Exeter Resource Corporation

Exeter Resource Corporation

September 22, 2009 10:28 ET

Exeter Reports on 40 New Drill Holes at Cerro Moro

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 22, 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.

Results have been received from an additional 40 diamond drill holes from the Escondida West, Central, East and Fomicruz sectors. Of 23 drill holes returning significant results, 9 returned bonanza gold and silver grades (all from the West, Central and East sectors), as displayed in the following table.

Selected bonanza drilling results using a 1 gram per tonne ("g/t") gold equivalent(i) cut-off grade:

Gold Gold
Equiva- Equiva-
Drill From To Width Gold Silver lents(i) lents(i)
Hole (m) (m) (m) (g/t) (g/t) (g/t) (oz/ton)
MD506 54.00 56.36 2.36 129.8 3,889 185.4 5.38
Including 54.74 55.04 0.30 749.7 16,318 982.8 28.50
MD532 44.83 47.12 2.29 210.1 417 216.1 6.27
Including 45.90 46.50 0.60 709.8 1,129 725.9 21.05
MD535 41.95 43.25 1.30 46.9 915 60.0 1.74
Including 41.95 42.40 0.45 94.8 1,282 113.1 3.28
MD548 22.32 23.35 1.03 61.3 1,406 81.4 2.36
Including 22.32 22.62 0.30 134.6 3,367 182.7 5.30
MD553 38.08 40.22 2.14 80.7 1,943 108.5 3.15
Including 38.08 38.74 0.66 243.7 5,929 328.4 9.52
MD563 36.86 42.00 5.14 6.2 680 16.0 0.46
Including 39.19 39.57 0.38 50.4 6,310 140.5 4.07
MD568 10.35 13.72 3.37 45.2 320 49.8 1.44
Including 13.08 13.72 0.64 222.9 511 230.2 6.68
MD569# 6.00 10.75 4.75 33.5 855 45.7 1.33
Including 7.84 9.51 1.67 92.7 2,284 125.3 3.63
MD580 62.65 64.87 2.22 38.9 1,106 54.7 1.59
Including 64.35 64.87 0.52 133.0 4,151 192.3 5.58

(i)Gold equivalent grade is calculated by dividing the silver assay
result by 70, adding it to the gold value and assuming 100%
metallurgical recovery.
#Drill hole MD569 also intersected mineralization greater than
1.0 g/t gold equivalent from surface to 3.00 metres ("m")
however the recoveries were significantly less than reporting

To view the full table with all 23 significant holes, please visit the following link: http://www.exeterresource.com/images/gallery/plans/Table_85.pdf.

Of the 17 diamond drill holes with less significant results, 7 holes returned narrow and/or low grade intersections and 10 holes were poorly mineralized. The results from 6 holes at the Escondida Central and West sectors are awaited.

The locations of the 40 drill holes reported are represented on the following plans and long sections.

To view the sections and plans, please visit the following link: http://www.exeterresource.com/images/gallery/plans/Plan_84.pdf.

An additional 44 in-fill diamond drill holes have been drilled at the Escondida Far West sector. Results for the holes will be released following processing, sampling and assaying.

Drilling Progress on the Escondida Fomicruz Property

A reverse circulation percussion (RC) drill rig has completed an initial exploratory test of the potential northwest extension of the Escondida mineralized structure on the Escondida Fomicruz joint venture property. The rig firstly drilled through the blanket of Tertiary marine sediments before testing the underlying volcanic stratigraphy. Ten drill sections that included 11 RC holes and 2 diamond holes were drilled within a strike length of 1,600 m (160 m intervals).

The position of the Escondida structure was determined for each drill section, with assays now available for the first three holes. Drill hole MRC600, located 160 m northwest of the last mineralized Escondida Far West sector hole designated MD405 (1.62 m at a grade of 2.53 g/t gold and 100 g/t silver), returned 2.0 m at a grade of 1.8 g/t gold and 1.2 g/t silver, from a down hole depth of 141.0 m. Importantly, MRC600 was terminated at 146.0 m but was not sampled below 143 m due to poor sample recoveries.

On the next drill section, 160 m northwest of MRC600, drill hole MD587 was sited too far to the northeast to hit the Escondida structure. A follow-up hole, MD588, sited as a step back hole, successfully intercepted the target but failed to return significant mineralization.

Cerro Moro Project Manager, Fernando Chacon noted "Based on our experience to the southeast, subtle anomalous pathfinder element geochemistry in holes MD588 and MRC600 suggests these holes intersected the Escondida structure immediately above the precious metal precipitation zone of the epithermal system. The diamond drill is currently drilling 40 m spaced holes between MD405 and MRC600, with a series of deeper holes planned."

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, 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 Acme Labs. 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.

On the Caspiche Project in Chile, Exeter recently announced an inferred mineral resource estimate of 1,117 Mt (million metric tons) at a grade of 0.55 grams per metric ton gold and 3.81 grams per metric ton silver including 1,017 Mt at a grade of 0.22% copper. This equates to in-situ inferred resources of 19.6 million ounces of gold, 137 million ounces of silver and 4.84 billion pounds of copper (a total of 33.7 million gold equivalent ounces(ii). Drilling to expand and upgrade the resource estimate is scheduled to commence in October 2009.

On the Cerro Moro Project in Argentina, Exeter recently announced an initial inferred mineral resource estimate of 646,000 ounces gold equivalent(iii) at a grade of 18 g/t gold equivalent(iii). Exeter has drilled over 150 in-fill holes on the Escondida Vein structure to upgrade inferred resources to indicated resources for priority areas for a 2010 scoping study. Drilling will continue through 2009, as will engineering, environmental and infrastructure studies.

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)Gold ("Au") equivalence for copper ("Cu") and silver ("Ag") was calculated by Exeter using assumed metal prices of US$800/ounce ("oz") for Au, US$12/oz for Ag and US$2/pound ("lb") for Cu. The formula to calculate Au equivalence for Cu was pounds of Cu multiplied by 2 and divided by 800; Au equivalence for Ag was calculated using the formula oz of Ag multiplied by 12 and divided by 800, and in both cases assumes 100% recovery. Reported grades and metric tons have been rounded (see news release NR 9-19 dated September 14, 2009).

(iii)Inferred mineral resource estimate of 1,098,000 tonnes 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 9-14 dated July 8, 2009).

You are invited to visit the Exeter web site at www.exeterresource.com. To view the video version of this press release along with many others click here "Watch Video News": http://www.youtube.com/user/ExeterResourceCorp.


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 programs, various studies including engineering, environmental and infrastructure 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 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, silver 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)