Exeter Resource Corporation (NYSE MKT:XRA) (NYSE Amex:XRA)
(TSX:XRC) (FRANKFURT:EXB) ("Exeter" or the "Company") is pleased to
provide an update on the Caspiche gold-copper project in the
Maricunga region of Chile. Recent activities have focused on
enhancing and advancing the necessary engineering studies for the
potential development of the extensive, near-surface, copper-free,
oxide blanket at Caspiche as a relatively simple heap leach
operation.
Activities completed include the following:
-- An engineering study considering the feasibility of a power line
extension from the nearby Maricunga mine supply to provide power
requirements for a potential oxide heap leach operation.
-- A geotechnical evaluation of the proposed Caspiche mine site, focused
primarily on the footprint of the oxide heap leach operation.
-- A hydrological and hydrogeological study on the Caspiche area, focused
on the heap leach operation but also, where applicable, incorporating
the overall mine (oxide plus sulphide) and process plant footprint.
Engineering Study - Power Line Extension:
Previous studies on the Caspiche oxide deposit considered that
power would be supplied from generators installed at the project
site. Exeter contracted POCH, an engineering group based in Chile
but with offices and operations in Mexico, Colombia, the USA and
Australia amongst others, to complete an engineering study to
consider the feasibility of extending the existing Maricunga mine
power line to Caspiche, a distance of 12 kilometres. The line would
be used to supply power initially to the heap leach operation.
The cost of the extension of the power line and all associated
electrical infrastructure and substations is estimated to be in the
region of US$12 million ("M"), approximately US$10M less than that
assumed in earlier studies utilizing on-site generators. More
importantly, grid power would provide cheaper electricity to the
operation.
The study includes the following key conclusions:
-- There is sufficient capacity in both the existing substation connected
to the National grid and the power line to the Maricunga mine to carry
the additional load estimated for the Caspiche heap leach project.
-- The power line extension would follow a reasonably smooth corridor and
as such there are no additional construction constraints over and above
those associated with the altitude at which the power line would be
constructed.
-- The power line corridor takes consideration of potential future
installations associated with the larger concentrator project and does
not interfere with them.
Geotechnical Evaluation:
Knight Piesold has completed a geotechnical evaluation of the
Caspiche project area, which included a field campaign of 43
trenches, 18 drill holes and collecting some 90 samples. The
objective was to test key sites to evaluate their suitability for
process facilities and heap leach pads, amongst others.
The study conclusions show that the project can be built using
conventional construction methodology with key parameters of:
-- Conventional cut and fill slope angles ranging from 1.5 - 2:1.
-- Earth fill slopes of 1.5:1.
-- Foundation thicknesses of 1m or greater depending on size of structure.
-- Compaction to be 95% of modified Proctor maximum dry density or to a
minimum relative density of 80%.
In addition, the study calculated a preliminary estimate that
more than 2,000,000 cubic metres of material suitable for concrete
aggregate is available, largely eliminating the need to locate
aggregate sources outside of the project construction area.
Caspiche Hydrology and Hydrogeological Study:
The study, conducted by Schlumberger Water Services ("SWS"), was
focussed around the heap leach project and open pit, although
consideration has been taken of the overall project footprint where
applicable. SWS used Exeter's water level monitoring measurements
from 24 drill holes, drilled two additional hydrogeological holes,
carried out a field testing program of slug, packer and pumping
tests and fitted 2 drill holes with vibrating wire piezometers for
long term monitoring of water table changes.
Preliminary report conclusions include:
-- A mean annual precipitation of 113 millimetres ("mm") was determined, of
which 67 mm corresponds to precipitation as snow and 46 mm to
precipitation as rain.
-- At the latitude of the Caspiche project area, the bulk of the
precipitation falls during the Chilean winter. Summer precipitation
rates are low, reflecting the weak nature of the Bolivian winter effect
at the relatively southerly latitude of the Caspiche study area.
-- The hydrological modelling indicates that inflow to the surface of the
waste rock dump is between approximately 0.6 and 1.08 litres/second
(annual average) for the mean annual precipitation.
-- The rate of water infiltration from the waste rock dump to the
underlying groundwater system is very low. At the end of operations the
dump would be capped, or alternatively measures put in place to remove
snow cover from the dump surface with the possibility of reducing
infiltration to zero.
Water Exploration
Exploration drilling for a new water source dedicated
exclusively to the Caspiche project began in May before being
curtailed by weather. A news release specific to water exploration
drilling can be expected.
Exeter's Unique Position
Exeter Chairman, Mr. Yale Simpson states: "Exeter is in a unique
position for a junior explorer. We have a world class gold-copper
asset in an excellent jurisdiction, $57 million cash and no debt.
In my view the current share price does not reflect the potential
future value of the Company, a value that, if realized, could well
be a multiple of our current valuation given a further improvement
in metal prices and economic conditions. Another Caspiche-size
deposit has not been found for years, simply because they are
increasingly scarce in a world starved for natural resources."
Mr Jerry Perkins, Vice President Operations a qualified person
as defined in NI 43-101, is responsible for preparing the
information contained in this news release.
About Exeter
Exeter is a Canadian mineral exploration company focused on the
exploration and development of the Caspiche project in Chile. The
project 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 Caspiche discovery represents one of the largest mineral
discoveries made in Chile in recent years. Exeter has completed
pre-feasibility studies that demonstrate the potential for
commercializing this world class discovery. Current activity on the
project includes engineering, metallurgical, environmental and
water studies. The Company currently has cash reserves of CDN$57
million and no debt.
You are invited to visit the Exeter web site at
www.exeterresource.com.
EXETER RESOURCE CORPORATION
Bryce Roxburgh, President and CEO
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 extent and timing of its drilling
programs, various studies including pre-feasibility studies,
engineering, environmental, infrastructure and other studies, and
exploration results, budgets for its exploration programs, the
potential tonnage, grades and content of deposits, timing,
establishment and extent of resources estimates, potential for
financing its activities, potential production from and viability
of its properties, availability of water, power, surface rights and
other resources, permitting submission and timing 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;
fluctuations in metal prices; title matters; 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 in the Company's
Annual Information Form for the financial year ended December 31,
2011 dated March 30, 2012 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
Contacts: Exeter Resource Corporation B. Roxburgh President
604.688.9592 or Toll-free: 1.888.688.9592 Exeter Resource
Corporation Rob Grey VP Corporate Communications 604.688.9592 or
Toll-free: 1.888.688.9592 604.688.9532 (FAX) Exeter Resource
Corporation Suite 1660, 999 West Hastings St. Vancouver, BC Canada
V6C 2W2exeter@exeterresource.com www.exeterresource.com
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