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Exeter Upgrades Caspiche Mineral Resource
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EXETER UPGRADES CASPICHE MINERAL RESOURCE TO:
Vancouver, B.C., September 13, 2010 - Exeter Resource Corporation
(NYSE-AMEX:XRA, TSX:XRC, Frankfurt:EXB - "Exeter" or the
"Company") is pleased to provide an updated National Instrument
43-101 compliant mineral resource estimate for its Caspiche
Project.
The updated measured and indicated mineral resource
estimate has increased in tonnage by 68% and in contained metal
by 50% from the previous mineral resource estimate announced 6th
April, 2010.
Following the additional 20 kilometres of drilling,
80% of the total resource now falls into the measured or
indicated categories.
The new measured and indicated mineral resource comprises 1,316Mt
(million metric tons) at a grade of 0.50 g/t gold (grams per
metric ton) and 1.14 g/t silver, including 1,217 Mt at a grade
of 0.20% copper.
This equates to measured and indicated
resources of 21.3M(million) ounces of gold, 48.4M ounces of
silver and 5.3G(billion) pounds of copper (a total of 35.9M gold
equivalent ounces**).
In addition to the indicated mineral resource, an updated
inferred mineral resource of 458Mt at a grade of 0.35 g/t gold
and 0.98 g/t silver, including 449Mt at a grade of 0.15% copper.
This equates to in-situ inferred resources of 5.1M ounces of
gold, 14.5M ounces of silver and 1.4G pounds of copper (a total
of 9.0M gold equivalent ounces**).
"Readers are cautioned that the resource estimates in Table 1 and
Table 2 are on the same deposit and are therefore not additive.
The most appropriate development scenario will be determined in
future studies."
TABLE 1 Mineral Resource Estimate for Large Open Pit Mining
Scenario
Category Material* Million
Metric Tonnes
(Mt) Gold
(g/t) Gold
(Million Ounces) Copper
(%) Copper
(Billion Pounds) Silver
(g/t) Silver
(Million Ounces) **Gold Equivalent
(g/t) **Gold
Equivalent
(Million
Ounces) Measured + Indicated OXIDE 99 0.44 1.4 0.01 0.0 1.69 5
.4 0.44 1.4 Measured + Indicated SULPHIDE 1,217 0.51 19.9 0.20
5.3 1.10 43.0 0.88 34.5 TOTAL
MEASURED + INDICATED 1,316 0.50 21.3 0.18 5.3 1.14 48.4 0.85 35.9
Inferred OXIDE 9 0.28 0.1 0.01 0.0 1.64 0.5 0.29 0.1
Inferred SULPHIDE 449 0.35 5.0 0.15 1.4 0.97 14.0 0.62 9.0
TOTAL INFERRED 458 0.35 5.1 0.14 1.4 0.98 14.5 0.61 9.1
*Oxide resources are reported above a marginal cutoff of 0.2 g/t
gold-equivalence, sulphide resources are reported above a
marginal cutoff of 0.3 g/t gold-equivalence.
TABLE 2 Scenario to highlight the central higher grade deposit
core
Mineral Resource Estimate for the Oxide Resource, using open pit
mining methods
Mineral Resource Estimate for the Central Higher Grade Zone using
underground block cave mining methods Category Material*
Million
Metric
Tonnes
(Mt) Gold
(g/t) Gold
(Million
Ounces) Copper
(%) Copper
(Billion
Pounds) Silver
(g/t) Silver
(Million
Ounces) **Gold
Equivalent
(g/t) **Gold
Equivalent
(Million
Ounces) Measured + Indicated OXIDE 71 0.50 1.1 0.01 0.0 1.69 3
.8 0.50 1.1 Measured + Indicated SULPHIDE 513 0.70 11.6 0.29 3
.2 1.26 20.7 1.24 20.4 TOTAL
MEASURED + INDICATED 584 0.66 12.7 0.23 3.2 1.34 24.5 1.10 21.5
Inferred OXIDE 2 0.36 0.0 0.01 0.0 1.87 0.1 0.36 0.0 Inferred
SULPHIDE 60 0.60 1.2 0.28 0.4 1.39 2.7 1.13 2.2 TOTAL INFERRED
62 0.56 1.2 0.23 0.4 1.48 2.8 0.99 2.2
*Oxide resources are reported above a marginal cutoff of 0.2 g/t
gold-equivalence.
The underground mineral resource shell is
defined assuming a block caving mining method and appropriate
mining costs.
The block caving mining method does not permit any
selectivity during the mining process and all material within
the underground resource shell is therefore considered a mineral
resource.
AMEC considered various mining scenarios to demonstrate
"reasonable prospects for mining" including a single large open
pit, the results of which are summarized in Table 1.
