Scout,

In order to compare actual Q2 sales with what the current prices would get us, we need to look at Q2 metal sales and not at mined or milled amounts. In Q2, metal revenues were $4,425,413. Ignoring the pyrite, which was not being sold yet in Q2, at todays metal prices and assuming a 10% smelter fee for the concentrates and a 5% refinery fee for the dore, sales using current prices would be $5,187,447, a 17% increase. However, now that we have a buyer for the gold pyrite, ECU's current revenue stream would be even better. Using gold and silver contained in the pyrite concentrate that was milled in Q2 and current prices, and additional $748,411 of revenue is now being produced if we assume ECU is obtaining 60 cents on the dollar for the pyrite metal. This brings Q2 revenues using current prices and the pyrite concentrate up to $5,935,858, and increase of 34% compared to actural Q2 revenues.

Since sales are different than milled amounts, it is difficult to determine what the Q2 tonnage was for the sulphide sales, but it looks to me that it was around 186 tonnes per day. The suphide mill has a capacity of 320 tpd though, and ECU was not operating this mill at full capacity in Q2 since it did not yet have a buyer for the pyrite concentrate. Now that we have a buyer for the pyrite concentrate, the sulphide mill will be profitable and there is no reason that we will not be operating it at closer to full capacity. If we assume a 60% increase of the Q2 suphide tonnage from 186 tpd to 298 tpd and a 20% increase of the oxide mill from 459 tpd in Q2 to an amount of 550 tpd and current prices and pyrite sales, revenue would be $7,627,789 per quarter which is an increase of 72% vs Q2. Last, if we take this figure and increase the % mill recovery from the 60% we got in Q2 to 70% which is why we hired the new mill manager, revenues would jump all the way up to $8,899,098 per quarter, an increase of 101% on actual Q2 revenues.

So while it took a lot to derive our potential, the situation is really quite simple now that we can sell the pyrite concentrate.

1.) Keep current gold and silver prices

2.) Run mills at full capacity.

3.) Increase recoveries from current 60% to 70% of contained metal

4.) Sit back and get revenues of $8.9 million per quarter.