Ecu Finds Major Vein

With its shift from production to exploration at the Velardena property in Durango, Mexico, ECU Silver Mining (ECU-T, ECUXF-O) hopes the headway it has made will be reflected in the next resource estimate included in a technical report due by the end of the year.

A June 2006 resource estimate put indicated resources at 17.4 million oz. silver equivalent, and inferred resources totalled 81 million oz. of silver equivalent.

The latest find at the 18-sq.-km Velardena, was a major vein within the Santa Juana mines system, just north of the Roca Negra vein, the southernmost vein of the Santa Juana system.

ECU has identified five areas with significant potential on the Velardena property as a result of the 32,000-metre drill program this year.

The company has not stopped drilling. It is testing whether the new vein is entirely new or an extension of the C0 vein, another major vein at Santa Juana.

The drilling that identified the vein returned 0.43 metre grading 1.2 grams gold per tonne, 124 grams silver, 3.52% lead, 7.36% zinc and 0.11% copper.

Another hole returned 1.02 metres grading 2.7 grams gold per tonne, 229 grams silver, 3.81% lead, 14.83 zinc and 0.52% copper.

ECU says the mix of base metals and precious metals is typical of the geological environment and is consistent with historical data from the area.

Velardena includes four interconnected mines, though current exploration, development and production are focused at the Santa Juana mine, and to a lesser degree, San Mateo.

The vein systems at Santa Juana have demonstrated lateral continuity of up to 1 km and vertical continuity of more than 500 metres.

This year, the company has only been using the Velardena mill, which operated at a rate of 320 tonnes per day in 2006, as a pilot plant, conducting metallurgical testing of the different veins on the property.

ECU has also made discoveries at the nearby Chicago property, which includes the Los Muertos-Chicago vein. The company has followed this vein through drilling and existing underground development for 390 metres horizontally and 240 metres vertically so far, but historically the vein has been followed for 1,300 metres horizontally.

At the San Diego joint-venture property, ECU and 50% partner Golden Tag Resources (GOG-V, GTAGF-O) have confirmed the continuity of polymetallic high-grade mineralization on laterally and vertically extensive veins. Golden Tag is currently working on a National Instrument 43-101 resource for San Diego.