07-20
The proposed program of drilling will be reviewed and authorized by the JV Management Committee with drilling is expected to commence in the first quarter.
San Diego Property, Durango State, Mexico
Four phases of surface exploration have been previously undertaken by the JV on the San Diego Property. Successful exploration has identified a major new polymetallic Silver -Lead - Zinc - (Gold) (Ag-Pb-Zn-(Au)) mineral discovery on an extension of the Velardena Mine trend. NI 43-101 compliant reporting in January 2009 (News Release: Jan 19th 2009) identifies combined Joint Venture Mineral Resources on the San Diego property of:
-- Indicated Resources: 0.371 Million tonnes (MT) grading 245 grams silver per tonne (Ag g/t), 1.80 percent Pb (% Pb), 1.33 percent Zn (% Zn) and 0.339 grams gold per tonne (Au g/t); representing -- 4.25 Million Ounces of Silver-equivalent (oz.Ag.EQ); and,
-- Inferred Resources: 21.63 Million tonnes (MT) grading 110 Ag g/t, 1.84 % Pb, 2.21 % Zn and 0.134 Au g/t; representing an additional -- 214.3 Million oz.Ag EQ.
-- Micon International Inc. also estimated that the property remains highly prospective with additional mineral potential, on strike and at depth, of an additional estimated -- 173.5 to 389.5 Million oz.Ag EQ.
Mr. Sean Muller, P.Geo., an independent QP under the definition of NI 43-101, has reviewed the technical accuracy of this press release.
Golden Tag Resources Ltd.
Golden Tag is a junior exploration company exploring for high grade gold and silver deposits at the San Diego silver project in Durango State, Mexico; the Aquilon Gold project in James Bay, Quebec; and the McCuaig gold project in Red Lake, Ontario. Golden Tag has 45,950,958 issued and outstanding shares.
ECU Silver Mining Inc.
ECU Silver Mining Inc. is focused on the exploration, development and mining of gold, silver and base metals at its Velardena District Properties in Durango, Mexico. The Company holds a NI 43-101 compliant mineral resource of 40 million silver equivalent (0.6 million gold equivalent) ounces in the measured and indicated category and 391 million silver equivalent (6.0 million gold equivalent) ounces in the inferred category. The Company also owns two mills with a combined capacity of 820 tonnes per day. ECU's mission is to become a pre-eminent silver and gold producer through the development of its existing and potential mineral resources at Velardena.
The TSX or TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Footnote: Silver Equivalency
Silver Equivalent ounces use conversion factors established in the 43-101 Resource Evaluation reported in January, 2009. Conversion factors are: 26.60 g/t Ag per 1% Pb, 31.21 g/t Ag per 1% Zn. These conversions apply metal Recovery factors of 76% for silver, 71% for gold above 1gAu/t, 75% for lead and 44% for Zn; with commodity prices of US$11.60/oz for silver, US$640 ounce for gold, US$0.60/lb for lead and US$1.20lb for zinc.
Contact:
Stephen Altmann, President
ECU Silver Mining Inc.
416-366-2428
416-366-8131 (FAX)
ecu@ecu.ca
http://www.ecu.ca
Marc A Carrier, President
Golden Tag Resources Ltd.
514-426-8542
514-426-8543 (FAX)
pres@goldentag.ca
http://www.goldentag.ca
http://finance.yahoo.com/news/Golden-Tag-and-ECU-Silver-ccn-1444116175.html?x=0&.v=1
Doubled up here Friday... and USSIF! I am ready.
ECU Silver Reports Gold and Silver Shipments and Production in Fourth Quarter
Tuesday February 15, 2011, 10:00 am
TORONTO, ONTARIO--(Marketwire - Feb. 15, 2011) - ECU Silver Mining Inc. (TSX:ECU; OTC:ECUXF - News; "ECU" or the "Company") is pleased to announce silver and gold output for the fourth quarter of 2010 ("Q4 2010") from its mining operations at Velardena in Durango State, Mexico.
Shipments for Q4 2010 consisted of 81,071 ounces of silver; 5,983 ounces of gold; 146,985 pounds of lead; and 190,220 pounds of zinc. Expressed in terms of silver equivalent ounces, and based on commodity prices averaged over the quarter, the Company shipped 404,195 silver equivalent ounces ("AgEq oz") during this period. Compared to the third quarter of 2010 (Q3 2010), silver shipments increase by 12%, gold shipments were unchanged, lead shipments increased by 4% and zinc shipments increased by 190%. Shipments for Q4 2010, on a silver equivalent basis, using equivalent commodity price ratios for Q4 2010 and Q3 2010, was up 4% versus Q3 2010.
In Q4 2010 the operations generated silver totalling 92,786 ounces and gold totalling 2,364 ounces. In addition, the mines generated 134,937 pounds of lead and 125,401 pounds of zinc. Expressed in terms of silver equivalent ounces, and based on commodity prices averaged over the quarter, total metal output was 225,596 AgEq oz, an increase of 1% compared to Q3 2010, using equivalent commodity price ratios for Q4 2010 and Q3 2010.
Mineralized material mined for silver and gold averaged 92 g/t and 1.77 g/t, respectively, a decrease of 38% for silver and 41% for gold compared to the first nine months of 2010 while milling grades averaged 94 g/t and 1.97 g/t for silver and gold, respectively, an increase of 29% for silver and decrease of 22% for gold compared to the first nine months of 2010.Table 1 - Milling and Mining Operations Summary
----------------------------------------------------------------------------
Metal Shipped Metal Output
--------------------------------------------------------------------------------------------------------------------------------------------------------
Silver 81,071 oz 92,786 oz
Gold 5,983 oz 2,364 oz
Lead 146,985 lb 134,937 lb
Zinc 190,220 lb 125,401 lb
----------------------------------------------------------------------------
Silver Equivalent 404,195 oz 225,596 oz
----------------------------------------------------------------------------
An interesting post by Mike Kravnovsky AKA Coach247 @ Agoracom's ECU Board...
extremely bullish market depth for ECU
posted on Feb 14, 11 12:50PM
Say what you want about the Cartel, and the huge outstanding short position on ECU, but these guys are pros. They sell strength and buy weakness. I think we have already seen the lows for the year for silver, and that means we have a nice tailwind for all the producing juniors. High silver means increased production revenues, and this attracts new money into the sector. New money means stocks like ECU will have more buyers willing to risk a position. And that is bad news for the shorts.
ECU has been held back by a large short position for a long time. The shorts have been reduced immediately before and during each of the upside moves for the stock. And the short is increased immediately before and during each of the corrections for the stock. So I think its fair to assume that this little company is a part of the larger agenda to restrain silver and keep excitement to a minimum in the sector. I do not believe the majority is going to be correct all of the time, and I do not accept that the shorts can be timed almost to perfection when to buy or sell. This is a coordinated manipulation in my opinion.
The good news is that the market depth today is as bullish as I can recall. There are token batches of shares for sale all the way up past $1.20 while huge blocks of several hundred thousands of shares are lined up on the bid. I think we can infer that the shorts are among the bidders, as they look to trim their exposure ahead of the next big move. I think silver is telling us that the Cartel is in strategic retreat here, and we may see another 30-yr high before the end of this month. ECU is going to trend higher along with it.
The market depth is just a snapshot of investor interest and it too is subject to tricks and games, phantom orders, and iceberg blocks that do not show up. Things can change fast. But based on what I see today I do not think the stock can be pushed much lower and the path higher looks relatively unopposed.
cheers!
mike
http://agoracom.com/ir/ECU/forums/discussion/topics/467995-extremely-bullish-market-depth-for-ecu/messages/1512640#message
ECU Silver Reports Results From Stope/Resource Reconciliation at the Santa Juana Mine
Monday February 7, 2011, 10:15 am
TORONTO, ONTARIO--(Marketwire - Feb. 7, 2011) - ECU Silver Mining Inc. (TSX:ECU; OTC:ECUXF - News) is pleased to announce some of the results from its current development work, where the Company has again recorded significantly higher grades from active stopes compared to the mineral resource grades calculated for the Company's NI 43-101 resource report, in the same corresponding area. Due to the consistency in the higher stope grades versus resource grades at the Santa Juana mine, located in the main Velardena Property, the Company is attempting to reconcile assays from mine production to mineral resource grades in this area.
A major vein in the Santa Juana mine, the C-1 vein, was recently opened on level 19 and 39 samples were taken from the stope face, which averaged 29.80 grams per tonne (g/t) gold (Au), 819 g/t silver (Ag), 3.09% lead Pb and 3.40% zinc (Zn) over an average width of 0.51 meters. The best sample graded 85.31 g/t Au and 150 g/t Ag over 0.80 meters. These results are much higher than the expected grades of 3.70 g/t gold (Au) and 173 g/t silver (Ag) over 1.27 meter that were calculated for the most recent NI 43-101 mineral resource estimate report.
Michel Roy, CEO and Chairman of ECU stated, "This consistent higher grading in the production stopes has been reported in several press releases of the Company in recent months. The Company intends to use all this information to reconcile assays from production and assays from the NI 43-101 resources report. The objective will be to evaluate the opportunity of understanding whether revising the current resources merits producing a new NI 43-101 compliant mineral resource report, that would include the results of this reconciliation."
About ECU Silver
ECU Silver Mining Inc. is focused on the exploration, development and mining of gold, silver and base metals at its Velardena District Properties in Durango, Mexico. The Company holds a NI 43-101 compliant mineral resource of 40 million silver equivalent (0.6 million gold equivalent) ounces in the measured and indicated category and 391 million silver equivalent (6.0 million gold equivalent) ounces in the inferred category. The Company also owns two mills with a combined capacity of 820 tonnes per day. ECU's mission is to become a pre-eminent silver and gold producer through the development of its existing and potential mineral resources at Velardena. http://http://www.ecu.ca/
Contact:
Michel Roy
ECU Silver Mining Inc.
Chairman and CEO
Torreon, Mexico
011 52 871 747 5750
Stephen Altmann
ECU Silver Mining Inc.
President
Toronto, Canada
(416) 366-2428
Mark Butler
ECU Silver Mining Inc.
Investor Relations
Toronto, Canada
(905) 602-4248
http://finance.yahoo.com/news/ECU-Silver-Reports-Results-ccn-3809842404.html?x=0&.v=1
My friends, for the week: +10%!!!
