Dave from Denver…

Tuesday, September 29, 2009

ECU and Aquiline Resources: A Little Risk, A LOT of Return

The fund I manage owns both of these stocks, for the record (ECU.TO/ECUXF; AQI.TO/AQLNF). I have personally owned ECU since mid-2005. To say the least, it's been a wild ride. Both Companies are intermediate-stage exploration miners who have discovered extremely large silver deposits. ECU's deposit is in Valerdena, Mexico, in the heart of one of the most prolific silver mining regions in the world. AQI's holy grail is located in Navidad, Argentina, in the Chebut province. At the end of the day, I view these two emerging silver miners as being "twin" companies in terms of the outright size of their respective deposits and relative stages of development. Both have obstacles to overcome in order to unlock their massive upside value. Either one could possibly be sitting on what will end up being the largest untapped silver deposit in the world. Both stocks are extremely undervalued relative to the potential value being given by the market right now for their proven in-ground silver…