ECU Silver Mining Inc. (TSE:ECU)

[Pro-Life]

Is this double bottom we see the real bottom???

[basserdan]

ECU Silver Deep Drilling of Massive Sulphides has Reached Target Zone

Thursday May 19, 2011, 10:18 am

TORONTO, ONTARIO--(Marketwire - May 19, 2011) - ECU Silver Mining Inc. (TSX:ECU; OTC:ECUXF - News) is pleased to report that the high-performance deep diamond drill has reached the high grade massive sulphide zone at its Velardena Property.

As previously reported, the high-performance drill was commissioned to further test the deep seated massive sulphides at a depth of approximately 800 meters below level 18 to confirm the extensions of the high grade intercepts that were reported in drill hole SJ-18-21.

The drill has begun coring into the target zone and we anticipate having results shortly.

The Company also advises that it plans to file its March 31, 2011 Consolidated Interim Financial Statements and Management Discussion and Analysis on June 14, 2011. The filings for the first quarter of 2011 will contain the first set of financial statements prepared in accordance with International Financial Reporting Standards (IFRS). To assist companies in making the transition from Canadian generally accepted accounting principles to IFRS, Canadian securities regulators have extended the normal filing deadlines for the first quarter of 2011.

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 N.I. 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.

Website: 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
[phone]

Mark Butler
ECU Silver Mining Inc.
Investor Relations
Toronto, Canada
[phone]

http://finance.yahoo.com/news/ECU-Silver-Deep-Drilling-of-ccn-3228338073.html?x=0&.v=1

[basserdan]

JP Morgan: "Operation Silver Slam"
By Bix Weir



I must admit that I've been watching JP Morgan pull the same manipulation stunts over and over again for years. And it's not just in the silver markets. On November 18, 2005 when natural gas prices were skyrocketing to near $15 due to the ravaging of hurricanes Katrina and Rita the Federal Reserve announced that they had approved JP Morgan to trade in natural gas. That announcement can still be found on the Federal Reserve website here: http://www.federalreserve.gov/boarddocs/press/orders/2005/20051118/default.htm

At the time I told all my subscribers invested in natural gas to "run for the hills" as it felt like there was something afoot. In less than 1 year JPM had trashed natural gas down to what everyone thought was a floor of around $6 and the "smart money" had loaded up for what they thought was going to be a nice ride up...But JPM was not done and went for the final choke out driving the price down below $5 and holding it there destroying Amaranth in their wake then buying up the pieces to make at least $750M but many suspect over $2B. Here's the price graph to see what happened after Nov 2005.



JPM had made BILLIONS in natural gas in less than a year by rigging the market lower! An excellent account of how it all went down was written by Rob Kirby here: http://news.goldseek.com/GoldSeek/1303221043.php

Clearly this massive, surgical manipulation of the natural gas market was orchestrated and coordinated between the Federal Government, the Federal Reserve, the NYMEX and JP Morgan. Then, in 2008, when Bear Stearns went down JP Morgan came in at the bequest of the Federal Reserve again and took over Bear Stearns and their over-sized COMEX silver short position (est at over 150M oz). At the time silver was breaking free from it's decades long manipulation and pushing up over $21/oz. Within 6 months JPM had managed to drive the price down to what everyone thought was a solid floor in the low teens and the "smart money" loaded up again for the ride up. Again JPM attacked and drove the price down below $9 and held it there CRUSHING the innocent and "not so innocent" silver investors stabilizing the "managed price" of silver.

Proof that it was JP Morgan that took control of the silver hot potato was uncovered by Ted Butler (go figure!). This proof is about as strong a case as you can make without JPM publicly admitting their involvement or a whistle-blower coming out and publicly telling the world that JP Morgan rigs the silver market...wink, wink:

In both cases JPM drove the price down to where the "strong hands" usually got in only to let it start to rise a bit before slamming down further than anyone had expected...and held it there CHOCKING OUT anyone who didn't have the monetary backing or the patience to wait out JPM. Both these moves were 100% sanctioned by the Federal Reserve, US Treasury, the Market Exchanges and the CFTC. Both these rigging operations were 100% illegal.

So in January 2011 when President Barrack Obama appointed the JP Morgan Senior Executive, William Daley, as his "Chief of Staff" I had thought to myself..."This should be interesting". In September 2008, at the height of the banking collapse Money Magazine ran an article entitled "Jamie Dimon's Swat Team" and listing Bill Daley as "the head of corporate responsibility and a former Secretary of Commerce" on page 2. http://money.cnn.com/2008/08/29/news/companies/tully_dimon.fortune/
He is even front and center in a photo of the "Swat Team"



So Bill Daley, the man directly in charge of "Corporate Responsibility" during the JPM silver slam of 2008, was "placed" right next to the President of the United States to preside over the current "Operation Silver Slam". My God...is there no hiding for these VILLAINS anymore?! This Bad Guy was "responsible" for the corporation at the heart of the scandal involving the takeover of Bear Sterns silver position and must have oversaw the 2008 Silver Slam discussed above.

As of the end of April, the monster silver short stood at approximately 125M ounces. The latest CFTC Bank Participation Report for April showed a surprising "no change" but that doesn't mean there was "no action" in April. Most likely JPM continued to build their short during most of the month then started covering at the end such that it looked like nothing happened. May should be a different story so expect continued volatility as we progress through the month.

Now let's take a look at the current Silver market manipulation and see if this "operation" shares any similarities with the two prior market manipulations addressed above. First, lets look at a visual of the operation:



As can be seen by this 6 month chart, one week after Daley took office the price of silver went on a steady, computer controlled ride up to $50. This continued until the very last day in April. This was NOT all those eager silver bugs winning the battle over silver in the free markets. This was a computer market rigging operation executed with military precision to bring as many weak hands in as possible to assist in the reverse downward manipulation that began on May 1st. The purpose of this operation is to cover as many short contracts as possible, drive the investment community away from silver, protect JP Morgan from losing control of the silver market and protect the soundness of un-backed fiat money.

If JP Morgan sticks with its tried and true "Modus Operandi" they will continue this downward manipulation after allowing some new "bottom pickers" to get in at a supposed price support level. They will force the price lower than anyone thinks and hold it there to "CHOKE OUT" everyone before allowing the price of silver to slowly rise to a more defensible position. Make no mistake. $50 was not a true Fair Market Value for silver and neither is $35 or $25 or $15. The price of silver is 100% determined by computer market rigging with the assistance of certain "Bad Guys" within the US Government, the Banking Cabal, Brokerage Houses, Commodity Exchanges and many more.

Along with this manipulation came the CME margin increases to help push the price down, the silver hedging put on my Carlos Slim's mining company, the margin increases at the brokerage houses, George Soros telling people to get out, the talk of bubble and oversupplies of silver by the mainstream media...and of course the Obama Birth Certificate Fiasco and the Osama Bin Laden Murder Con. Nothing...and I mean NOTHING coming out of Washington DC should be believed these days.

So the wars for our FREEDOM are raging and of course JP Morgan is leading the battle for the Bad Guys. Remember this warning from Jamie Dimon just a few weeks before the Silver Smash when he was talking about the US Congress not raising the debt ceiling? "I would have hundreds of [people] working around the world protecting our company from that kind of event. We would get prepared for it way ahead of time. Like, I would be taking really drastic action. It would be really unpleasant," he said.

http://blogs.wsj.com/washwire/2011/03/30/dimon-hitting-debt-ceiling-would-be-catastrophic/

Yes. Jaime Dimon is using his evil rigging machine to teach "We The People" a lesson and that lesson is "STAY AWAY FROM SILVER YOU USELESS EATERS!" I don't know how low they will take silver this time. And you don't either. The Good Guys may even decide "ENOUGH IS ENOUGH" and take the Bad Guys down in a blink of an eye by driving silver to the moon. Anything can happen now.

The ONLY way to survive this with your wealth and sanity in tact is to be sitting on the sidelines with physical silver out of the reach of these criminal Banksters.

And best of luck to us all of us...we're gonna need it.

May the Road you choose be the Right Road.

Bix Weir
www.RoadtoRoota.com

http://www.lemetropolecafe.com/hemingway_table.cfm?pid=9226 ('painless' 2 week trial sub available)

[basserdan]

From the ECU Silver board @ SH....

posted by Mike 97 on May 09, 11 05:14PM

Dave from Denver in tonights MIDAS.

ECU Silver May Be Ready To Make A Big Move
Monday, May 9, 2011

ECU CEO Michel Roy released a letter to shareholders with a complete update on operations today. Before I get on my soap-box and highlight the salient operational points, I would like to first re-print this quote from the letter with regard to the inexorable, illegal manipulation and price-capping of this stock that has occurred for several years now:

ECU's stock also appears to have received excessive pressure from trading patterns which appear designed to suppress the stock price. Management considers this to be a serious concern and is in discussions with legal counsel regarding the nature of this activity and potential recourse.

One of the largest shareholders has been meticulously and laboriously keeping track and recording the market-making activity in this stock for about 4 years, at least. Eveyone of us with decades of trading experience have evaluated this data and it is unequivocally illegal manipulation, likely in conjunction with a rogue blogger who operates out of Peru. I even believe Citadel Capital, the Chicago-based hedge fund may be the lead perpetrator. Having said this, the shareholder referenced above has filed several complaints with the regulatory officials in Canada - I have seen some of these complaints - and of course the complaints have been arrogantly and summarily dismissed. It is beyond absurd but not unexpected given the corrupt nature of the regulatory bodies governing both Wall Street and Bay Street in Canada.

