Exeter Resource Corporation

Exeter Resource Corporation

July 09, 2007 09:01 ET

Exeter's Second Drill at Cero Morro Defines New Gold/Silver Zone

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 9, 2007) - Exeter Resource Corporation (TSX VENTURE:XRC)(AMEX:XRA)(FRANKFURT:EXB) ("Exeter" or the "Company") reports that a second rig now drilling at its Cerro Moro Project, in Santa Cruz Province Argentina, has discovered new sulphide-related veining southeast of the Esperanza vein system. The drilling confirms the potential for further discoveries on the property.

Three of the five new drill holes at Esperanza intersected gold and silver grades in association with quartz and sulphides in a vein stockwork system, in contrast to the narrower, but very high-grade sulphidic gold mineralization being drilled at Escondida. The Esperanza system falls on a major southeast-trending structure at least six kilometres long is untested over a potential strike length of at least one kilometre.

Highlights of the results from drilling at Esperanza include the following:

- 6.09 metres ("m") (20 feet) at a grade of 7.5 grams per tonne ("g/t") gold and 141 g/t silver, a gold equivalent grade(i) of 9.9 g/t (0.29 oz/ton) in MD101;

- 3.30 m (10.8 feet) at a grade of 6.9 g/t gold and 206 g/t silver, a gold equivalent grade(i) of 10.3 g/t (0.3 oz/ton) in MD100; and

- 0.94 m (3.1 feet) at a grade of 17.1 g/t gold and 511 g/t silver, a gold equivalent grade(i) of 25.6 g/t (0.74 oz/ton) in MD103.

Exeter's Exploration Manager, Matt Williams commented: "We now have two drill rigs and nine exploration geologists at the extensive Cerro Moro epithermal gold system. With one rig continuing to assess the high-grade Escondida vein, and the second rig drilling at Esperanza, our understanding of Cerro Moro is increasing rapidly.

"Drilling prior to mid-2006 focused on prominent, white (low sulphide) quartz veins similar to those being mined at Cerro Vanguardia, to the west of Cerro Moro. The Esperanza vein was discovered in outcrop and drilled previously with promising, but not extraordinary, results. Our new interpretation is that the known Esperanza vein changes in character as it extends to the southeast. The strike extension is progressively more eroded, bringing potentially high-grade, Escondida-type gold-silver mineralization to surface.

"The entire southern portion of the Cerro Moro property is open for exploration. We have found sulphide-related mineralization at Carla, Escondida and now at Esperanza. Our geologists are refining an exploration model, identifying rhyolites to be preferentially mineralized over andesites. Geophysical mapping appears to be very effective in the southern part of Cerro Moro and will be invaluable in areas where the preferentially-eroded veins lie under shallow gravel cover."

To view the map accompanying this press release please click on the following link: http://www.exeterresource.com/images/gallery/plans/plan_38.pdf

Drilling to test the Esperanza vein to depth and along strike is continuing, using a track-mounted combination reverse circulation/diamond UDR-650 drill rig that recently arrived on site.

Detailed Drilling Results

Significant assay results from the new drilling, at a cut-off grade of 1.0 g/t gold equivalents(i) are given below:

Table 1: Esperanza Zone, Cerro Moro - Intersections of vein
stockwork mineralization in rhyolite (P2)

From To Width Gold Silver Equivalent
Drill Hole (m) (m) (m) (g/t) (g/t) (g/t)(i)
MD099 33.70 48.73 15.03 1.2 78 2.5
including 35.33 38.87 3.54 3.3 190 6.5
MD100 36.95 40.25 3.30 6.9 206 10.3
MD101 32.37 38.46 6.09 7.5 141 9.9
including 35.00 38.00 3.00 13.3 248 17.5

Table 2: Esperanza Zone, Cerro Moro - Intersections of vein in
andesite (L1)

From To Width Gold Silver Equivalent
Drill Hole (m) (m) (m) (g/t) (g/t) (g/t)(i)
MD102 39.77 40.77 1.00 1.5 121 3.5
and 43.00 44.00 1.00 0.8 32 1.3
MD103 9.04 10.55 1.51 10.7 341 16.4
including 9.61 10.55 0.94 17.1 511 25.6
and 55.00 56.35 1.35 1.1 2 1.1

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

Quality Control and Assurance

Drill widths presented above are drill intersection widths and may not represent the true widths of mineralization.

The 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 reverse circulation drill samples are collected using a cyclone in one metre intervals; the majority are then composited into three metre samples. All diamond drill core samples are spilt 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 will be 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.

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 under a strategic agreement with Cerro Vanguardia S.A., (CVSA) an AngloGold Ashanti subsidiary. Drilling is expected to continue at Cerro Moro through 2007, with a view to establishing a high grade gold-silver resource amenable to open pit mining. The Company expects to have drilled 10,000 metres on the property by late July, triggering the right for CVSA to back-in for a sixty percent joint venture interest in the project. Should that right be exercised, Exeter will receive a cash payment and will be free-carried to the completion of a bankable feasibility study. Should CVSA not exercise its back-in right, its interest will revert to a two percent net smelter returns royalty.

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 is reviewing its legal recourse for damages suffered and will continue to work with authorities in Mendoza, and with representatives of other mining companies, to effect legislative change.

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 statements", within the meaning of the United States Private Securities Litigation Reform Act of 1995, including comments relating to the possible amendment of anti-mining legislation in Mendoza Province, Argentina, and the results of exploration on the Cerro Moro and Caspiche gold 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
    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