Exeter Resource Corporation
FRANKFURT : EXB
TSX VENTURE : XRC
PINK SHEETS : EXRCF

Exeter Resource Corporation

August 01, 2006 04:11 ET

Exeter Drills Bonanza Grades in New Vein at Cerro Moro, Argentina

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 1, 2006) - Exeter Resource Corporation (TSX VENTURE:XRC)(PINK SHEETS:EXRCF)(FWB:EXB) reports that drilling at its Cerro Moro Project in Argentina has discovered a high-grade gold-silver vein in a new zone, situated 2.5 kilometres from any previous drilling on the property.

Reverse circulation drill hole CMRC-45 intersected 10 metres at a grade of 15.4 grams per tonne ("g/t") gold and 790 g/t silver, for a gold equivalent grade(i) of 28.6 g/t. Included in the intercept was 2 metres at a grade of 43.6 g/t gold and 2293 g/t silver (81.8 g/t gold equivalent(i)).

The vein intersected by CMRC-45 (now named the "Carla Vein") was not apparent in outcrop and suggests the potential for further discoveries in an entirely new part of the property. Significantly, two other holes, CMRC-43 and CMRC-44, located 75 metres to the east of CMRC-45, also intersected veining that could represent a faulted extension of the Carla Vein.

Company Comment

Chairman Yale Simpson commented: "Cerro Moro is a large, 50 square kilometre, gold-silver system; one of a number of promising epithermal gold-silver properties under our strategic agreement with Cerro Vanguardia S.A., an AngloGold Ashanti subsidiary. For the past 12 months, our approach in systematically exploring Cerro Moro has been to combine detailed ground magnetic surveying with geological mapping to identify additional high-grade veins, or extensions to known veins."

"Previous drilling at Cerro Moro showed the vein system to be extensive and the Deborah and Esperanza Veins have both shown sufficient grades and widths to support the advancement of the property toward mine development. The Carla Vein discovery has rewarded the persistence of our team, as we continue to explore this very large epithermal system."

Cerro Moro Drilling Results

Exeter drilled 1,037 metres in 20 holes in the current program on the Carla, Dora, Deborah and Esperanza veins. Significant results from the current drilling program include:



--------------------------------------------------------------------
CARLA
--------------------------------------------------------------------
Gold
Hole Equivalent(i)
No From To Meters Gold g/t Silver g/t g/t
--------------------------------------------------------------------
CMRC 44 26 27 1 7.96 684 19.36
-----------------------------------------------------------
56 62 6 0.57 45 1.32
--------------------------------------------------------------------
CMRC 45 46 56 10 15.41 790 28.58
-----------------------------------------------------------
which includes
-----------------------------------------------------------
47 52 5 28.32 1465 52.73
-----------------------------------------------------------
which includes
-----------------------------------------------------------
47 49 2 43.58 2293 81.78
--------------------------------------------------------------------


--------------------------------------------------------------------
DORA
--------------------------------------------------------------------
Gold
Hole Equivalent(i)
No From To Meters Gold g/t Silver g/t g/t
--------------------------------------------------------------------
CMRC 48 4 6 2 0.93 76 2.19
--------------------------------------------------------------------
CMRC 49 23 30 7 1.58 4 1.65
--------------------------------------------------------------------
CMRC 50 0 2 2 2.74 5 2.81
-----------------------------------------------------------
19 26 7 0.51 3 0.55
--------------------------------------------------------------------


--------------------------------------------------------------------
DEBORAH
--------------------------------------------------------------------
Gold
Hole Equivalent(i)
No From To Meters Gold g/t Silver g/t g/t
--------------------------------------------------------------------
CMRC 52 59 64 5 2.92 74 4.15
--------------------------------------------------------------------
CMRC 53 41 55 14 3.04 61 4.05
-----------------------------------------------------------
which includes
-----------------------------------------------------------
49 52 3 7.03 129 9.18
-----------------------------------------------------------
which includes
-----------------------------------------------------------
49 50 1 12.98 142 15.34
--------------------------------------------------------------------
CMRC 54 57 65 8 0.70 28 1.15
--------------------------------------------------------------------
CMRC 55 31 34 3 2.39 17 2.67
--------------------------------------------------------------------

