The following are recent comments from Leonard Melman who has visited the ECU property and written the company up last year.

“Few countries have proven to be as attractive for mining during the past few decades as Mexico as they have enjoyed the unique combination of excellent geologic prospects, favourable government policies, reliable courts of law and a steady source of well-educated and well-trained domestic mining personnel. However, Mexico has received more than its share of negative headlines in recent years, most of them associated with its violent and frequently tragic battle against criminal drug gangs.

Therefore it comes as a distinctly pleasant surprise to see a truly positive article about Mexican prospects published in this morning’s Wall Street Journal. The article points out that while there have been many deaths associated with the drug struggle, the vast majority have been among rival gang members, not the general public and, in fact, “...In Mexico City, home to some 20,000,000 people, the murder rate actually fell over the last decade. In 2009, it was about one-quarter the rate of Washington, D.C.”

We also learn that Mexico’s economic structure is steadily improving. Their GDP growth rate in 2010 was 5.5%, far in excess of either the USA or Canada. The Mexican Peso is improving against most currencies and their holdings of foreign reserves have passed the $113 billion mark. Tourism is growing, new “maquiladora” industries continue to add new workers and the percentage of the country’s population living below the poverty levels is on the decline. Literacy rates, now near 90%, are on the rise and life expectancy numbers are near First-World levels, a major accomplishment when compared to previous years.

In our opinion, their drug problems, while remaining serious, are not insoluble at all (witness the startling success of Colombia) and, given the other factors relating to mining and their national economy, we believe that mining enterprises in Mexico will continue to offer substantial opportunity in coming years.”