The Golden Truth: ECU Silver Update

Monday, November 9, 2009

ECU Silver Update

I hope readers of this blog were able to fully participate in the gains achieved in Aquiline and now ECU Silver (ECU.TO/ECUXF). ECU recently released some drilling results which were quite impressive. Here's the press release: Lots Of Silver On This Property ECU's stock has appreciated 17% in price since my October 14th post.

ECU already has proved 431 million ounces of silver. ECU's independent testing verification firm, Micon International, has signed off on the possibility of 1 billion ounces. What is NOT included in the 1 billion ounces is the potential represented by the Massive Sulphide Deposit (MSD), which ECU believes is the ultimate source of the silver and gold on the Valerdena property.

The drilling results linked above are beginning to confirm not only the existence of the MSD, but that ECU is closing in on it. In casual conversations with some investors who have actually visited the site, it is believed that the MSD could contain up to and addtional 500 million ounces of silver (not included in Micon's 1 billion number).

ECU presents a tremendous opportunity for one or two large funds to take a big position in a stock that is very undervalued on a fundamental analytic basis. Because of its large share base (285 million shares, 337 million fully diluted), a large investor would be able to accumulate a meaningful position without driving the stock up too much.
(click on chart to enlarge)

It is not too late for investors to climb on the ECU train ahead of its discovery by the institutional investing world. As you can see, ECU stock traded well over $3 back in late 2006 - early 2007. And this was before ECU had confirmed 430 million ounces. As the price of silver continues to climb higher, as ECU continues to prove larger amounts of silver, it is my view that ECU can easily trade well above its previous highs.

8 comments:

AnonymousMonday, 09 November, 2009
dave do u provide subscription service for junior miner stocks?
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Dave in DenverMonday, 09 November, 2009
Anonymous. I do not do a subscription service. From time to time I will post analysis and commentary on the stocks I think are really cheap in the mining stock sector.

I do co-manage a precious metals hegde fund. If you would like information on that please email me at midas10k@comcast.net.
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EconomicDisconnectMonday, 09 November, 2009
Are you ready for some Monday Night Football??
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Dave in DenverMonday, 09 November, 2009
gyc (5:20 Denver time) - the clock can't move any slower. Ty Law will play tonight. This town is rockin' n rollin' right now!
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EconomicDisconnectMonday, 09 November, 2009
If Law is in shape he is a very good physical corner.
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Julia WongTuesday, 10 November, 2009
Hey Dave,

Felix Salmon and WSJ finally caught up with our discussion on (http://truthingold.blogspot.com/2009/10/re-goldman-sachs-earnings.html) on October 25th concerning GS's earnings "source".

http://globalmacrosport.blogspot.com/2009/11/one-step-ahead-of-curve.html

Julia;)
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Dave in DenverTuesday, 10 November, 2009
Hey JW, thanks for the link. The most frustrating issue w/regard to the way banks are being allowed to account for their earnings is that their true, economic losses are being monetized by the U.S. Treasury, Fed and British Govt, thereby allowing these banks to pay huge bonuses. It's the biggest complete hijacking of public wealth in the history of the world.
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AnonymousThursday, 24 December, 2009
Dave,
Thanks for taking the time to post these updates, it has helped w/ my DD in ECU and I have taken an initial position! Much appreciated, as I also believe the sector will soon be flooded with new money, chasing these juniors higher.
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Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.