Extraordinary comments: "The amendment of the facility will help allow us to return to our "exploration roots" for 2011. The recent discoveries from our development work has indicated that there is much more exciting exploration upside to the ECU story than we originally thought. So our focus this year will be twofold: 1) to significantly increase the size of the mineral resource and 2) to enhance the categorization of the resource by converting a significant amount of inferred into the "measured and indicated" category. Independent of commodity price increases, success in these two areas of focus will translate in to higher value for our shareholders".
ECU Silver to Amend Terms of its Debt Facility
Monday January 31, 2011, 11:19 am
TORONTO, ONTARIO--(Marketwire - Jan. 31, 2011) - ECU Silver Mining Inc. ("ECU Silver") (TSX:ECU; OTC:ECUXF - News) is pleased to report that it has entered into an agreement with its lender, IIG Capital LLC, to amend the terms and conditions of its debt facility.
The current agreement, which was executed on November 1, 2009, is scheduled to mature on October 31, 2011. This facility will be extended by an additional twenty six months and the new maturity of the facility will be December 31, 2013.
Principal repayments of the amended facility will be paid on a consecutive monthly basis and will commence on July 31, 2011 and end on December 31, 2013. The basic interest rate applied to the daily outstanding loan balance will be 6 percent above 3-Month LIBOR and will be subject to a minimum annual interest rate of 12%. Interest will be payable on a quarterly basis.
Michel Roy, CEO and Chairman, commented that, "The recent results from our underground development work has been very encouraging and so we are currently evaluating a new exploration program to further delineate these recent findings. Consequently, the amendment to the debt facility will provide us with more flexibility in the use of our operating cash flows and help us focus on funding a more aggressive exploration plan".
Stephen Altmann, President further added, "The amendment of the facility will help allow us to return to our "exploration roots" for 2011. The recent discoveries from our development work has indicated that there is much more exciting exploration upside to the ECU story than we originally thought. So our focus this year will be twofold: 1) to significantly increase the size of the mineral resource and 2) to enhance the categorization of the resource by converting a significant amount of inferred into the "measured and indicated" category. Independent of commodity price increases, success in these two areas of focus will translate in to higher value for our shareholders".
About ECU Silver
ECU Silver Mining Inc. is focused on the exploration, development and mining of gold, silver and base metals at its Velardena District Properties in Durango, Mexico. The Company holds a NI 43-101 compliant mineral resource of 40 million silver equivalent (0.6 million gold equivalent) ounces in the measured and indicated category and 391 million silver equivalent (6.0 million gold equivalent) ounces in the inferred category. The Company also owns two mills with a combined capacity of 820 tonnes per day. ECU's mission is to become a pre-eminent silver and gold producer through the development of its existing and potential mineral resources at Velardena.
Contact:
Michel Roy
ECU Silver Mining Inc.
Chairman and CEO
Torreon, Mexico
011 52 871 747 5750
Stephen Altmann
ECU Silver Mining Inc.
President
Toronto, Canada
(416) 366-2428
Mark Butler
ECU Silver Mining Inc.
Investor Relations
Toronto, Canada
(905) 602-4248
http://finance.yahoo.com/news/ECU-Silver-to-Amend-Terms-of-ccn-973425963.html?x=0&.v=1
ECU Silver Extends DD Vein on Level 12 of The Santa Juana Mine
Tuesday January 18, 2011, 9:50 am
TORONTO, ONTARIO--(Marketwire - Jan. 18, 2011) - ECU Silver Mining Inc. (TSX:ECU; OTC:ECUXF - News) is pleased to announce that it has opened another vein on the main entrance level of the Santa Juana mine located in the main Velardena Property.
The DD vein was recently opened on level 12 over a strike length of 114 meters grading 3.82 grams per tonne (g/t) gold (Au), 387 g/t silver (Ag), 1.25% lead and 0.48% zinc over an average width of 0.53 meters, including a 12 meters section that graded 4.12 g/t Au and 439 g/t Ag over 1.51 meters. This vein was opened as part of a program to verify the continuity of veins found in the lower levels of the Santa Juana mine which had not been previously verified except by a few drill holes. In this case, the vein was included in the NI 43-101 compliant resources as inferred resources.
Michel Roy, CEO and Chairman of ECU stated, "Once again, opening the known veins on the upper levels has yielded very interesting results. These confirm the success of one of the recent strategy of the Company which has been to explore and develop the upper portions of the veins found in the deeper levels of the mine. Except for the Santa Juana vein which was mined from surface, practically all other veins, 25 of them identified to date, have the potential to be extended from the lower levels of the mine which could add up to 250 meters of vertical extension to the whole system. Not only would this have a significant impact on the resources, should it be confirmed, but it would alter significantly any projected development program as it is so easily accessible from existing mine developments."
Additional Information
Readers are cautioned that until a prefeasibility study is completed, there are no assurances these latest mineralized zones will be economically viable.
All widths are true widths. Samples were assayed at the ERSA laboratory in Torreon, Coahuila, Mexico. Mr. Michel Roy, P. Geo., a "qualified person" within the meaning of NI 43-101, prepared the technical information disclosed in this news release.
About ECU Silver
ECU Silver Mining Inc. is focused on the exploration, development and mining of gold, silver and base metals at its Velardena District Properties in Durango, Mexico. The Company holds a NI 43-101 compliant mineral resource of 40 million silver equivalent (0.6 million gold equivalent) ounces in the measured and indicated category and 391 million silver equivalent (6.0 million gold equivalent) ounces in the inferred category. The Company also owns two mills with a combined capacity of 820 tonnes per day. ECU's mission is to become a pre-eminent silver and gold producer through the development of its existing and potential mineral resources at Velardena. Website: http://www.ecu.ca/
Contact:
Michel Roy
ECU Silver Mining Inc.
Chairman and CEO
Torreon, Mexico
011 52 871 747 5750
Stephen Altmann
ECU Silver Mining Inc.
President
Toronto, Canada
(416) 366-2428
Mark Butler
ECU Silver Mining Inc.
Investor Relations
Toronto, Canada
(905) 602-4248
http://finance.yahoo.com/news/ECU-Silver-Extends-DD-Vein-on-ccn-986753708.html?x=0&.v=1
The Silver Bears Are Back For Round Three, Explaining Two Key Recent Developments In The World Of Silver
by Tyler Durden
01/09/2011 19:47
Confused by the recent downdraft in the price of (paper) silver... Even more confused by what is happening with the record open interest in the metal? Have no fear. The bears are here, and explain things in their traditionally simple and sound effect-filled way.
This from Mark Butler at ECU Silver:
"I'm please to report we made the front cover of Energy and Mining International. They are published four times a year in hard copy and on line."
http://www.nxtbook.com/nxtbooks/businessmedia/emi_2011winter/#/0
Jim Rogers: I Would Rather Own Silver Than Gold
By Forrest Jones
Tuesday, 04 Jan 2011
Silver is becoming a better investment than the one of the hottest commodities of the past few years, gold, says investment guru Jim Rogers.
Rogers, a commodities champion, says silver prices have more room to grow than do gold prices.
“I would rather own silver than gold," Rogers tells India's ET Now.
“Silver is still 40 percent below its all-time high. So silver has not been any sort of great bubble compared to perhaps some other assets we know."
Other commodities make for good investments as well, including agriculture.
“Likewise for the rice, if rice goes down, I will buy more rice. So both the silver and rice have a great future for the next few years,” Rogers says.
Precious metals tend to rally when the world's reserve currency, the dollar, weakens.
The U.S. Federal Reserve has been printing money in an effort to spur economic recovery, sending the value of the greenback down in the process.
While the dollar has erased some losses in recent trading, concerns over expansionary monetary policy on top of deficit spending in Washington are fueling inflationary fears, which has investors rosy on the outlook for precious metals, gold especially.
"The majority of factors for gold are very positive," Credit Suisse precious metals analyst Tom Kendall tells Reuters.
"If you were looking for negatives, you would have to say the lack of any sizable de-hedging program this year from the miners would be one that you could pick up on, but from the investment community, sentiment is still very much bullish towards gold."
http://www.moneynews.com/StreetTalk/JimRogersIWouldRatherOwnSilverThanGold/2011/01/04/id/381807
ECU Silver and Golden Tag to Recommence Drilling on San Diego Property, Mexico in Quarter 1, 2011
Wednesday January 5, 2011, 9:01 am
MONTREAL, QUEBEC--(Marketwire - Jan. 5, 2011) - ECU Silver Mining Inc. (TSX:ECU; OTC:ECUXF - News; "ECU") and Golden Tag Resources Ltd. (TSX VENTURE:GOG - News; "GOG") are pleased to announce that a Phase 5 program of exploration has been authorized by the 50/50 joint venture (JV) Management Committee on the highly prospective San Diego Property in Durango, Mexico and will commence in the first quarter of 2011. The partners have agreed upon a program of exploration of 10,000 to 15,000 metres of surface diamond drilling with an exploration budget of up to US$3,000,000.
ECU Silver and Golden Tag have resolved all outstanding issues related to the recent arbitration ruling so that work may re-commence on the property as soon as possible. The parties are presently in the process of selecting a third party operator who will manage the diamond drilling program and report to and be under the supervision of the JV Management Committee.
San Diego Property, Durango State, Mexico
Four phases of surface exploration have been previously undertaken by the JV on the San Diego Property. Successful exploration has identified a major new polymetallic Silver -Lead - Zinc - (Gold) (Ag-Pb-Zn-(Au)) mineral discovery on an extension of the Velardena Mine trend. NI 43-101 compliant reporting in January 2009 (News Release: Jan 19th 2009) identifies combined Joint Venture Mineral Resources on the San Diego property of:
-- Indicated Resources: 0.371 Million tonnes (MT) grading 245 grams silver
per tonne (Ag g/t), 1.80 percent Pb (% Pb), 1.33 percent Zn (% Zn) and
0.339 grams gold per tonne (Au g/t); representing
-- 4.25 Million Ounces of Silver-equivalent (oz.Ag EQ); and,
-- Inferred Resources: 21.63 Million tonnes (MT) grading 110 Ag g/t, 1.84 %
Pb, 2.21 % Zn and 0.134 Au g/t; representing an additional
-- 214.3 Million oz.Ag EQ.
-- Micon International Inc. also estimated that the property remains highly
prospective with additional mineral potential, on strike and at depth,
of an additional estimated
-- 173.5 to 389.5 Million oz.Ag EQ.
Japan creates 1st artificial rare metal
The Yomiuri Shimbun
December 31, 2010
In a world first, Japanese researchers have produced a new alloy similar to the rare metal palladium, a breakthrough that could help alleviate the nation's dependence on other countries for this resource.
