Exeter's Water Entitlement Expanded and Corporate Update for the
Caspiche Gold-Copper Project
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb 27, 2014) -
Exeter Resource Corporation (NYSEMKT:XRA)(TSX:XRC)(FRANKFURT:EXB)
("Exeter" or the "Company") is pleased to announce that its Chilean
subsidiary, Minera Eton ("Eton"), has negotiated new joint venture
("JV") terms (see News Release dated June 3, 2013) with the Chilean
subsidiary of Canadian company Atacama Pacific Gold Corporation
("Atacama"). The amended JV allows Eton to earn an additional 40%
interest, for an aggregate 90% interest, in water exploration
tenements Cuenca Two and Laguna Verde (West, East) in the Maricunga
region, northern Chile. Importantly, the JV has approved the camp
mobilization and water drilling is expected to commence within 10
days.
President and CEO of Exeter, Wendell Zerb, states, "Based on
historical water exploration and new geophysical studies at Laguna
Verde, we are optimistic this drilling campaign will identify new
water resources that could, in due course, lead to securing our
water requirements at Caspiche".
To earn the additional 40% interest, Eton is required to incur
an additional 40% (total of 90%) of all expenditures relating to
exploration and potential development of water on the Cuenca Two
and Laguna Verde water tenements. In addition, upon the discovery
and approval of water rights by the General Directorate of Water
Resources ("DGA"), Eton will assume Atacama's obligation to pay
Hydro Exploranciones SpA ("Hydro"), an Atacama affiliate, US$15,000
per litre per second ("l/s") of DGA approved water rights. Atacama
will remain obligated to pay Hydro US$15,000 per l/s on its 10%
interest. Regardless of the total amount of DGA approved water
acquired by the JV, payments to Hydro are capped at US$1 million.
These payments are not applicable to Eton's original 50% interest
in the JV.
The JV partners have hired Terraqua, a specialist Chilean water
drilling contractor, to complete a US$1.5 million drilling program,
consisting of up to 3, 12 inch diameter production holes, on the
Laguna Verde water tenement.
To view a location map of Exeter's water exploration tenements
and applications click here.
The objective of the water program is to identify, evaluate, and
secure water sources to support a potential initial heap leach gold
stage and a follow-on gold-copper sulphide stage of mining at the
Company's Caspiche gold-copper project in Chile.
Preliminary internal studies relating to developing Caspiche as
a smaller scale, staged mine indicate potential for a significantly
lower water requirement from that outlined in previous studies.
Previous studies for the large scale open pit mining operation
indicated water requirements of approximately 1,000 l/s. Current
expectations, based on the preliminary objectives outlined, are
that water requirements could be 50 l/s for the standalone oxide
operation** and potentially as low as 150 l/s to 250 l/s for the
sulphide mine development**.
Caspiche Project Update
The Company's review of lower capital alternatives for the
potential development of the Caspiche project are progressing (see
News Release dated September 23, 2013). Options being assessed
include open pit mining of the near surface oxide zone (gold only),
followed by a deepening of the open pit and underground mining of
the central, higher grade portion of the gold-copper sulphide
deposit.
Preliminary studies conducted by Santiago based engineering
consultancies, NCL Construccion y Ingenieria and Alquimia Conceptos
S.A. are ongoing. Trade off studies continue as a means to
determine the most viable alternatives for potential development.
As part of these initial studies, Exeter is reviewing production
options that not only provide the best economics, but also lead to
best industry practice for water conservation and environmental
impact. Further information regarding these reviews is expected
over the next quarter.
Development Concept for the Oxide Gold Zone
In the Company's January 2012 Pre-Feasibility Study, gold within
oxidized material was to be mined as part of the large scale open
pit operation. High throughput (70,000 tonnes per day) levels
provided solid economics under the framework of a large scale
operation. In order to reduce initial capital while expanding the
oxide mine life, Exeter is evaluating a reduced throughput mine,
targeting 100,000 ounces of gold production per year (30,000 tonnes
per day) over a 10 year mine life**.
Oxide Gold Study
Objectives**:
- Target a 10 year mine life to produce 100,000 ounces gold
annually.
- A reduced initial capital requirement.
- Maintain a very low strip ratio and the rapid leach kinetics
achieved in previous studies.
- Reduce the project water requirements.