Now, having gotten that out of the way, here is the letter: #msg-62906687

For whatever reason, the market seems to overlook many of ECU's key accomplishments to date, the most significant of which is that they are systematically exploring and proving what turn may turn out to be one of the largest silver deposits in the world. One of the big criticisms of ECU has been that the metallurgy of the deposit is not economical. ECU has spent a lot of time and energy disproving this by building a milling operation which has been processing stockpiled ore and converting it into gold/silver/etc concentrate which is used to help substantially fund ECU's continued drilling activities. You tell me if you think this sounds like its deposit is not feasible:

ECU has increased revenue over the past five consecutive quarters, enhanced by the successful negotiation of the sale of a 13,000 tonne stockpile of processed material containing gold pyrite. Revenue in Q4 '10 was over $6.4 million, almost 200% higher than the period five quarters earlier. Altogether in 2010, metal sales increased year over year by 250% for gold, 144% for silver, 568% for lead, and 375% for zinc. Although the sale and delivery of the gold pyrite stockpile has been completed, management expects revenue from production to improve when the company mines in recently-developed stopes containing significantly higher resource grades...An accelerated development program is underway to advance additional veins, and mining levels, to a stage where mineralized material can be extracted from more mining stopes, thereby increasing production.

The entity that purchased the gold pyrite was one of the largest multi-national gold and silver miners in the world. In my view, one of the most significant aspects of this milling operation is that it should expedite the pre-feasibililty/feasibility process once ECU is ready for that stage of mine development.

Currently ECU is in the middle of drilling a Mass Sulphide Zone (MSZ). One of the most compelling features of what ECU has discovered and proved so far is that they have not found the ultimate "source" of the veins it has been uncovering. While ECU's last resource report contained an statement from the engineering and testing firm that prepared it that essentially said that the depost may contain close 1 billion ounces, it is thought by many of us that discovering and defining the MSZ could add another 50% to ECU's resource.

I think the biggest impediment to ECU's stock achieving a more realistic and comparable valuation, besides the smear campaign being waged from seedy corners of the market and illegal trading activities which are allowed to fester unfettered by the regulators, is that fact that ECU's share base has 308 million shares outstanding. Most junior stock investors, for whatever illogical reason, would prefer to invest in companies with less that 100 million shares. Of course, relative value is about understanding and defining relative valuation.

In that regard, let's compare ECU to Great Panther (GPL), one of the silver market darlings. We own GPL as a trading play, by the way. GPL sports a $450 million market cap and reports having 12.8 million "measured and indicated" ounces of silver (including silver equivalent) and a total of 21 million ounces, including inferred. $21/total ounces per share of valuation. Hmmmm....let's look at ECU (and I would like to say that ECU makes it significantly easier to find this information). ECU has a market cap of $237 million on top of a resource of 40 million "measured and indicated" and 430 million including inferred. 55 cents/oz per share. If you're like me, you're scratching your head on that one. Now, granted there's story behind GPL and they are producing silver and that production is on target for some nice increases. But the disparity in valuation is absurd. And in my valuation assessment of ECU, I'm not giving any credit for "potential" resource as outlined by Micon.

In terms of trading, I took profits for myself and some profits for my fund when the stock traded over $1.10 a few months ago. I have a fiduciary responsibility to my investors (which includes me) and we had been riding some positions we put on when the stock was below .60 cents last year. But we always have a large core position in the fund. However, in this latest sell-off in ECU, some of which is obviously sector-related - but MOST of which has been due to excess shorting/naked shorting and end of day trading games each day - I have reloaded my personal position (I have been in this stock since July 2005, so I know it well) and have added substantially to the position in my fund. This is one of the cheapest silver stocks that I'm aware of by any metric you want to use. ECU should soon start releasing the first drilling results from the deep-drilling of the MSZ and will continue to do so over the summer.

Please read all of Michel's letter if you are interested in this situation and please, please, please do your own due diligence, which would include contacting the Company with any questions or informational requests. I do not often pound the table on stock plays, as it only leads to complaints from disappointed people who buy the same stocks I buy. However I am adamant in my view that ECU represents one of the best possible risk/return, fundamental/value/trading plays right now in the mining stock sector.

http://agoracom.com/ir/ECU/forums/discussion/topics/483395-ecu-may-be-ready-to-make-a-big-move/messages/1551976#message

[Pro-Life]

Big weekly bullish reversal candle underway: +13%

[eom7]

Wishing I got some in the .60's now - lol!

[basserdan]

ECU Silver Chairman and CEO, Michel Roy, Provides Letter to Shareholders

Monday May 9, 2011, 1:18 pm EDT

TORONTO, ONTARIO--(Marketwire - May 9, 2011) - ECU Silver Mining Inc. (TSX:ECU; OTC:ECUXF - News)

Dear Shareholders,

Gold and silver prices have surged since the beginning of 2011, despite a sharp correction this past week. However, most of the stocks in the mining sector, including both producers and explorers, have significantly underperformed the precious metal price escalation. Many analysts attribute this incongruity to an over-riding investment strategy implemented by many hedge funds in which they "hedge" the sector investment by collectively going long the metal and short the mining stocks.

Beyond this general sector underperformance, ECU's stock also appears to have received excessive pressure from trading patterns which appear designed to suppress the stock price. Management considers this to be a serious concern and is in discussions with legal counsel regarding the nature of this activity and potential recourse.

From an operational standpoint, much has already been accomplished in 2011 and as the year progresses, management anticipates numerous achievements which should enhance production and revenue, as well as the size and quality of the resource. Presumably, these accomplishments will positively impact the value of ECU's common stock.

Mine Operations

ECU has increased revenue over the past five consecutive quarters, enhanced by the successful negotiation of the sale of a 13,000 tonne stockpile of processed material containing gold pyrite. Revenue in Q4 '10 was over $6.4 million, almost 200% higher than the period five quarters earlier. Altogether in 2010, metal sales increased year over year by 250% for gold, 144% for silver, 568% for lead, and 375% for zinc. Although the sale and delivery of the gold pyrite stockpile has been completed, management expects revenue from production to improve when the company mines in recently-developed stopes containing significantly higher resource grades.

Oxide mineralized material continues to be extracted from the Santa Juana mine as three additional mines, San Juanes, Chicago, and Terneras West have been opened. An accelerated development program is underway to advance additional veins, and mining levels, to a stage where mineralized material can be extracted from more mining stopes, thereby increasing production.

As outlined in previous press releases, new veins and vein extensions have been discovered at Santa Juana. Most of these discoveries are sulphide material which contains good to excellent gold and silver grades higher than nearby areas that were recorded in the last resource report. Metallurgical testing has allowed us to develop a new procedure to enhance processing of the sulphide material. New high grade veins plus enhanced processing techniques will significantly increase the quality and quantity of the concentrates. Since sulphides represent over 97% of the mineral resource, this is a very important step towards the future development of the project.

Milling Operations

Both the flotation (sulphide) and the cyanide leach (oxide) mills have been fine-tuned with extra equipment and new circuits. Modifications were completed at the flotation mill to increase the precision of reagent additions and PH control. New lab and bulk metallurgical testing will help us refine the flotation process. These modifications will increase recoveries and improve the quality of the concentrates produced.

A new circuit to remove copper from the solutions was added to the oxide mill. Previously, copper interfered with gold and silver recoveries. So, after several months of testing and modifications, the company completed a copper removing continuous circuit which is now removing over 95% of the copper from the solutions. This enables the company to increase gold and silver recoveries, as well as produce a saleable copper concentrate.

With initiatives that have been in development over the past year, ECU expects to see an increase in quantity and quality of concentrates and dore bars over the next few months.

Exploration

An underground high-performance drill is currently advancing to define the massive sulphide zone that was previously discovered with high grade sulphide intercepts from hole SJ-18-21. The drill will cut various holes at different angles (daughter holes) at depth, in order to intercept further high grade mineralization. This will help define the shape, size, and persistence of the mineralization in the massive sulphide zone. Geological modeling suggests that this zone could consist of large replacement type bodies or mantos style deposits.

As the high-performance drill re-entered the original drill hole, drilled nearly three years ago, it was realized that sections of the hole had filled in. As such, the drill bit was replaced with a smaller one, in order to avoid a deviation from the original hole. This precaution caused a slight delay but this portion of the work is nearly complete and the actual drilling for the first cut will start very soon.

Additional drilling is also occurring on the joint venture San Diego property.

Results from the two drilling programs will be published as they become available.

Property Expansion

ECU recently entered into contracts to acquire new properties. One is a newly-acquired mining claim immediately adjacent and now integrated into the Chicago property. We are currently exploring this area by underground ramping and drifting. Several new veins have been discovered in the Chicago property which extends onto the new claim.

A second property, the Flechas property, is being evaluated through underground exploration and development, along a known major vein. Results have been encouraging, justifying the continuation of our exploration and development work.

On another property, the Nazas property, an initial 1,700 tonne bulk sample of oxide material was processed which confirmed that grades and recoveries were highly suitable for the oxide mill. Additional work will be done in a key zone on this property to define the size and shape of the mineralization. The zone currently being examined is over 15 meters wide on surface and appears amenable to open pit mining. Other exploration projects on various properties (surface and underground) are also being evaluated.

