- Published: 06 November 2008
- Written by Editor
Exeter Reports More High Grade Drill Intersections at Cerro Moro-Drilling to Focus on Escondida Vein
Exeter Resource Corporation (TSX VENTURE: XRC)(NYSE-A: XRA)(FRANKFURT: EXB) ("Exeter" or the "Company") reports additional high grade drill intersections from its Cerro Moro gold-silver project in the mining Province of Santa Cruz, Argentina.
Significant initial results from eight diamond drill holes from the Escondida vein include:
- 14.00 metres ("m") (45.9 feet ("ft")) at a grade of 5.7 grams per tonne ("g/t") gold (0.17 ounces per ton ("oz/ton")) and 20 g/t silver (0.58 oz/ton), for a gold equivalent grade(i) of 6.1 g/t (0.18 oz/ton), from a down hole depth of 200.00 m (656.2 ft), including
- 1.00 m (3.3 ft) at a grade of 47.9 g/t gold (1.39 oz/ton) and 27 g/t silver (0.78 oz/ton), for a gold equivalent grade(i) of 48.4 g/t (1.40 oz/ton), from a down hole depth of 206.00 m (675.7 ft), in hole MD393.
- 1.97 m (6.5 ft) at a grade of 53.8 g/t gold (1.56 oz/ton) and +3,000 g/t silver(ii) (+87 oz/ton), from a down hole depth of 113.03 m (370.8 ft), in hole MD398.
- 0.58 m (1.9 ft) at a grade of 21.0 g/t gold (0.61 oz/ton) and 54 g/t silver (1.57 oz/ton), for a gold equivalent grade(i) of 21.9 g/t (0.64 oz/ton), from a down hole depth of 124.12 m (407.2 ft), in hole MD340.
(i) Note: Gold equivalent grade is calculated by dividing the silver assay result by 60, adding it to the gold value and assuming 100% metallurgical recovery. All intervals calculated at a 1.0 g/t gold equivalent cut-off.
(ii) Note: One sample assayed above the 10,000 g/t silver assay limit for the method but the result for the intersection will be at least 3,000 g/t silver. The final results are awaited.
The eight drill holes represent new results within a 2.5 kilometre (1.55 miles) long section of the Escondida vein system. (Results for the eight holes are tabulated below.) Drill hole MD393 represents a step back to MD373 (previously reported on September 4, 2008) which intersected 5.55 m (18.2 ft) at a grade of 302.4 g/t gold (8.77 oz/ton) and 6,623 g/t silver (192.1 oz/ton). MD400 is located approximately 320 m (1,050 ft) from holes MD373 and MD393, and is the most south-eastern gold-bearing drill hole to date on the Escondida system.
To view accompanying map please click on the following link: http://media3.marketwire.com/docs/xrc1106a.pdf
Results from the Gabriela Silver Vein
The Gabriela Silver vein system is located approximately 3,000 m (9,840 ft) northeast of the high grade Escondida vein system. Previously unreported drill results show excellent mineralization over a strike length of 800 m (2,625 ft) and to a vertical depth of 220 m (722 ft). Based on 32 drill holes completed to date, the vein remains open along strike to the southeast and at depth.
Significant initial results from Gabriela include:
- 5.18 m (17.0 ft) at a grade of 421 g/t silver (12.21 oz/ton) and 3.4 g/t gold (0.10 oz/ton), for a gold equivalent grade(i) of 10.4 g/t (0.30 oz/ton), from a down hole depth of 54.60 m (179.1 ft), in hole MD321.
- 9.18 m (30.1 ft) at a grade of 272 g/t silver (7.89 oz/ton) and 1.6 g/t gold (0.05 oz/ton), for a gold equivalent grade(i) of 6.2 g/t (0.18 oz/ton), from a down hole depth of 158.56 m (520.2 ft), including
- 4.34 m (14.2 ft) at a grade of 502 g/t silver (14.56 oz/ton) and 3.1 g/t gold (0.09 oz/ton), for a gold equivalent grade(i) of 11.5 g/t (0.33 oz/ton), from a down hole depth of 158.56 m (520.2 ft), in hole MD368.
- 4.05 m (13.3 ft) at a grade of 1,510 g/t silver (43.79 oz/ton) and 9.8 g/t gold (0.28 oz/ton), for a gold equivalent grade(i) of 35.0 g/t (1.02 oz/ton), from a down hole depth of 77.00 m (252.6 ft), in hole MD371.
- 13.11 m (43.0 ft) at a grade of 124 g/t silver (3.60 oz/ton) and 1.0 g/t gold (0.03 oz/ton), for a gold equivalent grade(i) of 3.1 g/t (0.09 oz/ton), from a down hole depth of 128.85 m (422.7 ft), in hole MD362.
The Gabriela vein is wider than the other known veins at Cerro Moro, due primarily to stockwork veining adjacent to the principal structure. Exeter's preliminary metallurgical testwork indicates high silver recoveries are achieved using the same flow sheet as for the gold veins (see news release dated August 13, 2008).
