ECU Silver Mining Inc. (TSE:ECU)

[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