Scoping Study

Since the changeover to a larger consulting firm, the work has progressed significantly. The new consultant is currently integrating real data from our mining stopes into their model. Since the company is currently extracting mineralized material from operations, several of the model parameters are "actual", thereby giving the scoping study a high level of accurateness and reliability. We will provide updates on the scoping study as we get nearer to its completion.

Summary

Management believes that the market value of ECU can be greatly enhanced by significantly increasing the size and quality of the company's mineral resource. As a result, major drilling campaigns are underway to define the massive sulphide zone in Santa Juana and further define the resource at San Diego. In addition, ongoing development work at several areas have already identified new veins and vein extensions. This information will be incorporated into an updated NI 43-101 mineral resource report. We expect the drilling campaign to be completed at the end of this year with the updated technical report shortly thereafter.

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://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
[phone]

Mark Butler
ECU Silver Mining Inc.
Investor Relations
Toronto, Canada
[phone]

http://finance.yahoo.com/news/ECU-Silver-Chairman-and-CEO-ccn-821879337.html?x=0&.v=1

[basserdan]

(From the ECU Silver board at Agoracom)


GATA's Bill Murphy Comments on ECU

posted by EsquireH on May 06, 11 09:24PM

...at the end of today's Midas Report ( http://tiny.cc/my3rs ):

It is not easy, this investing in some of the smaller market cap gold/silver companies. My largest holding is ECU Silver (72 cents Cdn.), and has been the dog of dogs. My initial entry point was 23 cents around 12 years ago. It is the only mine that I ever visited and that is where I met CEO Michel Roy, who is a very talented geologist.

After beginning to deliver on silver resources with drilling success, the stock went to $3.50 Cdn when silver was only $12, only to plummet back to 43 cents before recovering after the crash of 2008, only to fall apart again while the price of silver skyrocketed.

What a total bummer. While I own physical silver and some other silver stocks, this was far and away my way of capturing the mega silver move I saw coming. Heck, they have 420 million silver equivalent ounces already, which is why I made it my big play. I couldn’t have got it more wrong in terms of making money on the giant silver move. I might as well put my money in a diapers company. If I had only listened to Tony Sherman, the acclaimed photographer who took that historic picture of the screaming Vietnamese girl on the cover of Time or Newsweek as she fled a napalm attack. He bought something like 2 million shares of ECU at a ½ penny when the company was in real trouble over a decade ago. He sold them at $2.95 because his technicals told him to do so. And guess what? With some of those proceeds he is putting the two daughters of that Vietnamese girl (who lives in Toronto) through college.

But, alas, I stuck with ECU. While a horrendous decision on my part so far, I will get a pretty good idea how this investment will turn out in end over the months ahead. It is my hope that it will be another Samex and trade that way, and then some. WHY…

Michel Roy has long believed the 420 million ounces they have already found is an offshoot of a massive sulfide 600 meters to 1,000 meters below the surface. Over the next week and couple of months that will prove out or not. If so, look out above.

ECU is massively shorted and I mean MASSIVE. Samex was heavily shorted also. The firm has also been victim of a viscous smear campaign and it has worked to a large degree. Watching ECU go down this year as the price of silver went bonkers was aggravating to put it mildly. It led to Ranting Bill instead of Ranting Andy. Perhaps it is time for the tide to go the other way. If the next massive sulfide work results are very encouraging, it could set off a buying panic among those shorts, like it did when Samex hit.

My bet is they hit, which is why I bought more ECU shares the past couple of days. I am going to be a very happy camper or on the warpath. One thing for sure, patience is called for when investing in certain stocks in this sector.

The prices of gold and silver are going MUCH MUCH higher. It is only a matter of time before the entire precious metals share sector goes bonkers as the investing public piles in. It is my hope that the likes of Kirkland Lake, Seabridge, Samex, and ECU Silver are leading the way in the months ahead.

The gold/silver shares are under Nervous Nellie selling pressure too. The XAU only went up .61 to 202.19. The HUI fared little better, up 1.84 to 535.12. Get ready for some serious upside action in this sector very soon.

It is times like this when it is so helpful to know what GATA knows. Raids like this week are almost always attacks by The Gold Cartel to slow down the price advance of gold and silver and to take advantage of vulnerable speculators. The problem for these low-life bums is they do not have enough available physical gold and silver to prevent the price from going right back up again. In a way they compound their problems on attacks such as this one because the lower prices stimulates demand a great deal.

Enjoy the weekend and get ready for some fireworks on the upside in the very near future.

http://agoracom.com/ir/ECU/forums/discussion/topics/483169-bill-murphy-comments-on-ecu/messages/1551445#message

[Stormy3]

Just saying ..

Pretty testy aren't you ?you must have really been on the ropes with this ECU as it has been doing pretty well nothing for years while silver and gold have been skyrocketng

Just take it easy

[basserdan]

Take That You Silver Bulls

By Patrick A. Heller
May 03, 2011

In my judgment, the extreme measures taken by the U.S. government to suppress gold and silver prices in the past week are signs that the COMEX and London Bullion Market Exchange are at heightened risk of default. If they were not at a greater risk of default, the U.S. government would have pursued less blatant tactics that they have used in the past such as sneaking physical gold and silver on to these exchanges. That such a tactic was not used can be interpreted as meaning that supplies of physical gold and silver are becoming more difficult to locate.

Supplies of physical silver are getting much tighter. Those seeking to purchase quantities of U.S. silver Eagles, Canadian silver Maple Leaves and 1- and 10-ounce silver ingots can expect delivery delays of at least four weeks. There are at least three primary distributors of U.S. silver Eagles that have stopped accepting orders for future delivery. Premiums are rising on almost all forms of bullion-priced physical silver. Even COMEX bonded warehouses are reporting record low levels of registered silver inventories.

I expect the current attack on gold and silver prices to run its course quickly, but it might take a week or two to overcome this massive assault. In the past, the trading of paper contracts such as on the COMEX and London markets had the greatest effect on gold and silver prices. Now it looks to me that we are getting close to the time when the physical market will have a greater impact on precious metals prices. Once this happens, gold reaching $2,000 and silver maybe getting to $100 will be definite possibilities, maybe even this year.

Remember, in an overall boom market for gold and silver, there will be periodic bouts of profit-taking, where prices dip for a short time. Also, as I have explained multiple times before, the U.S. government, its trading partners and its allies have a huge incentive to suppress gold and silver prices.

Those interested in precious metals need to be able to identify whether price drops are indicative of a genuine market top, a temporary bout of profit-taking, or if they are simply the result of price manipulation at the behest of the U.S. government.

The basic reason the U.S. government wants to hold down gold’s price is that it is basically a report card on the U.S. dollar, the US government and the U.S. economy. If the price of gold is rising, that is a sign that one, two, or all three are headed in the wrong direction. Silver often trades in sympathy with gold. If the prices of gold and silver were to rise, that would eventually force the U.S. government to pay higher interest rates on its soaring debt. A fall in the value of the U.S. dollar (the counterparty to rising gold and silver prices) would also lead to much higher consumer prices.

The U.S. dollar has been incredibly weak in the past few weeks. Adjusting for inflation, it is now at its lowest level since the U.S. government allowed its value to float against other currencies starting in 1973. Even without adjusting for inflation, the U.S. Dollar Index, a measure of the value of the dollar against a market basket of other currencies, has reached a three-year low and is not that far from its all-time lowest level.

In response to the weak dollar and other factors, the prices of gold and silver soared until near to the close of COMEX trading last Friday. Gold reached another all-time high (ignoring inflation, of course). Silver came close to breaking above its January 1980 all-time high. The indications were that gold might soon breach $1,600 and silver would top $50 and set a new all-time high price. Once these levels might be achieved, there were signs that further price rises might accelerate.

As I write this Tuesday, both gold and silver have backed off from the highs achieved in late Friday trading. Is this drop a sign of falling after reaching a peak (as the U.S. government would prefer the public to believe), temporary profit-taking, or were the metals pushed down by aggressive U.S. government price suppression tactics?

The information available thus far indicates that virtually the entire decline in prices can be attributed to the desperate actions by the U.S. government, its trading partners, and allies. As prices started to drop there was some profit-taking selling by “weak hands” buyers locking in profits, but this has not been significant.

Let me give you some of the more obvious gold and silver price manipulation tactics of the past week or so.

As gold or silver prices are rising, one tactic to try to cap the rise is to raise margin requirements on leveraged accounts on the COMEX. Margin requirements were raised on some COMEX silver contracts last Tuesday. Although that tactic had the temporary effect of pushing down prices on the day that the COMEX May silver options expired, silver’s price started rising again afterwards.

Both silver and gold prices especially started to climb after Fed Chair Ben Bernanke’s press conference last Wednesday, a sure sign that foreign and domestic investors realized that Bernanke’s remarks did not instill confidence in matters American.

It was obvious that the U.S. government had to take further measures to cap gold and silver prices. Fortunately for the feds, the Tokyo market was closed on Friday and China, Vietnam, and most European markets were closed on Monday. More thinly traded markets magnify the impact of any attempted manipulation.

On Friday, the COMEX, for the second time in one week, imposed a 13 percent increase in silver margin requirements. Late the same day, a subsidiary of TD Ameritrade raised its internal margin requirement for silver contracts to $30,000, more than double the new COMEX margin requirements. Also on Friday, Man Financial Global (MFG) raised its internal margin requirements for its customers holding leveraged silver accounts to $25,000 per contract.

