Exeter Resource Corporation

Exeter Resource Corporation

June 15, 2009 09:00 ET

Exeter Resource Corporation: Drilling Continues to Expand Caspiche Gold Copper Porphyry

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 15, 2009) - Exeter Resource Corporation (TSX VENTURE:XRC)(NYSE Amex:XRA)(FRANKFURT:EXB) ("Exeter" or the "Company") reports that drill hole CSD039a has returned 876 metres (2,874 ft) at a grade of 0.75 grams per tonne ("g/t") gold (0.022 ounces per ton ("oz/ton")) and 0.29% copper, including a 582 metre (1,909 ft) section assaying 1.00 g/t gold (0.029 oz/ton) and 0.36% copper. This new drill hole tested the continuity of mineralization to depth below previous holes with shallower intercepts.

CSD039a, a steep hole, was drilled in a south westerly direction, opposite to the north easterly bearing of most other holes drilled this season. The oxide zone intercept returned low grades (see table below) in contrast to good grades in the lower sulphide zone intercept. The bulked intercepts are as follows:

- 876 metres ("m") (2,874 ft) at a grade of 0.75 g/t gold (0.022 oz/ton) and 0.29% copper, from a down hole depth of 126 m (413 ft) to 1,002 m (3,287ft), including

- 582 m (1,909 ft) at a grade of 1.00 g/t gold (0.029 oz/ton) and 0.36% copper to a depth of 1,002 m (3,286 ft).

Approximately 250 m (800 ft) of this intercept is vertically below mineralization reported in the interim mineral resource estimate announced on March 24, 2009. That resource estimate, based on drilling to year end 2008, was 450 million tonnes containing 8.7 million ounces of gold and 2.1 billion pounds of copper(i).

CSD037 was drilled to test a section 200 m beneath CSD032. It is interpreted to have intersected the western margin of mineralization on this drill section. Results include:

- 708 m (2,322 ft) at a grade of 0.50 g/t gold (0.015 oz/ton) and 0.22% copper, from 434 m (1,423 ft) to 1,142 m (3,746 ft) down hole.

CSD037 intersected mainly sediments and volcanic breccias which host mineralization peripheral to the main diorite porphyry intrusion. Previously reported drill hole CSD032, drilled 200 m east of CSD037, was within the diorite porphyry from 830 to 1,270 m depth and returned a 1,214 m (3,982 ft) intercept, at a grade of 0.90 g/t gold (0.026 oz/ton) and 0.33% copper (see news release NR 09-04 dated February 25, 2009).

CSD038, drilled at the very south eastern edge of the system, was designed to test the south eastern limits of mineralization. This hole intersected a younger, weakly mineralized inter-mineral phase porphyry unit over its entire length.

Drilling has now been suspended through the winter and is expected to resume in October. All drilling data for Caspiche will be used to calculate an updated, National Instrument 43-101 ("NI 43-101") compliant, mineral resources estimate which is expected to be released in September 2009.

Exeter's Caspiche Project Manager, Justin Tolman, stated, "Drill hole CSD039a demonstrates the continuity of higher grade mineralization between the drill sections located 100 metres to the north and south. The intersection from this drill hole should increase the size of the favourable diorite porphyry unit and the associated higher grade gold-copper zone (when compared to our earlier geological modelling).

"We can now infer a steep southwest plunge to the higher grade zone within Caspiche. This interpretation could be amended going forward as potentially important assays from drill hole CSD036a to the northwest are pending. Furthermore, we were unable to complete drill hole CSD041 located in the far south western part of the drilling grid. That hole was designed to further test the model for a high grade zone but was prematurely abandoned at 560 metres (1,836 ft) due to technical issues with the drilling rig. We did see, however, encouraging veining and alteration near the bottom of the hole, just before it was terminated. It will be redrilled very early next season. Our interpretation is that the Caspiche porphyry remains open to the south west and plunging to depth.

"The 16,500 metres (54,120 ft) drilled this season brings the total drilled to date to 23,500 metres (77,080 ft). We have significantly extended the limits of the system beyond the mineralized envelope reported in the interim resource estimate announced on March 24, 2009. We anticipate that this extension will be reflected in the next estimate by AMEC International expected in September.

"Drilling will continue next season with the aim of further extending the limits of the mineralized system."

Detailed drilling results from this press release are summarised as follows:

From To Width Gold Copper
Hole No. (m) (m) (m) (g/t) (%) Status Zone
CSD039a 66 126 60 0.22 0.01 Finals Oxide Gold Only Zone
126 1,002 876 0.75 0.29 Finals Sulphide Gold Copper Zone
including 418 1,002 584 1.00 0.36 Finals Sulphide Gold Copper Zone

CSD037 434 1142 708 0.50 0.22 Finals Sulphide Gold Copper Zone

CSD038 15 220 205 0.16 0.02 Finals Oxide Gold Only Zone
220 560.4 340.4 0.11 0.03 Finals Sulphide Gold Copper Zone


Click here to view related plans and cross-sections: http://www.exeterresource.com/images/gallery/plans/Plan_72.pdf

Quality Control and Assurance

Drill intercepts presented above are drill intersection widths and may not represent the true widths of mineralization. Gold and copper assay results presented have not been calculated using a gold cut-off grade, or with any cutting of high values. Diamond drill core samples are routinely split on regular two metre intervals and represent either sawn half HQ-size or NQ-size core. Any reverse circulation drill samples are collected using a cyclone in one metre intervals; all samples are then composited into two or four metre samples. Gold samples were prepared and assayed by fire assay (50 gram charge). Copper was assayed with a four acid digestion followed by atomic absorption spectroscopy. The primary laboratory is ALS Chemex in Chile, an ISO-9001:2000 certified laboratory. Standard, blank and duplicate samples are used throughout the sample sequence as checks for the exploratory reverse circulation and diamond drilling.

Justin Tolman, Exeter's Caspiche Project Manager and a "qualified person" within the definition of that term in NI 43-101, 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$34 million in its treasury.

The Caspiche gold-copper discovery 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.). Drilling has ceased for the southern winter. A second NI 43-101 compliant resources estimate is expected in September 2009.

Exeter's priority on its Cerro Moro high grade gold-silver property in Argentina is the Escondida vein where drilling has returned multiple intercepts of 12-18 g/t gold equivalent(ii) over potentially mineable widths. The results from drilling to December 2008 are being used to produce a NI 43-101 compliant resources estimate, expected for release late in the second quarter of 2009.

Drilling on the high grade Escondida vein recommenced in April, with over 50 new drill holes currently unreported. Separately, the Company is awaiting a drilling permit to test possible north western extensions of the Escondida vein on the adjacent Fomicruz JV lands.

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.

(i) Inferred mineral resource estimate of 449.9 million tonnes from the oxide and gold-copper zones 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 new release NR 09-09 dated March 24, 2009).

(ii) Note: Gold equivalent grade at Cerro Moro is calculated by dividing the silver assay result by 60, adding it to the gold value and assuming 100% metallurgical recovery.

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 programs and exploration results, the potential tonnage, grades and content 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts 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
    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)