I spoke to Mark Butler today. He called me a hour ago. I wanted to know what the 15 million from AUM was going to be used for. His reply was to keep the company afloat. I also asked what is going on with the drilling results. He informed he didn;t know at this time but it did not sound respectful . And by that I meant the drilling results themselves.
ECU also have not even close to the evaluation expectations that we had previously thought or at least some of us. The most capacity the mine can produce, and I repeat the most is 900 tpd's a day. 320 in oxide production is the calculations at this time. the most even with sulphide concentrates is another 600 tpds which are not in reach at this moment. So even at full capacity ECU could only produce 900 tpd's a day at maximum capacity.
They aren;t even close to that. So it now comes down to how this will play out. According to Mark Butler who by the way I think is a honest person ECU will need more cash flow to make any progress in the near future. I also asked about shareholder price with AUM. If and when the deal is produced is forecasted this way.
ECU is only into the exploration part of the process. That is why AUM is needed to finish the task. They are more complete in making the mill fully operational something ECU can't produce at this time. So whatever the price is between the two companies we will get 20 to 1 on that day. If it goes hand to hand hopefully we will not lose ground on our initial investments. So I suggest to all invovled that any purchases made should coincide with AUM price at the time of transaction.
All in all it seems that ECU has to make this deal or find more money to keep up exploration not production. That will be the sole responsibility of AUM. Otherwise ECU will have to look for capitol from other sources. I may have mixed up the numbers in the oxide to sulphide side but I am pretty sure I heard him right. Got talking about other problems at home and so confusion was possible. Either way I would love to hear the thought of the board on what we are looking at from the profit side.
IT didn't seem to be positive at this time. So I guess we sit in waiting mode for at least a year as I can't see how it is possible for AUM to make a positive cashflow in the near term future. So I don't expect to see any drilling results soon from the conversation I had. Not to make any sound decision but until AUM takes control it doesn't seem we will see the quarterly posting on drilling results until this deal is set in stone or washed up. Then we still have to pay back AUM for the 15 million they have granted ECU at this time. Again this was mostly from the conversation from the company spokesman not me.