As part of the network of allies working on the suppression of precious metals prices, you need to understand some of the relationships. JPMorgan Chase is the lead trading partner for the Federal Reserve and Goldman Sachs is the lead trading partner for the U.S. Treasury. These firms are intimately involved in helping the U.S. government pass along orders to other trading partners about the execution of tactics designed to meet the goals of the respective agencies. Former top Goldman Sachs officials hold significant positions, including Jon Corzine (CEO of Man Financial Global), Gary Gensler (chair of the Commodity Futures Trading Commission, and William Dudley (president of the Federal Reserve Bank of New York).

The raising of these internal margin requirements had the effect of forcing many customers of these companies to liquidate leveraged accounts.

In addition to the manipulation of trading activity, there were also three storylines fed to the mainstream media on Sunday as supposedly explaining why gold and silver prices should fall. First, the death of Osama bin Laden was claimed to have instantly made the world a safer place, so there was less demand for gold and silver as safe haven assets.

Second, the president of Bolivia in his May Day speech did not announce further nationalization of the country’s mining industry as he has sometimes done in recent years. Opposition to doing so had come from that nation’s miners. Therefore, the threat of a small decline in silver mine production did not come to pass.

Third, China was supposedly backing off its demand to purchase commodities as part of the nation’s efforts to combat rising consumer prices. This story was especially spurious, as the only commodity that experienced a significant price decline was silver.

As would be expected in the circumstances, a large number of sell orders were executed as the Japanese market opened for Monday trading (at 6 p.m. Eastern time zone Sunday evening). Shortly after trading started, the price of silver dropped 12 percent in only 11 minutes. Freely traded markets do not move like this in the absence of major market developments.

While gold was comparatively little affected, it also declined a few percent. Some “weak hands” technical traders, who focus more on price movements than the reasons behind the changes, sold their long gold and silver positions to lock in some profits.

Both prices proved to be more volatile than normal on Monday. Lower prices continued into Tuesday.

This greater price volatility is having the desired impact (from the perspective of the U.S. government) that owning gold and silver are not really a safe haven option for investors. Demand for physical precious metals early this week has been subdued compared to the past two weeks.

http://www.lemetropolecafe.com/chien_du_cafe.cfm?pid=9210

[basserdan]

Why bother telling me?

I'm not sleeping with you!

And quite frankly, I don't really G A S what you think....

Have a nice day.....


Sheesh!

[Stormy3]

Looking at the chart, ECU silver looks terrible

Nothing I would bet any money on any time soon

[eom7]

Never thought this would see the .60's again... I am blown away.

Its sad really!

[Pro-Life]

I said it last week and I'm sayin' it again... no justification whatsoever. Any questions???

Now, there is a saying - nobody ever lost money in a long term bull market buying early in the run at or below the MA200... we shall see... I am watching closely for accumulation opportunities.

[eom7]

Only this stock, well USSIF too, could be down on news like this! Killing me.

[basserdan]

ECU Silver Finds New Mineralization in Upper Levels of the Santa Juana Mine

Tuesday May 3, 2011, 9:58 am

TORONTO, ONTARIO--(Marketwire - May 3, 2011) - ECU Silver Mining Inc. (TSX:ECU; OTC:ECUXF - News) is pleased to announce that it has uncovered additional high grade mineralization in the upper levels of the Santa Juana mine which is located in the main Velardena Property. This new mineralization averaged 1.64 grams per tonne (g/t) gold (Au), 324 g/t silver (Ag), 0.72% lead (Pb), 0.13% Zinc (Zn) and 0.35% Copper (Cu) over 3.8 meters (12.5 feet). This mineralization is additional to the mineral resources from the mine's lower levels that were included in the Company's last NI 43-101 mineral resource report.

The underground development at the Santa Juana mine has again identified high grade sulphide mineralization over and above those that were calculated in the Company's last mineral resource report, confirming that the potential resources at Santa Juana not only extend at depth and laterally, but above the current mineral resources as well.

A cross-cut on level 12 of the Santa Juana mine was recently opened which intersected one of ECU's major veins, the A-2 vein. Four veins, totaling 0.95 meters (3 feet) in width, were intersected with eight samples taken over 3.8 meters grading an average 1.64 g/t Au, 324 g/t Ag, 0.72% Pb, 0.13% Zn and 0.35% Cu, including a sample that graded 12.21 g/t Au, 4381 g/t Ag, 0.44% Pb, 0.19% Zn and 3.32% Cu over 0.2 meters (0.7 feet).

Sample   Width       Gold     Silver     Lead     Zinc   Copper 
            (m)   (Au g/t)   (Ag g/t)   (Pb %)   (Zn %)   (Cu %) 
 ------------------------------------------------------------------------------------------------------------------------------80606      0.2       9.01       1222     8.47     0.23     1.15 
 80609      0.2       1.42        213     2.10     0.14     0.32 
 80611      0.2       7.24       1634     0.45     0.23     1.59 
 80613      0.2       7.46        445     2.19     0.28     0.52 
 80612      0.2      12.21       4381     0.44     0.19     3.32 
 80614      0.2       4.96        234     7.87     0.11     0.38 
 80616      0.4       6.10       1068     2.48     0.77     1.70 
 80619      0.3       5.31       1368     0.71     1.41     1.82 
 --------------------------------------------------------------- 
 Total      3.8       1.64        324     0.72     0.13     0.35

The host rock, where current development work is being completed, is a diorite and the mineralization occurs as parallel veins striking northwest and belonging to the Santa Juana corridor. The four veins represent the upward projection of the A-2 vein.

Michel Roy, CEO and Chairman of ECU stated, "The way in which this mineralization is occurring in this mineralized area, makes it an ideal area for future low cost mining. The mineralization is on the main access level, and with its potential extensive lateral continuity, it represents the potential for easier mining and more productivity. A big advantage of mining on level 12, the main access level, is that we do not have to use the shaft since access on the level is by a main adit, which means less handling and lower production costs."

This mineralization is not in the current mineral resource report and is significantly greater than the corresponding resource block, on the lower level 14, which graded 1.41 g/t Au and 98 g/t Ag over a diluted width of 1.0 meter.

The A-2 vein was recently opened on level 15.5 (see press release dated November 8, 2010) over a strike length of 127 meters (417 feet) 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 (2.8 feet),

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.

Deep Drilling of Massive Sulphides

The Company continues to advance well with the high performance drill rig that will target the rich massive sulphides at depth. Drilling with the smaller BQ bit is now complete and reaming of the hole has recommenced and is nearing completion.

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.
Website: 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
[phone]

Mark Butler
ECU Silver Mining Inc.
Investor Relations
Toronto, Canada
[phone]

http://finance.yahoo.com/news/ECU-Silver-Finds-New-ccn-2139528134.html?x=0&.v=1

[basserdan]

<<<What a hit today and this week all around... no justification whatsoever.>>>

Not only is it impossible to justify, Kevin, but with silver so near to all time highs it's difficult to understand as well. One personal silver lining, however, is that a couple of old 'stink bids' have finally come into range.

ECU's drill(s) should be boring into those massive sulphides in the next few days and hopefully, the resultant assays will be the catalyst for it to be a game changer for them.

[Pro-Life]

What a hit today and this week all around... no justification whatsoever.

[basserdan]

ECU Silver Provides Additional Update on Deep Drilling of Massive Sulphides

Tuesday April 26, 2011, 10:02 am EDT

TORONTO, ONTARIO--(Marketwire - April 26, 2011) - ECU Silver Mining Inc. (TSX:ECU; OTC:ECUXF - News) is providing an update on the status of the high-performance deep diamond drill that is currently reaming out drill hole SJ-18-21 which initially intersected two massive sulphide veins.

At present, the drill hole is being re-drilled with a BQ size (60 mm) diamond drill which has reached approximately 600 meters (1,970 feet). The original 800 meter (2,625 feet) drill hole SJ-18-21 contained areas of collapsed material within the hole. As such, these areas could obstruct the larger NQ drill bit (76 mm) that was being used to ream the hole. As a precaution against deviation of the parent hole, the drill hole is being re-drilled (the "pilot hole") with the smaller BQ size bit to re-establish the integrity of the original hole. Once the pilot hole is completed to 800 meters, the drill will switch to an NQ size bit and complete reaming the parent hole to 800 meters.

At this time the existing parent hole has been reamed out using the NQ bit, to a depth of approximately 471 meters, about 60% of targeted depth. Once the drill nears the target depth of 800 meters, the drilling speed will be increased as it will no longer be a concern if the drill deviates since we will be in a zone of multiple potential intercepts.

Following the completion of the parent hole, the drill will core below the 800 meter level followed by four daughter holes that will branch off the main parent borehole. These drill holes will test multiple targets to verify the continuity of the mineralized zones.

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 N.I. 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.
Website: 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
[phone]

Mark Butler
ECU Silver Mining Inc.
Investor Relations
Toronto, Canada
[phone]

http://finance.yahoo.com/news/ECU-Silver-Provides-ccn-118110112.html?x=0&.v=1

[Pro-Life]

-8.72% is the scorecard for the week...

