🕐06.06.11 - 12:54 Uhr
EXETER COMPLETES POSITIVE PREFEASIBILITY STUDY FOR ITS CASPICHE OXIDE GOLD DEPOSIT
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Exeter Completes Positive Prefeasibility Study
For Its Caspiche Oxide Gold Deposit
Vancouver, B.C., June 6, 2011 – Exeter Resource Corporation (NYSE
-AMEX:XRA, TSX:XRC, Frankfurt:EXB – "Exeter" or the "Company") is
pleased to announce the Oxide Gold Prefeasibility Study for its
Caspiche Project in northern Chile has returned a NPV(5) of US
$329.5 million and net operating costs of US$524/ounce gold.
Average annual production over the five year mine life would be
210,000 ounces gold and 364,000 ounces silver.
The Oxide Gold Prefeasibility Study ("PFS"), completed by Jacobs
Engineering (formerly AKER Solutions), is based solely on the
near surface oxide portion of the Caspiche deposit and considers
that deposit as a standalone mine.
The +100 metre thick oxide
"blanket" will have to be removed from the very large underlying
sulphide project and no residual value is attributed to the mine
infrastructure and equipment that could be utilised in
developing that larger project.
The combined oxide-sulfide deposit is the subject of a much
larger pre-feasibility study currently underway and scheduled
for release in Q4-2011.
Highlights of the Oxide Standalone PFS
NI 43-101 compliant Proven, and Probable Mineral Reserves for the
Caspiche Oxides Project total 1.35 million ounces of gold at an
average grade of 0.41 grams per tonne ("g/t") gold and 5.36
million ounces of silver at an average grade of 1.64 g/t silver
contained within 101.74 million tonnes of ore.
The 43-101 report
does not include a further Inferred Resource of 50,000 ounces of
gold and 300,000 ounces of silver at average grades of 0.26 g/t
and 1.51 g/t respectively, contained within 6.21 million tonnes
of ore.
Average annual production is approximately 210,000
ounces gold and 365,000 ounces silver.
Mine life is 5 years.
Average cash operating costs are US$524/ounce gold, after the
silver credit.
At US$1,320/ounce gold, using a 5% discount rate,
the pre-tax net present value ("NPV"), including the Anglo
royalty is US$329.5 million, generating an internal rate of
return ("IRR") of 34.4%, and a payback period of 3.2 years from
initial construction.
Estimated initial capital costs are US$335
.6 million.
Processing throughput is 62,000 tonnes per day ("tpd"
) of ore.
Average gold recovery is 78%.
Average silver recovery
is 34%.
Waste to ore ratio is 0.26:1 over the life of mine.
Several opportunities to materially improve project economics,
including the supply of power from the grid, were not
incorporated into the PFS.
Exeter Chairman Yale Simpson states "the purpose of the Oxide PFS
was to demonstrate the commercial viability of the Caspiche
oxide deposit as a relatively low capital cost, low risk mine
producing over 200,000 ounces gold annually.
The study assumes a
standalone project, quite independent of the development of the
large Caspiche sulfide deposit.
"The oxide ore body leaches exceptionally well by industry
standards and will be an important cash flow generator, whether
it is developed independently to provide cash flow over a five
year mine life, or in concert with the development of the main
sulfide deposit.
Our engineers advised that an increase in the
size of the secondary crusher could increase mine throughput
(and shorten mine life) at a relatively modest increase in the
mine capex.
"On the basis of the economics set out in the PFS report, the
Company can now consider mine permitting and development of the
oxide project well in advance of the larger scale and more
capital intensive sulfide project."
The PFS examined three options for open pit development, each
based on a Heap Leach – Adsorption Desorption Recovery (ADR)
method of ore processing.
Option 1: Heap leaching of two stage crushed ore using a
conventional jaw and cone crusher circuit for an 8 year project
life.
Option 2: Heap leaching of two stage crushed ore using a
conventional jaw and cone crusher circuit for a 5 year project
life.
Option 3: Heap leaching of two stage crushed ore using a gyratory
and cone crusher circuit for a 5 year project life.
Based on the
PFS results Option 2 was shown to be the most beneficial to the
project.
This involves processing 62,000 tonnes per day ore over
a five year period.
Mine Description
Mine trucks with run of mine (ROM) ore discharge in a bin ahead
of a primary jaw crusher.
Where required primary crushed product
is further reduced in a secondary crusher circuit then
transported to a truck load out bin by a belt conveyor where
solid lime is added to control the cyanidation pH.
