Mexico Mike has provided some excellent insight into the significance of today's news release at MIDAS, which I have taken the liberty to post below. I hope you don't mind Mike and thanks for breaking it down for us.

ECU SILVER DEEP DRILLING ENCOUNTERS MINERALIZATION AT
DEPTH AT SANTA JUANA
http://www.kitco.com/pr/1267/article...
Hi Bill!
I see the market is reacting as usual to some pretty good news from ECU. Perhaps some people do not appreciate the magnitude of this latest NR, so I will attempt to outline what I think is significant.

The first thing to realize is that these results came from underground drilling completed from stations at level 18 of the mine, in the SantaJuana zone. I have been in the mine on this level, and it is a long way underground, something like 400-500m below surface (about a third of a mile). This drill core punched about 900m BELOW that level so weare talking about very deep below the surface, and still the company has hit some potentially economic resource in this mineralization.

Now most vein systems in Mexico are hydrothermal, which means they were formed from the circulation of heated, mineral-rich solutions in cracks of the rock. They typically pinch out with productive elevations of a few hundred meters. ECU is basically reporting that
this is something special, and far greater potential tonnage than the vein resource model. The system just goes and goes to depth, with several distinct geological regimes represented and different types of mineralization encountered. There is the potential that this intensely altered system could extend to other parts of the project area controlled by the company, and it could be a huge deposit. This is course would be news to the market, since so many people still think of the company as a narrow vein niche player.

The holy grail for this project has always been the potential for a bulk tonnage system at depth. We have seen reports of skarn intercepts at various parts of the deposit for a couple years. The lack of a deep drill rig prevented getting further to test that. Until now...

The current resource zones as reported in the updated NI43-101 estimate only go to about 900m depth. This latest drill core result extends more than 450m below that. Think about the implications overall for the entire resource if they can continue to step out this new area to depth.

The calcite veins they reported are fairly narrow, under a meter in true width. But if you look at how close they all come together, there are resource blocks there that are similar to the MC encountered elsewhere in the mines.

Further below that, we are told that another new type of mineralization was encountered, the massive sulphides, and assays are pending. The presence of massive sulphides would indicate we are getting closer to the intrusive. The drill bit ended in mineralization so we do not know the full extent, but it could be that the company has finally come to the contact body that was always expected could exist to depth and be the source of all of the veining near surface. This is what Michel Roy has been working for 10 years to prove up. We could be on the brink of this discovery now. It would elevate ECU to the ranks of the top discovery stories in Mexico for once and for all, on the same significance of the Penasquito Deposit for Glamis/Goldcorp.

There are just so many fundamental reasons to buy this stock right now and its a big surprise to me that the market is not jumping all over this news. I know I am preaching to the choir here and that most people who read this are already aware that ECU is something special. We are going to be hearing a lot more from this discovery area and perhaps we can finally start feeling optimistic that our confidence in this company will be rewarded. My guess is the market will not be able to ignore this story much longer.

For full personal disclosure, I have owned ECU for many years, and the company is a paid advertiser on my website.

cheers!
MexicoMike