[basserdan]

Embry - 'I'm Amazed Hedge Funds Are Short Mining Shares'

Eric King
April 7, 2011

With gold at new all-time highs and silver at multi-decade highs, today King World News interviewed John Embry, Chief Investment Strategist at Sprott Asset Management. John Hathaway commented in his KWN interview, “I think these hedged funds (which are short mining shares) are going to get roasted.” When asked about Hathaway’s comments Embry replied, “I’m amazed that these guys would be short. I think these guys are bright guys, but I don’t know what they’re looking at. Why anyone would be short gold shares in the current environment is beyond my comprehension.”

When asked about his thoughts on the breakout in gold Embry remarked, “Well I’m thrilled actually, I mean we’ve been waiting for it for a long time. Since the beginning of the year the gold price has been aggressively controlled on either side of $1,400. I felt that we needed to get above $1,447 to see the next leg up which will take us through $1,500.

We got that action yesterday and today and it seems to be following through, so far so good. Chart looks great, now $1,440 is going to be support.”

When asked if this gold move will be significant to the upside Embry replied, “Well it’s going to be interesting because there are still a lot of people on the wrong side of the market. I mean at some point I think those that realize what’s going on are going to have to reverse these positions.

If you pile on short covering on top of more long buying, yeah I think this move could be big. I’ve seen targets of $1,650 on this leg. I think there will be a fight at $1,500. There always seems to be (a fight) at round numbers, but no I am very encouraged with where this is headed. I’m still a $2,000 (gold) guy by the end of the year so we’ve got lots of room.”

When asked if he thought John Hathaway was correct in predicting a quick move of a couple of hundred dollars to the upside now that gold has broken out Embry stated, “Absolutely, I totally agree with John Hathaway. I’ve enjoyed his work for the last ten, eleven years on the subject (gold), and in this instance I totally agree with his timing.”

When asked about silver specifically Embry remarked, “Well people still don’t get it, I see negative comments constantly, bubbles, you know the thing is extended, it’s going to get killed. Basically the supply demand for physical silver is so heavily in favor of higher prices that if it weren’t for the paper market, silver would probably be through $50 now.

You see the transactions on eBay for silver eagles, people are paying up to $50 or more per ounce for silver eagles on eBay. In reality this might be the real price for silver instead of this price that’s being manufactured on the Comex with all of the short selling that we’ve discussed. I think $50 on the official market, the Comex market, is probably coming up reasonably shortly.”

As the hedge funds move to cover their shorts in the mining shares, some of the moves will be breathtaking as many of these smaller quality producers and explorers go from dramatic undervaluation to overvaluation. This is all just part of a cycle. Definitely look for the mining shares to outperform the metals as this hedge is unwound.

The KWN interview with John Embry will be released shortly and you can listen to it by CLICKING HERE.

http://www.kingworldnews.com/kingworldnews/Broadcast/Broadcast.html

Eric King
KingWorldNews.com

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/4/7_John_Embry_-_Mr._Bernanke_is_a_Murderer_of_the_Middle.html

[gsfl]

Thanks for sharing that.

[eom7]

Great.

[basserdan]

From the ECU Silver board at SH:


Financials

posted by applepieuk on Apr 05, 11 02:39PM

I just had a chat with Mark in IR, around the concerns raised by Coach from the financials.

Basically ECU has to confirm to the reporting requirements of Quebec which are different to those in Ontario adn elsewhere, and so basically according to Quebec criteria ECU is an explorer. Period.

I asked about the process to remove copper from the system, and that situation has been attended to.

Mark is saying that the 'money' guys are saying, it's great having a 200 years mining capability with this level of production, but really you have to increase production for it to be worth anything in p/e. Otherwise drill out the place and add it to measured reserves.

The issue with this presumption about ECU being a producer, is that ECU is not currently set up as a production company. Their policy (with the mills able to support 2mill oz yr) is to cover bills and the cost of drilling out this extensive site, without recall to shareholders equity. So they are just producing enough to cover their bills. That's all it is, they're going route 2 with regard to drilling out ,which is always has been their policy.

The question about the 'thread vein' mining probably originates from the 43-101, in which to comply with 43-101 reporting veins have to be diluted down to a metre. That's just about compliance - not actuality.

Last quarters reporting was based on $21 silver prices, so closing on $40 silver, ECU has already gained $10 million in cash. As far as funding is concerned, there are 4 large shareholders who would probably be engaged if there was another funding requirement, or otherwise an acceptable strategic partner, a company that everyone would have to be happy with.

I came away feeling a lot more comfortable for the chat, and I hope you do too, for having read these comments

AP

http://agoracom.com/ir/ECU/forums/discussion/topics/478056-financials/messages/1539521#message

[Pro-Life]

The next leg is underway... the buy signal on the weekly was given 4 weeks ago... ONWARD!!!

[basserdan]

<<<$1.03 back over a buck.... now lets get two!>>>

And on 3 X normal volume on the Canuckistan side of the border.

Fwiw, today's 2.3 million shares represents the highest volume day since 12/7/10 when it closed in the $1.30's....

Now that ECU is finally back in their drilling mode, I'm more optimistic than I've been in well over a year.



ECU SILVER MINING INC.(Toronto: ECU.TO )
Last Trade: 1.02
Trade Time: 3:59PM EDT
Change: 0.09 (9.68%)
Prev Close: 0.93
Open: 0.93
Day's Range: 0.91 - 1.02
52wk Range: 0.54 - 1.45
Volume: 2,292,170
Avg Vol (3m): 770,480

[denne]

he he he ....whining DOES help!

[eom7]

$1.03 back over a buck.... now lets get two!

[basserdan]

ECU Silver Provides Update on Deep Drilling of Massive Sulphides

Tuesday April 5, 2011, 9:59 am

TORONTO, ONTARIO--(Marketwire - April 5, 2011) - ECU Silver Mining Inc. (TSX:ECU; OTC:ECUXF - News) is pleased to report on the status of the high-performance deep hole diamond drill that arrived on site at the Velardena Property on March 23, 2011.

The drill is currently reaming drill hole SJ-08-21 which initially intersected two massive sulphide veins (the M-S veins). Reaming is being completed by drilling a larger diameter hole, the parent hole, around the original drill hole SJ-08-21.

The high performance drill is using an NQ drill bit with a hole diameter of 76 millimeters (3 inches) to create the parent hole and has, to date, reached approximately 200 meters (656 feet) in depth. The plan is to have the high-performance drill, ream to 800 meters (2,625 feet) at which point, the drill will start coring from the 800 meter depth.

The objective of the first hole will be to deepen the original drill hole SJ-08-21 beyond the two massive sulphide veins that were initially intersected (see Table 1). The original drill rig used in the discovery of these two intercepts was not capable of drilling to lower depths and stopped at the second intercept.

Table 1: Intercepts of drill hole SJ-08-21                                   
                     ---------------------------------------------------------------------------- 
                                                                                  Silver     Core 
                                               Silver                         Equivalent   Length 
                                  Gold (g/t)    (g/t)   Lead (%)   Zinc (%)        (g/t)      (m) 
                     ---------------------------------------------------------------------------- 
                     M-S Vein 1         3.66      295       7.87      12.07        1,100    12.04 
                     M-S Vein 2         7.90      550      11.25      27.68        2,180     1.75 
                     ---------------------------------------------------------------------------- 
                     Note:  Silver and gold equivalents are calculated based on current commodity 
                            at time of original press release dated July 9, 2008.

Following the completion of the first drill hole, four daughter holes will branch off the main parent borehole. These daughter holes will test multiple targets to verify the continuity of the mineralized zones.

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 N.I. 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
Website: 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
[phone]

Mark Butler
ECU Silver Mining Inc.
Investor Relations
Toronto, Canada
[phone]

http://finance.yahoo.com/news/ECU-Silver-Provides-Update-on-ccn-3128105523.html?x=0&.v=1

[basserdan]

Delete ~ duplicate

[basserdan]

Delete ~ poor formatting

[denne]

Thanks for the chart and the optimism. I just don't get it why ECU barely moves (and IF it does it goes south) while AG sits on PHH's (posthunthighs). Hello, anybody home?

I'm not even frustrated really, it's just so boooooooring,,,,

[Pro-Life]

$2.88 is the P&F bullish price objective... I strongly view this period of consolidation as a buying opportunity:

.............................................

[eom7]

lol... I know right! Same with USA... killing me!

[denne]

What does it take to get this thing moving north?

50$/oz? .. 60$ .. 80$ .. 100$ ?

[basserdan]

ECU Silver Releases Year End Results for 2010

Friday April 1, 2011, 10:56 am

TORONTO, ONTARIO--(Marketwire - April 1, 2011) - ECU Silver Mining Inc. (TSX:ECU; OTC:ECUXF - News) reports that it has released its audited consolidated financial statements for the year ended December 31, 2010 and the related management's discussion and analysis of financial position and results of operations ("MD&A").

ECU reported a net loss of $6.9 million, or 2 cents per share in 2010, compared with a net loss of $8.4 million, or 3 cents per share in 2009. Since the Company reports as an exploration and development company, the income statement does not report revenues from sales. Revenues from metal sales are reported in the statement of cash flows and were $19.3 million in 2010, compared with $6.6 million in 2009, a 194% increase year over year.

Metal sales for 2010 were 16,021 ounces of gold, 356,559 ounces of silver, 445,650 pounds of lead and 423,996 pounds of zinc. Year over year, this represents a 250% increase in gold sales, a 144% increase in silver sales, 568% increase in lead sales and a 375% increase in zinc sales.

