Exeter Resource Corporation
NYSE Alternext US : XRA

Exeter Resource Corporation

April 27, 2009 09:01 ET

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

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 27, 2009) - Exeter Resource Corporation (TSX VENTURE:XRC)(NYSE Alternext US:XRA)(FRANKFURT:EXB) ("Exeter" or the "Company") reports that ongoing drilling to expand the size of the Caspiche porphyry has encountered significant economic tenor mineralization outside the interim mineral resource estimate announced last month. That resource of 450 million tonnes of rock containing 8.7 million ounces of gold and 2 billion pounds of copper(i) was based solely on drilling to the end of 2008.

Holes CSD023 and CSD016 were extended by 708 metres ("m") (2,322 feet ("ft")) and 166 m (545 ft) respectively. Revised total intercepts for these holes are 1,160 m (3,805 ft) at a grade of 0.69 g/t gold (0.020 oz/t) and 0.32% copper in CSD CSD023(ii) and 957.5 m (3,141 ft) at a grade of 0.85 g/t gold (0.025 oz/t) and 0.34% copper in CSD016(iii).

The revised intercepts for holes CSD023 and CSD016 are as follows:


- 102 m (335 ft) at a grade of 0.65 grams per tonne ("g/t") gold (0.019 ounces per ton ("oz/ton")), from surface, in the oxide (gold only) zone followed by

- 1,058 m (3,471 ft) at a grade of 0.70 g/t gold (0.020 oz/ton) and 0.35% copper, from a down hole depth of 120 m (394 ft) in the primary gold-copper zone.

Additionally, the hole was continued beyond the planned hole depth based on alteration and geological vectors and re-entered porphyry intrusive rocks at 1,322 m (4,336 ft) through to the end of the hole at 1,413 m (4,635 ft), with veining and associated low grade mineralization. This represents a previously unknown blind intrusive porphyry phase and generates an important new target for follow up drilling.


- 92 m (302 ft) at a grade of 0.41 g/t gold (0.012 oz/ton), from 73 m (240 ft), in the oxide (gold only) zone followed by

- 792.45 m (2,600 ft) at a grade of 0.96 g/t gold (0.028 oz/ton) and 0.40% copper, from a down hole depth of 165 m (541 ft) to the bottom of the hole at 957.45 m (3,140 ft), in the primary gold-copper zone.

Additional results from new drilling are as follows:

CSD035, drilled to the southeast and perpendicular to the current drill grid, was designed to test the continuity of mineralization in this orientation and target mineralization at depth under CSD013. Results include:

- 120 m (394 ft) at a grade of 0.69 g/t gold (0.020 oz/ton), from surface, in the oxide (gold only) zone followed by

- 905.7 m (2,971 ft) at a grade of 0.87 g/t gold (0.025 oz/ton) and 0.26% copper, from a down hole depth of 120 m (394 ft) to the bottom of the hole at 1025.7 m (3,364 ft), in the primary gold-copper zone.

CSD027, drilled to test the northeastern limits of mineralization, include:

- 150 m (492 ft) at a grade of 1.09 g/t gold (0.032 oz/ton") from surface in the oxide (gold only) zone followed by

- 554 m (1,818 ft) at a grade of 0.4 g/t gold (0.012 oz/ton) and 0.15% copper, in the primary gold-copper zone.

Additional results from other deep holes continue to return long widths of mineralized material in both the near surface, oxide gold only system, and the porphyry gold-copper system at depth. Importantly, significant portions of all these holes returned mineralized intercepts beyond the areas included in the current inferred resource estimate as ongoing drilling continues to both grow the system size and improve the Company's confidence in the continuity of mineralization.

Exeter's Chairman, Yale Simpson, stated, "We are more than pleased with our ability to define new mineralization at Caspiche porphyry.

"These new results should positively impact the resource estimate, which is expected to be updated in September. We are targeting growth of the resource base by an additional 50%. The results announced today complement those previously announced from CSD032 which was also drilled after the interim resource estimate data cut-off (1,214 m at 0.9 g/t gold and 0.33% copper (see news release dated February 25, 2009)).