Table 2
shows a scenario that focuses on the central higher grade core
of the deposit.
It includes mineral resources for the gold only
oxide zone based on open pit mining costs, followed by mineral
resources for the central higher grade sulphide core using
underground (block cave) mining costs.
Engineering consultants
NCL Ingenieria y Construccion have been commissioned to
undertake conceptual mining and infrastructure studies to
determine an optimum mining scenario.
Exeters Caspiche Project Manager, Justin Tolman, stated "This
mineral resource estimate is an important step in the evolution
of the project.
The new drilling allows us for the first time to
report resources at the highest level of confidence - the
"measured" category.
"Overall, approximately 80% of the Caspiche deposit has now been
converted to the measured and indicated resource categories.
Importantly, the estimate confirms the integrity of the higher
grade central core of the deposit with 90% of the zone now
upgraded to the measured and indicated categories.
"Similarly, over 90% of the oxide resource now falls into the
measured and indicated resource categories with nearly 40%
categorized as measured.
"The infill drilling has resulted in the total tonnage in the
deposit increasing by approximately 20%, the effect of which is
partially nullified by the global grade decreasing by nearly 11%
.
The result is that the contained metal in the deposit shows
only modest growth.
The additional tonnage came mostly from the
edges of the deposit, including over one million ounces of gold
(all classified in the inferred category) from the newly
discovered MacNeill zone to the west of the porphyry intrusive
complex.
"We were fortunate at the completion of the drilling season to
have international porphyry expert, Dr.
Richard Sillitoe review
the Caspiche drill core to assist in the generation of a refined
geological model for the new resource estimate.
The new model
outlined a series of inter-mineral intrusions which are less
mineralized than had been previously interpreted.
The new model,
based on a denser drilling pattern, no longer interprets
mineralization to be continuous into the basement rocks.
"The new resource estimate provides an excellent basis for our
engineering and conceptual mine design studies.
These studies
will be integrated into pre-feasibility studies to examine the
economics of the project.
We are currently reviewing proposals
from selected engineering firms to complete a pre- feasibility
level study on the project.
Two concurrent studies are planned:
one to consider the oxide resource alone is scheduled for
completion late Q1, 2011, and a larger study on mining both the
oxide and sulphide resources is scheduled for mid 2011.
These
studies may be released initially as a Preliminary Economic
Assessment Studies to comply with Canadian reporting standards.
"Caspiche is one of the largest gold deposits in Chile, a country
considered one of the most secure for mining investment.
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 Caspiche.
"Silver continues to be an important potential by product with 48
.4 million ounces and 14.5 million ounces in the indicated and
inferred categories respectively.
However the impact of silver
was not considered in the gold equivalent calculation or in the
optimization of the mining shells to define this current mineral
resource.
We instead chose to focus on the primary value drivers
.
"Drilling is scheduled to recommence in October 2010 with the
goal of the new program being to convert the entire central high
grade core into the measured and indicated categories and to
investigate the potential for additional higher grade zones.
The
program will also better delimit the deposit through step-out
drilling.
Metallurgical pilot plant testwork and preliminary
engineering design work have commenced, with concurrent
investigations into water, power and baseline environmental
studies."
Click here to view related plan and sections
**AMEC chose to report the resource above a Au equivalent cutoff.
For this they used prices of US$950/oz for Au and $2.30/lb for
Cu.
The formula used to calculate Au equivalence is Au(g/t) + Cu
(%) * (Cu Price [$/lb]/Au Price [$/oz]) * (Rec Cu/Rec Au)*0
.06857*10000.
Where Rec = % recovery and 0.06857 = conversion g
*lb/oz.
Au and Cu are the block kriged Au and Cu grades.
Projected metallurgical recoveries were 75% and 85% for Au and
Cu respectively in sulphide material and 50% for Au in the oxide
zone.
Recoveries are based on benchmarking of similar deposits.
Mineral Resource Estimate Methodology
This updated National Instrument 43-101 ("NI 43-101") compliant
mineral resource estimation completed for the Caspiche porphyry
follows the previous estimate announced on April 6, 2010.
The Caspiche mineral resource estimate was prepared under the
supervision of Mr.
Rodrigo Marinho, CPG-AIPG, AMEC Principal
Geologist.
The mineral resource estimates were prepared under
Canadian Institute of Mining Metallurgy and Petroleum (CIM)
Definition Standards (2005) and CIM Estimation of Mineral
Resources and Mineral Reserves Best Practice Guidelines (2003).
Mr.
Marinho is "independent" and a "qualified person" as such
terms are defined in NI 43-101.
A total of 55,659 metres ("m") of drilling, including 101 drill
holes completed by both Exeter and earlier third parties, was
used in the preparation of this mineral resource estimate.
