The assay's in today's news release were pretty good compared to the average grade of all veins given in the NI43-101. The average vein width of the west terneras vein was ok at 0.65 meters while the average width of Terneras East was poor at 0.21 meters.

Below I have computed the metal value in these veins and for the average for ECU's property. I have used the current metal prices as follows:

Gold = $1545

Silver = $37.20

Lead = $1.16/lb

Zinc = $1.02/lb

For the Terneras West we have the following grades:

Gold = 3.25 g/t

Silver = 311 g/t

Lead = 1.78 %

Zinc = 2.05%

The contained metal value = $625.09/tonne

Diluted to 1 meter = $406.31/tonne

Value @ 60% recovery = $243.79/tonne

These are really good numbers!

For the Terneras East we have the following grades:

Gold = 2.82 g/t

Silver = 263 g/t

Lead = 1.48 %

Zinc = 1.75%

The contained metal value = $531.89/tonne

Diluted to 1 meter = $111.70/tonne

Value @ 60% recovery = $67.02/tonne

Notice the contained metal value in the east vein is almost as high as the west, bit when it is diluted to 1 meter it losses 80% of its value. I think the key to mining a vein only 0.21 meters wide would be the ability to seperate the mineralized rock from the waste ore before feeding it into the mill.

ECU property average:

Gold = 2.10 g/t

Silver = 153 g/t

Lead = 1.60 %

Zinc = 1.95%

The contained metal value = $372.12/tonne

Value @ 60% recovery = $223.27/tonne

So the metal value in the Terneras West vein diluted to 1 meter is higher than the mine average. Also at $243.79 recovered value per tonne, this rock will be quite profitable. Based on the 2010 financials, our total mining and milling cost is about $90/tonne. If we run this material thru the sulpide mill, the sulphide mill alone would generate about $10 million per year that can be used toward drilling and corporate expenses. Also, today's news release said that the mine workings are already there and only need some rehabilitation. This should further reduce costs and give us the additional feed needed to run the sulphide mill at capacity. All in all a very good news release.