Re: The News for ecu - 1.5 Billion ounces anyone?
in response to
by
posted on
Jun 26, 2008 07:33AM
Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.
Moose wrote: Sounds like we may be getting close to the source.
"the A4 vein is widening at depth which supports the regional geological model whereby vein widths typically increase with depth as they get closer to the main intrusive body."
Good stuff ECU! A4 is turning out to be one fat juicy vein alright, not to mention it is more proof of the much wider Mineralized Corridor that is slowly being brought into and towards the Resource & Reserve categories. At any rate I believe this renewed drilling is exactly what is needed to pull ECU out of the doldrums as informed speculators are bound to be attracted to the very distinct possibility of even richer treasures laying in wait deep down in Velardena's treasure chest. Bear in mind this represents increased risk to shorts who despise the fear of the unknown that can blow them out of the water with a single NR.
Who knows what kind of grades lay below, locked into this already sizeable deposit but if widths and grades keep increasing below level 19, then 1.5 Billion ounces of Silver equivalent potential is not out of the question. Have a good look at Argoz's review of the latest news releases, including expansions of existing mineralization and new discoveries, then add today's drill announcement and I think you'll agree that overall potential has increased significantly.
I'm convinced that at the end of the day these new deep discovery drill holes are going to bring in millions of additional tonnes onto the balance sheet, slowly moving ECU towards a critical ounce mass that will attract a partner into an accelerated exploration & development campaign. I think this is a logical and natural outcome given the simple fact the big guns need to replace ounces and monster deposits located strategically are few and far between if they exist at all.
At any rate on that magical day I expect ECU will be catapulted into an entirely new market cap valuation range that reflects the stability that comes with a mature unhedged deposit in a rising market, secured with a stable financial backer. As for today's share prices, everyone knows full well the small caps are valued way out of whack and utterly fail to reflect the reality of a generational Precious metals bull market that is underway but this cannot last forever.
Speaking of which, meanwhile back at the ranch, the Hedge Funds have broken into our stock accounts & pawned us for a laughable $1.50, but the good news down the road is the Chamber of Mines Police force has a plan to act on that will allow ECU and it's peers with advanced deposits to float to a more natural level that reflects it's intrinsic value which I believe to be $9 for ECU at $30 Silver.