Let me begin my case for ECU price gains by discussing Sabina Silver. A year ago Sabina Silver's share price was about $1.50. At that time they owned Hacket River which is a large bulk zinc and silver deposit with several billion pounds of zinc and lead plus a few hundred million ounces of silver. They also owned the Back River deposit which they bought the year before and it had a resource of about 2.2 million ounces of high grade gold. In the summer they began drilling Back River and made 2 more discoveries which were just determined to hold another 1.8 million ounces of high grade gold. Their drill intercepts were an average of about 100 gram meters. To come up with gram meters, the gold content in grams per ton is multiplied by the length of mineralized intercept. Most of the asseys were around 10 grams per tonne gold over a 10 meter width.

The fact is, this added 1.8 million ounces of gold increased their total mineral value by less than 20%. The result was that their share price quadrupled to $6 a share. This was due to the excitment of continuous news releases of high grade and wide gold drill results. They also raised about $150 million in placements over the last 9 months and this was not detrimental to their share price.

So what is the chance of ECU drilling massive sulphide intercepts rich enough and wide enough to qualify as 100 gram meters of gold? Well, they already did that in their first drill hole into the massive sulphides 3 years ago. They had a 12.04 meter long intercept which graded 3.66 g/tonne gold and 295 g/tonne silver. Using a 40:1 gold silver ratio, the equivalent gold grade is 11.03 g/tonne and grade times width was 132.8 gram meters.

$4 ECU by next winter :)