what do you make of John Embry's concern about ECU being a fraud? My understanding of his concern is that all the discovery PRs are about extensions from already producing veins. If the yield is so wonderful, why hasn't it shown up already in cash flow? Are there any other situations where the CEO is also the one signing off assay results and geologic mapping for Sedar filings?
ECU.V M.Roy picked the pewrfect day to halt the stock and probably robbed me from filling my OB.....it's partner mini GOG is holding up quite well during the smackdown....knock on woodie.
Some comments from two of the major shareholders:"
Hi Bill! ECU hit the news wires with another great report after the close today. For shareholders, the news just continues to impress. I have summarized a couple of times in the past how it is possible to outline a rough box representing the three-dimensional orientation of the stockwork zone, and how the tonnage amounts to a large new resource. With each subsequent report of results, the gaps in that hypothetical box are becoming confirmed, the resource numbers that are reported are jaw dropping high grades, and the box itself continues to grow. As more indications are presented that the total mineralized stockwork zone occurs across a much wider area the hypothetical outline of new tonnage increases, and ECU is filling in the blanks with confirmed data just as quickly.
For example, in the news from last month, we were told that the stockwork zone could possibly extend for 150m below level 18 of the mine. In this latest update, we learned that the they now believe it could extend for 400m below level 18. Also, we were told that the width of the strike length of the stockwork on level 15 was estimated to be about 40m, which in itself is impressive. Today we learned that they have now proven up 70m. The envelope just keeps getting larger.
I wonder if investors really understand just how exciting this news is, adding yet another potential block of that size in just a few weeks, to a discovery that is already among the biggest in North America this year. This just does not happen very often in the real world, and most juniors are active exploring for years to prove up even a chunk of what ECU has been updating us with on a regular monthly basis.
The grades too are a thing of beauty, and they continue to improve. For example, "Included was an intercept that averaged 6.55 meters (21.5 feet) of width grading 9.96 g/t Au, 300 g/t Ag, 1.92% Pb and 2.82% Zn"... Are you kidding me! There are just not that many deposits in the world where such grades can be found across bulk tonnage ore intervals.
I am really starting to look forward to what the next update to the resource estimate will look like, once all of this info is included.
One other significant upside surprise could be waiting for us. Late last year, Michel was successful to intercept the continuity of the main vein structure on the other side of the Tres Aguilas fault, which is the major structure affecting the mine development. This is a post-mineralization fault, in that it was not likely involved in the formation of any deposits, but did serve to displace part of the deposit. Michel was able to locate the veins on the other side of this fault, almost 200m below and 50m laterally displaced, which is extremely difficult to do. It now appears the the stockwork zone is also displaced on the other side of this fault, and therefore it too could extent for a large distance once they punch a few drill cores to look for it. Since they already have the approximate displacement of the fault mapped, they may now use that to find the potential stockwork extension and outline yet another signficant brand new discovery in a future news release.
I am delighted that those who attempt to short this stock will have to deal with the potential of a halt that will leave them trapped once news is released. Tomorrow, I fully expect to see buyers scrambling to add ECU to their holdings, at the same time as our mystery seller from RBC may be running for cover. Life is good! cheers! Mexico Mike (Coach247) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Bill, ECU Silver reported today significant drilling results pertaining to both the size of the deposit as well as the grade from the major recent discovery on level 15.
Specifically, level 15 shows grades of 4.29g/t Au, 161 g.t Ag, 1.37% Pb and 3.19% Zn over 5.25 meters of width (17.2 feet) and 70 meters of length (230 feet). As previously disclosed, levels 12 to 18 show a vertical continuity of nearly 230 meters (755 feet). These levels are almost all previously defined sections of the Santa Juana mine which ECU is currently mining from.
The significance here is twofold:
1)THERE IS NO "GUESS WORK" involved here, as one can see, touch and feel the ore on these levels(i.e. we are not depending on pinky sized drill holes to assess the viability of the zone);
2)The company ALREADY has FULL access to these levels and thus they do not require spending millions of dollars to extract the ore.
ECONOMIC VALUE OF GRADES
Using current market values for the metals (both base and precious) and the afore-mentioned mineral concentration, I arrive at about .45 ounces of gold equivalent per ton. To ascertain the possible metric tonnage, I simply multiplied 70 meters length X 5.25 meters width X 230 meters height X 3.8 density factor = 321,195 tons of ore.
This tonnage multiplied by .45 gold ounces/ton = 144,537 ounces of gold. In terms of silver, this equates to approximately 7.2 million ounces of silver equivalents (144,537 oz/Au X 49.81 Au/Ag ratio).
OTHER IMPORTANT POINTS
According to today's press release, there is the potential for this deposit to expand vertically:
"The zone represents a specific geological phenomenon, well-known in structural geology, which is linked to the position of the veins in relation to a major regional fault (Tres Aguilas fault). So we can expect this zone to extend vertically for as long as the veins are in a similar position relative to the fault. Thus far the Company has proven this continuity from levels 12 to 18 (230 meters or 755 feet) by drifting. Furthermore, actual drilling performed on the A4 vein (see Company’s press release May 8, 2006), which is included in the same veins package within the Santa Juana mine, suggests that the vertical continuity of this zone might continue for an extra 400 meters (1,500 feet) below level 18, for a possible total vertical extension of 630 meters (2067 feet)."
Should the height of this zone extend to 630 meters, the tonnage would nearly triple to 879 795 tonnes or by 395 907 ounces of gold equivalent
Also from the PR:
"The full horizontal extension has yet to be determined but we have 70 meters (230 feet) thus far and might add anywhere from 5 to 30 meters to the north-west before we reach the Tres Aguilas fault." End quote
The length is sure to increase anywhere from a further 7% to 42%, which means that the overall tonnage will again increase.
Furthermore:
"Proceeding south-east, the zone may continue further but we are not expecting to find any material distance beyond our current base. Once the fault has been reached to the north-west section of the zone, the Company intends to explore on the other side of the fault to investigate if this structural pattern repeats itself as a mirror image of the current discovery."
This is strictly speculating at this time, but this entire zone could repeat itself again on the other side of that fault and thus all our numbers have the potential to double.
All these great solid results over the past 9 month were accomplished with the use of ONLY one drill. Given that the drilling program is less than half-way completed, and with the impending arrival of two more drills over the next few days, ECU should continue to report plenty of additional results going forward.
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