<<<WOWZERZ!!! The grades are stunning.>>>
Coach247 sez it best about this PR....
"This is the news I have been waiting for. If ECU can follow up with new zones of bulk tonnage massive sulphide mineralization then I think this stock will regain the speculative appeal that contributed to the big upside move in 2006."
2000 share buy gaps up the start of trading...
"... starting with this high priority target that could be so important in defining the future of the Company... "
WOWZERZ!!! The grades are stunning.
ECU Silver to Start Deep Drilling on Massive Sulphides in First Quarter 2011
Wednesday December 29, 2010, 8:45 am
TORONTO, ONTARIO--(Marketwire - Dec. 29, 2010) - ECU Silver Mining Inc. (TSX:ECU; OTC:ECUXF - News) is pleased to announce that it has signed a contract with LandDrill International to start drilling the high grade deep massive sulphide targets below the Santa Juana mine, on the Velardena Property.
A special high performance drill will be moved on site early in the first quarter and drilling will begin immediately thereafter to confirm the extensions of the intercepts that were reported in drill hole SJ-08-21 on July 9th 2008.
Drill hole SJ-08-21 intersected two massive sulphide veins (the "M-S Veins"). The first intercept yielded 3.66 grams per tonne (g/t) gold (Au), 295 g/t silver (Ag), 7.87% lead (Pb) and 12.07% zinc (Zn) (20 g/t Au equivalent or 945 g/t Ag equivalent) over a core length of 12.04 metres (40 feet). The second intercept yielded 7.90 g/t Au, 550 g/t Ag, 11.25% Pb and 27.68% Zn (39 g/t Au equivalent or 1,845 g/t Ag equivalent) over a core length of 1.75 metres (6 feet). Silver and gold equivalents are calculated based on current commodity prices.
The four key points regarding the M-S Veins include:
-- The grades in the M-S Veins are substantially higher than the Santa
Juana NI 43-101 Inferred Resource grades which supports the geological
model for higher grades of veins at depth.
-- Drilling has entered a zone where a multiple number of massive sulphide
lenses may be found, which is expected as drilling gets nearer to the
intrusive, which is associated with the source of mineralization in the
area.
-- The extent of the alteration zone is unknown as drilling has not yet
reached the intrusive and hence there is an expectation to find
additional massive sulphide lenses.
ECU Silver's latest investor Presentation
From page 4:
* ECU has 1.4 silver eq. ounces per share
* ECU is trading at $0.90 per ounce
From page 7:
Significant “pure-play” precious metal resource
• 66% comprised of precious metals
* Resources are open laterally and at depth
• Mineral potential for another 570 to 930 million silver eq. oz.
From page 9:
46 Mineralized Veins
* Only 50% of property areas have been explored
* Vein resources from 200m to 1200m depth
* Series of high grades
• Up to 6000g/t silver and 229g/t gold reported
* Veins are parallel and steeply dipping
• Allows for low-cost mining
From page 10:
Massive Sulphides intercepted at depth of 1200m
* Have up to 8x higher grades than ECU resource
* Entered zone where multiple lenses may be found
* Size and extent of massive sulphide zone is unknown
* Drilling stopped before hitting edge of zone
Page 16:
INFRASTRUCTURE IN PLACE
Page 20:
SUMMARY
* +400 million ounce Silver Equivalent Resource
* High Additional Mineral Potential
* Existing Mining and Milling Operations
* Significant Gold and Silver Content
* Compelling Valuation
* Excellent Location
* Experienced Management
http://www.ecu.ca/images/stories/ECU%20Investor%20Presentation-Dec.2010.pdf
The JP Morgue Whistleblowers Are Back
Submitted by Tyler Durden
12/24/2010 11:32
Promptly after those two cuddly bears explained how the JP Morgue is manipulating the silver market, and the xtranormal video went viral, forcing the FT to release an indemnification that "according to sources" JPM had covered a major portion of its silver short (only to subsequently end up with 90% control of other metals markets), here they are back, explaining in Part 2 of the series just what the next steps in the unwind of the biggest metal manipulation scheme will look like.
The kicker: a JPM insider has told one of the bears that there is no commercial silver left, "it's all smoke and mirrors, and the CFTC can do nothing about it other than pray."
Other topical items explained: silver backwardation, that there are two commissioners at the CFTC on the JP Morgue's payroll, the BIS' fractional gold system and the usage of side pockets for sovereign gold, and pretty much everything that ties the loose
odds and ends in the PM manipulation story.
ECU commentary from Coach247.....
I sent out this commentary to Lemetropolecafe.com today (12-20):
It has been a while since I submitted any commentary about ECU Silver,
but the company continues to build strength on the basis of operations
and exploration, and I am starting to think it may perform very well
in 2011. For sure there have been a number of issues that have come
to pass during the last few years that contributed to a steep decline
in share price. I think much of the problems have been resolved for
the company and a higher trend for both gold and silver has not hurt
their operating margins. The debt on the books will need to be
addressed, either repaid through cash flow from operations, or perhaps
a secondary offering. My preference would be for the company to post
a few more solid quarters and demonstrate they are able to make money
through mining at optimum efficiency levels, and then roll a chunk of
cash to pay down debt.
Those who have endured holding this stock since 2008 have had their
patience tested. However, I could point out the longer term trading
charts for other companies have followed very similar parabolic rise -
steep decline - steady recovery patterns during the same interval.
Emerging producers often get hammered in the early stages as the
companies struggle to achieve operating efficiency and maintain steady
production. Other Mexico juniors like First Majestic and Alamos Gold
are now very successful and highly valued producers that were also
sold off bigtime early in their development phases. As ECU continues
to build stronger results and earn more respect for the improving
fundamentals I think it too can achieve a premium multiple.
Even while the stock was in a downtrend I continued to own a core
holding in ECU that I have held since 2004. I have always believed
the undeveloped resources at this deposit are so compelling that a
very large mining operation must one day become a reality at
Velardena, and the higher silver and gold climb the more confident I
am in that assumption. I do not look to the current mining as
anything more than a ways to get more exploration done and service the
current debt load. If we consider some of the most profitable mines
in Mexico today, I doubt any of them would make any money at all if
they were restrained to mining at a rate of just a few hundred tons
per day. ECU is a small producer at this point, but it is really and
exploration story. This company is not going to be mining on a small
scale with marginal economics for the next 100 years, as one might
assume based on the current magnitude of operations. As the drilling
continues to build the resource it will advance to become a high
priority development target, through a joint venture, or in an
acquisition deal with a major. That is why I have held the stock for
a long time, and recently added more shares to my portfolio.
The company announced more exploration success today, reporting
further development along newly discovered vein structures. One
encouraging aspect to this underground development work is the grades
and tonnage of the resource zones are coming in above estimates.
Considering that ECU already has several hundred million ounces of
silver resources defined, the concept that these numbers are
understated is yet another attractive aspect to the story even as the
company continues to expand the mineral inventory. At some point in
the new year I hope to hear guidance from the company that they will
step up the intensity of exploration efforts and begin to focus on the
bulk tonnage targets to depth. If they post further success in that
department, then I think the clock will start ticking for a larger
mining company to get involved.
I should disclose that ECU Silver runs a paid advertisement on my
website and as I have already pointed out, I am a long term
shareholder. I have been to visit over 100 mining projects in Mexico
during the last few years, including twice touring Velardena, and I
think this project can and will support a much larger mine in the
future. If they can hold things together and expand the bulk tonnage
resources to depth, a major mining company will be attracted to
develop a new mine at Velardena that is an order of magnitude higher
in total capacity. In such a scenario, my personal opinion is that ECU
will either become a minority partner or it will be bought out at a
premium, and in either case shareholders will be rewarded well for the
patience to hang in with this stock.
cheers!
mike
_________________
I came into this world with nothing and I still have most of it.
http://www.mexicomike.ca/php/phpBB2/viewtopic.php?t=10566&start=0&sid=d8aba694a78185de9c73102c6d32dbd6
Unbelievable!!! The fundamentals continue to grow positively.
ECU Silver Discovers Another New Vein on Velardena Property
Monday December 20, 2010, 10:58 am
TORONTO, ONTARIO--(Marketwire - Dec. 20, 2010) - ECU Silver Mining Inc. (TSX:ECU; OTC:ECUXF - News) is pleased to announce that it has discovered another new vein, the G1-lower vein, in the upper levels of the Santa Juana mine located in the main Velardena Property. Assays included a section that graded 11.39 grams per tonne (g/t) gold (Au), 861 g/t silver (Ag), 3.64% lead (Pb) and 3.50% zinc (Zn) over 0.80 meters (2.6 feet).
Michel Roy, CEO and Chairman of ECU stated, "The most interesting aspect of this new discovery is that it confirms the potential for the North-West extensions of the known veins as well as opens the possibility of discovering additional veins in that area. The discovery also adds over 100 meters (328 feet) to the known extension of the Santa Juana veins system, which was calculated at 500 meters (1,640 feet) beforehand."
The G1-lower vein was recently opened on level 17, over a strike length of 123 meters (404 feet) grading 5.73 g/t Au, 130 g/t Ag, 1.94% Pb and 1.37% Zn over an average width of 0.45 meters (1.5 feet), including a section that graded 11.39 g/t Au, 861 g/t Ag, 3.64% Pb and 3.50% Zn over 0.80 meters (2.6 feet). The G1-lower vein was discovered while the Company was investigating the North-West extensions of a system of parallel veins, the CC, C0, C1, G1 and B's veins. The G1-lower vein is parallel to the other veins and is between the CC and G1 veins. It is an entirely new vein, not included in the Company's N.I. 43-101 mineral resource report.
Stephen Altmann, President of ECU added, "The underground development on the adjacent Velardena and Chicago properties continues to pleasantly surprise us. At Velardena, we continue to see evidence of richer and thicker veins as well as new extensions of known vein systems. At Chicago, the newly discovered veins support the potential for a system of veins comparable to the extensive veining on the Velardena Property."
Additional Information
Readers are cautioned that until a prefeasibility study is completed, there are no assurances these latest mineralized zones will be economically viable.
All widths are true widths. Samples were assayed at the ERSA laboratory in Torreon, Coahuila, Mexico. Mr. Michel Roy, P. Geo., a "qualified person" within the meaning of NI 43-101, prepared the technical information disclosed in this news release.
