Here is my take on the new veins at Chicago...
There has been active mining at Velardena for several decades, and during that time it has been established that the veins are remarkably continuous, they tend to become enriched to depth, there are frequent intervals where the veins swell into wider zones of ore, and also where veins intersect to form larger mineralized zones.
Lets keep in mind that the vein-hosted deposits are just a small part of the total resources. A far greater tonnage of rock has been outlined in stockwork and breccia zones between and around the veins, and in contact skarn to depth.
The new Escondida vein is not impressive on its own as per the numbers released in this news. The grades are nice but the interval and total resource is not a big deal. However, if one considers that the vein may very well extend to the same depths as many of the other productive veins for this mine, and that the same potential expansion into other alteration zones may also exist, then its a big deal. The detail that ECU reported today is very encouraging for this potential.
And also, lets consider that these veins were not even known just a year ago. It is yet another example of just how productive this system is, with so many resource areas already defined on such a small property.
I think ECU is back on the right track. First they needed to stabilize the financial situation, and to do so they acquired another mill, and have begun to achieve meaningful production to pay the bills. Next, they need to ramp up exploration, and return the speculative upside to the story. The highest share price for ECU came when the company was increasing the resources, and reporting on exciting new discovery zones. That potential remains. If the company can generate the funding to go back to extensive exploration work, I think the stock can regain the interest of speculators and trade much higher.
I have not sold a share of this one for a long time, and still own it since the 20 cent level. ECU is a paid advertiser on my website at Smartinvestment.ca.
cheers!
mike
