Exeter Resource Corp increases NI43-101 resource at Caspiche gold-copper project in Chile

Exeter Resource Corporation (AMEX: XRA, TSX: XRC, FSE: EXB)  has upgraded its NI43-101 compliant mineral resource estimate for its Caspiche project in Chile, which represents an increase of 23% in gold content over the previous resource. The new indicated resource comprises 785 Mt (million metric tons) at a grade of 0.57 grams per metric ton gold (gpt) and 1.33gpt silver, including 690Mt at a grade of 0.23% copper.

This equates to in-situ indicated resources of 14.3 million ounces (Moz) of gold, 33.6Moz of silver and 3.5 billion pounds of copper (23.9Moz gold equivalent).

"We are very pleased with the results from our ongoing drilling of the Caspiche Porphyry”, Exeter chairman Yale Simpson commented. “The new resource estimate, calculated by independent engineering firm AMEC International SA, delivers on our stated goals of expanding the resource base, and concurrently converting the best mineralized zone of the resource into the higher confidence indicated category”.

The new resource shows an increase of 23% in gold content over the October 2009 resource, of which 14% points was contributed by new drilling and 9% points was contributed by AMEC's change to higher long-term metal prices. Exeter highlighted that now 59% of the contained ounces of gold now report to the indicated resource category.

In addition to the indicated resource, Caspiche also has an inferred resource of 688Mt at a grade of 0.45gpt gold and 1.21gpt silver, including 675Mt at a grade of 0.19% copper. This equates to an in-situ inferred resource of 10Moz of gold, 26.7Moz of silver and 2.9 billion pounds of copper (c.17.8Moz gold equivalent).

Exeter said that the new inferred resource contains a substantial component of new material, which was not previously estimated. "Part of the increased size of the resource is attributed to recently identified mineralized areas, including the new MacNeill Zone, immediately west of the known resource. In addition, AMEC is now using higher metal prices for their resource calculations”, Yale Simpson stated.

“The effect of the new assumptions on tonnage is to increase the tonnages for indicated and inferred resources by 6.4% and 15.4% respectively ... The size of the Caspiche resource on a 'gold equivalent' basis demonstrates the significant contribution of copper to the resource. While primarily a gold-rich porphyry system, copper contributes approximately 40% of the value of the metal endowment of the deposit”, Simpson added.

In calculating the resource statement, AMEC considered two mining scenarios - a single large open pit and an open pit followed by underground mining which would utilize block cave methods. AMEC concluded that, as the mineral endowment was similar for both scenarios, the combined scenario presents the base case for the Caspiche project.

Exeter noted that this is consistent with the preferred extraction scenario developed by its own engineering consultants NCL Ingenieria y Construccion. NCL has been commissioned to undertake conceptual mining and infrastructure studies for Exeter's internal evaluation purposes.

The new estimate is based on drilling to the end of 2009 and assay data to February 5 2010. Furthermore, Exeter noted that it has already completed over 10,000 metres of additional drilling since the February 16 2010.

Six rigs are scheduled to continue drilling at Caspiche, at least until the onset of the southern winter in May, 2010, the company said. The on-going drilling program retains two primary objectives - to continue the expansion of the deposit through step-out drilling, and to complete the upgrade of the higher grade central zone to ‘indicated resource’ status or better.

According to Exeter, a final resource estimate for the 2009/2010 season is expected late in Q3-2010 and metallurgy, engineering, water, infrastructure and environmental studies are continuing.
Exeter and Extorre Gold Mines (TSX: XG) last month closed the previously announced spin-out transaction, under which Exeter continues to hold and focus on advancing the Caspiche project while Extorre holds all of Exeter's former interest in the Argentine Cerro Moro and Don Sixto projects, as well as its Argentine Patagonian exploration projects and an initial C$25m from Exeter.

Extorre is now trading as an independent company on the Toronto Stock Exchange.

Each Exeter shareholder received one share in Extorre for each share held in Exeter, there was no change in the holdings in Exeter Resource Corp and, after the ‘ex-distribution’ period on 24 March, its listings on the American Stock Exchange (AMEX), Toronto Stock Exchange (TSX) and Frankfurt (FSE) will remain unaffected.

http://www.proactiveinvestors.com.au/companies/news/6240/exeter-resource-corp-increases-ni43-101-resource-at-caspiche-gold-copper-project-in-chile-6240.html