About ECU Silver
ECU Silver Mining Inc. is focused on the exploration, development and mining of gold, silver and base metals at its Velardena District Properties in Durango, Mexico. The Company holds a NI 43-101 compliant mineral resource of 40 million silver equivalent (0.6 million gold equivalent) ounces in the measured and indicated category and 391 million silver equivalent (6.0 million gold equivalent) ounces in the inferred category. The Company also owns two mills with a combined capacity of 820 tonnes per day. ECU's mission is to become a pre-eminent silver and gold producer through the development of its existing and potential mineral resources at Velardena. http://www.ecu.ca/
Contact:
Michel Roy
ECU Silver Mining Inc.
Chairman and CEO
Torreon, Mexico
011 52 871 747 5750
Stephen Altmann
ECU Silver Mining Inc.
President
Toronto, Canada
(416) 366-2428
Mark Butler
ECU Silver Mining Inc.
Investor Relations
Toronto, Canada
(905) 602-4248
http://finance.yahoo.com/news/ECU-Silver-Discovers-Another-ccn-4276957619.html?x=0&.v=1
ECU Silver to Be Added to the S&P/TSX Global Mining Index
Monday December 13, 2010, 10:55 am
TORONTO, ONTARIO--(Marketwire - Dec. 13, 2010) - ECU Silver Mining Inc. (TSX:ECU; OTC:ECUXF - News) is pleased to announce that it has been added to the S&P/TSX Global Mining Index, effective at the open of markets on Monday, December 20, 2010.
The S&P/TSX Global Mining Index is a dynamic international benchmark tracking the world's leading mining companies. It aims to offer investors wide exposure to the world's mining markets by providing an investable representative index of publicly-traded international mining companies.
Stephen Altmann, President of ECU stated, "The addition of ECU Silver to the S&P/TSX Global Mining Index marks another step in the company's growth and recognition. Index funds and investors will be able to participate in added leverage to silver and gold prices through the growth of our resource and production".
About ECU Silver
ECU Silver Mining Inc. is focused on the exploration, development and mining of gold, silver and base metals at its Velardena District Properties in Durango, Mexico. The Company holds a NI 43-101 compliant mineral resource of 40 million silver equivalent (0.6 million gold equivalent) ounces in the measured and indicated category and 391 million silver equivalent (6.0 million gold equivalent) ounces in the inferred category. The Company also owns two mills with a combined capacity of 820 tonnes per day. ECU's mission is to become a pre-eminent silver and gold producer through the development of its existing and potential mineral resources at Velardena. http://www.ecu.ca/
Contact:
Michel Roy
ECU Silver Mining Inc.
Chairman and CEO
Torreon, Mexico
011 52 871 747 5750
Stephen Altmann
ECU Silver Mining Inc.
President
Toronto, Canada
(416) 366-2428
Mark Butler
ECU Silver Mining Inc.
Investor Relations
Toronto, Canada
(905) 602-4248
http://finance.yahoo.com/news/ECU-Silver-to-Be-Added-to-the-ccn-1912903188.html?x=0&.v=1
CPM Group Looks For Historically High Silver Prices For Next Decade
10 December 2010, 10:30 a.m.
By Kitco News
http://www.kitco.com/
http://www.kitco.com/reports/KitcoNews20101210AS_CPM.html
(Kitco News) - Silver prices are projected to remain at historically high levels over the next 10 years, concludes CPM Group in its 2010 edition of its “Silver Long-Term Outlook,” released Thursday by the New York commodities research and advisory firm.
The 224-page study is a comprehensive analysis of the key market fundamentals of silver that are expected to influence prices over a decade. The report contains projections for global mine production through 2019 on a mine-by-mine basis and also contains a new China section with an analysis of the silver supply and demand in a previously opaque market. CPM Group said the use of silver in China during 2009 was perhaps twice as much as had been believed.
The report also reviews uses for silver, including new fabrication demand such as solar panels, as well as investment. The report includes 10-year projections of supply, demand, and prices under a base case and two alternative scenarios.
“Strong investment demand, the single most important factor in influencing the price of the metal, is expected to keep silver prices at elevated levels during the projected period,” CPM Group said in a news release announcing the publication, which can be purchased. “Investors who view silver as a safe-haven asset are expected to continue buying large amounts of silver over the next couple of years as uncertainty regarding global economic growth, financial market instability, and volatility in major currency markets persist. As these concerns recede later in the decade, investment demand is projected to decline. Silver prices are expected to weaken alongside the decline in investment demand as the decade progresses.”
CPM Group said fabrication demand for silver is forecast to rise over the projected period, providing additional support to prices.
“Even in present economic conditions, there is strong demand for some of the products in which silver is used, including various electronic components used in a full range of consumer and industrial equipment,” CPM Group said. “Fabrication demand for silver is expected to rise further over the next few years, due to an anticipated improvement in global economic activity coupled with increased use of silver in some of its new and relatively new uses, such as solar panels, silver-zinc batteries.”
Primary silver mine production is expected to increase due to high silver prices and the relatively low cash and total operating costs, CPM Group said. Also, since much silver is produced as a byproduct of gold, copper, lead, and zinc, favorable market fundamentals and rising prices for these metals are expected to mean higher output and thus more silver as a by-product during the initial years covered by the CPM Group report. However, during the second half of the forecast period, net additions to silver mine supply are expected to decline, which CPM Group forecast to support silver prices during that time.
Meanwhile, CPM Group said silver use in China is estimated to have risen around three and a half times over the last decade, from 40.8 million ounces in 2000 to 139.2 million ounces in 2009, twice as large as many Western commentators have previously suggested. “Chinese silver fabrication demand is projected to account for nearly a fifth of global silver fabrication demand this year,” CPM Group said.
Previously, a lack of reliable statistics on silver fabrication demand and secondary recovery prevented China’s inclusion in international statistics. However, CPM said it has developed what it feels are sufficiently reliable statistics on silver fabrication demand by major industrial category and scrap recovery, relying on a network of industry associations and industrial participants in these markets.
By Allen Sykora of Kitco News; asykora@kitco.com
ECU Silver Uncovers Mantos-Type Mineralization at Chicago Mine
Monday December 6, 2010, 10:47 am
TORONTO, ONTARIO--(Marketwire - Dec. 6, 2010) - ECU Silver Mining Inc. (TSX:ECU; OTC:ECUXF - News) is pleased to announce that it has discovered a "mantos-type" mineralized zone (also known as a "Chimney") in the new underground development at the Chicago mine. The newly discovered zone included a cut assaying 350 grams per tonne (g/t) silver (Ag), 6.40% lead (Pb) and 12.13% Zn over a width of 3.0 meters (m) (10 feet).
Michel Roy, CEO and Chairman of ECU stated, "The mantos-type of mineralization is typically related to replacement bodies which is a very encouraging development for us, as some of the best orebodies in Mexico are of this type of mineralization. Historical mining in "mantos" style deposits have shown that these types of mineralization are generally associated with very high grades and good widths."
The new mineralization was discovered through an underground drift that was following the "Gambusinos" vein in the Chicago mine. The mantos is differentiated from the mineralized veins in that the mineralization consists of replacement bodies inserted between limestone beds. This type of mineralization, while normally limited in lateral extent, can be followed for significant distances along its plunge and is typically much wider than normal veins. The mantos deposits typically contains higher than normal grades of silver, lead and zinc. Assays to date are:
------------------------------------------------------------------------
Sample # Width (m) Ag (g/t) Pb (%) Zn (%)
------------------------------------------------------------------------
75792-793 2.90 395 5.18 7.64
------------------------------------------------------------------------
75794 3.00 350 6.40 12.13
------------------------------------------------------------------------
76953-954 2.70 104 1.06 1.26
------------------------------------------------------------------------
76955-956-957 3.80 125 0.96 1.20
------------------------------------------------------------------------
76958-959-960 4.30 42 1.35 3.27
------------------------------------------------------------------------
76961-962 3.20 24 0.69 4.04
------------------------------------------------------------------------
Average of 6 cuts 3.32 161 2.45 4.70
------------------------------------------------------------------------
I totally agree... this article has brought out the best in you from what I see!!! Can you be any more harsh??? LOL!!! What a shame that these folks have no shame.
Thanks for all you do at i-Hub.
Ted deserves something equivalent to the Congressional Medal of Honour for all the time he put into bringing attention to the manipulation, not to mention all the spears he took in the process not just from the CrimNakes themselves but all their Obsequious Toadies, Sycophant SockPuppets and Bought-off Acolytes of the MSM.
Interview With Theodore Butler
By: James Cook & Theodore Butler
Posted 24 November, 2010
Cook: For the past ten years you have been claiming that silver was the best thing people could own. How do you feel now with silver around $25 an ounce?
Butler: I have a sense of relief that I could not possibly have hurt anyone who followed my advice. I also feel intellectually vindicated about the way things are turning out. Lastly, I feel amazed how good silver still looks for further gains.
Cook: How high could it climb?
Butler: Real high, but by now you should know I shy away from specific price targets.
Cook: A lot has been going on with silver lately. Most of the things you’ve written about are starting to happen. What do you think about the recent spate of lawsuits against JPMorgan and HSBC?
Butler: It’s a big deal. The main thing is not the outcome of this case, but rather the fact that they were filed.
Cook: How many lawsuits were filed?
Butler: The latest tally is 25, I’ve been told.
Cook: Why do you think these lawsuits are important?
Butler: It is another confirmation of the growing recognition that silver has been manipulated in price.
Cook: They must be reading your newsletter because everything claimed in the first lawsuit originated with you. Do you agree?
Butler: Yes, I know that for a fact.
Cook: The basis of the lawsuit is that these big banks are short an inordinate amount of silver. How much to be exact?
Butler: It varies over time, but at the time referenced in the lawsuit, JPMorgan, either alone or with another U.S. bank, held short on the COMEX the equivalent of 25% of world annual mine production
Cook: How many ounces is that?
Butler: In most recent CFTC data, it is 150 million ounces, but within the past year it has been over 200 million ounces
Cook: You’re claiming that’s manipulative?
Butler: Absolutely. It would be impossible for such a concentrated short position not to be manipulative. It was this observation that led to the current CFTC silver investigation which, in turn, led to this lawsuit.
Cook: How many ounces are there held short in total?
Butler: The total net short position in COMEX futures is around 550 million ounces, but if you include everything, especially unbacked bank certificates and pool accounts, it grows to 2 or 3 billion ounces.
Cook: Who are these short sellers outside of the big one or two?
Butler: On the COMEX, there are about 8 commercial entities short over 300 million ounces, including the biggest.
Cook: They got squeezed pretty good when silver hit $29, didn’t they?
