The sulphide mill is gravey at this point and will be more gravey once it is at 320 tpd, but until we can treat the gold pyrite ourselves, much of the mill's revenues will be reduced by the cost of having a third party treat the pyrite concentrate. What impressed me about the production report was that gold dore production for October soared to about 920 ounces. This is 2760 ounces per quarter. In Q3, our gold dore production was only 1950 ounces, which is 650 ounces per month. This means our new mill manager has figured out the mill and gold dore production has increased 41% compared to Q3.

Using the higher gold dore production and October gold prices, gold dore sales should increase to about $3.7 million in Q4 which is 63% higher than Q3 gold dore sales which were about $2.27 million. In Q3, the dore production also contained 66.688 ounces of silver. If we maintain this silver dore production in Q4 and use an average silver price of $26 for Q4, the silver in the dore should bring us about another $1.65 million. The total revenue for the dore n Q4 would then be about $5.35 million.

In Q3, ECU sold 3,999 ounces of gold in the gold pyrite concentrate. If this continues in Q4, it should add about another $3.2 million, even though it appears this money is written off since its value was applied to our ledger years ago when it was mined and processed. Regardless of when it was applied to our financial statement, this money goes into our bank account now.

I am also impressed that it has been a long time now since ECU has issued new shares. This shows we have been self funding and now with higher dore production and higher metal prices our cash flow will be even better.

ECU is going to be very dynamic in the next few months with higher production and sales, the scoping study detailing a 1500 tpd sulphide mill, and hopefully more massive sulphide drilling.

I know everyone is against more share offerings, but our high float helps us in this situation. If we can get up to $3 a share, 6 or 7 million shares would pay off our debt and only increase our float by 2%. The same thing applies to the 1500 tpd mill. If it costs $40 million, then 13 million shares would get the job done and increase our float only about 4%. I would gladly reduce my % ownership of ECU by 4% if it accomplished a tripling of the rate of metal production.