Exeter provided AMEC with solid models, surfaces and density data
representing the major lithological, alteration and weathering
boundaries.
These data were checked, validated and subsequently
used to provide the main support for the selection of estimation
domains.
AMEC estimated gold, total copper and silver mineral
resources using Ordinary Kriging ("OK") following extensive
exploratory data analysis, variography and capping of outlier
values.
To determine prospects of economic extraction the results were
tabulated and are reported within several permutations of break
-even whittle open pit and/or underground resource shapes.
Only
mineralized material contained within the mining shells has been
reported as mineral resources.
Mining and process costs and
process recoveries were estimated from benchmark studies of
similar projects in Chile.
Table 3 summarizes the mineral resource estimated by AMEC for the
Caspiche porphyry as a large open pit optimized against a
marginal cutoff.
Each block was evaluated to determine if the
block could be potentially mined by open pit (using a Lerchs
-Grossman optimization using Whittle® version 4).
Information
from Table 3 was summarized to provide Table 1 above.
TABLE 3 AMEC Mineral Resource Estimate for Large Open Pit Mining
Scenario
Material Category AuEq Cut-off
(ppm) Volume
(Mm3) Tonnes
(Mt) Au
(g/t) Cu
(%) Ag
(g/t) AuEq**
(g/t) AuEq**
(Moz) OXIDE Measured 0.2 16 38 0.50 0.01 1.54 0.50 0.6 OXIDE
Indicated 0.2 26 60 0.40 0.01 1.79 0.40 0.8 OXIDE Measured
+Indicated 0.2 42 99 0.44 0.01 1.69 0.44 1.4 OXIDE Inferred 0.2
4 9 0.28 0.01 1.64 0.29 0.1 SULPHIDE Measured 0.3 104 254 0.53
0.22 1.13 0.94 7.7 SULPHIDE Indicated 0.3 392 963 0.50 0.19 1
.09 0.87 26.8 SULPHIDE Measured+Indicated 0.3 495 1,217 0.51 0
.20 1.10 0.88 34.5 SULPHIDE Inferred 0.3 183 449 0.35 0.15 0.97
0.62 9.0 ALL Measured Combined 120 292 0.53 0.19 1.18 0.88 8
.30 ALL Indicated Combined 418 1,024 0.50 0.18 1.13 0.84 27.6
ALL Measured+Indicated Combined 537 1,316 0.50 0.18 1.14 0.85 35
.9 ALL Inferred Combined 187 458 0.35 0.14 0.98 0.61 9.0
TABLE 4 AMEC Mineral Resource Estimate for Oxide only Open Pit
and Block Cave Extraction Scenario for Sulphide Mineralization.
OPEN PIT OXIDE AND BLOCK CAVE EXTRACTION FOR SULPHIDE
Material Category AuEq Cut-off
(ppm) Volume
(Mm3) Tonnes
(Mt) Au
(g/t) Cu
(%) Ag
(g/t) AuEq**
(g/t) AuEq**
(Moz) OXIDE Measured 0.2 13 30 0.55 0.01 1.48 0.56 0.5 OXIDE
Indicated 0.2 18 41 0.45 0.01 1.84 0.46 0.6 OXIDE Measured
+Indicated 0.2 30 71 0.50 0.01 1.69 0.50 1.1 OXIDE Inferred 0.2
1 2 0.36 0.01 1.87 0.36 0.0 SULPHIDE Measured NA** 54 132 0.70
0.29 1.21 1.23 5.3 SULPHIDE Indicated NA** 153 380 0.70 0.29 1
.28 1.24 15.1 SULPHIDE Measured+Indicated NA** 207 513 0.70 0
.29 1.26 1.24 20.4 SULPHIDE Inferred NA** 24 60 0.60 0.28 1.39
1.13 2.2 ALL Measured NA** 66 162 0.67 0.23 1.26 1.11 5.8
ALL Indicated NA** 171 421 0.66 0.23 1.38 1.10 15.8 SULPHIDE
Measured+Indicated NA** 237 584 0.66 0.23 1.34 1.10 21.5 ALL
Inferred NA** 25 62 0.56 0.23 1.48 0.99 2.2
Table 4 is a scenario prepared by AMEC that considers an
optimization of an open pit for the oxide material only and then
using its in-house floating stope program to optimize a block
caving option underneath the pit surface.
This block cave is
designed to target higher grade resources that occur in the
center of the deposit, using contour polygons with a cut-off of
0.9 g/t AuEq**.
This contouring is not a grade shell or cut-off
that ignores all blocks below the threshold used.
Instead as the
block caving mining method does not permit any selectivity
during the mining process all material within the underground
mineral resource shell is considered a resource.
Table two
presented above was summarized from this information.
