Vancouver – Ecu Silver Mining‘s (ECU-T) discovery of new mineralization at its operating Santa Juana silver mine in Mexico has caused a spike in its share price.
The company recently opened the A-2 vein on the 15.5 level of the mine over a strike length of 127 metres grading 4.9 grams gold per tonne, 386 grams silver per tonne, 2.55% lead and 1.72% zinc over an average width of 0.86 metre. A section of the vein graded 10.47 grams gold, 354 grams silver, 4.93% lead and 6.39% zinc over 1.1 metres.
The news sent Ecu’s share price up 25¢ or 28.4% on the day to close at $1.13 on 4.8 million shares traded, after climbing 15¢ over the two days preceding the announcement. The day after the news came out the company’s stock price reached as high as $1.44 in mid-day trading before ending up 3¢ to $1.16 on 7.2 million shares traded.
The mineralization was found in an upper section of the Santa Juana mine and extends the known portion of the A-2 vein by almost 70%. The 2009 resource estimate on the mine included only 40 metres of the A-2 vein, grading 3.05 grams gold, 240 grams silver, 0.77% lead and 0.49% zinc over 1 metre.
“This new resource block provides further evidence,” stated Ecu chief executive and chairman Michel Roy, “that we continue to open mineralized areas that prove to be either higher grade or larger widths or both, than what is reported in our mineral resource report.”
The Santa Juana mine is one of five historic mines in the Velardena district of Mexico’s Durango State. Ecu has three main projects in the area: the main Velardena property on which Santa Juana lies, the Chicago property, and the San Diego property where Ecu has a 50% joint venture interest with Golden Tag Resources (GOG-V).
The Santa Juana mine currently extends from level 12 to 19 and is accessed through a 1,400-metre cross-cut from the 6th level of the historic Terneras mine.
In the third quarter Ecu shipped roughly 72,000 oz. silver, 6,000 oz. gold, 141,000 lbs. lead and 66,000 lbs. zinc.
In early October the company reported assays from a newly discovered vein on the Chicago property that returned 45 metres grading 6.99 grams gold, 393 grams silver, 9.02% lead and 6.83% zinc on an average width of 0.26 metre. The results are similar to those released on the Escondida vein in August, which is parallel to the new vein.
The company has 307 million shares outstanding or 374 million fully diluted.
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