Butler: You bet.
Cook: How big have the losses been for the shorts?
Butler: In silver, the big 8 were out over $3 billion at the top, and more than $5 billion if you include all the shorts.
Cook: You pointed out that there had to be a lot of margin calls, when gold is included, what’s the total?
Butler: All in all, almost $15 billion.
Cook: They actually had to cough up $15 billion?
Butler: Absolutely. That’s a key component of the clearinghouse system.
Cook: Did anybody fail to make their margin calls?
Butler: It’s hard to tell.
Cook: I thought the price rise to $29 might have been because some folks couldn’t make margin calls and the brokerage firm bought back their position. No?
Butler: I’m certain there was a lot of that; they liquidate the contracts to satisfy the margin calls.
Cook: They don’t mess around do they?
Butler: This is basic commodity stuff. As a customer, if you don’t meet your margin calls your broker will liquidate your position. Otherwise the brokerage firm must eat the customer’s loss. Brokerage firms don’t allow customers a free ride. If a brokerage firm doesn’t meet its overall margin requirements to the clearinghouse, that’s a default, a real no-no.
Cook: It’s hard for me to believe that JPMorgan is sitting flatfooted waiting for the axe to fall. Don’t you think they’ve dug up a lot of silver to help reduce this short position?
Butler: I’m sure they’ve come up with as much silver as possible, but there are physical constraints to that. Their problem is not a money problem, but a physical material problem.
Cook: I see they raised margin requirements on silver. Why only silver?
Butler: Silver had moved the most and the margins should have been raised. The scandal was when they raised the margins. This is an issue of timing. They waited until prices made a downside reversal and then raised silver margins.
Cook: Is this fishy?
Butler: This is an example of why I refer to the CME Group (COMEX) as operating a criminal enterprise, as I’ve seen them pull this dirty trick numerous times in the past. The exchange times the margin increase so that it comes when it is least likely to hurt, and maybe help, its big constituent member short holders. That time is always best when the price makes a sudden reversal down after a big climb. This way, the margin increase actually hurts the longs and benefits the shorts. The reversal to the downside swings the financial tide against the longs temporarily.
Cook: What should they have done?
Butler: What they should have done is raised margins on the way up, but that would have hurt the shorts, something the exchange would never do. By timing the margin increase just after a price reversal to the downside, the exchange helps the shorts.
Cook: Are they above the law?
Butler: What’s particularly infuriating and illegal is that the exchange is designated under commodity law as a self-regulatory organization (SRO). That means the CME Group is supposed to do things on a fair and even-handed basis, not cater to the selfish interests of its most important members. The phrase that comes to mind when describing how the CME fulfills its regulatory obligations is letting the fox guard the henhouse.
Cook: How in the world did this come about?
Butler: The CFTC and Congress made a very big mistake when they turned over so much regulation to the exchanges years ago. There is a conflict of interest in what the exchange does in its regulatory role. That’s why the COMEX is fighting the CFTC tooth and nail over position limits and every other issue that may infringe on its own interests.
Cook: The Commodity Future Trading Commission has ruled that within 3 months or so they will put limits on how much one entity can be long or short. Will this break up the concentrated short position?
Butler: If they stick to the timeline dictated by the new law and if they impose legitimate limits and throw out the phony exemptions to those limits.
Cook: Won’t that set silver “free at last?”
Butler: Yes, “thank God Almighty.”
Cook: Will the COMEX back down?
Butler: I don’t think so. They know this is the one issue that can blow the lid off silver.
Cook: Silver could turn into a runaway train. Why don’t these short sellers get out of the way and cover now?
Butler: They desperately want to, but it’s easier said than done because their position is so large that they are trapped. Just covering the limited amount of shorts to date has already had a profound impact on price. Why do you think we’ve risen so much in the past few months?
Cook: One of the commissioners at the CFTC has made a number of statements criticizing the shorts and the Commodity Exchange itself. Sounds like the senior regulators have embraced your views. Do you agree?
Butler: It’s hard to reach any other conclusion.
Cook: If that’s true then position limits are inevitable would you say?
Butler: The new law has mandated position limits, so unless the law is repealed I would say they are inevitable. But more than that, it’s important to remember that position limits are of specific relevance for silver more than any other market.
Cook: What do you mean?
Butler: COMEX silver is the only market which must have position limits radically reduced from the current accountability level. In all other commodities, including gold, the level of position limits is not so important because the short position is not that large. In silver, it’s the core issue.
Cook: What kind of position limit level do we need to see in silver?
Butler: If we don’t see a new level of close to 1500 contracts, instead of the current 6000 contract level, then this market is more crooked than I have been alleging. And I would think those in the public who follow this issue closely will be outraged and demand an explanation from the regulators. I know I will be.
Cook: Is it safe to say that silver is a buy until the short position is covered?
Butler: At least until the concentrated short position is reduced.
Cook: The volume on the SLV, the exchange traded fund, went ballistic recently. How many shares were trading before this jump and what did it go to?
Butler: There was an average daily volume of close to 15 million shares a day and it jumped to ten times that on a recent trading day.
Cook: How much of that was day trading?
Butler: Close to 99%, same as in every other market.
Cook: OK, but how much silver do you think was purchased on balance and must be delivered to the SLV?
Butler: I had been guessing close to 20 million ounces, but much to BlackRock’s credit (they’re the new sponsor), the silver is being brought in much more quickly than when Barclays was the sponsor.
Cook: Where is the silver coming from?
Butler: No one knows for sure, but the hallmarks on many of the new bars being deposited were from Russia and China. I think that’s good, because as those two countries wake up to the silver manipulation, they should be unlikely to continue supplying material at artificially depressed prices.
Cook: I heard a big delivery came in to the SLV last week. True?
Butler: Yes, there was an extraordinary deposit of 11.3 million ounces into the SLV on Wednesday, November 10, the largest one day deposit in the ETF since 2006. This brings the deposits into the Trust to over 18 million ounces in little more than a week and a half, to a new record of over 344 million ounces.
Cook: Are you underestimating the amount of silver available? Seems like there is always more silver.
Butler: While it is certainly possible that I have underestimated the amount of silver bullion in the world, that is not yet evident to date. I have always estimated about one billion ounces and we haven’t grown above that amount yet. What has happened is that more silver is being transferred from unreported inventories to reported inventories. This does create the illusion that the supply of silver is endless. It is not.
Cook: How much is left in unreported inventories that can come into the market?
Butler: Unless you have Superman’s x-ray vision and can see all the world’s vaults simultaneously, there is no way to know how much is left in unreported inventories. And I guarantee that you will make yourself crazy if you persist in trying to figure out the amount remaining.
Cook: Are you still sane?
Butler: No one comes with a butterfly net.
Cook: How much is known or in the reported category?
Butler: Since 2006, more than 550 million ounces have been transferred from unreported silver into reported world inventories, including the SLV and all other similar programs. Currently there are more than 716 million ounces in total world visible silver bullion inventories. That’s a very big chunk of my long-time estimate of one billion ounces in total world inventories. The way to look at it is that there are 550 million ounces less that can be transferred in the future. The long-term rise in price would seem to confirm my thinking.
Cook: Could the big shorts be buying the SLV to cover their short position?
Butler: Sure, but not to excessive amounts, as that would require lying to the SEC on ownership disclosure regulations. That’s not likely.
Cook: How much silver do you think JPMorgan and one other bank are short?
Butler: As of this moment, I’m guessing JPM may now be below 25,000 contracts. That’s 125 million ounces. But we won’t know for sure until more CFTC data are released.
Cook: How about the big eight shorts?
Butler: My guess is they are down to 56,000 contracts. That’s 280 million ounces.
Cook: How about all the shorts combined?
Butler: In COMEX futures total, I’d guess a bit under 500 million.
Cook: How does that compare with other commodities?
Butler: Still way off the charts when comparing paper contracts to real world production and inventories.
Cook: Do you see this leading to a price explosion in silver soon?
Butler: It’s one of several things that will lead to an explosion.
Cook: How does the silver short position compare to gold?
Butler: The silver short position is much bigger than gold in every measurement, especially compared to world inventories. Silver’s relative short position is more than 100 times larger than gold’s.
Cook: Do you think silver will outperform gold?
Butler: Yes. Silver has yet to leave gold in the dust, although it has fully matched or exceeded gold’s price performance. That is actually an advantage to those gold investors who have yet to make the switch into silver. It’s not too late.
Cook: Are you suggesting a switch now?
Butler: Yes. The facts suggest silver will outperform gold in the future, the logical investment action would be to convert gold into silver. Not because gold is likely to go down necessarily, but because silver is likely to offer better investment bang for the same buck.
Cook: Have people begun to switch?
Butler: There has been a noticeable shift to physical silver investment demand, perhaps from gold investors, although I still believe it’s in the early stages. Additionally, U.S. Mint sales of Silver Eagles are particularly strong relative to Gold Eagle sales, further confirming what may be a growing investor preference for silver over gold. Given how little silver exists compared to gold, if this trend continues, the influence on silver prices should be profound.
Cook: What’s the gold-silver ratio now?
Butler: The gold/silver ratio narrowed to almost 52. This is the best relative reading for silver since the summer of 2008, just before the price of silver was manipulated lower by JPMorgan and other commercial crooks on the COMEX.
Cook: You’ve got big cahunas calling JPMorgan a crook over and over again. Ever hear from their lawyers?
Butler: Not a peep and I send every article I write in which I mention JPMorgan to Jamie Dimon, CEO of JPMorgan and to the top regulatory officials at the CME, in addition to the CFTC.
Cook: I wonder why they haven’t sued you. If someone was calling my company crooked I think I would at least have my lawyer send them a letter.
Butler: Look, I’m not looking to get sued, but I don’t know of any other way to flush these weasels out. I know that JPM and the CME are operating as a criminal enterprise when it comes to silver.
Cook: What about the COMEX? You’ve been calling them sleazy for years. Have you ever received an answer to the numerous letters you’ve sent them?
Butler: Up until a few years ago, they would respond from time to time, but more recently they’ve been hiding behind the CFTC’s skirt and letting the Commission do their dirty work.
Cook: Yes, but now I see the COMEX has been in bitter disagreement with the CFTC on position limits. Why are they so opposed?
Butler: It may indicate that the CFTC, under Gary Gensler, is sick of the exchange using the CFTC. The reason the CME is so opposed to position limits is because of silver, not any other commodity. Don’t be fooled into thinking this isn’t a silver-specific issue.