The ore is
then trucked to a valley heap leach.
Leaching is accomplished by a cyanide solution, using drippers
for the irrigation system.
Pregnant leach solution ("PLS") is
stored in a PLS pond then pumped to the ADR plant.
The ADR plant
considers a counter current carbon in column (CIC) circuit of
five (5) columns.
Loaded carbon is then transferred to the
elution circuit and barren solution is returned to the barren
solution pond for pad irrigation.
The loaded carbon is acid washed and desorbed.
After acid washing
, gold is dissolved from the loaded carbon using a strong caustic
cyanide solution.
The gold bearing electrolyte is sent to
electrowinning where sludge is produced.
This gold sludge is
filtered and then smelted with bullion doré produced as final
product.
The stripped carbon obtained from desorption is reactivated in a
rotary kiln every four cycles and returned to the adsorption
columns with additional fresh carbon make up as required.
Financial Analysis
The base-case is calculated at a 12 month London Bullion Market
monthly average fix of US$1,320/ounce gold and US$25.80/ounce
silver.
The analysis indicates revenues of US$1,241 million, an
NPV (5% discount rate) of US$329.5 million and an unleveraged
IRR of 34.4%.
Other Key Indicators
Ore Production (000s of tonnes) 101,741 Total Material Moved
(000s of tonnes) 128,026 Strip Ratio 0.26 Gold Production
(000s gross ounces) 1,052 Silver Production (000s gross
ounces) 1,822
The tables below outline key sensitivities for the pre-tax NPV
and IRR for the Caspiche project.
Gold Price US$/ounce Indicator $1,000 $1,100 $1,200 $1,300 $1
,400 $1,500 $1,600 IRR 9.7% 18.0% 25.7% 33.0% 40.0% 46.7% 53.2%
NPV @ 0% (US$millions) 109 211 313 415 517 619 721 NPV @ 5%
(US$millions) 47 135 223 312 400 488 576 NPV @ 7.5% (US
$millions) 21 103 186 268 350 432 514 Payback - (years from
start- up) 3.9 3.2 2.7 2.3 2.0 1.8 1.7
Overall Gold Recovery - Percent of Baseline (78%) INDICATOR
90% 95% 100% 105% 110% IRR 24.8% 29.7% 34.4% 39.0% 43.5% NPV
@ 5% (US$millions) 213 271 329 388 446
CAPEX - Percent of Baseline (US$335.6 million) INDICATOR 90%
95% 100% 105% 110% IRR 40.4% 37.3% 34.4% 31.8% 29.4% NPV @ 5
% (US$millions) 365 347 329 312 294
OPEX - Percent of Baseline ($US 5.88/t) INDICATOR 90% 95% 100
% 105% 110% IRR 38.6% 36.5% 34.4% 32.3% 30.2% NPV @ 5% (US
$millions) 381 355 329 304 278
Jerry Perkins, Exeters Vice President Development and a
"qualified person" within the definition of that term in National
Instrument ("NI") 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 exploration and development of the
Caspiche project in Chile.
The project is situated in the
Maricunga gold district, between the Refugio mine (Kinross Gold
Corp.) and the Cerro Casale gold deposit (Barrick Gold Corp.
and
Kinross Gold Corp.).
The discovery represents one of the largest
mineral discoveries made in Chile in recent years.
Exeter has
initiated pre-feasibility studies with the aim of demonstrating
the commercial viability of this world class discovery.
The
Company has cash reserves of $80 million and no debt.
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 1660, 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, including in relation
to the Companys belief as to the extent and timing of its
drilling programs, various studies including pre-feasibility
studies, 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 and copper, changing foreign exchange rates and actions by
government authorities, uncertainties associated with legal
proceedings and negotiations and misjudgments 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 project development; including
risks associated with the failure to satisfy the requirements of
the Companys agreement with Anglo American on its Caspiche
project which could result in loss of title; 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, 2010
dated March 25, 2011 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.
NEITHER THE TSX NOR ITS REGULATION SERVICES PROVIDER (AS THAT
TERM IS DEFINED IN THE POLICIES OF THE TSX) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE
LATEST NEWS Apr 18, 2011
Exeter Reports Successful Completion Of Infill Drilling At Its
Caspiche Gold-Copper Project, Chile
Read More
Mar 22, 2011
Exeter Reports Positive Results from Caspiche Project Sulfide
Testwork
Read More
Mar 15, 2011
Exeter Reports Progress on the Caspiche Stand-Alone Oxide Pre
-Feasibility Study
Read More
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