Based on today's ECU news release, during the last 10 days of September, ECU processed oxide ore and gold pyrite concentrate quantities and grades which are representitive of the future of this operation. The production of dore in the last 10 days of September was very good, and if extrapolated to a full month represents 1014 ounces of gold and 20,853 ounces of silver. Using the companies daily feed for the month of 527 tpd, this production works out to a yield of 1.99 g/tonne Au and 41.02 g/tonne Ag. Depending on the recovery rates, this works out to feed grades of about 3 g/tonne Au and 70 g/tonne Ag. These gold grades are good, but the silver grades are still low compared to the NI43-101.

Using the extrapolated dore production amounts, the oxide mill production value was $1,453,358 using current gold and silver prices of $1,066 and $17.86. After a 3% refinery fee, the yield from this dore bar to ECU is about $1,409,757.

The lead and zinc concentrates from the sulphide mill operation contained 14.05 ounces of gold, 10,375 ounces of silver, 29,635 lbs of lead, and 39,822 lbs of zinc. At current prices of $0.9792 lead and $0.9206 zinc, these concentrates contain a metal value of $265,953. Using a 10% smelter fee, the net of these concentrates to ECU is about $239,358.

The gold pyrite concentrate produced from the sulphide operation contained 188.8 ounces of gold and 1631 ounces of silver. This material can be fed into the oxide mill in the future to increase its production.

The net monthly payable sales of the current rate of production of the two mills is about $1,649,115. On top of this, ECU still has several avenues for increased production. The 4124 tonnes of suphide ore processed is 137.5 tpd. GWR, correct me if needed, but I believe the sulphide mill has a capacity of 400, tpd, so there is still alot of room for increased production thru the sulphide mill. ECU is also currently constructing a treatment circuit for the gold pyrite tailings and is still in the process of increasing the amount of roasted gold pyrite concentrate. The gold pyrite tailing should provide at least another $500,000 per month, and the roasted pyrite concentrate will further increase the dore bar production.

Based on the above, it is easy to see that ECU will have net payable sales of $2.5 to $3 million per month in the next few months if metal prices stay where they are. If ECU's company burn rate is $1.3 million per month as stated by GWR, than ECU will be extreamly profitable. Most of ECU's silver mine competitors need a silver price of $18 to $22 per ounce silver just to break even. ECU's total cost per equivalent ounce silver could theoretically be as low as $9 per ounce. This cost is below any silver miner I know except maybe Fresnillo. Of course if/when ECU resumes exploritory drilling, their monthly expenses will increase. Regards.