Exeter Resource Corporation (NYSE-MKT:XRA)
(TSX:XRC) (Frankfurt:EXB)
(“Exeter” or the
“Company”) is pleased to announce that it has commenced a
6,000 metre drill program on its 100% owned Caspiche gold-copper
project in Chile.
The program, contracted to Synergy Drilling, is
designed to improve the definition of the known oxide gold zone and
other potentially leachable gold zones currently not included in
the oxide gold heap leach mine plan.
While the gold oxide zone is well defined by
previous drilling, the current program will bring confidence levels
to feasibility standards, a necessary component of our plan to move
Caspiche oxides to a production decision.
Importantly, material within a transition zone
below the oxides is known, but not well defined. Drilling and
metallurgical testwork on this material opens the potential to add
to the resources amenable to heap leaching.
Upon completion of the drilling program, Exeter
expects to initiate advanced studies on the project using updated
capital and operating cost estimates. Alternative infrastructure
requirements associated with a recently optioned desalinated water
will also be assessed (refer to the Company’s press release dated
January 17, 2017 - “Exeter secures second water source”).
Caspiche is one of the largest gold discoveries
made in Chile in recent years. Unique characteristics of the
deposit include its’ sizeable heap leachable zone and a lower,
discrete higher grade gold-copper core, within a low grade
envelope. This combination offers mining opportunities that range
from modest scale heap leach gold production, to larger scale open
pit/underground mining of the gold-copper zone.
Development options were assessed for Caspiche
in the Preliminary Economic Assessment (“2014 PEA”)A released in
2014. This report reviewed three potential development
alternatives, all of which require significantly less capital than
earlier studies.
In the 2014 PEA, the heap leach oxide gold
project produced a projected average of 122,000 oz AuEq* annually
over a planned 10 year mine life, including 148,000 oz AuEq*
annually in the first five years. The proposed project has a very
low strip ratio (0.27:1) and favorable gold recoveries.
Over the course of the last 18 months, the
Company optimized Caspiche oxide development requirements,
including detailed metallurgical studies. Importantly, the Company
advanced infrastructure alternatives, including securing a second
water source.
Wendell Zerb, Exeter's President &
CEO and a “qualified person” ("QP") within the definition of that
term in National Instrument 43-101, Standards of Disclosure for
Mineral Projects, has reviewed and approved the technical
information in this corporate update.
About Exeter
Exeter is a Canadian mineral exploration company
focused on the exploration and development of the Caspiche project
in Chile. The property is situated in the Maricunga gold district,
between the Maricunga mine (Kinross Gold Corp.) and the Cerro
Casale gold deposit (Barrick Gold Corp. and Kinross Gold Corp.).
The discovery represents one of the largest mineral discoveries
made in recent years.
On December 19, 2014, Exeter announced the
filing of an Amended NI 43-101 Technical Report on the Caspiche
Project (“2014 PEA”). Refer to the Exeter web site or Sedar for
details regarding the 2014 PEA.
The Company currently has cash reserves
of C$16 million and no debt.
EXETER RESOURCE
CORPORATIONWendell Zerb, P.
GeolPresident and CEO
A. Disclaimer: The economic
analysis contained in the 2014 PEA is considered preliminary in
nature. There is no certainty that the economic forecast
outlined in the 2014 PEA will be realized. No inferred mineral
resources were used in the PEA. See Exeter’s website or Sedar for
the news release dated December 19, 2014: Amended NI 43-101
Technical Report on the Caspiche Project; Effective date: April 30,
2014.If you have any questions regarding
Exeter, or would like a complete corporate presentation forwarded
to you, please contact Mr. Rob
Grey, VP Corporate Communications
at: rgrey@exeterresource.com or
Toll-free
1.888.688.9592.
