Commentary/Review:

Thanks to some great digging by Otto and confirmation from two reliable sources, word that the "three concession maximum" directive included in the mining mandate will work as follows:

1. we will have to give up all but three of their mining concessions (our choosing)

2. the balance of concessions will then be offered back to us on a "first refusal" basis, and a price-per-concession settled with the government

3. if we do not want the concession (or if the two parties cannot agree on a price) the concession will then and only then be offered in public tender to the highest bidder.

Why will the price per concession be a reasonable one? If it's not, then the government just ends up with even more unused concessions, it won't be a formula that would interest international miners, it will not provide any quick cash to show to the people of Ecuador, and it won't have the future tax base from a healthy mining industry. Also, the mining companies in Ecuador now have an excellent communications pipeline. They will all get together and present themselves on a common front when it comes to what they will offer for the concessions. The government will not have to wave much cash in front of their people in order to make it look like they came out on top, as they have said in the past, concessions were given out for the price of a sick chicken.

"Ecuador really does want to play ball with the serious mining companies. However, at the same time the gov't gets to achieve the main objective of the mandate article by taking away concessions that were handed out on the cheap to locals as part of the old boys' favour network in very suspicious circumstances."

This is a big chunk revealed. We still need the draft laws, the suspension lifted, and get our workers back on the job, depending on how long this takes, and how many drills are still on site.

Hypothetically, we could end up with more concessions than we started with.

I can imagine there were areas in Ecuador that were very interesting to Keith and Patrick, however the land couldn't be touched because some old guy was sitting on those concessions for decades so that he or his grand kids might flip it to a real mining company some time in the future.

Now, in that this info is not coming out via a news release, how will it affect the SP? If we know these details...Barrick, Newmont et al know them also. Hopefully Chiriboga and crew keep the pressure up to get the draft mining laws finished. Wrap up the dog and pony show, and cut to a vote. But it has to be mining friendly...to International standards.

Hoist the mainsail. I feel a wind pickin' up.

Safeharbour