Exeter Resource Corporation

Exeter Resource Corporation

July 29, 2009 09:01 ET

Exeter Reports on 14 New Drill Holes at Cerro Moro

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 29, 2009) - Exeter Resource Corporation (TSX VENTURE:XRC)(NYSE Amex:XRA)(FRANKFURT:EXB) ("Exeter" or the "Company") is pleased to report on progress from its in-fill drilling program on the high grade Escondida vein at Cerro Moro in Santa Cruz Province, Argentina.

Assays from a batch of 14 diamond drill holes on the Escondida vein include bonanza grades in drill holes MD475 and MD479, two holes that represent extensions to reported high grade mineralization in the Escondida Far West sector. This portion of the Escondida vein accounts for approximately 40% of the currently defined Escondida Zone resource.

Detailed drilling results using a 1 g/t gold equivalent(i) cut-off grade:

Gold Gold
From To Width Gold Silver Equivalents Equivalents
Drill Hole (m) (m) (m) (g/t) (g/t) (i)(g/t) (i)(oz/ton)
Escondida West Sector
MD467 165.60 166.94 1.34 11.1 384 16.5 0.48
including 166.06 166.59 0.53 26.0 880 38.6 1.12
Escondida Far West Sector
MD468 62.00 64.60 2.60 13.6 675 23.2 0.67
including 62.80 64.00 1.20 26.1 1,221 43.6 1.26
MD469 122.60 129.12 6.52 6.6 310 11.1 0.32
including 125.86 128.36 2.50 14.9 694 24.9 0.72
MD471 203.87 204.23 0.36 6.2 18 6.5 0.19
and 205.91 206.58 0.67 8.5 1,303 27.1 0.79
MD474 131.00 133.10 2.10 5.1 562 13.1 0.38
including 131.00 131.65 0.65 14.0 1,653 37.6 1.09
MD475 138.75 140.25 1.50 63.3 5,111 136.3 3.95
including 139.36 139.80 0.44 138.0 8,085 253.5 7.35
MD476 149.65 151.80 2.15 4.1 324 8.7 0.25
including 149.65 150.20 0.55 8.6 532 16.2 0.47
MD479 114.00 115.35 1.35 5.8 562 13.8 0.40
and 117.95 119.15 1.20 138.9 4,978 210.0 6.09
including 117.95 118.60 0.65 203.9 8,432 324.4 9.41
MD480 194.85 195.15 0.30 4.0 405 9.7 0.28
MD481 176.40 180.00 3.60 5.5 581 13.8 0.40
including 177.63 178.25 0.62 26.3 2,840 66.9 1.94
including 177.93 178.25 0.32 47.1 5,382 124.0 3.60
MD483 232.00 233.00 1.00 6.8 83 8.0 0.23
and 238.20 239.08 0.88 5.9 21 6.2 0.18
MD484 159.34 160.54 1.20 3.2 88 4.5 0.13
MD487 21.00 22.30 1.30 2.1 68 3.0 0.09
MD489 10.45 11.80 1.35 5.6 8 5.7 0.17

(i) Gold equivalent grade is calculated by dividing the silver assay result
by 70, adding it to the gold value and assuming 100% metallurgical

Exeter recently announced an initial inferred mineral resource estimate of 646,000 ounces gold equivalent(ii) at a grade of 18 grams per tonne ("g/t") (0.52 ounces per ton ("oz/ton") gold equivalent(ii). The current focus is to advance drilling on the Escondida vein zone, which contains 519,000 ounces gold equivalent(ii) at a grade of 34 g/t (1.0 oz/ton) gold equivalent(ii). In particular, the Company expects that the program will generate the data necessary to upgrade the recently announced "inferred resource" to an "indicated resource" by Q1, 2010. This is an essential step towards completing a scoping study for developing a high grade mining operation on the property.

In the Far West sector of the Escondida vein, the Company has drilled a total of 24 diamond core holes to confirm the exceptional grades previously announced in that sector. Of the 14 drill holes announced in this news release, 13 are from that sector and are represented on the following longitudinal drill section.

Click here for a diagram showing the Long Section for Escondida Far West: http://www.exeterresource.com/images/gallery/plans/Plan_78.pdf

Drill hole MD467, on the West sector, successfully intersected high grade mineralization 140 metres ("m") (459 ft) vertically below surface, thereby demonstrating the potential for deeper high grades in that area.

Results are awaited from infill drilling on the West, Central and East sectors of the Escondida vein, where an additional 95 diamond drill holes for approximately 4,800 m (15,744 ft) are being logged and assayed. The majority of these holes are shallow and represent an approximate 20 x 20 m (65 x 65 ft) "staggered" pattern to assist with preliminary mine scoping models. Significant results will be released during August and September as the assays are collated and verified.

Click here for a diagram showing the Drill Hole Plan for Escondida: http://www.exeterresource.com/images/gallery/plans/Plan_79.pdf

Progress on the Escondida Fomicruz Property

Due to a delay in the arrival of a reverse circulation percussion (RC) rig the Company used the available diamond rig to conduct a 300 m (984 ft) program to confirm that the prospective Escondida structure extends onto the Fomicruz joint venture property. The rig was sited well into the Fomicruz lands, some 320 m (1,050 ft) northwest of the last hole drilled by Exeter at Escondida Far West. The Escondida structure was successfully located under 40 m of gravel cover, confirming our geophysical interpretation that the Escondida structure has an untested strike length of some 2.3 kilometres (1.43 miles) on the Fomicruz property (a distance similar to that drill tested to date at Escondida).

