New Velardena vein for ECU (March 31, 2008)

VANCOUVER — A new vein discovery at the Velardena property in Durango state, Mexico, gave ECU Silver Mining (ECU-T, ECUXF-O) a market boost recently.

ECU is driving a crosscut from the San Juanes adit to the Terneras vein in order to confirm the extension of the Terneras vein past the Tres Aguilas fault. That goal has already been achieved, with sampling results from early March showing the crosscut following the vein for 12 metres on the east side of the fault. The samples averaged 0.2 metre grading 7.11 grams gold per tonne, 1,865 grams silver, 13.01% lead and 9.04% zinc.

The crosscut results complement a drill intercept from October, when ECU announced a 30-cm high-grade intercept in hole 14, some 256 metres below the new crosscut. Together, the data indicate that the company has found the eastern extension of the Terneras vein and outline the 12-metre lateral vein to a vertical depth of 450 metres.

The 80-metre-deep crosscut is now working its way towards old workings in the new La Chona area, located just north of the east-west-lying Terneras vein.

In driving to the north, ECU encountered a significant new vein 20 metres from the Terneras vein eastern extension, just before entering the La Chona area.

Three samples yielded an average of 29 grams gold, 808 grams silver, 10% lead and 0.6% zinc over 0.48 metre. The finding shows that Terneras East is likely a system of veins, with this vein exhibiting particularly high precious metal grades.

In another surprise, the vein’s host rock is marble with disseminated patches of mineralization.

In order to properly evaluate its average grade, ECU recognized the need for a bulk sample. To justify that undertaking, the company first sampled mineralized patches of marble and the results indicated sufficient mineralization to proceed with the large-scale sampling. Three samples averaged 7.38 grams gold, 527 grams silver, 9.8% lead and 7% zinc over 22 cm.

ECU holds three properties located close together: the main Velardena property, the Chicago property, and San Diego, which it is advancing as a joint venture with Golden Tag Resources (GOG-V, GTAGF-O). The sites are some 95 km southwest of the city of Torreon and 140 km northeast of the state capital, Durango.

The Velardena property includes four interconnected mines, known as Santa Juana, San Juanes, San Mateo, and Terneras. ECU produces mineralized stope material from its mines and processes it at its wholly owned facilities.

The company calculated an updated resource estimate for Velardena in January.

In the oxide category, Velardena hosts measured and indicated resources of 998,000 tonnes grading 3.08 grams gold per tonne and 167 grams silver, as well as inferred resources of 447,000 tonnes grading 1.46 grams gold and 206 grams silver. Measured and indicated sulphides sit at 2.7 million tonnes grading 2 grams gold, 112 grams silver, 0.41% lead, 0.62% zinc and 0.16% copper, plus inferred resources of 13.3 million tonnes grading 2.02 grams gold, 185 grams silver, 1.46% lead, 1.51% zinc and 0.17% copper.

Many of the veins and vein packages at Velardena remain open along strike in two directions and at depth. As such, the report also estimated the property’s potential resources, reflecting observed lateral and interpreted downward extensions of veins identified in the resource calculation. Potential resources range from 31 million tonnes grading 3.31 grams gold and 252 grams silver to 63 million tonnes grading 2.5 grams gold and 234 grams silver.