ECU Silver Highlights New Assays From Development Work
Bill,
ECU came out with a press release today.
http://finance.yahoo.com/news/ECU-Silver-Highlights-New-ccn-3644171160.html?x=0&.v=1
They have been drifting on level 19, the deepest mining level at Santa Juana and they reported the following:
QUOTE
Assays, taken every three metres along the drifts, returned an average of 12.7 g/t gold and 305.4 g/t of silver over 0.62 m for a total length of 531 m
END
Notice the very high gold grade. This is approaching ½ oz per tonne (there was an assay up to 6.5 ozs per tonne). In my recent article
http://www.lemetropolecafe.com/pfv.cfm?pfvID=8156
which gave an update on ECU progress I discussed the exploratory drilling that had entered the deep massive sulfide skarns in 2008:
QUOTE
The size and grades of these intercepts suggests that some astonishingly large and high grade resources are lying at depth. These grades and widths are like nothing found anywhere else on the property! The assays revealed silver and gold content was increasing with depth. While more exploration work is required the chances of making a major high grade discovery that has long been postulated to be the biggest exploration jewel of the Velardeña property have significantly increased since my article of October 2006.
END
These massive sulfides are considered to be the source of the mineralization of the shallower veins at Velardena which is supported by the fact that veins get larger with depth and the precious metal grades increase. Now this latest data shows high gold grades and this is still several hundred meters above the skarns. My view is that there is a very significant high grade gold discovery to be made at depth. This latest information and initial drilling into the skarns is show increasing gold grades that already would be very attractive gold grades for most gold miners but if the grades continue to increase with depth to the mineralization source then the potential exists for a large deposit of unusually high gold grades.
ECU offers an extraordinary investment opportunity because they have mitigated the majority of risks that are associated with 95% of juniors miners: They have 431 million ozs of silver eq resources 43-101 compliant, they now have profitable production so they will not be cash starved or need to dilute equity to stay in business as most juniors do, they have only 25 M$ of debt, they have almost 1 billion ozs of "potential" resources which does not include the deep massive sulfides and skarns. They have established mineral assets and a revenue stream and they still have a massive exploration potential. In any risk business it rarely gets any better than that!
Cheers
Adrian
