Exeter Resource Corporation (NYSE MKT:XRA)(NYSE
Amex:XRA)(TSX:XRC)(FRANKFURT:EXB) ("Exeter" or the "Company") is
pleased to provide a further update on studies in support of the
potential staged development of the Caspiche gold-copper project
located in the Maricunga region of Chile.
Earlier studies conducted by the Company indicated the potential
to recover gold from oxide ore in the upper 200 metres of the
Caspiche deposit. This "Oxide Project" would represent the first
stage of the potential commercial development of the very large
Caspiche deposit.
Recent activities relating to water supply development and an
environmental impact assessment application ("EIA") for the Oxide
Project include the following:
-- Data compilation and water balance studies on Exeter's optioned Rio
Penas Blancas water rights. Initial results indicate sufficient water
may be sustainably available for the scale of operation being considered
for the Oxide Project.
-- Continued collection of environmental base line data to support the EIA
required for development of the Oxide Project. Activities include an
evaluation of any potential for acid rock drainage from waste dumps and
a continuation of community studies to align the Caspiche project with
International Labour Organisation Article 169 pertaining to indigenous
communities.
Water Supply:
As previously reported, Exeter continues to investigate the Rio
Penas Blancas and Rio Aguas Dulces areas, where the Company has an
option over granted surface water rights. The option covers a total
of 300 litres a second ("l/s") from surface flows into Laguna
Verde. Schlumberger Water Services ("SWS"), Exeter's consultant for
this work, is supervising comprehensive measurement and test
programs with the objective of modelling the potential harvesting
of a portion of these water flows on a sustainable basis.
Parameters being measured include stream flow and temperature
measurements, lake bathymetry and levels, water quality and
meteorological conditions.
The Oxide Project water requirement is approximately 85 l/s,
substantially below the 300 l/s of water covered by the water
rights optioned to Exeter.
The preliminary report from SWS indicates the following key
conclusions:
-- Rio Penas Blancas water flows change seasonally in the range of 200 to
700 l/s. These data are comparable with other investigations in the
area. Rio Aguas Dulces flows range between 20 and 60 l/s.
-- SWS's estimate of the groundwater flow rate additional to surface flow
is 30 l/s
-- Laguna Verde volumes and levels have been reducing slowly during a 35
year long dry period. Average current depth is approximately 6 metres
("m").
-- The water balance models indicate that a five year draw down of 85 l/s
for the potential Oxide Project from the optioned water would reduce the
Laguna Verde level by approximately 1m. Consideration of smaller scale
heap leach options would have a proportionately smaller effect.
-- There is no evidence of significant variation in the electrical
conductivity of the lake's water column with depth, which suggests that
the water column is well-mixed.
Exeter has discussed a proposed on-going water monitoring and
modelling program with the Chilean Water Authority, the DGA, and is
submitting a Memorandum of Understanding to the DGA to work
together on the potential development of this hydric resource. This
co-operation is expected to assist the DGA in understanding the
hydraulic characteristics of an area where they have little or no
data. This approach would help ensure that Exeter follows the
guidelines of the DGA and could reduce the environmental review
process timeline if and when Exeter applies to extract such
flows.
Separately, Exeter has scheduled a December drilling campaign
(weather and access conditions permitting) at Cuenca One, its
granted water exploration tenement, at an estimated cost of $1.3
million. This program could be expanded following a water
discovery. This exploration program is aimed at discovering and
evaluating a potential water source for both the initial heap leach
stage and the following larger sulphide stage development of the
Caspiche project.
Two water exploration holes were drilled earlier this year at
Cuenca One. One was abandoned due to poor drilling conditions and
the second was prematurely terminated at a depth of 250m in
encouraging "damp gravels" due to deteriorating winter weather
conditions. Major underground aquifers and reservoirs in this
region are typically located at depths of some 500m.
The Company will also conduct a preliminary evaluation of a
second water exploration tenement which was recently granted.
Environmental Studies:
Exeter is continuing environmental baseline studies to support
the Oxide Project. Activities include:
-- Evaluating the acid rock drainage ("ARD") potential of the oxide ore and
overburden within the potential open pit limits so that potential acid
generation sources can be defined, if in fact they do exist. The
oxidised and "leached" nature of rocks associated with the Oxide Project
should minimise potential ARD issues.
-- Continued air quality monitoring and measurement of the amount of PM10,
PM2.5 and suspended dust. PM10 and PM2.5 are technical terms that relate
to respirable (breathable) particulate matter ("PM"), and the proportion
that is smaller than the indicated size measured in microns (millionths
of a metre). Equipment approved under Chilean law must be used for such
measurements.
-- Continuation of the water quality monitoring of the Caspiche basin
(which would host the potential mine and the processing facilities) and
Laguna Verde (where we have optioned surface water).
-- Finalization of the baseline study of flora, vegetation, archaeology and
fauna for an alternative access road and power line. The Company
believes such alternate access would represent a significant project
infrastructure improvement.
-- Providing project activity information and working with local
communities to understand and minimise any impact of our activities, now
and in the future, especially with respect to the investigation of sites
of cultural importance.
Jerry Perkins, a "qualified person" within the definition of
that term in National Instrument 43-101, Standards of Disclosure
for Mineral Projects, has supervised the preparation of the
technical 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-copper 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. 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 604.688.9532 (FAX) 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
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