Two weeks ago I posted an analysis of ECU's mine profit for the new mill. Before I get into those numbers I would like to say that I don't expect much improvement in our share price upon closing of the placement. Since the purchase of Hecla's mill is not yet a done deal, I expect a very positive share price reaction when news is released that the purchase is complete.

Since posting the mill profit numbers two weeks ago, the silver and gold prices have increased and since profit is leveraged to the metal prices, it has risen more than the metals. I have used the current gold price of $967.50/oz and silver price of $14.09/oz.

Previous profit first 300 days of mill = $16,625,700

Updated profit first 300 days of mill = $18,365,854

Previous profit per year after tailings are processed = $8,181,840/year @400 tpd

Updated profit per year after tailings are processed = $9,552,780/year @400 tpd

So basically due to higher metal prices our profit should increase about $2 million in the first year of operation and $1.4 million per year thereafter. This is significant when compared to the mill purchase price of $8.45 million.

Back on December 14, 2008 I posted a value analysis table for ecu comparing value after release of several past NI43-101 resource reports. Since that time the metal prices have increased substantially, ecu's share price has dropped, and ecu's shares outstanding has/will increase 25 million shares due to the placement. Current values for ecu's latest resource report are as follows:

MI+I = 430.729 million ounces silver equiv.

MI+I Value = $6.069 billion dollars

MI+I+Potential = 1,826.33 million ounces silver equiv.

MI+I+Potential Value = $25.733 billion dollars

ECU Share price = $0.56 Canadian = $0.4433 U.S.

ECU Shares Outstanding = 267,609,557

ECU Market Cap = $118.627 million dollars U.S.

MI+I Resource/Market Cap = 51.16

MI+I+Potential Resource/Market Cap = 216.92

For anyone who used to read Jason Hummel's silver stock reports years ago, the resource to market cap numbers used to run from below 10 for majors , then from 10 to 40 for juniors, and from 40 to 100 for explorers, with the ones near 100 facing bankrupcy or law suits. Personally I believe that the potential ounces projected in Micons report are there, so to be getting a 217 to 1 ratio is thru the roof. This is like getting all the building materials for a $217,000 house for $1,000 and all you have to do is build it. Regards.