Midas tonight on interpretation of ECU findings.
These comments have been making it 'round the gold world this evening. I think in all the excitement a few extra zeros are on the silver equivalent figure; it's clearly meant to be 350 million oz. Still, whoa!
Read on!!!
Bill,
ECU, good Lord!
These numbers are spectacular. Think you may be right about this being a grand slam!
Andy
////
Another friend of mine, and a large ECU shareholder, sent me the following which capsulizes the stunning press release in layman terms:
Bill
---massive ore body with the potential of over 100 000 000 000 tonnes of ore grading well over 2.25g/t gold (500metrs *800meters *91.meters*3=well over 120 million tonnes)
----Or over 7 million ounces of Gold and over 350 000 000 000 ounces of Silver equivalent using a ratio of 50:1
---Given that this drilling program has just started and has only touched a small portion of the property, the potential to increase the tonnage by further multiples is excellent.
----Just based on the known veins discovered thus far along with this latest skarn intercept, ECU will have an exceptions Mineral Inventory when updated.
--Given that cost for such massive underground mining in Mexico is under $15/ton and at current mkt price the company will fetch over $40/tonn for 2.25gr/t gold,the profit profile looks staggering.
--Even if we just take the smaller intercept of 14.4 meters, that would yield tonnage of over 17 million tonnes with over 6 grams/tonn Gold, the revenue fetched would be over $120.00/t and with costs at $15, again the profits could be staggering.
---Despite the recent gains in the share price of the company, this news makes it look cheap comparing to its peers, and indeed we are really starting to look we have another Gammon Lake on our hands (whose stock price went bonkers!)
- The grades and thicknesses obtained in hole TA 17.5-04 are similar to some of the largest orebodies being mined in Mexico.
ECU chart:
(ECU - CANADA)
new.stockwatch.com
I would like to thank Greg Roberts, one of our GATA friends, for calculating these numbers and what they mean so quickly. It should help Cafe members (me included) to really understand what we are dealing with here. |
