Exeter Resource Corporation is a Canadian public company listed on the TSX Venture and NYSE Amex exchanges. Our focus is the discovery, evaluation and development of gold deposits in Chile and Argentina.
At March 24, 2009 the Company had C$40 million, a cash reserve considered sufficient to fund two years of expenditure at current levels of activity, including drilling on the Company’s Caspiche and Cerro Moro projects. Exeter plans to retain sufficient cash reserves so that the longer term viability of the Company is ensured.
Exeter’s Caspiche Project in Chile (option to own 100% from Anglo American Chile Limitada) is a gold-copper porphyry system, a type of deposit common to many of the world's largest open pit gold-copper mines. It is located 15 kilometres (8 miles) south of Kinross Gold's Refugio mine (+6 million ounce gold resource), and 10 kilometres (6 miles) north of the very large Cerro Casale gold-copper deposit (24 million ounce gold resource), jointly owned by Kinross Gold and Barrick Gold.
On March 24, 2009 Exeter announced an interim National Instrument 43-101 (“NI 43-101”) compliant mineral resource estimate for Caspiche, for drilling to the end of 2008. The inferred resource is 8.73 million ounces gold and 2.09 billion pounds of copper, or 12.65 million gold equivalent ounces (refer to March 24, 2009 News Release). The additional 3.92 million ounces of gold equivalent is calculated using a copper conversion price of $1.50 per pound and a gold price of $800 per ounce. The resource estimate leaves the deposit open for expansion to the west, south and to depth.
A second mineral resource estimate is proposed in September 2009. It will be based on all data up to the seasonal close of drilling in May 2009. The Company plans to recommence drilling in October 2009 and to continue that program through to May 2010. The budget through to September 2010 provides for $16 million in expenditures and includes drilling to further expand the resource, in-fill drilling of the highest grade area to “indicated resource” status, infrastructure studies and metallurgical testwork.
The Company’s ultimate intention with regard to the Caspiche asset is to negotiate a transaction with a major mining company, which will enable us to realize all or part of the value of the Caspiche discovery for the benefit of shareholders.
The Cerro Moro Gold-Silver Project in Santa Cruz Province, Argentina is 100% owned by Exeter, with the Santa Cruz Government Mining Company, Fomicruz S.E. entitled to a 5% interest, on completion of mine permitting.
Since the onset of the financial crisis, the Company has focused on the very high grade Escondida vein system at Cerro Moro. We believe Cerro Moro has the potential to be developed as a low capital cost mining operation and the possibility of increasing the resource base is excellent.
An initial NI 43-101 compliant resource estimate based on 464 drill holes is scheduled to be released in Q2-2009. The Company will also restart drilling in Q2-2009, when drilling permits are received. One rig will further evaluate the known high grade Escondida Vein, where drilling has indicated significant near surface mineralization. A second rig will test a property immediately north west of the defined Escondida Vein, where geophysical data suggests a potential continuation of the Escondida Vein over a strike length of 2.0 kilometres (1.25 miles). That property is subject to a joint venture wherein Exeter can earn an 80% interest from Fomicruz S.E., by incurring certain exploration expenditures.
From Q4-2009 onwards, Cerro Moro activities will likely focus on mine development studies. The gold deposit should benefit from being very high grade by industry standards, and being near the port of Puerto Deseado where substantial infrastructure is available. It is also within an established gold-silver district, with mines owned by AngloGold Ashanti, Pan American Silver, Coeur d’Alene Mines and Minera Andes/Hochschild.
The Don Sixto Gold Project is located in Mendoza Province, Argentina (Exeter option to own 100%). Following detailed drilling conducted through 2005-2006 the Company announced a NI 43-101 compliant estimate of gold resources in 2007. At a 0.5 g/t gold cut-off grade the "measured and indicated resource" is 925,000 ounces of gold (20.48 million tonnes at an average grade of 1.40 g/t gold) and the "inferred resource" is 334,000 ounces of gold (9.29 million tonnes at a grade of 1.12 g/t gold). The resource is detailed on this website.
In June 2007, the Mendoza government passed legislation that severely restricts mining in Mendoza Province. Exeter immediately suspended exploration on the Don Sixto property and filed an action in the Supreme Court to have the legislation declared unconstitutional. The Company will continue to work with all levels of government, industry, unions and other interested parties to demonstrate that the project, if economically viable, could be developed responsibly and on a sustainable basis.
Exeter has other drill ready gold-silver targets in prospective regions of Patagonian Argentina and Chile that are currently on hold. The Company gained a broad foothold in the region through separate strategic alliances with Cerro Vanguardia S.A. (an AngloGold Ashanti subsidiary), and Rio Tinto Mining and Exploration Chile.
Exeter is well positioned for success. Our projects are proving to be uniquely valuable, and our strategic agreements with major companies provide a "pipeline" of growth opportunities. |