Michel Roy, CEO and Chairman stated, "We are pleased with the progress of our operations with metal sales being significantly higher than last year. The majority of our gold and silver sales came from the Oxide Mill, which has been running very well for us. A portion of the gold sales came from the sale of our gold/pyrite stockpile. The stockpile has been completely sold and the transportation and processing of our gold concentrate stockpile was very successful. We will continue to look for ways to optimize our mining and milling operations during 2011."

Stephen Altmann, President added, "In 2011 we plan to increase our exploration focus with the goal of increasing mineral resources and converting additional inferred resources into the measured and indicated categories. The exploration plan will focus on drilling the deep seated massive sulphides on the Velardena Property, which started this past week, plus the delineation of additional known mineralized veins, extensions of existing veins and identification of new veins on all three of our properties".

Copies of the audited financial statements and related MD&A can be found on SEDAR at http://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 N.I. 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. Website: 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
[phone]

Mark Butler
ECU Silver Mining Inc.
Investor Relations
Toronto, Canada
[phone]

http://finance.yahoo.com/news/ECU-Silver-Releases-Year-End-ccn-3807005255.html?x=0&.v=1

[basserdan]

How Silver is mined

An excellent (imo) 2 part presentation produced by Endeavor Silver Corp.

[Pro-Life]

For the week: +1.1%

[basserdan]

ECU Silver's (ECU.TO ~ ECUXF) March 2011 slide presentation

http://www.ecu.ca/images/stories/ECU%20March%20Presentation-Mar.2011.pdf


From the ECU Silver board at Agoracom....

Re: latest revised ECU slide presentation
posted on Mar 19, 11 03:45PM

The drill program and first results a couple weeks or so later could be the catalyst. ECU is very much a resource story and this is it's what can really separate it from the pack but the company needs to be drilling to get this recognition started again. First drilling is starting any day now and as announced they will be drilling on three fronts soon, Santa Juana, Chicago and San Diego. It's resource building which rocketed ECU to the top of the class a few years back and it's this that will do it again. Production is simply a means to an end for ECU at this time and it won't become a production story until the next mill phase expansion and build.

When 5000 to 7000 tpd are being produced on ECU properties at Velardena then it will be a serious and major production story. In my view any company producing less than 5 million silver eq. ounces per year is not a real serious or large production story and must be mainly valued based on it's resource in the ground.

http://agoracom.com/ir/ECU/forums/discussion/topics/475253-latest-revised-ecu-slide-presentation-posted/messages/1532535#message

[eom7]

ECU puts out more good "real" news than any other Jr I know and it just sits here stuck in the mud.

$10 Billion in the ground as per CEO!

[basserdan]

ECU Silver Reports Arrival of High Performance Deep Drill at Its Velardena Site

Wednesday March 23, 2011, 10:00 am

TORONTO, ONTARIO--(Marketwire - March 23, 2011) - ECU Silver Mining Inc. (TSX:ECU; OTC:ECUXF - News) is pleased to announce that the high-performance deep hole diamond drill has arrived on site at its 100% owned Velardena Property and is being lowered in the mine today to be installed in the drilling station on level 18.

The high-performance drill will be used to further test the deep seated massive sulphides at a depth of approximately 800 meters below level 18 to confirm the extensions of the intercepts that were reported in drill hole SJ-08-21 on July 9, 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 per cent lead (Pb) and 12.07 per cent zinc (Zn) (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 per cent Pb and 27.68 per cent Zn (1,845 g/t Ag equivalent) over a core length of 1.75 metres (six feet). Silver and gold equivalents are calculated based on current commodity prices.

The high-performance deep hole drill will employ directional drilling by using a combination of down-hole mud-motors and controlled drilling. The drill has a capacity to reach vertical depths of up to 2,000 meters. The exploration program to test the massive sulphides at depth will consist of a series of deep holes ("parent holes") from which a further series of daughter holes will fan out from the parent hole to intercept targets at a certain distance from the parent hole.

The high-performance drill is being mobilized to the underground drill station located on level 18 of the Santa Juana mine and we expect drilling operations to commence shortly.

The benefits to be obtained from the use of the high-performance diamond drill are, among other things, the ability to:

 --  Intersect deep target areas with accuracy;      
  
 --  Branch a number of daughter holes off a main parent borehole to test 
     multiple targets to verify the continuity of the zones;      
  
 --  Achieve significant cost savings by virtue of reduced quantity of 
     drilling to get the same number of intercepts.

Michel Roy, Chairman and CEO stated, "This latest exploration campaign will finally allow the Company to verify the theories about the nature of the deep massive sulfides intercepts and their relative importance."

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 N.I. 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.
Website: 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
[phone]

Mark Butler
ECU Silver Mining Inc.
Investor Relations
Toronto, Canada
[phone]

http://finance.yahoo.com/news/ECU-Silver-Reports-Arrival-of-ccn-2064078554.html?x=0&.v=1

[basserdan]

Will JP Morgan Now Make and Take 'Delivery' of Its Own Silver Shorts?

By Avery Goodman
March 22, 2011

There is nothing inherently wrong and certainly nothing "illegal" about J.P. Morgan Chase (JPM) gaining a vault license for storing and taking delivery of gold/silver/platinum/palladium from the futures markets known as NYMEX/COMEX. However, the speed, timing and manner in which the exchanges just granted it troubles us.

The process of being approved as a licensed vault or weigh-master/assayer for the NYMEX/COMEX futures exchange usually involves a careful security inspection of the vaults, a full report of that inspection, and a completely transparent package submitted to the U.S. Commodity Futures Exchange Commission (CFTC) for approval. This process will ordinarily consume considerably more than 45 days. Apparently, such correct and careful practices apply only to banks and independent storage facilities that are not J.P. Morgan Chase.

Some vault operators are more equal than others. JPM appears immune from processes that everyone else must suffer through. On March 15, 2011, the Commodity Exchange (COMEX) and the New York Mercantile Exchange (NYMEX) advised the CFTC that they had approved J.P. Morgan's application to become a licensed vault facility, using a "self-certification" process. The newly licensed vault, located at 1 Chase Manhattan Plaza, NY, NY, is ready to roll as both “weighmaster” and depository, for delivery of gold, silver, platinum and palladium contracts, as of March 17, 2011, two days later.

As a smaller player, the NYSE-Liffe exchange uses COMEX licensed depositories for delivery and storage of its metals. The new JPM vault, therefore, will also qualify to accept delivery of metal coming from the maturity of NYSE-Liffe gold and silver futures contracts, including the smaller 1,000 ounce silver contract.

Departures from usual practices, and special treatment in favor of some over others are events that lawyers describe as having "the appearance of impropriety", if nothing more. J.P. Morgan is a huge player in the London precious metals market, especially in derivatives. It has always been a very important player at NYMEX/COMEX, especially if you include its Bear Stearns division. The bank is heavily involved in infamous "unallocated storage" schemes in London. A more complete description of London-style storage can be found in my previous article. http://tinyurl.com/4k9vfq3

JPM is one of six big bank owners of the London Precious Metals Clearing Limited (LPMCL) which clears, “delivers” and sets standards for “storing” precious metals allegedly “sold” at the London Bullion Market Association (LBMA) and the London Platinum and Palladium Market (LPPM). Unallocated storage is the norm at LPMCL member banks, including J.P. Morgan Chase.

Allocated storage, however, is the norm for precious metals vaults licensed by NYMEX and COMEX. The two futures exchanges have approved a small group of vault operators, who provide allocated storage to clearing members and their customers. This has given greater legitimacy to the NY exchange traded precious metals venue than the LBMA now has. It is true that NYMEX/COMEX warehouse supplies are wholly insufficient to cover the number of short contracts the exchange allows its clearing members to write. However, at least the numbers are transparent and published. That is more than can be said for the storage facilities that participate in the secretive LPMCL in London.

Allocated storage, under the common law, is known as a "bailment." When precious metal is allocated, the vault is the "bailee" and the owner is the "bailor". The bailee is keeping the property safe for the bailor and, in return, it charges a fee for its services, but the property belongs to the bailor at all times. The property cannot be legally leased, loaned, borrowed or used in any way without overt consent by the bailor. Whereas unallocated metal is an asset that is seized by a vault's creditors in bankruptcy, allocated metal is immune from this.

A bailment cannot be legally seized or encumbered by the bailee's creditors. Some of the NYMEX/COMEX vaults require a written bailment contract, setting out all rights and responsibilities of the customer and vault. Others operate in the old fashioned way (though the handshake is now often electronic) and, in such cases, the agreement between bailor and bailee is governed by traditional common law standards with no need to sign anything.

There are two storage categories in the NYMEX/COMEX scheme, known as “registered” and “eligible”. Regardless of the category, all bars are allocated by title, and are always of a size, weight and composition that would satisfy "good delivery" if the owner decided to deliver it. An exception to the idea of "global" allocation may occur if "registered" metal is kept in the name of a clearing member, but the bars actually belong to a customer.

This might happen when and if the clearing broker uses the bars as a form of "collateral" to back up performance bonds in a customer account. In such a case, the "bailment" (and allocated storage) would exist between the vault and the clearing member. I use the word "collateral" loosely because true collateral would remain titled to the debtor. In the NYMEX/COMEX scheme, registered bars are always titled in the name of a clearing member of the exchange, whereas eligible bars can be titled in the name of a customer or a clearing member.

