Gold and Silver Juniors, Mid-tiers and Producers Message Board

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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers

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To: Claude Cormier who wrote (17592)	8/4/2006 4:11:41 PM
From: zoo york	Read Replies (1) of 78413

Hi CC! The most recent resource update of 100 million ounces silver equivalent did not include a wide interval of stockwork that is already developed and ready for production (probably 1.5 million tonnes with average grades around 200 g/t silver). It also did not include several new veins and vein extensions in the main system that they have developed recently, some of which grades above 15 g/t gold and 800 g/t silver, and probably amounts to another half million tonnes. Company president Michel Roy stated that he expects the next update to include all of the exploration work will add up to over 300 million ounces of silver equivalent. But I do not think it is the resources that will drive the market cap higher for ECU. The resources have basically proven that the company can operate at full capacity for decades and will support the decision to expand production. The company is limited to only about 350 tpd right now with the current mill. I expect that they are working to line up a bigger mill, with a capacity closer to 1000 tpd. The cash flow from that production level would support a higher market cap. There is also the potential for tens of millions of tons of lower grade skarn at depth, as suggested by the 3 drill intercepts they have reported so far, one of which ended in mineralization after penetrating the skarn for 90m. If this skarn system is proven to extend across a significant lens, then that new ore body alone would probably support a much higher market cap. ECU will then have the ammunition to find a partner to help put that bulk tonnage system into play. cheers! COACH247

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