Although the Gabriela vein remains open for extension, the Company is not proposing further drilling at this stage due to market conditions. The vein will be included in the NI 43-101 compliant resources estimate that the Company plans to release in Q2, 2009.
To view accompanying map please click on the following link: http://media3.marketwire.com/docs/xrc1106b.pdf
Detailed drilling results are as follows:
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Gold Gold
From To Width Gold Silver Equivalent Equivalent
Drill Hole (m) (m) (m) (g/t) (g/t) (i)(g/t) (i)(oz/ton)
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Escondida vein
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MD398 113.03 115.00 1.97 53.8 +3,000(ii) TBA TBA
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including 113.03 113.40 0.37 196 +3,000(ii) TBA TBA
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MD340 124.12 124.70 0.58 21.0 54 21.9 0.64
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MD342 205.95 206.55 0.60 7.4 3,181 60.5 1.75
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including 206.25 206.55 0.30 11.6 6,070 112.7 3.27
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MD345 134.30 134.85 0.55 12.1 763 24.8 0.72
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MD393 200.00 214.00 14.00 5.7 20 6.1 0.18
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including 201.90 202.20 0.30 14.9 28 15.3 0.44
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and 206.00 207.00 1.00 47.9 27 48.4 1.40
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MD395 148.03 149.00 0.97 2.7 37 3.3 0.10
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and 159.95 160.25 0.30 1.3 19 1.7 0.05
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MD396 146.06 146.41 0.35 1.2 8 1.4 0.04
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and 161.00 163.00 2.00 1.2 2 1.2 0.03
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MD400 171.50 171.90 0.40 4.5 13 4.7 0.14
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Gabriela Silver vein
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MD318 31.00 36.74 5.74 1.6 221 5.3 0.15
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including 33.77 36.40 2.63 3.0 394 9.6 0.28
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MD321 54.60 59.78 5.18 3.4 421 10.4 0.30
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including 58.97 59.78 0.81 15.9 2,080 50.5 1.46
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MD322 248.90 257.20 8.30 0.7 137 3.0 0.09
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including 252.35 252.65 0.30 3.5 617 13.8 0.40
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and 253.90 254.55 0.65 3.6 722 15.7 0.46
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MD323 49.00 51.28 2.28 1.0 144 3.4 0.10
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and 54.74 57.78 3.04 3.0 370 9.2 0.27
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including 56.20 56.77 0.57 6.5 946 22.2 0.64
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MD324 166.64 169.52 2.88 1.5 244 5.5 0.16
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including 167.05 167.37 0.32 2.3 826 16.1 0.47
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MD327 185.58 187.87 2.29 1.7 262 6.0 0.17
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including 185.58 186.44 0.86 2.8 416 9.8 0.28
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MD328 163.20 163.75 0.55 2.4 869 16.9 0.49
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MD337 173.00 174.00 1.00 0.8 181 3.8 0.11
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and 176.00 177.93 1.93 1.4 177(iv) 4.4(iv) 0.13--------------------------------------------------------------------------
MD357 138.74 139.11 0.37 1.7 166 4.4 0.13
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and 141.89 143.00 1.11 0.7 369 6.8 0.20
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MD362 128.85 142.00 13.11 1.0 124 3.1 0.09
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including 129.73 130.74 1.01 6.3 658 17.3 0.50
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MD364 110.95 113.79 2.84 3.0 474 10.9 0.32
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including 112.39 113.79 1.40 4.5 709 16.3 0.47
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MD366 113.84 117.34 3.50 1.0 138 3.3 0.10
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MD368 158.56 167.74 9.18 1.6 272 6.2 0.18
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including 158.56 162.90 4.34 3.1 502 11.5 0.33
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MD371 74.85 75.35 0.50 15.4 2,630 59.3 1.72
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and 77.00 81.05 4.05 9.8 1,510 35.0 1.02
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including 77.35 79.00 1.65 21.1 3,157 73.7 2.14
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and 87.30 87.60 0.30 2.6 303 7.6 0.22
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and 97.50 98.60 1.10 1.7 59 2.7 0.08
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and 104.00 104.85 0.85 6.0 1,246 26.7 0.77
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MRC372(iii) 79.0 81.0 2.0 5.5 987 22.0 0.64
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and 83.0 84.0 1.0 0.5 94 2.1 0.06
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and 86.0 87.0 1.0 0.5 78 1.8 0.05
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NOTE: All intervals were calculated at a 1.0 g/t gold equivalent cut-off.
(i) Gold equivalent grade is calculated by dividing the silver assay
result by 60, adding it to the gold value and assuming 100%
metallurgical recovery.
(ii) One sample assayed above the 10,000 g/t silver assay limit for the
method and the final results are awaited, but the result for the
intersection will be at least 3,000 g/t silver.
(iii) The prefix "MRC" denotes a reverse circulation percussion drill hole,
where "MD" denotes a diamond drill hole.
(iv) The intersection quoted for hole MD337, from 176.30 m to 177.57 m,
contains silver results that assayed over the upper limit of the
method at 200 g/t and require re-assaying. For the calculation of the
above intersection a value of 200 g/t silver was assumed.
