www.resourcestockguide.com

...Yesterday, Ecuador came out with its first draft of the new mining law. While there is sure to be changes to the document, we think this draft offers a flavor for what is to come for the mining companies operating in Ecuador. It appears that the worst of the fears proved to be false for now. There is no mention of the windfalls tax, loss of concessions or nationalization, only a proposal for 1% to 5% tiered royalty on gross metal value, which is not unusual for the rest of the developing world.

Moreover, there is an indication that explorers such as Aurelian and Corriente may be able to resume their activities soon, while near term producers such as Dynasty Metals may have to wait a little longer.

While Dynasty Metals (DMM.TO) appears to be the most attractively priced company operating in Ecuador, its production was scheduled for later in 2008, and the temporary mining ban came at a very wrong time, causing a lot of disruption. Aurelian, on the other hand, is still in an exploration stage and should be able to commence its activities relatively quickly....

While there are risks that the mining law will be less favorable than the first draft, we believe that Aurelian presents a good speculation at today’s prices. We established a speculative position in the stock today at CA$4.13.