At current prices the metal value of the samples for the C1 vein are $1399.08/tonne. Since this vein is only 0.27 meters wide we need to dilute it to a 1 meter width. This gives us a value of $377.75/tonne. The metal value of the CC vein is $1081.35/tonne. Since this vein averaged 1.25 meters wide, we do not need to dilute it. If we use a 60% mill recovery rate we get a value of $226.65/tonne for vein C1 and of $648.81/tonne for vein CC. Since vein C1 was sampled over 111 meters, if we use a density of 3 tonnes /m3, the recovered value of the tested length of this vein is $7.55 million dollars per 100 meters vertical. The recovered value of the CC vein which was tested over 125 meters is $24.33 million dollars per 100 meters vertical.

Using the Q1 MD&A data, ECU is currently milling ore at the rate of 22,625 tonnes per month. If we use a total corporate cost of 1.7 million dollars per month, which is in line with the Q1 data, then our total operations and corporate cost is $75.14/ milled tonne. I expect this number will go down as tonnage goes up in the future. Using the C1 recovered value of $226.65/tonne, if our entire mill feed consisted of this value ore, we would have a profit of 22,625 tonnes/month x $151.51 profit/tonne = $3.428 million per month. Simaliarly the CC vein ore would produce a profit of 22,625 x $573.67 = $12.979 million per month. I imagine these ores are sulphides, so it is not possible to use them 100% since we are using both the oxide mill and the sulphide mill concurrently.

In the first quarter of 2010, ECU processed 66,204 tonnes and had sales of $3,186,266. This works out to $48.13/tonne. Based on April sales of $2 million, this number has probably increased to $80 to $90 sales per tonne. Needless to say, the potential sales from the C1 vein of $226.65/tonne and from the CC vein at $648.81 represent a leap in grades.