Hi Pic!

I do not think this new mill will change the long term strategy for ECU. To get any value from millions of tonnes of lower grade ore the company will eventually have to develop a mine/mill complex with capacity to process 5000-10000 tonnes per day. The new mill is only 500 tpd but it represents the ability to access the gold resources, which are currently not a factor in the floatation cell recovery circuit. This is a move to build long term cash flow IMO, since gold is on a solid uptrend and gold producing juniors are the companies that seem to be most attractive in the market right now. Hopefully the money they raise in this deal will allow the acquisition of the mill, and fund the short term needs until that new mill is up and generating funds. From there, the company should be able to establish meaningfull production numbers of both gold/silver dore from the oxides, and silver/base metals concentrate from the sulphides using the current floatation process. Combined, these two circuits will yield significant revenues and shore up the balance sheet so we do not have to worry where the money is coming from for a long time.

I have not changed my opinion that ECU will ultimately be involved in a merger or acquisition with a major producer to take the company to the next level. This transaction is just going to take the heat off and allow things to continue moving forward for many years until that big deal down the road is completed.

cheers!

mike