Cook: Why only silver?
Butler: This is an important point. There is no position limit problem in any other commodity apart from silver. Not in oil, or grains or gold. Just silver. It’s the dirty secret that’s about to be revealed.
Cook: How much money have the banks made over the years with this big short position in silver?
Butler: Cumulatively, it could be billions of dollars.
Cook: This gravy train has suppressed the price, right?
Butler: Yes. The concentrated short position makes it impossible for the price not to have been suppressed.
Cook: If the market gets free of the concentrated short position it should revert to the true market price. Any idea what that is?
Butler: I’ll let the market tell us, but much higher than we’ve been in silver.
Cook: Do you think it will overshoot?
Butler: I think it’s impossible for it not to overshoot.
Cook: You think that Chairman Gensler at the CFTC is a straight shooter, right?
Butler: I think he walks on water. I may be dead wrong, but I’m a pretty good judge of human character.
Cook: Will he cure the silver mess?
Butler: If he follows the law and what he knows to be right.
Cook: Is he more competent than prior chiefs?
Butler: Gensler is the smartest guy in any room. It would be an insult to compare him to any former chairman or chairwoman.
Cook: Do you still claim the CFTC has looked the other way?
Butler: They have in the past, but I sense that is changing.
Cook: I think they hate your guts. Nobody’s been in their face with solid accusations like you have. Are they still hostile?
Butler: Hard to tell. I’m not concerned with past feelings. I don’t see why they would still be hostile; I offer constructive solutions where nobody else does. If they are hostile to anyone it should be towards those responsible for the manipulation, like JPMorgan and CME.
Cook: You’ve been the pioneer of virtually every new revelation about silver for over a decade. Just about everything that you predicted has come to pass. You’ve been a great conceptual thinker on silver and the premier whistleblower. Do you think the CFTC will ever acknowledge this and give you the award you deserve?
Butler: I sure hope so, but you’d have to ask them.
Cook: Everybody and his brother is writing about silver now. Some of it is amateurish and the good stuff originated with you. However, most of these articles never give credit to you. Do you agree that this is dishonorable?
Butler: Yes.
Cook: These organizations and individuals are trying to elbow themselves into position to take credit for your work. I’ve never seen anything like it, have you?
Butler: No.
Cook: What do you make of it?
Butler: Those that plagiarize are stealing my stuff and then lying by pretending they thought up my ideas. I’d avoid such people with a ten-foot pole.
Cook: They need to at least mention you if you are the source of their information. Right?
Butler: I think so.
Cook: Let’s change directions. What about COMEX silver inventories? What’s going on with them?
Butler: Recently, COMEX warehouse inventories dropped to near four year lows, at just under 108 million ounces. This drop, importantly, was accompanied with great turnover (in and out movements); highly suggestive of tightness and that the inventory is held in strong hands.
Cook: What’s the historical perspective on this?
Butler: COMEX silver inventories are down 60% from the 280 million ounce peak in the mid-1990’s. In contrast, COMEX gold inventories are at a record high of over 11.3 million ounces, the highest in the 45 year history of the COMEX. This is an apples to apples comparison, as the COMEX is the dominant market for both gold and silver trading.
Cook: Are we in a shortage?
Butler: I think we are in the early stages of a silver shortage that is bound to grow more severe.
Cook: Won’t this cause a surge in mining production?
Butler: Sure, eventually. But any mining increase in response to higher silver prices will take many years to hit the market. It’s not like flipping a light switch.
Cook: You’ve mentioned three things that will drive up the price of silver. It looks like one of them, investment demand, is kicking in. Will it get bigger than this?
Butler: I think that’s a certainty, as more people are waking up to the silver story.
Cook: Your second bullish factor is industrial demand. Do you still expect industrial users to panic because of a shortage?
Butler: Ever see what’s left in a supermarket after a hurricane warning?
Cook: Where does the price of silver burn itself out if a buying panic occurs?
Butler: Use your imagination. Then double it.
Cook: Your final and biggest bullish factor is the end of the concentrated short position. What will this do?
Butler: Terminating the concentrated short position will end the decades-old manipulation itself. That will bring about an honest and free market.
Cook: How will they cover the short position?
Butler: By buying back the position, delivering against it or by defaulting on it.
Cook: What about going forward? What will no big short sellers mean for the future?
Butler: It will be a different world price-wise.
Cook: According to the CFTC, the deadline for position limits is just over 2 months. Is silver a ticking time bomb until then?
Butler: Silver is a ticking time bomb for many reasons and the coming open debate on position limits is one of them.
Cook: The shorts are going to have to buy back futures aren’t they?
Butler: At some point, the shorts buying back is the post plausible outcome, as the only other choices are to deliver metal or default.
Cook: How many more shorts other than JPMorgan will have to cover?
Butler: My guess is somewhere around 15 to 20 thousand, a 75 to 100 million ounce equivalent.
Cook: Am I missing something or is this a lock?
Butler: If you mean much higher prices, then it looks like a lock to me.
Cook: This is so compelling I have to ask why it hasn’t been discounted in the silver price? How come it’s not $100 already?
Butler: I think it’s a combination of a lack of homework and the initial disbelief of the whole silver premise which prevents an objective investigation.
Cook: I remember when we first met ten years ago. You were telling me silver was the best thing on earth to own. Meanwhile, a well known investment service was sending out mailings suggesting people short silver at $4.00. They said silver was more plentiful than cockroaches. I wonder what happened to them?
Butler: I hope they covered their shorts quickly.
Cook: I bring this up because a lot of people have disagreed or argued with you along the way. They’ve all been proven wrong. However, to this day there are naysayers. What do you say to a guy like Jeffrey Christian at CPM who says there’s no way that JPMorgan is short that much silver?
Butler: Generally it’s good that disagreement exists so that market participants can hear both sides of the silver story.
Cook: What about Jon Nadler who says if Ted Butler was right the price would already have gone up?
Butler: The price has gone up and will continue to do so, in my opinion.
Cook: Why exactly has silver made this big recent move?
Butler: Primarily because of a lack of additional commercial short selling on the COMEX. It was the absence of additional commercial short selling, particularly by the big concentrated shorts, like JPMorgan, that allowed the price to climb as much as it did. On the rally it became obvious that the shorts were experiencing great financial stress, being forced to deposit many billions of dollars in margin calls. This should be taken as further proof of the manipulative role that the big shorts exerted on the price of silver.
Cook: Why did it get whacked?
Butler: The problem for the big shorts was that not only were they experiencing financial stress due to the rising price, they were unable to reduce their short position. That circumstance threatened to result in financial ruin if permitted to continue. Faced with financial ruin and the growing awareness by many of the predicament the big shorts were in, they resorted to their only alternative to that ruin – create a large and dramatic sell-off. That was what we began to see on Tuesday, with the CME’s unethically timed silver margin increase and the collusive vicious sell-off on Friday, under the cover of general commodity weakness.
Cook: What’s next?
Butler: No one knows for sure. It comes down to how much additional long liquidation the big shorts can engineer. We are still above all the critical moving averages, so there does exist the possibility we could go lower to get the technical funds completely flushed out. For sure, if we do go lower, it will be because JPMorgan and the other COMEX crooks are successful in tricking the technical funds into forced selling and not for any other reason. But there has been significant liquidation already, so it is just as possible it could be done or nearly so. Certainly there is nothing in the real world of silver that would account for further selling.
Cook: What’s the status of the formal investigation of silver by the CFTC, Enforcement Division?
Butler: It has yet to be concluded. A new director was just named which should help resolve the investigation that was initiated because of my revelations in 2008 and which Commissioner Bart Chilton publicly referenced recently. No one is more anxious than me to see what the investigation concludes.
Cook: You’ve made a big thing about pool accounts at brokerage firms, international banks and private mints. What can go wrong?
Butler: Everything. It is not hard to imagine investors ending up with a total loss because the metal may not exist to back these programs. If someone is claiming to store 1000-ounce bars for you and you don’t have the serial numbers for the exact bars you paid for, you should run, not walk, to a storage program that allows you to get the specific bars. I’d be especially wary of metal purported to be stored out of the country.
Cook: Are you recommending people switch from gold to silver?
Butler: Most definitely. That still appears to be a switch, which will be greatly rewarding. It amazes me how so many commentaries predict that silver will outperform gold, yet won’t come out and say that you should sell gold in order to buy silver. It makes no sense not to sell gold in order to buy silver if you are convinced silver will outperform gold. I think many feel it’s heresy to sell gold for any reason. But if your goal is to get the best return on your investment dollar in the future, which it should be, switch to silver from gold.
Cook: The bottom line is that people who followed your advice have made a lot of money. What advice would you give to our clients now?
Butler: Well, the days of 4 or 5, 7 to 12 dollar silver are over and that’s too bad for new buyers. At least we spared no effort in urging folks to buy all along. I think in the future we will look back at current prices with much the same result, namely, large profits for those who bought. Although the price is much higher now than it was then and conditions have changed, in many ways today’s new conditions are better.
http://news.silverseek.com/SilverSeek/1290625106.php
Acting today as though there's another huge piece of news about to be dropped.
Silver sold off early today; ECU followed, but only briefly, now it's coming back strong with big bid support on both sides of the I.B.
'Ole Stewart really tells it like it is; been following him for years. The guy really does his homework, and he's somehow managed to plug himself in to the "Who really knows what." network.
Pay attention when Thomson says "Look!".
Max Pain For Options Trading On Dec 2010 Silver Futures
December 2010 options expiration day for gold and silver futures is on Tuesday, Nov 23rd 2010 (2 business day away).
How things are looking after Friday, Nov 19th 2010 business day ended, you can see on the following image.
Max pain for option trading with Dec 2010 Silver Futures is at $25 and last settled Dec 2010 Silver Futures price is at $27.18
If banksters don’t create a small miracle to drop price of silver below $25, this will indeed be max pain for them on Tuesday, Nov 23rd 2010 at 1:30pm New York time.
Especially, since currently there are 48,991 open interest contracts which equals demand for delivery of 245 million ounces of PHYSICAL silver.
Also interesting info is that Comex reports that their silver warehouses, in last 30 days reduced amount of PHYSICAL silver (they hold to deliver silver to buyers of silver options and futures), by more than 4 million ounces.
And this happened in months – October and November, that are not even delivery months for silver.
Some clients are in a hurry to get their physical silver (before others demand delivery in Dec 2010) and are taking silver out of Comex already this month.
