Santa Juana yields rich extension for ECU

ECU Silver Mining (ECU-T) has hit a new high grade mineralized zone at its Santa Juana mine in central Mexico

The company says the discovery was made in the upper levels Santa Juana which is located within the main portion of its Velardena Property in the state of Durango.

The latest assay from the new zone returned 3.8 metres averaging 1.64 grams per tonne gold, 324 grams silver, 0.72% lead, 0.13% zinc and 0.35% copper.

ECU was already confident that more ounces would be going into its resource estimate from mineral extension at depth and laterally, but with the latest results, it says it expects resources to be added from zones above the current resources as well.

Velardena as a whole currently has 39.7 million silver equivalent oz. in the measured and indicated category and 391 million silver equivalent oz. in the inferred category.

The latest results came out of a cross-cut on level 12 as it intersected the upward projection of what the company calls the “A-2” vein.

ECU says the reported assays came from four veins, totaling 0.95 meters in width.

The host rock in the zone is diorite with mineralization occurring as parallel veins striking northwest as part of the Santa Juana corridor.

The company says the zone also benefits from being more easily accessible than other parts of the mine as it can be accessed by the main adit, meaning it wouldn’t have to use the shaft to move ore. That should translate in to less handling and lower production costs.

“The way in which this mineralization is occurring in this mineralized area, makes it an ideal area for future low cost mining,” ECU’s chief executive Michel Roy said in a statement. “The mineralization is on the main access level, and with its potential extensive lateral continuity, it represents the potential for easier mining and more productivity.”

In November of last year the company announced that it had opened the A-2 vein on level 15.5 over a strike length of 127 metres. Assays graded 4.90 grams gold, 386 grams silver, 2.55% lead and 1.72% zinc over an average width of 0.86 meters.

In Toronto on May 3 the company’s shares were off 6% or 4¢ to 68¢ on 3 million shares traded.