In order to be delivered, eligible bars must be transferred into the registered category. This involves nothing more than an electronic entry, "wrapping" the correct number of units into what is called a warehouse "warrant." Each warrant constitutes a "good delivery" unit of metal sufficient to satisfy one short contract obligation. "Good delivery" means that each bar must be of a standard weight sufficient to meet the rules of the exchange and must be numbered and weighed. Each storage facility must always keep a "chain of title" history record for each bar.

Delivery at NYMEX/COMEX is first made to any licensed vault facility. Once the unit of metal arrives, title is transferred to the new owner. The new owner can do whatever he wants with his property. He can remove it from the bailment and take it into his own personal possession. He can transfer to a different vault. Or, he can keep the metal at the initial point of delivery. In many cases, the last option is chosen, so, often the bar never leaves the delivery vault until it is eventually resold and, usually, not even then. Bars can be delivered, and title transferred, without ever having left the vault.

Until now, JP Morgan did not have a NYMEX/COMEX vault license. They had to send silver, for example, to HSBC, Brinks, Scotia Mocatta and/or the Delaware Depository in order to "deliver" it on COMEX. Those vaults have been NYMEX/COMEX licensed for a very long time. But now J.P. Morgan has its own vault license, and the manner in which it seems to have obtained it, is troubling. The bank can now, potentially, deliver short obligations to itself. Yes, you read that correctly. The bank itself, if it still holds short silver positions, and/or the hedge funds/related financial institutions who may have taken over the positions, can now deliver the alleged metal to J.P. Morgan's own vault.

The American legal standard requires us to maintain a presumption of innocence until guilt is proven. That doesn't mean Americans are stupid. Only a fool would ignore the testimony given at the CFTC hearing held on March 25, 2010 ( http://tinyurl.com/4p8dztr ), or the fact that J.P. Morgan Chase is being sued, in two different class actions, accused of being a racketeering and corrupt influenced organization (RICO). Both lawsuits claim that the bank is using allegedly immense silver short positions in various venues, including COMEX, to manipulate prices.

If a short seller must deliver a commodity, and the commodity is not readily available, there is no better way to buy extra time than to be able to deliver into its own vault. Most of the metal will never leave the vault, and most delivered metal that will leave the vault won't leave right away. Indeed, paperwork tasks of transferring title can consume a few days. Thus, a late delivery may not be noticed if it is to the short seller's own vault if the vault operation staff chooses to remain silent.

Why was JPM awarded a vault license almost overnight, avoiding the lengthy vetting process others must undergo? Why did it happen in the middle of a major COMEX silver delivery month, during a massive worldwide silver short squeeze, at a time when physical silver is in severe shortage? We do not know the answers to these questions. The exchange rules should prohibit proprietary trading divisions, hedge funds and other closely associated or controlled financial institutions, from delivering to vaults owned or controlled by their own family of companies. Yet, no such rules exist.

Does the licensing of a NYMEX/COMEX JPM vault reflect short-seller panic? Paper money can be printed, of course, ad infinitum and endless reams of it can be borrowed from the Fed. The issue is how much paper money is needed to pry sufficient physical silver loose from the hands of its owners. We believe that an equilibrium level of about $52 per troy ounce would be sufficient. Assuming that the holdings of the various ETFs are not the scam that some have claimed, there is a huge potential supply right there.

Large delivery requirements can be met by cashing in on "baskets" of ETF shares for silver. There is also a huge supply of hoarded bars outside of ETFs, waiting for the right price to set them free. If supply problems continue, the price must rise further until sufficient selling occurs. Most owners of ETF shares, as well as holders of real physical silver, are not momentum chasers. They buy low and sell high in a traditional manner. Momentum chasers are irrelevant because they generally have only paper, and no real metal to deliver.

Remember, your bars can be transferred from one licensed facility to another very quickly. If any storage facility imposes a significant delay, that should be publicized, and met with resolute opposition. Neither silver nor other metals must be stored at licensed vault. They certainly need not be left at the first point of delivery. If you intend to use silver, for example, in commerce (such as a jeweler or industrial user might) or if you expect to keep it off the market for 20 years or so as a retirement fund, it is economically more efficient to physically remove the metal.

If anyone has any positive or negative experiences with the newly licensed J.P. Morgan vault, we would be very interested in learning about them.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I hold long positions in precious metals.

(43 Comments)

http://seekingalpha.com/article/259549-will-jp-morgan-now-make-and-take-delivery-of-its-own-silver-shorts

[Pro-Life]

MA200 holds so far as support for 3 days straight.

[gsfl]

ECU Silver Continues to Develop the Terneras West Mine


March 17, 2011 11:02 AM EDT
TORONTO, ONTARIO -- (MARKET WIRE) -- 03/17/11 -- ECU Silver Mining Inc. (TSX: ECU) is pleased to announce that it has encountered new high grade mineralization in the Terneras West Mine through further development along the vein structure. The Terneras West Mine is located on the main Velardena Property.

The vein was opened for another 89 meters (294 feet) and yielded an average of 3.45 grams per tonne (g/t) gold (Au), 440 g/t silver (Ag), 4.90% lead (Pb) and 2.48% zinc (Zn) over a width of 0.37 meters (1.2 feet). The best portion was the last 15 meters (50 feet) which averaged 7.34 g/t Au, 2060 g/t Ag, 18.15% Pb and 3.67% Zn over an average width of 0.25 meters (0.8 feet), including the last cut of 7.54 g/t Au, 5541 g/t Ag, 37.3% Pb and 1.8% Zn over 0.25 meters (0.8 feet)

Furthermore, the Buenaventura Vein was transected in this new development drift and will be investigated by more development in the near future. The Buenaventura Vein is among a number of known veins located in the western portion of the main Velardena Property, which have yet to be tested and included in the Company's mineral resources.

Michel Roy, CEO and Chairman of ECU stated, "This type of grade and extension is certainly very encouraging for the continuing development of the whole western area of the Velardena Property where there exists many known veins that are still untested. Only about 50% of the Velardena Property has been explored and it currently contains about 37 million ounces of silver equivalent (AgEq oz) measured and indicated resources (93% of the Company's measured and indicated resources) and about 241 million AgEq oz inferred resources (62% of the Company's inferred resources)".

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 N.I. 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.

Cautionary Statements

Readers are cautioned that there are no assurances that all or any part of ECU Silver's mineral resource will be economically viable. Until a prefeasibility study is completed, there are no assurances the release of an updated mineral resource will be economically viable.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 27E of the Exchange Act. Such statements include, without limitation, statements regarding the future results of operations, performance and achievements of the Company, including potential property acquisitions, the timing, content, cost and results of proposed work programs, the discovery and delineation of mineral deposits/resources/reserves, geological interpretations, proposed production rates, potential mineral recovery processes and rates, the proposed construction of a mill, business and financing plans, business trends and future operating revenues. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, significant downward variations in the market price of any minerals produced, the Company's inability to obtain any necessary permits, consents or authorizations required for their activities, to produce minerals from their properties successfully or profitably, to continue their projected growth, to raise the necessary capital or to be fully able to implement their business strategies. All of the Company's public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this Press Release.

[NYBob]

Banks destroy the dollar -

http://www.deepcapture.com/manipulating-gold-and-silver-a-criminal-naked-short-position-that-could-wreck-the-economy/

Max Keiser: "Crash JP Morgan" with Silver Campaign! -
Alex Jones Tv 1/2

e.g.,
we all have to try to carry a straw to the stack -
if we ever want to see a level playing field and
fair market place for the PEOPLES RIGHTS -

http://www.walkaboutventures.com/
God Bless

[eom7]

Nice! Added more today

[basserdan]

ECU Silver to Exhibit at 2011 PDAC International Mining Convention

Friday March 4, 2011, 9:50 am EST

TORONTO, ONTARIO--(Marketwire - March 4, 2011) - ECU Silver Mining Inc. (TSX:ECU; OTC:ECUXF - News) is pleased to announce it will be an exhibitor at the PDAC 2011 - International Convention, Trade Show & Investors Exchange - Mining Investment Show.

ECU Silver invites you to stop by our booth #3330 at the Metro Toronto Convention Centre, in the South Building from Sunday March 6th to Wednesday March 9th 2011.

ECU Silver's management team will be available to discuss the progress of our operations, our exploration plans and all other activities planned for 2011.
ECU Website: http://http://www.ecu.ca/

Representatives from the management team will include:

                                                              
    -  Michel Roy, Chairman and CEO                                           
    -  Stephen Altmann, President                                             
    -  Dwight Walker, Chief Financial Officer                                 
    -  Mark Butler, Investor Relations                                        
                                                                              
 The PDAC exhibit hours are:                                                  
                                                                              
    -  Sunday, March 6th        10:00 am - 5:30 pm                            
    -  Monday, March 7th        10:00 am - 5:30 pm                            
    -  Tuesday, March 8th       10:00 am - 5:30 pm                            
    -  Wednesday, March 9th     9:00 am - 12:00 noon

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
[phone]

Mark Butler
ECU Silver Mining Inc.
Investor Relations
Toronto, Canada
[phone]

http://finance.yahoo.com/news/ECU-Silver-to-Exhibit-at-2011-ccn-2462406029.html?x=0&.v=1

[eom7]

Silver $35.3 +$1 Some day this will move!