What do you think will go on at Comex warehouses in Dec 2010 that is a delivery month for both PHYSICAL silver and PHYSICAL gold?
http://agaupm.com/max-pain-for-options-trading-on-dec-2010-silver-futures/
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
4 Comments to “Max Pain For Options Trading On Dec 2010 Silver Futures”
DayStar says:
November 21, 2010 at 14:56
AgAuPM, if max pain for the bankers is $25, and we closed Friday at $27.35, wouldn’t the bankers be better off going long on the margin and driving prices up so they can make money on the spread? If they try to drive it down, there are sovereign wealth funds buying on the dips. There is resistance at $25, OI has shown it is mostly in strong hands, and wholesalers are already experiencing shortages of silver.
AgAuPM says:
November 21, 2010 at 15:49
@Daystar – it’s not in banksters interest for price of silver to go up since then they have to deliver physical silver to call buyers that are “in the money”.
Paper money is something banksters have or can print more but physical silver they can’t print and would have to borrow or buy somewhere.
Now, if price of silver will go up or down this following week is a mystery since we have a battle between a side that wants silver to go down (banksters) and a side that wants to crush banksters (speculators).
Who will win silver price battle this week is something no one can predict today since so many are involved now in this paper silver market.
Let’s just wait and enjoy silver action in coming days.
*****
Irv says:
November 21, 2010 at 15:49
Welcome back AgAuPM. I was in Thailand a few months ago and there were gold shops everywhere. People there use gold for jewelery as part of their culture.
On the silver side, it’s looking to shape up to be a default at the Comex. If this occurs, I’m guessing we are going to get overnight parabolic moves? Could December be the month where triple digit spot price occurs due to a default? Hmm
AgAuPM says:
November 21, 2010 at 16:05
@Irv – it looks like most if not all Asia likes more physical gold than paper currencies such as USD, GBP or euro.
If only other continents would think same as them.
The only way Comex would default, would be if call buyers would start to ask for delivery of physical silver instead of doing rollovers on futures contract and accepting premiums to be paid in USD instead of demanding physical silver.
Until this shift in trader’s mind occur, Comex will keep on doing what they do the best – selling paper silver and gold derivatives plus naked shorting.
Anything is possible but I don’t expect this scenario to happen already next month.
As we saw, on Nov 9th 2010 when price of silver was speeding towards $30, they increased margins for silver futures trading and when price was falling they did the same thing on Nov 16th 2010 (probably to keep it below $25 until option expiration day on Nov 23rd 2010).
(hattip to eik)
The End of Silver Price Manipulation (Podcast)
Chris interviews Ted Butler: The End of Silver Price Manipulation
Friday, November 19, 2010, 9:18 am, by Adam
2010 has been an exceptional year for silver. The price has increased over 50% to-date, and the CFTC (the US commodity regulatory body) issued a statement last month admitting that the market price of silver may have been (and still may be) fraudulently manipulated. An investigation is underway.
Ted Butler is one of the pre-eminent commentators on the silver market. In addition to his decades following the metal, he's spent years raising suspicions about silver’s suppression by a few large banks taking on egregiously large short positions. The current CFTC action is a direct result of Ted’s activism.
In the podcast below, Chris conducts an in-depth interview with Ted focusing on the most important aspects that anyone interested in silver needs to know now. In short, Ted predicts the imminent end to the manipulation will ultimately send the price higher - much higher.
The podcast covers:
* Why silver has such a compelling value story
* The coming silver supply crunch
* The argument behind the allegations of silver price manipulation
* Drivers behind the recent price action in silver
* Why price volatility will increase
* The expected outcome of the CFTC’s investigation and why Ted thinks it will be "a bombshell for the silver market
http://www.chrismartenson.com/blog/chris-interviews-ted-butler-end-silver-price-manipulation/48215
Silver Could Spike to $50 Based on Short Positions That Need To Be Bought Back
Robertt Lenzner
Nov. 11 2010 - 4:33 pm
Anathan Thangavel of Lakshmi Capital is long silver futures and call options for his clients– and will add to his silver positions on any pullback. He knows there are huge short positions in silver; CFTC records show that 44.1% of the gross short position in silver is held by the 4 largest traders. And he reports in a comment on the silver market on Lakshmi’s website (“A Twist on the Silver Market”) that “Some traders I have spoken with are targeting the 40-50 level within 4 months.” A chart of silver prices shows that silver in recent weeks has outshone the rise in gold prices by jumping 50% from around $18 to nearly $30 and then backed off to $27.16 today. This extraordinary increase in the price of silver suggests that short covering might explain part of the gain.
Nevertheless, bullishness on silver is also based on the feeling that “the world’s silver supply and mining production is not enough to satisfy the increasing industrial demand as well as vastly increasing investment demand, Thangavel wrote me in an email Nov. 10. Only 116.1 million ounces of silver out of 2009 production of 709 million ounces were available to satisfy investment demand. “This huge shortfall indicates that the outstanding short position cannot be solely on behalf of producers, because there is a far larger outstanding position that could possibly be hoped to be mined this year, ” Thanagvel wrote today.
“For months and in some cases years, conspiracy theorists and market pundits have been speculating about the manipulation of the silver market by large banks, including JP Morgan and HSBC,” Thangavel wrote today. “Recently, these theories have been given significant weight as CFTC Commissioner Bart Chilton stated his belief that the silver market was being manipulated.” Chilton stated that “there have been fraudulent efforts to persuade and deviously control” prices in the silver market, which “should be prosecuted.”
On October 26, Chilton stated at a CFTC meeting that “I believe violations to the Commodity Exchange Act have taken place in silver markets and that any such violation of the law in this regard should be prosecuted.” A JPM Chase spokeswoman refused to comment at all on rumors in the marketplace.
As a result of Chilton’s public statement, several individual investors brought lawsuits against JP Morgan and HSBC, claiming they lost money on positions they took in silver futures on the Comex. One such suit claims that in August, 2008 JP Morgan and HSBC controlled over 85% of the commercial net short position in COMEX silver futures, and that this represented a short interest of 169 million troy ounces of silver, equal to about 25% of annual world mine production.
The suit charges alleges that beginning in March, 2010 “the net short positions of silver futures held by commercial banks, of which Defendants comprise the vast majority, have been reduced by more than 30% .” And the suit alleges that silver’s dramatic gains to its highest level in 30 years were caused by the buying back of silver futures contracts.
http://blogs.forbes.com/robertlenzner/2010/11/11/silver-could-spike-to-50-based-on-short-positions-that-need-to-be-bought-back/?partner=yahootix
On record volume, +33% for the week!!!!!!!!!!!!!!!!!!!!!!!!!
ECU Silver Releases Third Quarter Results for 2010
Friday November 12, 2010, 11:21 am EST
TORONTO, ONTARIO--(Marketwire - Nov. 12, 2010) - ECU Silver Mining Inc. (TSX:ECU; OTC:ECUXF - News) reports that it has recently released its consolidated financial statements for the third quarter ended September 30, 2010 (Q3 2010) and the related management's discussion and analysis of financial position and results of operations (MD&A). The Company increased revenues by 20%, cash flows by 55% and cash balance by 131% over the previous quarter ending June 30, 2010 (Q2 2010).
The Company generated record net revenues from the sale of dore bars and concentrates for a total of $5,293,139, representing a 20% increase over Q2 2010. The increase in revenue is a result primarily of steady results from the oxide operation plus additional revenues from the sale of the Company's gold/pyrite concentrate stockpile.
The revenues were applied against cash development costs of $4,409,458 bringing the net positive cash flow to $883,681 for Q3 2010. The cash costs were 14% higher than Q2 2010 due to continued exploration and development activities that included opening new areas of the Santa Juana mine and newly discovered veins at the Chicago mine.
Cash balance as at September 30, 2010 was $935,331, an increase of 131% over the cash balance as at June 30, 2010.
As previously reported (see press release dated October 22, 2010), in Q3 2010 the operations generated silver (Ag) totaling 95,324 ounces and gold (Au) totaling 2,137 ounces. In addition, the mines generated 222,184 pounds of lead (Pb) and 221,831 pounds of zinc (Zn). Expressed in terms of silver equivalent (AgEq) ounces, and based on recent commodity prices, total metal output was 235,842 AgEq ounces.
Shipments for Q3 2010 consisted of 72,264 Ag ounces; 5,988 Au ounces; 141,215 Pb pounds; and 65,616 Zn pounds. Expressed in terms of silver equivalent ounces, and based on current commodity prices, the Company shipped 418,553 AgEq ounces during this period.
During Q3 2010, the Company reported a loss of $971,690, or $0.003 per share, versus $3,400,930, or $0.011 per share, over the previous quarter Q2 2010. The largest impact to this change was due to a $1,049,111 reversal of the write-down of the Company's gold/pyrite concentrate inventory. The Company entered into a sales contract for a portion of its unprocessed gold/pyrite concentrate inventory and has recorded a reversal of the costs previously written off in respect of the gold/pyrite sold in the corresponding period. Also impacting the change in loss was a $1,641,881 fluctuation in foreign exchange.
Copies of the financial statements and related MD&A can be found on SEDAR at www.SEDAR.com.
About ECU Silver
ECU Silver Mining Inc. is focused on the exploration, development and mining of gold, silver and base metals at its Velardena District Properties in Durango, Mexico. The Company holds a NI 43-101 compliant mineral resource of 40 million silver equivalent ounces in the measured and indicated category and 391 million silver equivalent ounces in the inferred category. The Company also owns two mills with a combined capacity of 820 tonnes per day. ECU's mission is to become a pre-eminent silver and gold producer through the development of its existing and potential mineral resources at Velardena.
Contact:
Michel Roy
ECU Silver Mining Inc.
Chairman and CEO
Torreon, Mexico
011 52 871 747 5750
Stephen Altmann
ECU Silver Mining Inc.
President
Toronto, Canada
(416) 366-2428
Mark Butler
ECU Silver Mining Inc.
Investor Relations
Toronto, Canada
(905) 602-4248
http://finance.yahoo.com/news/ECU-Silver-Releases-Third-ccn-2307511208.html?x=0&.v=1
Stewart Thomson on ECU Silver...
Gold Stocks: The Pluto Report
Stewart Thomson
Nov 9, 2010
(excerpted)
"Take a look at ECU Silver. ( http://tinyurl.com/2899hbl ) One of my top 15 juniors researched to the bone by the world’s greatest juniors trader, GoldLion, and scheduled, in my view, for Takeover! It’s up 100% in a couple of weeks and 25% yesterday alone! But look at the ECU Weekly Chart (below) for the real story. The stock is not ending, but just beginning, its ascent to the stratosphere! Notice the “Golden Triangle”. That’s the new area of play for ECU, the new area of play for you. You need to focus on buying weakness as it happens in that area, not predicting some Alice In Wienerland correction to pretend lower prices you think you missed out on. There are no missed prices, only those creating market fantasies for themselves.....
