Exeter Resource Corporation

Exeter Resource Corporation

October 18, 2007 09:02 ET

Exeter Resource Corporation: High-Grade Gold/Silver Zones at Cerro Moro Also Yield Significant Lead/Zinc Grades

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 18, 2007) - Exeter Resource Corporation (TSX VENTURE:XRC)(AMEX:XRA)(FRANKFURT:EXB) ("Exeter" or the "Company") reports combined lead/zinc assays up to 6.6% associated with previously reported bonanza gold/silver grades from the Escondida Vein at Cerro Moro, Santa Cruz Province, Argentina.

Separately, significant new results from the final drill holes in the recently-completed 10,000 meters of drilling at Cerro Moro include the following from the Escondida Vein:

- 3.25 metres ("m") (10.7 feet ("ft")) at a grade of 33.8 grams per tonne ("g/t") gold (1.0 oz/ton) and 540 g/t silver (15.7 oz/ton) in hole MD139; and

- 5.7 m (18.7 ft) at a grade of 10.2 g/t gold (0.3 oz/ton) and 367 g/t silver (10.6 oz/ton) in hole MD140.

Significant gold/silver and base metal results from the Escondida vein include the following (gold and silver results have been previously reported):

Drill From To Width Gold Silver Equiv. Copper Lead Zinc
Hole (m) (m) (m) (g/t) (g/t) (g/t)(i) % % %
MD064 37.55 38.60 1.05 105.8 7,142 224.8 0.6 2.4 4.2
MD082 131.30 132.89 1.59 220.1 427 227.2 0.2 1.5 0.8
MD089 78.08 78.40 0.32 263 9,370 419.2 0.1 1.4 3.7
MD098 79.30 80.40 1.10 419.9 13,630 647.1 0.4 2.1 3.4
MD106 44.48 44.83 0.35 62.3 7,590 188.8 0.1 1.1 1.4
MD112 100.40 102.34 1.94 56.6 3,819 120.3 0.3 0.9 1.7
MD115 55.00 55.41 0.41 99.0 5,380 188.7 0.3 2.7 3.1

Exeter's Chairman, Yale Simpson, commented: "Assay results confirm that elevated lead, zinc and copper are associated with high grade gold and silver drill intercepts. Results from preliminary metallurgical testwork should be available shortly.

"It is important to note that, despite the presence of these base metals, the ore mineralogy would suggest that we might expect high gold and silver recoveries in the testing program. Furthermore, comprehensive assays for a wide range of other elements in the ore indicate that there are no metals present which are likely to adversely affect either metallurgical recoveries or the environment.

"Current drilling at Cerro Moro is focused on potential new ore zones located away from the known high-grade zones, with a view to establishing the potential for a significant gold/silver resource on the property. To prioritize drill targets, we are using an array of geophysical techniques and simple geological extrapolation of known mineralization under shallow gravels.

"Drilling is continuing at Cerro Moro, with assays from drill holes completed since we passed the 10,000 metre milestone expected in late October or early November."

To view all significant base metal assay results, at a cut-off grade of 1.0 g/t gold equivalent(i), click on the link to the table of results below.

For a detail table of significant base metals results from all high grade gold and silver drill intervals, separated by deposits, please click on the following link: http://www.ccnmatthews.com/docs/xrc1018_table.pdf

To view the maps accompanying this release please click on the following link: http://www.ccnmatthews.com/docs/xrc1018_map.pdf

New Drilling Results

Significant assay results, at a cut-off grade of 1.0 g/t gold equivalent(i), from five new diamond drill holes at Escondida include the following:

From To Width Gold Silver Equivalents
Drill Hole (m) (m) (m) (g/t) (g/t) (g/t)(i)
MD135 76.00 78.20 2.20 9.3 140 11.6
MD137 72.28 73.13 0.85 20.9 200 24.2
including 72.78 73.13 0.35 35.9 325 41.3
MD139 30.72 33.97 3.25 33.8 540 42.8
including 31.11 32.75 1.64 63.4 851 77.6
including 32.00 32.45 0.45 134.5 1,040 151.8
MD140 79.56 85.25 5.69 10.5 367 16.6
including 82.58 83.30 0.72 25.4 321 30.8
including 83.90 84.63 0.73 40.4 1,320 62.4
and 109.00 110.76 1.76 7.0 1,404 30.4
including 110.48 110.76 0.28 35.2 5,960 134.5
MD142 118.50 118.80 0.30 1.4 205 4.8
and 139.95 140.32 0.37 32.8 3,330 88.3

(i) Gold equivalent grade for silver in this news release is calculated by
dividing the silver assay by 60 and assumes 100% metallurgical

(ii) No full multi-element suite over the intersection.

This news release includes the final assay results for all of the Exeter drilling up to and including drill hole MD142, the final hole completing the required 10,000 metres of drilling that triggered Cerro Vanguardia S.A.'s ("CVSA") contractual right to back-in to a 60 percent interest in the Cerro Moro Project. In early September, Exeter provided notice, which included all relevant geological and technical data and results obtained from exploration and prospecting work conducted on the project to that time, to CVSA that it had completed the required 10,000 meters of drilling. CVSA now has 45 days in which to decide whether or not to exercise its back-in right. Should CVSA not exercise its back-in right, its interest will revert to a 2% net smelter return.

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. Reverse circulation drill samples are collected using a cyclone in one metre intervals; most samples are then composited into three metre samples. 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 ALS Chemex preparation facility in Mendoza and assayed by fire assay (50 gram charge) at the ALS Chemex 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 ALS Chemex. 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 reverse circulation 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.

Two methods have been used to assay a multi-element suite; the first provides 34 elements by aqua regia acid digestion and ICP-AES and was used through zones classified as weakly mineralized. The second method provides 47 elements by HF - HNO3 - HClO4 acid digestion, a HCl leach and a combination of ICP-MS and ICP-AES and was used through the main mineralized/veined zones. Samples returning greater than 10,000 ppm Ag, Pb or Zn are assayed by HF - HNO3 - HClO4 acid digestion, a HCl leach and ICP-AES or AAS finish.

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.

Cerro Moro is one of 12 epithermal gold and silver properties held under a strategic agreement with CVSA. Drilling is scheduled to continue without interruption at Cerro Moro, with a view to establishing a high grade open pit gold-silver mine.

In Chile, the Company recently reported a drill hole which intersected 304 metres at a grade of 0.9 g/t gold on the Caspiche Gold Porphyry Project, located between Kinross' Refugio mine and the giant Cerro Casale gold project. In southern Chile, Exeter is prospecting 48 gold, silver and base metal targets under a strategic agreement with Rio Tinto Mining and Exploration Limited.

As a result of recent political developments in Mendoza Province, Argentina, the further development of the advanced Don Sixto Gold Project has been put on hold. The Company recently filed suit in the Mendoza Courts challenging the constitutionality of the new legislation which has the effect of banning conventional mining in the province. The Company will, however, continue to work with authorities in Mendoza, and with representatives of other mining companies, to effect legislative amendment.

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


Bryce Roxburgh, President and CEO

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Exeter Resource Corporation
    B. Roxburgh
    (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)
    Email: exeter@exeterresource.com
    Website: www.exeterresource.com