The Company has contracted a RC drill rig to drill a minimum of 15 holes (2,000 m (6,560 ft) program) on the Fomicruz lands. This program is scheduled to commence early next month with initial results to follow in September.

Quality Control and Assurance

Drill widths presented above are drill intersection widths and may not represent the true widths of mineralization.

Gold assay results presented above are preliminary and have been calculated using a 1.0 g/t gold equivalent cut-off grade(i), with no cutting of high grades. All diamond drill core samples are split on regular metre intervals or on geological contacts and represent sawn half HQ-size core. Samples were prepared at the Acme Analytical Laboratories ("AcmeLabs") preparation facility in Mendoza, Argentina and assayed by fire assay (50 gram charge) at the AcmeLabs laboratory in Chile, both ISO-9001:2000 certified laboratories.

Check assaying of all samples assaying greater than 1.0 g/t gold is completed by AcmeLabs. Samples returning greater than 10 g/t gold and/or greater than 100 g/t silver are assayed using gravimetric analyses. Standard and blank samples are used throughout the sample sequence as checks for the diamond drilling reported in this release. Standard, blank and duplicate samples are used throughout the sample sequence as checks for the RC percussion drilling.

Assaying by the screen fire assay method has been implemented in conjunction with standard 50 gram fire assaying, for diamond drill cores that contain visible gold. The procedure for screen fire assaying involves crushing and sieving of a nominal 1,000 gram sample to a particle size of 100 microns. All material which does not pass through the 100 micron sieve is then assayed. Two fire assays are undertaken on the undersize material as a check on homogeneity. The total gold content is then calculated.

Matthew Williams, Exeter's Exploration Manager and 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 Resource Corporation is a Canadian mineral exploration company focused on the discovery and development of gold and silver properties in South America. The Company has C$30 million in its treasury.

The Caspiche gold-copper discovery(iii) is situated in the Maricunga gold district of Chile, between the Refugio mine (Kinross Gold Corp.) and the giant Cerro Casale gold deposit (Barrick Gold Corp. and Kinross Gold Corp.). Over 16,500 m were drilled during the 2008/2009 drill season. The program focussed on delineating the external boundaries of Caspiche. A second National Instrument 43-101 compliant resource estimate, which incorporates the results from drilling completed subsequent to December 31, 2008, is expected to be available in September 2009.

On its Cerro Moro Project in Argentina, Exeter recently announced an initial inferred mineral resource estimate of 646,000 ounces gold equivalent(ii) at a grade of 18 g/t gold equivalent(ii). To date, Exeter has drilled over 100 infill holes on the Escondida vein structure in order to upgrade the sectors of the inferred resource that might be scheduled for early mining. Drilling will continue through 2009. Plans include drilling of a possible extension of the Escondida zone on the adjacent Fomicruz joint venture property. Engineering, environmental and infrastructure studies are being advanced ahead of a scoping study in 2010.

No site work is planned on the Don Sixto gold-silver project in Argentina over the next quarter. The Company will continue to work with provincial authorities and with representatives of other mining companies, to effect amendment to the 2007 legislation that banned the use of cyanide in mining operations in Mendoza Province.

(ii) Inferred mineral resource estimate of 1,098,000 metric tons containing
371,000 ounces gold at a grade of 10.5 g/t and 19.2 million ounces
silver at a grade of 545 g/t for 646,000 ounces gold equivalent at a
grade of 18 g/t gold equivalent. Gold equivalent is calculated by
dividing the silver assay result by 70, adding it to the gold value
and assuming 100% metallurgical recovery (see news release NR 09-14
dated July 8, 2009).
(iii) Inferred mineral resource estimate of 449.9 million tonnes from the
oxide and gold-copper zone contains 8.7 million ounces gold at a grade
of 0.6 g/t and 375.9 million tonnes from the gold-copper zone only
contains 2 billion pounds of copper at a grade of 0.25% (see news
release NR 09-09 dated March 24, 2009).

You are invited to visit the Exeter web site at www.exeterresource.com.


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 the Company's belief as to the extent and timing of its drilling and work programs and exploration results, the potential size and shape of deposits, timing, establishment and extent of resources estimates, potential for financing its activities, potential production from its properties and expected cash reserves. These forward-looking statements are made as of the date of this news release. Users of forward-looking statements are cautioned that actual results may vary from the forward-looking statements contained herein. 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 of the Company's future performance and are subject to risks, uncertainties, assumptions and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements.
Such factors and assumptions include, amongst others, the effects of general economic conditions, the price of gold and copper, changing foreign exchange rates and actions by government authorities, uncertainties associated with legal proceedings and negotiations and misjudgements in the course of preparing forward-looking information. In addition, there are also 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; 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, 2008, dated March 27, 2009 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.


Contact Information

  • Exeter Resource Corporation
    B. Roxburgh
    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)