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.


  1. dave do u provide subscription service for junior miner stocks?

  2. 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

  3. Are you ready for some Monday Night Football??

  4. 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!

  5. If Law is in shape he is a very good physical corner.

  6. Hey Dave,

    Felix Salmon and WSJ finally caught up with our discussion on ( on October 25th concerning GS's earnings "source".


  7. 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.

  8. 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.