|
The 2014
PEA used prices of: Au US$1,300 US$/oz., Ag US$20/oz. and Cu
US$3/lb. |
* |
Gold
equivalent oz (AuEq) value is based on Au, Ag and Cu revenues
(prices and recoveries involved). AuEq oz [troy oz] = [Au g/t * Rec
Au * tonnes]/31.1 + [Ag g/t * Rec Ag * tonnes]/31.1* silver price
troy oz/ gold price troy oz + [[Cu% * Rec Cu * tonnes]*2204] *
copper price lbs/gold price troy oz. Recoveries are adjusted based
on metallurgical characteristic of the resource. |
1 |
http://www.globenewswire.com/NewsRoom/AttachmentNg/05eb44ac-f687-4990-a603-3fa1a7f15973PAu
and PCu are the Au and Cu prices (US$1,150/oz and US$2.50/lb,
respectively), and RAu and RCu are the Au and Cu projected
metallurgical recoveries, 65% and 85%, respectively for sulphide
material and 78% for Au oxide material. |
2 |
AuEq (M oz)
= resource tonnes * AuEq1 |
3 |
http://www.globenewswire.com/NewsRoom/AttachmentNg/05eb44ac-f687-4990-a603-3fa1a7f15973PAu,
PAg and PCu are the gold, silver and copper prices (1,250 US$/oz,
15US$/oz. and 2.75 US$/lb, respectively). RAu and RCu are the Au
and Cu projected metallurgical recoveries based on a number of S %
thresholds. |
Safe Harbour Statement – This
news release contains “forward-looking information” and
“forward-looking statements” (together, the “forward-looking
statements”) within the meaning of applicable securities laws and
the United States Private Securities Litigation Reform Act of 1995,
including in relation to the Company’s belief as to the potential
significance of water discovered and the potential to utilize the
desalinated water secured under option, the timing and completion
of advanced studies or a new preliminary economic assessment for
the advancement of Caspiche, a potential production decision on the
oxide project, the potential to establish new opportunities for the
advancement of Caspiche, results from the 2014 PEA including
estimated annual production rates, capital and production costs or
expected changes to such costs, water and power requirements and
metallurgical recoveries, expected taxation rates, potential for
securing water rights and adequate water and potential approval of
water extraction, potential for reduced power costs, potential to
acquire new projects and expected cash reserves. These
forward-looking statements are made as of the date of this news
release. Readers are cautioned not to place undue reliance on
forward-looking statements, as there can be no assurance that the
future circumstances, outcomes or results anticipated in or implied
by such forward-looking statements will occur or that plans,
intentions or expectations upon which the forward-looking
statements are based will occur. While the Company has based
these forward-looking statements on its expectations about future
events as at the date that such statements were prepared, the
statements are not a guarantee that such future events will occur
and are subject to risks, uncertainties, assumptions and other
factors which could cause events or outcomes to differ materially
from those expressed or implied by such forward-looking statements.
Such factors and assumptions include, among others, the effects of
general economic conditions, the price of gold, silver and copper,
changing foreign exchange rates and actions by government
authorities, uncertainties associated with negotiations and
misjudgments in the course of preparing forward-looking
information. In addition, there are known and unknown risk factors
which could cause the Company’s actual results, performance or
achievements to differ materially from any future results,
performance or achievements expressed or implied by the
forward-looking statements. Known risk factors include risks
associated with project development; including risks associated
with the failure to satisfy the requirements of the Company’s
agreement with Anglo American on its Caspiche project which could
result in loss of title; the need for additional financing;
operational risks associated with mining and mineral processing;
risks associated with metallurgical recoveries, risks associated
with operating in areas subject to drought conditions and scarcity
of available water sources, power availability and changes in
legislation affecting the use of those resources; fluctuations in
metal prices; title matters; uncertainty and risks associated with
the legal challenge to the easement secured from the Chilean
government; uncertainties and risks related to carrying on business
in foreign countries; environmental liability claims and insurance;
reliance on key personnel; the potential for conflicts of interest
among certain officers, directors or promoters of the Company with
certain other projects; the absence of dividends; currency
fluctuations; competition; dilution; the volatility of the
Company’s common share price and volume; tax consequences to U.S.
investors; and other risks and uncertainties, including those
described herein and in the Company’s Annual Information Form for
the financial year ended December 31, 2015 dated March 22, 2016
filed with the Canadian Securities Administrators and available at
www.sedar.com. Although the Company has attempted to identify
important factors that could cause actual actions, events or
results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking statements. The Company is under no obligation to
update or alter any forward-looking statements except as required
under applicable securities laws.
Cautionary Note to United States
Investors - The information contained herein and
incorporated by reference herein has been prepared in accordance
with the requirements of Canadian securities laws, which differ
from the requirements of United States securities laws. In
particular, the term “resource” does not equate to the term
“reserve”. The Securities Exchange Commission’s (the “SEC”)
disclosure standards normally do not permit the inclusion of
information concerning “measured mineral resources”, “indicated
mineral resources” or “inferred mineral resources” or other
descriptions of the amount of mineralization in mineral deposits
that do not constitute “reserves” by U.S. standards, unless such
information is required to be disclosed by the law of the Company’s
jurisdiction of incorporation or of a jurisdiction in which its
securities are traded. U.S. investors should also understand that
“inferred mineral resources” have a great amount of uncertainty as
to their existence and great uncertainty as to their economic and
legal feasibility. Disclosure of “contained ounces” is permitted
disclosure under Canadian regulations; however, the SEC normally
only permits issuers to report mineralization that does not
constitute “reserves” by SEC standards as in place tonnage and
grade without reference to unit measures.
NEITHER THE TSX NOR ITS REGULATION
SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE
TSX) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS
NEWS RELEASE
For further information, please contact:
Wendell Zerb, CEO or
Rob Grey, VP Corporate Communications
Tel: 604.688.9592 Fax: 604.688.9532
Toll-free: 1.888.688.9592
Suite 1660, 999 West Hastings St.
Vancouver, BC Canada V6C 2W2
exeter@exeterresource.com