--------------------------------------------------------------------
ESPERANZA
--------------------------------------------------------------------
Gold
Hole Equivalent(i)
No From To Meters Gold g/t Silver g/t g/t
--------------------------------------------------------------------
CMRC 56 3 10 7 0.74 94 2.32
-----------------------------------------------------------
19 20 1 1.16 3 1.21
-----------------------------------------------------------
39 43 4 0.44 61 1.46
--------------------------------------------------------------------
CMRC 57 34 35 1 0.85 94 2.41
-----------------------------------------------------------
38 41 3 4.00 323 9.38
-----------------------------------------------------------
which includes
-----------------------------------------------------------
38 40 2 5.79 467 13.56
-----------------------------------------------------------
78 81 3 2.05 76 3.32
--------------------------------------------------------------------
CMRC 58 38 43 5 0.70 74 1.93
--------------------------------------------------------------------
CMRC 59 20 24 4 3.24 271 7.76
--------------------------------------------------------------------
CMRC 60 15 18 3 1.01 115 2.93
--------------------------------------------------------------------

(i) Gold equivalent grade is the aggregate of the gold and silver
grades using a silver:gold ratio of 60:1.


The new, poorly outcropping, Carla vein and the surrounding area will be trenched and channel sampled in conjunction with other recently generated targets on the property. Detailed ground magnetics will continue ahead of follow up drilling in the fourth quarter, 2006. The Deborah vein remains open at depth and to the south-west, and the Esperanza vein remains open at depth and to the north-west.

Vein and drill hole locations can be viewed on the Exeter website at www.exeterresource.com or by clicking on this hyperlinks: http://www.exeterresource.com/images/gallery/plans/plans15.pdf.

Quality Control and Assurance

The gold assay results presented above are preliminary and have been calculated using a 0.5 g/t gold cut-off grade, with no cutting of high grades. All reverse circulation drill samples were collected using a cyclone in one metre intervals. 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.

Check assaying of all samples assaying greater than 1.0 g/t gold will be completed by ALS Chemex. Standard, blank and duplicate samples are used throughout the sample sequence as checks. Note that the drill widths presented above are drill intersection widths and may not represent true widths.

Glen Van Kerkvoort, Exeter's Chief Geologist, a "qualified person" within the definition of that term in National Instrument 43-101, "Standards of Disclosure for Mineral Projects", has overall responsibility for Exeter's exploration programs in Patagonia and is responsible for the contents of this news release.

About Exeter

Exeter is a technically-advanced, Canadian gold exploration company, focused on the discovery and development of epithermal gold-silver properties in Argentina and Chile.

Currently, four drills are operating at its advanced La Cabeza gold project as a key component of project development activities that include engineering, metallurgical, hydrological, and environmental studies.

In the prospective, Patagonia region of Argentina, Exeter has a strategic partnership with Cerro Vanguardia S.A. over 12 epithermal gold-silver properties in Santa Cruz, Rio Negro and Chubut provinces. Drilling results are awaited on the Cerro Puntudo epithermal gold-silver property.

In Chile, Exeter is prospecting some 48 gold-silver and copper targets under a strategic agreement with Rio Tinto Mining and Exploration Limited.

In the Maricunga district of Chile, Exeter has a strategic agreement with Minera Anglo American Chile Limitada and Empresa Minera Mantos Blancos S.A. on the Caspiche epithermal gold property.

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

To view the maps accompanying this press release, please click on the following link: http://www.ccnmatthews.com/docs/xrc801.pdf

EXETER RESOURCE CORPORATION

Bryce Roxburgh, President and CEO

Safe Harbour Statement - This news release may contain certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 referring to Exeter's exploration plans and expectations for advancing its exploration properties. These statements reflect our current belief and are based upon currently available information. Actual results could differ materially from those described in this news release as a result of numerous factors, some of which are outside of the control of Exeter.


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

Contact Information

  • Exeter Resource Corporation
    Bryce Roxburgh
    President
    (604) 688-9592 or Toll Free: 1-888-688-9592
    or
    Exeter Resource Corporation
    Rob Grey
    Investor Relations
    (604) 688-9592 or Toll Free: 1-888-688-9592
    (604) 688-9532 (FAX)
    exeter@exeterresource.com
    www.exeterresource.com