[basserdan]

ECU Silver Provides Corporate Update to Shareholders

Thursday March 3, 2011, 10:55 am

TORONTO, ONTARIO--(Marketwire - March 3, 2011) - Michel Roy, Chairman and CEO of ECU Silver Mining Inc. (TSX:ECU; OTC:ECUXF - News; "ECU" or the "Company") and Stephen Altmann, President of ECU, are pleased to provide the following update to its shareholders regarding the following topics:

-- 2011 Exploration Program
-- Mining and Milling Operations
-- Scoping Study
-- New N.I. 43-101 Technical Report
-- Mergers and Acquisitions

2011 Exploration Program

Our exploration focus this year will be geared to achieve two very important goals: First will be to significantly increase mineral resources, and second will be to convert a material portion of "inferred" resources into "measured and indicated" resources. These goals will be realized by drilling into our high grade massive sulphide discovery, drilling additional known targets, and opening new exploration drifts underground.

Massive Sulphide Discovery

We plan to use a special high performance drill that will target the deep-seated, high-grade massive sulphide veins that we discovered back in July 2008. Due to the very high-grade nature of our two drill intercepts (1,100 g/t AgEq in MSV-1 and 2,180 g/t AgEq in MSV-2), we expect to significantly increase the size of the mineral resource at depth. This particular area is very important as it potentially represents a region identifying the source of mineralization where replacement bodies are typically found, such bodies being usually very large. The initial phase would be four cuts on the same zone plus a second ring of four cuts at a greater distance. Then the drill would test deeper and/or lateral extensions or more similar veins/bodies. The program outlining the number of holes and meters to be drilled is being completed, however we expect expenditures to be approximately $200,000 per month and the program to continue for all of 2011 and beyond.

Drilling Additional Known Targets

There are several known targets on all our properties, most of which having received little or no attention to date. The initial areas to be tested will be on the Chicago Property near drifts that we have currently opened, which outlined several new veins that merit definition and exploration drilling and are ready for testing at depth. On the main Velardena Property we have yet to access the western half of the land package, which hosts the whole Buenaventura sectors and the Pajaro Azul vein. These areas merit immediate attention as they are considered to be silver-rich sectors. Finally, drilling on the San Diego Property is expected to extend known mineralization, rich in silver, in several areas. A $3 million program consisting of 10,000 meters is planned for San Diego. Other targets are also being evaluated for drilling on several properties.

New Exploration Drifts

The further plan for our exploration program is to drive more exploration drifts and, together with the grade reconciliation discussed below, will be aimed at enhancing the categorization of our mineral resource by converting a significant amount of inferred into the measured and indicated category.

Success in these three areas of focus will translate into higher value for our shareholders.

The arrival of the drill rig is expected shortly with drilling scheduled to start in March. We are fortunate to have secured a new drill since equipment availability is scarce due to the very high level of drilling activity in the sector.

Mining and Milling Operations

During the year 2010, our operations increased from one to four underground operating mines: i) the Santa Juana mine (51% of current production), ii) the San Juanes mine (9% of current production), iii) the Terneras West mine (16% of current production), all on the main Velardena Property and iv) the Chicago mine (24% of current production) on the Chicago Property. During this time period, we started implementing in certain areas of the mines the "cut and fill" mining method, which is a more mechanized mining method versus shrinkage mining.

While we initially had productivity problems with cut-and-fill, the new mine manager, hired in May 2010, turned the project around and substantially increased productivity. We are now mining the cut-and-fill areas on a regular basis at a 200% greater productivity than shrinkage mining. The success in cut-and-fill, plus the opening of new mines, has led to the point where we are now capable of mining up to 1000 tonnes per day. This tonnage rate can be increased by adding more underground mining equipment to open additional stopes that are already available and identified. Consequently, we have sourced the necessary equipment and it is scheduled to be delivered to the site in the second quarter.

In 2010, both the cyanide leach mill (the "Oxide Mill") and the flotation plant (the "Sulphide Mill") were in operation generating gold/silver dore bars from the Oxide Mill and three concentrates from the Sulphide Mill, a lead/silver, zinc and pyrite/gold concentrate. The gold/silver bars are delivered to a refinery in the USA; the lead/silver and zinc concentrates are sold to Nexxtrade and the pyrite/gold concentrates are sold to Trafigura, both prominent metal trading companies.

At the Sulphide Mill, several types of material were tested to optimize recoveries and the circuit has been modified to increase production capacity. This process is not completed but the additional work needed is relatively simple and we are working to complete it as soon as possible.

At the Oxide Mill, the challenge was that a high level of copper in the feed translated to high copper dissolution and lowered gold and silver recoveries. We could not increase the cyanide concentrations to enhance recoveries without causing havoc in the Merrill Crowe system. We tried several experimental methods before selecting one, testing it in the laboratory, then batch testing, before installing a continuous circuit to remove the copper from the solutions. Initial tests allowed us to remove between 98 and 100% of the copper, thereby producing a copper concentrate with good concentrations of gold and silver. With the new resulting solution being very low in copper, we can now increase the cyanide concentrations in order to improve gold and silver recoveries by 10% or more.

Our experience to date will be valuable information for our expansion plans in the future. We believe that with the current mineral resources alone, the Velardena, Chicago and San Diego properties (collectively the "Velardena District") could support a series of mines that together would generate at least 5000 tonnes per day or greater. At this rate, the Velardena District would potentially produce over 5 million ounces of silver, 120,000 ounces of gold and 27 million pounds each of lead and zinc, or about 12 million silver equivalent ounces based on current commodity prices. Note that, until a prefeasibility study is completed, there are no assurances that these operational estimates are accurate or will be economically viable.

Our mining operations have over 430 employees and are very professionally managed by experienced people from the area. Given the size of our mineral resources, the Velardena, District will host much larger production facilities in the future.

Scoping Study

The length of time it has taken to complete the scoping study has been a disappointment to management. The third party consulting firm that was preparing the scoping study provided timelines that were not adhered to and missed entirely. Therefore, a few weeks ago, we entered into discussions with a new third party consulting firm that is prominent and has much greater resources to complete the study in a proper timeframe.

This new third party firm sent a technical team of experts on site to review the available and pertinent information. Based on their recommendations following the site visit, we are convinced they will deliver a timely scoping study. As such, we are currently finalizing negotiations with them.

All the necessary data and tests for the scoping study have been completed, which significantly reduces the time to complete the report. We will provide an indication of the expected time frame once we have received an estimate from this consulting firm.

New N.I. 43-101 Technical Report

Our mining activities have shown that our mining grades are constantly higher than the corresponding mineral resource grades reported in our N.I. 43-101 Technical Report. Due to the consistency of this occurrence we are investigating this further, with the expectation that we may integrate the higher grades in the way we calculate the mineral resources. Once we understand the reasons behind this discrepancy, we can compensate or eliminate it in future technical reports.

Notwithstanding the above, we are also actually mining in areas where we have reported "inferred" resources or no resources at all. This is not uncommon for the very continuous epithermal vein systems that we have at our Velardena and Chicago properties where a significant portion of the exploration for, and discovery of, new veins and veins extensions is done by underground development.

The higher actual grades plus mining in inferred resources prompted us to investigate the potential for a grade reconciliation that could positively impact on our mineral resources. In particular, this may have the effect of converting a material portion of our "inferred" mineral resources into the higher confidence level classification of "indicated".

Depending on whether the reconciliation proves to be material, or not, this will dictate whether we provide an updated N.I. 43-101 Technical Report in the near term, or whether we incorporate additional results from our new exploration programs, with a view to providing an updated N.I. 43-101 Technical Report later in the year.

Mergers and Acquisitions

We believe the value of the Velardena District can be unlocked through many forms. The primary value will be delivered through resource and production growth, for which the Velardena District is well suited. However, this value may be accelerated through merger and acquisition opportunities.

We are consistently evaluating these types of opportunities whether it is talking to other companies to acquire additional assets, engaging merger prospects, entering into JV agreements or considering the outright sale of ECU to a larger mining company.

While several companies have, and continue to express an interest in ECU, we do not yet believe that our stock price represents the true value of our assets. In regard to acquisition of other assets and/or other companies, we will only consider those assets that have a real synergy to our assets or where we feel our expertise will unlock value.

Conclusion

Our mining and milling operations provide a very strong understanding of the feasibility of a much larger operation. Based on the advancements we have made in our mining and milling efforts, we feel the Velardena District will be a major producer of gold, silver, lead and zinc.

The opportunity to substantially increase and convert mineral resources is very strong due to the potential of the massive sulphide discovery, tapping the regions of unexplored mineralized areas and using our mining data to help convert inferred resources into measured and indicated. We believe that this district will be host to major production and that the size of our mineral resource will provide for very long life operations.

We have an extraordinary shareholder base that consists of long-term shareholders who have shown great patience and loyalty to ECU over several years. The management team at ECU remains committed to delivering extraordinary value to our loyal shareholders.

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 N.I. 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.
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
[phone]

Mark Butler
ECU Silver Mining Inc.
Investor Relations
Toronto, Canada
[phone]

http://finance.yahoo.com/news/ECU-Silver-Provides-Corporate-ccn-501280089.html?x=0&.v=1

[eom7]

$10 Billion in the ground...