Owns and operates the Velardeña Ag-Au mine in Durango.

ECU Silver Mining Inc.  ECU   (MSE)

Changed name from ECU Gold Mining Inc on September 23, 1999.

Velardeña Ag-Au Mine, Durango. Acquired 93% of the share capital of BLM Minera Mexicana S.A. de C.V. which in turn controls 100% of the Velardeña Gold mine in Durango. Made this acquisition from William Resources for 7.5 million shares and a 30% npi. up to a cap of $12 M (Canadian). After this it reverts to a 2% nsr. Took necessary steps to put Velardeña into production with an up-to-date 400 tpd mill and numerous shafts and declines accessing 15 veins with 600,000 oz of Au equivalent as "known resources".   Initial production was expected in late 1997. During the first 9 months of 1998, the mine produced 141,300 oz Ag and 1,535 oz Au. Operation going so smoothly that in December, 1998 ECU decided to borrow $2M and apply the funds to expand the production capacity to 600 tpd.

During the first quarter of 1999, the Velardeña mill processed a total of 33,356 tonnes of ore compared to 17,185 tonnes for the three first months of 1998. During this period, the company produced 76,587 ounces of silver and 875 ounces of gold compared to 40,115 ounces of silver and 637 ounces of gold for the same period in 1998. Sales of precious metals yielded $938,850 ($621,754 US) compared to $481,976 ($337,167 US) in the first three months of 1998. It should be noted that the sales for the first quarter represent 51% of all the sales realized in 1998. For this quarter, the realized metal prices was $5.26 US per ounce of silver and $285.76 US per ounce of gold, a decrease when compared to the figures for the same period in 1998, that is, $6.13 US per ounce of silver and $302.33 US per ounce of gold.  Direct operating costs (mining and milling) are currently $29.96 ($19.84 US) per milled tonne compared to $42.71 ($29.95 US) for the same period in 1998. For the first quarter of 1999, the gross operating margin was negative by $62,040 ($41,086 US), while it was negative by $252,051 ($176,766 US) for the same period in 1998. With the expected increase in ore production and grades, we are confident that the gross margin will be positive by the next quarter of the current year.  The company processed a total of 12,711 tonnes of ore at its mill during the month of April. During this period, the average grade of the ore processed at the mill was 143.3 g/t Ag and 1.23 g/t Au, an increase in average grade of 13 % for silver and of 7 % for gold compared to the preceding month. Production for April was 32,614 ounces of silver and 280 ounces of gold. The company currently employs 154 people in Mexico. 

Press Release 27May99
MBD January 1999
LAMR April, 1998
MBD Jul, Aug, 1997
News Release 14May97