~*~Mining and Metals Du Jour~*~

[basserdan]

From ECU Silver's recent Management Discussion & Analysis

(ECU.TO ~ ECUXF)

Excerpted:

MANAGEMENT DISCUSSION & ANALYSIS

(All dollar figures are in Canadian dollars, unless otherwise stated)

In this report, ECU Silver Mining Inc. (“ECU Silver” or the “Company”) seeks to present the highlights of the Company’s activities for the three-month period ended on September 30, 2009. Equipped with adequate systems of internal accounting and administrative controls, management is able to provide reasonable assurance that the financial information included in this report is relevant and reliable. All financial information is presented in accordance with Canadian Generally Accepted Accounting Principles (GAAP). This report should be read in conjunction with ECU Silver’s annual report for 2008, its unaudited quarterly financial statements and the accompanying notes. Additional information about the Company can be found on the SEDAR Web site (www.sedar.com) and Company web site (www.ecu.ca).

OBJECTIVES
The main objective of ECU Silver is to become a primary gold and silver producer. The Company has important growth objectives and plans to realize them through the development of its projects and the acquisition of new projects in the Velardeña mining district and elsewhere in Mexico.

PERSPECTIVES
Over the past few months, ECU has established a strong platform for its future growth. This platform consists of a significant mineral resource, an oxide mining and milling operation, a sulphide mining and milling operation, extensive infrastructure, and a work force of 430 people. While the main focus of the Company will continue to be the development of our mineral resources, we have entered the first stage of this growth by focusing on our mining and milling activities and ensuring a stable base of revenue from these operations. The next step in our growth will be the completion of our scoping study which will define the parameters for mining and milling operations that are three times the size of our current operations.

With regard to our Oxide Mill, productivity has been excellent and the Oxide Mill has proved to have very robust capacity. We have been feeding the mill consistently at a rate greater than 500 tonnes per day. Material for the mill is being sourced from underground mining stopes, low-grade stockpiles, gold-rich tailings from the flotation mill and from roasted pyrite material from existing concentrate stockpiles. Grades and recoveries for the mineralized material from the Santa Juana, San Juanes and Chicago underground mines were very good considering an important portion of the material from the Santa Juana mine was from the Transition Zone which lies between the sulphide and oxide sections of the mine and thus contains sulphides that leach poorly. A portion of the tonnage that is being milled through the oxide mill comes from high-grade roasted pyrite/gold concentrate material. Results show that the recoveries for the roasted pyrite/gold concentrate material were extremely high, most likely above 90%, despite previous laboratory metallurgical tests that indicated potential recoveries between 50% and 75%. Test work on the roasted pyrite/gold concentrate material is continuing.

During the quarter, the Company milled a blend of mineralized material that included pyrite/gold tailings. These tailings are currently the source for the pyrite/gold concentrates which are generated from the sulphide mill. The recoveries for the gold contained in the tailings blend were approximately 55%, which is superior to the 50% that is achieved when milling the tailings through the Sulphide Mill. Consequently, based on this positive news, a new circuit was designed and will be added to the Oxide Mill to permit the daily processing of 400 tonnes of pyrite/gold tailings, in addition to the 500 tonnes of mineralized material the Oxide Mill is currently treating.

We plan to further increase revenues in the next quarter with the recent re-activation of our second mill, the Sulphide Mill. The Company will therefore be operating two mills, the Oxide Mill and the Sulphide Mill. With the significant increase in lead and zinc prices, our sulphide stockpiles have become an attractive
opportunity to enhance revenues. We also plan on increasing our mining fleet in order to boost underground productivity in the sulphide portion of our mines.

MINING PROPERTIES
The Company owns three properties located in the Velardeña mining district, within the municipality of Cuencamé, in the northeast quadrant of the State of Durango, Mexico. These properties, collectively known as the Velardeña District Properties, are centered approximately 95 km southwest of the city of Torreón in the State of Coahuila and 140 km northeast of the city of Durango, capital of the State of
Durango, and are comprised of the Velardeña Property, the Chicago Property and the San Diego Property. The results of the exploration efforts to date at on each of the Company’s properties are summarized in the Company’s December 31, 2008 MD&A under the caption “43-101 Resource Update”.

Velardeña Property

The Velardeña Property is approximately centred at 25° 4' 30" North and 103° 41' 46" West. This property contains the Santa Juana mine, which has been the focus of ECU Silver’s mining efforts since 1995, as well as the historical Terneras, San Juanes and San Mateo mines. The property consists of 20 contiguous mineral concessions totalling 233.2 hectares. During the three month period ended September 30, 2009 the Company’s focus was primarily on the operation of its plants and development of its mines in the oxide resource. As such, it is not currently involved in exploration work on the Velardeña Property.

During the quarter ended June 30, 2009 the Company successfully completed the re-commissioning of its recently acquired 500 tonnes-per-day gold and silver recovery plant (the "Plant") located adjacent to its properties near the town of Velardeña. During the quarter ended September 30, 2009 the company focused on expanding its underground development within the oxide resource, targeting to reach an extraction rate to feed the Plant at its capacity by year’s end. The Company incurred cash development costs of totalling $2,659,698. These costs were offset by revenues from the sale of doré bars totalling $2,223,241, for a net cost of $436,457. Including depreciation of plant and equipment in the amount of $595,849, total deferred costs were $1,032,306. Mining and milling results are presented later in this report under the caption “Mining and Milling Results”.

The Company plans to continue its focus on the operation of its plants, and on the development of its mines in the oxide resource. It also plans to continue its work on the completion of a method to process and sell its pyrite material-in-process inventory. Once these have been completed, the Company intends to continue its exploration programs at the Velardeña district properties. The Company has not completed an economic study related to the processing of its oxide resource through the Plant and therefore cannot provide assurances that its operation will be economic.

Chicago Property

The Chicago Property is located approximately 2 km south of the Velardeña Property. This property contains the historical Los Muertos-Chicago mine and consists of 8 contiguous mineral concessions, totalling 315.88 hectares.

During the period the Company was not active in exploration and undertook limited development work of the property as a result of its focus on the Plant and plans to continue exploration of the Chicago Property in conjunction with exploration at the Velardeña Property. Deferred costs incurred in the period totalled $44,367.

San Diego Property

The San Diego Property is situated approximately 9 km northeast of the Velardeña Property. This property contains the historical La Cruz-La Rata and El Trovador mines as well as a number of other shallower shafts which were sunk on narrower veins such as the Cantarranas, Montanez and El Jal. The property is comprised of 4 contiguous mineral concessions totalling 91.65 hectares.

The Company is exploring the San Diego Property under the terms of a joint venture agreement with Golden Tag Resources Ltd. pursuant to which each party pays a 50% share of the exploration and development expenditures. The current drilling program of the San Diego Property has been completed and the Company expects that the parties to the joint venture will review plans for continued exploration of the property later in 2009.

http://www.ecu.ca/i/pdf/2009-Q3-MD&A.pdf