"We also expect that results from CSD027 will improve the grade in the previously announced oxide resource (74 million tonnes grading 0.55 g/t gold for 1.3 million ounces).

"The results from extensions to CSD023 and CSD016 and new hole CSD 035 provide material extensions to the mineralized system to the east and to depth. CSD034 effectively defines the northwest boundary of the mineralized system and has extended the margin of the mineralized envelope with potential to add modest grade material to the resource.

"Currently, Exeter has 4 diamond drill rigs systematically testing the system limits of Caspiche. We plan to include all drilling data to the end of the current field season in an updated, National Instrument 43-101 compliant, mineral resources estimate in September 2009."

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

From To Width Gold per
Hole No. (m) (m) (m) (g/t) (%) Status Zone
sion 705.30 1,160 454.70 0.43 0.40 Finals Sulphide Gold Copper Zone
(1) 0 102 102 0.65 0.01 Finals Oxide Gold Only Zone
(2) 102 1,160 1,058 0.70 0.35 Finals Sulphide Gold Copper Zone

sion 791.75 957.45 BOH 165.70 0.51 0.31 Finals Sulphide Gold Copper Zone
(1) 0 165 165 Finals Oxide Gold Only Zone
(2) 165 957.45 BOH 792.45 0.96 0.40 Finals Sulphide Gold Copper Zone

CSD027 0 150 150 1.09 0.01 Finals Oxide Gold Only Zone
CSD027 150 714 554 0.40 0.15 Finals Sulphide Gold Copper Zone

CSD035 0 120 120 0.69 0.02 Finals Oxide Gold Only Zone
CSD035 120 1,025.70 905.70 0.87 0.26 Finals Sulphide Gold Copper Zone

CSD034 0 120 120 NSR NSR Finals
CSD034 120 605 BOH 485 0.25 0.07 Finals Sulphide Gold Copper Zone
BOH - bottom of hole
NSR - No significant results

(1) Oxide intercept previously released when the original hole was drilled
during the 2007/2008 drilling campaign.
(2) New total Sulphide Zone intercept including previously reported results
and the newly drilled extension.

Click here to view related plans and cross-sections: http://www.exeterresource.com/images/gallery/plans/Plan_71.pdf

(ii) CSD023 (previously reported as 102 m (335 ft) at a grade of 0.65 g/t gold (0.02 oz/t) in the oxide zone and 603 m (1,978 ft) at 0.89 g/t gold (0.03 oz/t) and 0.32% copper in the sulphide zone) has been extended by 708 m (2,322 ft) to determine the limits of mineralization to the east and test the continuity of mineralization at depth. The hole intersected anomalous mineralization for its entire width and the revised intercept has been recalculated as 1,160 m (3,805 ft) at a grade of 0.69 g/t gold (0.020 oz/t) and 0.32% copper.

(iii) CSD016 (previously reported as 92 m (302 ft) at 0.41 g/t gold (0.01 oz/t) in the oxide zone and 626 m (2,053 ft) at 1.08 g/t gold (0.03 oz/t) and 0.43% copper in the sulphide zone) which ended in potentially ore grade material has been extended by 165.7 m (544 ft). The new total intercept for this hole has been revised to 957.5 m (3,141 ft) at a grade of 0.85 g/t gold (0.025 oz/t) and 0.34% copper.

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$38 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 with four rigs remains focussed on delineating the external boundaries of Caspiche with an objective of producing a second NI 43-101 compliant resources estimate 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(iv) over potentially mineable widths. The results from drilling to December 2008 will be used to produce a NI 43-101 compliant resources estimate, expected during the second quarter of 2009. Exeter will continue to develop its conceptual models so that on receipt of the resources estimate, it can advance the project to the scoping study level. Drilling the high grade Escondida vein recommenced in April, and drill testing possible extensions into the adjacent joint ventured Fomicruz lands will follow receipt of permitting approval.

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 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)

(iv) 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 Exchnage) 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
    Exeter Resource Corporation
    Rob Grey
    VP Corporate Communications
    604.688.9592 or Toll-free: 1.888.688.9592
    604.688.9532 (FAX)