I don’t predict corrections. I buy weakness. Know the difference between weakness in an uptrend and a correction in a fantasy mind.....
Use a chisel to pick up stock. Look at all the little bouts of weakness. That’s what you need to focus on, reality, not your needs. Demanding a massive correction when the market is issuing monster buy signals is not smart."
More at:
http://www.321gold.com/editori.....10910.html
ECU's Steve Altmann (Pres) 11-9 interview (Audio MP3 11:14)
Unfortunately, the jamoke doing the interview was ill-prepared for this task!
ECU Silver Mining Inc. (TSX:ECU: OTC:ECUXF) Management Interview
Posted by admin - 10/11/10 at 06:11 pm
ECU Silver Mining Inc.
(TSX:ECU)
President: Stephen Altmann
Standard Podcast [14:11m]: Play Now | Play in Popup (linked below)
Major discoveries of gold and silver at the Company’s Velardeña Properties have rewarded the team of mining professionals who have worked for more than a decade, determinedly developing and exploring the region.
ECU Silver has translated its exploration success into a significant mineral inventory consisting of over 46 mineral rich veins with a measured and indicated mineral resource of 40 million silver equivalent ounces and an inferred resource of 391 million silver equivalent ounces. Many of the veins and vein packages at the Velardeña Properties have demonstrated reliable evidence of continuity, laterally and at depth. This additional potential is represented by a Mineral Potential that has been quantified at an additional 570 to 930 million silver equivalent ounces.
ECU Silver also owns two operating mills with a combined capacity of 820 tonnes per day (tpd). A 320 tpd flotation mill (the Sulphide Mill) treats mineralized sulphide material to generate a lead/silver concentrate, a zinc concentrate, and a pyrite/gold concentrate. A 500 tpd cyanide leach mill (the Oxide Mill) treats mineralized oxide material to generate silver/gold doré bars.
ECU Silver is well on track to becoming a pre-eminent silver and gold producer through the development of existing and additional potential resources in the Velardeña district.
http://www.wallstreetreporter.com/2010/11/ecu-silver-mining-inc-tsxecu-management-interview/
Silver Margin Requirements to Change
CME Group, the operator of the New York Mercantile Exchange and Commodity Exchange (COMEX), on which silver futures contracts are traded, released a statement to clearing member firms, chief financial officers, back office managers, and margin managers notifying them of an increase in margin requirements “as per the normal review of market volatility to ensure adequate collateral coverage.”
Zero Hedge obtained a copy of the notice, which states that effective after the close of business on November 10, 2010, the maintenance margin requirement for COMEX 5000 Silver Trust Futures (SI) and COMEX 5000 Silver Trade at Settle (SIT) will increase from $5,000 to $6,500 per contract.
Speculation has arisen that this news is responsible for this afternoon’s significant negative reversal in the price of silver. While silver did tumble shortly before release of the CME’s notice, keep in mind that it had climbed considerably in recent weeks and may have anyways been due for at least a short-term correction. Nonetheless, the timing of the market’s response is somewhat suspicious.
Short URL: http://www.goldalert.com/?p=6397
It'll "happen" when the PMs get the usual vicious corrections that happens after parabolic moves such as they've both made; especially silver.
Look at a daily silver chart going back to the October '08 bottom. Silver could correct all the way back to $19 an ounce and the primary trend - UP - would still be intact.
Will it retrace that far ? Probably not, but one has to at least consider the possibility that it could.
More likely is a retrace to either $24 or $21 where two Fib support lines are now extant.
"Starting" is an understatement and I like it. We've got a long way to go but the train has left the station. Actually I am looking to add on any pullback but wow I wonder when that will happen!
Sure has been a long time coming, but the momentum is finally starting to build.
ECU Silver Uncovers New Mineralization at Santa Juana Mine
Monday November 8, 2010, 10:17 am
TORONTO, ONTARIO--(Marketwire - Nov. 8, 2010) - ECU Silver Mining Inc. (TSX:ECU; OTC"ECUXF - News) is pleased to announce that it has uncovered additional new mineralization in the upper levels of the Santa Juana mine located in the main Velardena Property.
The A-2 vein was recently opened on level 15.5 over a strike length of 127 meters grading 4.90 grams per tonne (g/t) gold (Au), 386 g/t silver (Ag), 2.55% lead (Pb) and 1.72% zinc (Zn) over an average width of 0.86 meters, including a section that graded 10.47 g/t Au, 354 g/t Ag, 4.93% Pb and 6.39% Zn over 1.10 meters.
The new mineralization was discovered in an upper level of the Santa Juana mine which currently extends from level 12 to level 19. The Company's NI 43-101 mineral resource estimate includes only a portion of the A-2 vein which was previously opened for only 40 meters. The reported portion was classified as measured resources grading 3.05 g/t gold, 240 g/t silver, 0.77% lead and 0.49% zinc over 1 meter. The remaining 87 meters are in addition to the reported mineral resources.
Michel Roy, CEO and Chairman of ECU stated, "Once again this new resource block provides further evidence that we continue to open mineralized areas that prove to be either higher grade or larger widths or both, than what is reported in our mineral resource report. In this case, higher grades were realized plus an additional section that extends almost 70% beyond the reported mineral resource section. This new mineralization is in the heart of the developed area of our most important mining unit, Santa Juana."
Cautionary Statements
Readers are cautioned that until a prefeasibility study is completed, there are no assurances these latest mineralized zones will be economically viable.
All widths are true widths. Samples were assayed at the ERSA laboratory in Torreon, Coahuila, Mexico which is currently in the process of being certified. Mr. Michel Roy, P. Geo., a "qualified person" within the meaning of NI 43-101, prepared the technical information disclosed in this news release.
About ECU Silver
ECU Silver Mining Inc. is focused on the exploration, development and mining of gold, silver and base metals at its Velardena District Properties in Durango, Mexico. The Company holds a NI 43-101 compliant mineral resource of 40 million silver equivalent (0.6 million gold equivalent) ounces in the measured and indicated category and 391 million silver equivalent (6.0 million gold equivalent) ounces in the inferred category. The Company also owns two mills with a combined capacity of 820 tonnes per day. ECU's mission is to become a pre-eminent silver and gold producer through the development of its existing and potential mineral resources at Velardena. http://www.ecu.ca/
Contact:
Michel Roy
ECU Silver Mining Inc.
Chairman and CEO
Torreon, Mexico
011 52 871 747 5750
Stephen Altmann
ECU Silver Mining Inc.
President
Toronto, Canada
(416) 366-2428
Mark Butler
ECU Silver Mining Inc.
Investor Relations
Toronto, Canada
1 888 513 3444
http://finance.yahoo.com/news/ECU-Silver-Uncovers-New-ccn-3796472525.html?x=0&.v=1
+21% for the week...
Excerpted from the Oct.15th interview with ECU CEO Michel Roy..... #msg-55612156
CEOCFO: Is the investment community paying attention? (to ECU)
Mr. Roy: The investment community has not realized yet exactly how far we have progressed in the last few months. Quite a few people are waiting for the results of the 3rd Quarter to see the evolution.
I think our shareholders are going to be pleasantly surprised. Some of the bigger investors will probably wait a little bit more to see the 3rd and the 4th Quarter.
On our side we decided to keep everybody informed and you can see that we have been publishing quite a bit of press releases so that people know that we are doing things, and I think that lacked a little bit in the early months of this year.
CEOCFO: What is the most important thing you learned from getting this into production that you could translate to newer projects?
Mr. Roy: The biggest thing now for us because of the production is that we are financially independent, in the sense that now I don’t have to rely on outside funding to pay for the cost to do new things, explore new areas, do some acquisitions. All that right now I can consider; whereas before I would have to do some financing; right now we are not planning to do any short-term financing.
CEOCFO: Would you tell us about some of the new vein discoveries?
Mr. Roy: In our latest press releases we are opening areas either that were not included in our resource estimates and the official report, or were included but in the inferred category with relatively low grade. What we have been finding is that the veins are more continuous and have better grades than indicated by the drilling, and I have been focusing on that.
I want to demonstrate that most of our resources are very high quality resources, and that when we go there actually to mine, so far we have more than thirty examples, we have always found more gold by mining it than the drilling indicated.
CEOCFO: In closing, why should potential investors consider ECU Silver Mining?
Mr. Roy: There are quite a few reasons investors should consider. First we are certainly one of the lowest cost producers in Mexico. Number two, we have a huge resource among the small companies. For our size company, we are the largest resource base.
The resource we have has the potential to grow tremendously very simply because we have not reached the limit of our main mineralized systems. We have not reached the limit of depth or laterally, so there is still a large potential for growth there.
Finally, I think that because of the past dealings that we have had with local miners there are smaller miners that have lots of confidence in us and have been approaching us with projects that are of interest to us. Therefore, we have first shot at a lot of things that the big ones don’t have or the others won’t have because they don’t have the contacts. All of that put together means that the company will continue to grow tremendously in the future.
Thanks to Lawnbowler @ Agoracom's ECU Silver board
http://agoracom.com/ir/ECU/forums/discussion/topics/450723-recall-part-of-the-michel-roy-interview/messages/1466651#message
Nice to see this moving finally. Hoping to add more on pullbacks.
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Golden Minerals is a unique mining company with a focus on exploration, development and growth through strategic business transactions. The company has a broad portfolio of mineral exploration projects, a strong balance sheet, revenues from royalties, and an experienced management team with global experience. Golden Minerals' exploration business strategy is to enhance shareholder value through advancing projects from discovery through development into profitable operating mines. The company owns and controls a large number of exploration properties located primarily in the high potential mining districts in Latin America, including the feasibility stage El Quevar Project in northern Argentina. Golden Minerals is also actively pursuing growth through strategic opportunities, including acquisitions, joint ventures and asset consolidations. The company evaluates and pursues selected opportunities that can bring synergy to existing assets and leverage the strengths of their management team. The Golden Minerals management team has a proven track record of experience through all areas of mineral resource development, from acquisition and exploration, permitting, construction, ramp-up and optimization of production, commissioning, all aspects of operations, and mine reclamation and closure. The management team has worked for major mining companies throughout the world.
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