Discovery Drilling Program Results:
Exeter has now compiled results from 28 drill holes on 14 separate veins located within the larger Cerro Moro vein field. Many of the veins represent geophysical discoveries located under alluvial cover. Significant results include:
- 1.00 m (3.3 ft) at a grade of 4.6 g/t gold (0.13 oz/ton) and 567 g/t silver (16.44 oz/ton), from a down hole depth of 82.00 m (269.0 ft), in hole MRC211, located between the Nini and Esperanza prospects.
- 0.68 m (2.2 ft) at a grade of 35.1 g/t gold (1.02 oz/ton) and 3,252 g/t silver (94.31 oz/ton), from a down hole depth of 95.72 m (314.0 ft), in hole MD243, located at the Loma Escondida prospect.
- 1.37 m (4.5 ft) at a grade of 5.3 g/t gold (0.15 oz/ton) and 367 g/t silver (10.64 oz/ton), from a down hole depth of 22.40 m (73.5 ft), in hole MD276, located at the Tres Lomas prospect.
- 2.00 m (6.6 ft) at a grade of 14.3 g/t gold (0.41 oz/ton) and 3 g/t silver (0.09 oz/ton), from a down hole depth of 5.00 m (16.4 ft), in hole MRC377, located at the Silvia prospect.
- 1.00 m (3.3 ft) at a grade of 2.2 g/t gold (0.06 oz/ton) and 136 g/t silver (3.94 oz/ton), from a down hole depth of 69.00 m (226.4 ft), in hole MRC351, testing a new prospect, under cover, delineated from the ground magnetic data.(i)
- 2.62 m (8.6 ft) at a grade of 7.4 g/t gold (0.21 oz/ton) and 147 g/t silver (4.26 oz/ton), from a down hole depth of 102.73 m (337.0 ft), in hole MD386, located at the Michelle prospect.
(i) Note: The interval for MRC351 was calculated at a 0.5 g/t gold cut-off, with the remaining intervals calculated at a 1.0 g/t gold equivalent cut-off (with no cutting of high grades).
A table detailing more significant results of the exploratory drilling, along with a brief explanation of the results, can be viewed at the Exeter website www.exeterresource.com.
Exeter's Chairman, Yale Simpson, stated, "As previously reported, we have suspended our regional drilling programs to focus on testing extensions to the bonanza and high grade mineralization previously delineated on the Escondida vein. We intend to be in a position to move to expeditious development of a moderate scale, high grade mine at Cerro Moro when funds become available.
"We have no doubt that high grade gold-silver deposits will always be highly attractive to miners and investors alike. However, we must maintain sufficient capital in the Company so that our 100 percent ownership of the project is not compromised during this difficult period."
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. Reverse circulation drill samples are collected using a cyclone in one metre intervals; most samples are then composited into three metre samples. All diamond drill core samples are split on regular metre intervals or on geological contacts and represent sawn half HQ-size core. Samples for MD322, MD323, MD324, MD327, MD328, MD337, MD357, MD362 and MD372 were prepared and assayed at the ACME Analytical Laboratories Limited in Mendoza, Argentina; the remaining drill holes presented in this release were prepared at the ALS Chemex preparation facility in Mendoza, Argentina and assayed by fire assay (50 gram charge) at the ALS Chemex laboratory in Chile, all ISO-9001:2000 certified laboratories. MD398 was assayed by the screen fire assay method at the ALS Chemex laboratory in Chile.
Check assaying of all samples assaying greater than 1.0 g/t gold is 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 ("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 $23 million in its treasury (as at September 30, 2008).
Caspiche Gold-Copper Project, Chile
The Caspiche 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 is currently underway to produce an interim NI 43-101 compliant inferred resource estimate in Q2-2009. The initial resource target is large, reflecting the scale of similar gold and/or gold-copper porphyry systems in the immediate area.
Cerro Moro High Grade Gold-Silver Project, Argentina
Exeter's priority at Cerro Moro is to focus exploration entirely on the Escondida vein, where drilling has returned diamond drill intercepts of 12-18 grams per metric ton gold equivalent(i) over potentially mineable widths. The results from current drilling 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 a NI 43-101 resources estimate, it can advance the project to the scoping study level.
Don Sixto Gold Project, Argentina
No site work is planned at Don Sixto, Mendoza Province, over the coming months. 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. You are invited to visit the Exeter web site at www.exeterresource.com.
(i) Note: Gold equivalent grade is calculated by dividing the silver assay result by 60, adding it to the gold value and assuming 100% metallurgical recovery.
EXETER RESOURCE CORPORATION
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, exploration results, timing and establishment of resources estimates, potential for financing its activities, potential production from its properties and expected cash reserves. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to vary from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from the forward-looking statements include, among others, 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, 2007, dated March 28, 2008 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. All statements are made as of the date of this news release and the Company is under no obligation to update or alter any forward-looking statements except as required under applicable securities laws.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
Contacts:
Exeter Resource Corporation
B. Roxburgh
President
(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: This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: www.exeterresource.com
SOURCE: Exeter Resource Corporation
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