The cut
-off was calculated based on gold equivalent values using gold
and copper only and was determined independently for oxide and
sulphide material.
Exeters 2009/2010 drilling campaign added thousands of metres of
new information, confirming mineralization and grade continuity.
In October 2009, AMEC did a drill hole spacing study for the
Caspiche property that determined the grid spacing required to
convert mineral resources to the Measured and Indicated Mineral
Resource categories.
Following this work, a mathematical script was written to
classify the mineral resource into measured, indicated and
inferred categories based on the results of the drill hole
spacing study and drilling to date.
This was further refined by
a manual smoothing pass that removed isolated blocks or pools of
blocks of one category within a different one.
AMEC designed
polygons by benches every 6 m to control this.
In AMECs opinion
, the geological data and economic parameters are suitable for
calculating Measured, Indicated and Inferred Mineral Resources.
The block model consists of regular blocks (25 m x 25 m x 15 m).
The estimation plan for gold is the same for oxide and sulphide
domains.
The estimation plan for all elements includes
restricted searches for high grade values and a multi pass
approach.
The estimation plan for copper includes a hard
boundary between the oxide and sulphide boundary.
Inter domain
boundaries and sample sharing were determined based on
geological relationships, contact profiles and statistical
analysis.
AMEC validated the Caspiche model using summary statistics
checking for global estimation bias, drift analysis, and visual
inspection.
AMEC also generated a nearest neighbour (NN) model
to validate the OK model.
Grade variation between estimates for
both methods was considered acceptable.
Technical reports summarizing past work programs at Caspiche are
also available on SEDAR and the Companys website.
Justin Tolman, Exeters 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 exploration and development of the
Caspiche project in Chile.
The Company has C$37 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 to expand and upgrade
the existing resource is expected to commence during October
2010.
You are invited to visit the Exeter web site at www
.exeterresource.com
EXETER RESOURCE CORPORATION
Bryce Roxburgh
President and CEO
For further information, please contact:
B.
Roxburgh, President or
Rob Grey, VP Corporate Communications
Tel: 604.688.9592 Fax: 604.688.9532
Toll-free: 1.888.688.9592
Suite 1260, 999 West Hastings St.
Vancouver, BC Canada V6C 2W2
[]
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, the Companys belief
as to the extent and timing of its drilling programs, various
studies including engineering, environmental, infrastructure and
other studies, and exploration results, budgets for its
exploration programs, the potential tonnage, grades and content
of deposits, timing, establishment and extent of resources
estimates, potential for financing its activities, potential
production from and viability of its properties, permitting
submission and timing and expected cash reserves.
These forward
-looking statements are made as of the date of this news release.
Readers are cautioned not to place undue reliance on forward
-looking statements, as there can be no assurance that the future
circumstances, outcomes or results anticipated in or implied by
such forward-looking statements will occur or that plans,
intentions or expectations upon which the forward-looking
statements are based will occur.
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 that such future events will
occur and are subject to risks, uncertainties, assumptions and
other factors which could cause events or outcomes to differ
materially from those expressed or implied by such forward
-looking statements.
Such factors and assumptions include, among
others, the effects of general economic conditions, the price of
gold, silver 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 known and unknown risk factors which could cause the
Companys 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 the ability to obtain
any necessary approvals, waivers, consents and other
requirements necessary or desirable to permit or facilitate the
proposed Arrangement, the risk that any applicable conditions of
the proposed transaction may not be satisfied, 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 Companys common
share price and volume; tax consequences to U.S.
investors; and
other risks and uncertainties, including those described in the
Companys Annual Information Form for the financial year ended
December 31, 2009, dated March 30, 2010 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.
Cautionary Note to United States Investors - The information
contained herein and incorporated by reference herein has been
prepared in accordance with the requirements of Canadian
securities laws, which differ from the requirements of United
States securities laws.
In particular, the term "resource" does
not equate to the term "reserve".
The Securities Exchange
Commissions (the "SEC") disclosure standards normally do not
permit the inclusion of information concerning "measured mineral
resources", "indicated mineral resources" or "inferred mineral
resources" or other descriptions of the amount of mineralization
in mineral deposits that do not constitute "reserves" by U.S.,
unless such information is required to be disclosed by the law
of the Companys jurisdiction of incorporation or of a
jurisdiction in which its securities are traded.
U.S.
investors
should also understand that "inferred mineral resources" have a
great amount of uncertainty as to their existence and great
uncertainty as to their economic and legal feasibility.
Disclosure of "contained ounces" is permitted disclosure under
Canadian regulations; however, the SEC normally only permits
issuers to report mineralization that does not constitute
"reserves" by SEC standards as in place tonnage and grade without
reference to unit measures.
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TERM IS DEFINED IN THE POLICIES OF THE TSX EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE
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