- Consider the trade off potential for on-site power generation
versus grid power.
Development Concept for the Gold-Copper Sulphide Zone
The higher grade gold-copper sulphide zone at Caspiche has
dimensions of up to 500 metres ("m") by 300 m by +1,000 m
vertically. It is associated with a defined, strongly mineralized
diorite porphyry unit. Both copper and gold recoveries have been
shown to be higher in this unit and higher concentrate grades can
be achieved, according to existing test work.
The preliminary studies continue to evaluate options for more
selective mining of the higher grade zone. This includes trade off
studies evaluating initial open pit access to the zone by deepening
the open pit, followed by underground development. New modeling for
the underground operation assumes selective, top-down, open stope
mining methods, rather than the bottom-up (block cave) approach set
out in the January 2012 Pre-Feasibility Study. The objective is to
accelerate access to the higher grade zone and the deferral of
capital expenditures.
Targeted peak throughput is 27,000 tonnes per day**,
representing a potential scale of peak annual gold equivalent*
production from the underground operation of 350,000 ounces**.
Sulphide Study
Objectives**:
- Review the uniformity of the higher grade sulphide zone.
- Confirm that it lends itself to large scale, sub-level open
stope mining.
- Confirm the practicality of underground access using two
declines, one of which is dedicated to high capacity conveyor
haulage and determine that an underground crushing and conveying
system will support the large scale mining initiative.
- Confirm that a top down mining approach will reduce the
development time compared to other underground bulk mining
alternatives.
- Confirm the conceptual practicality of using tailings for paste
fill of the primary and secondary stopes.
- Reduce initial capital requirements.
- Reduce the project footprint - minimal waste rock, a smaller
tailings requirement, and a smaller concentrator plant.
- Reduce electricity and water requirements.
To view a level plan of the higher grade core at Caspiche
click here.
To view a cross section of Caspiche click here.
Expanded Column Leach Test Work
To enhance previous metallurgical studies relating to Caspiche
oxide gold mineralization, Exeter has engaged McClelland
Laboratories International ("MLI") of Reno, Nevada to conduct a
series of new studies. MLI are currently leaching 11 large diameter
columns (10" to 12" diameter, each up to 280 kilograms). The sample
composites were selected to be representative of a conceptual open
pit mining schedule. In addition, data will be forthcoming on
near-surface gold-bearing material that had not been part of
previous conceptual mine plans.
The composites are comprised of individual 8 m intercepts, each
of which will be tested in 96 hour, 1.7 mm bottle roll tests.
Previous MLI work indicated a useful correlation between relatively
quick bottle roll tests and column tests. Confirmation of this
trend may allow mine blast hole cuttings to be bottle roll leached
to provide a reasonable prediction of heap leach recoveries.
Additional physical studies form part of the program to confirm
crushing parameters and heap stability. Final results are expected
to be available in Q2/14.
Earlier column testwork indicated an optimum crush size of 50
mm, relatively rapid leach kinetics and an average gold recovery of
78%.
Caspiche Surface Easement Update
On June 6, 2013 the Chilean government granted Eton a surface
easement (access right) over both the Caspiche project and adjacent
lands considered suitable for potential mine infrastructure. Since
that time Eton has been making cash payments to the government to
fulfill its obligations under the easement agreement. On January
27, 2014, Eton was served with a court claim filed by a private
Chilean mineral exploration company, Compañía Minera Cerro del
Medio SCM ("Cerro del Medio") challenging the Chilean Government's
granting of the surface easement to Eton. The claim, filed before
the Santiago Civil Court, is against the Chilean Government and
Eton.
Under Chilean law there are provisions to provide necessary
surface access for the development of mineral deposits. The
Caspiche easement includes surface access rights over sections of
Cerro del Medio's adjacent mineral tenements. Cerro del Medio is
citing "non-compliance by the Chilean Government of certain legal
formalities required to approve the easement" and "that the
easement granted overlaps Cerro del Medio's Santa Cecilia project
mining properties". Based on public disclosure, there are currently
no defined mineral resources associated with Cerro del Medio's
mining tenements.
A review of the claim by Eton's Chilean legal counsel has
concluded that the Cerro del Medio claim has no grounds under
Chilean law and should be rejected.
La Buena Joint Venture Project - Mexico
Exeter has informed San Marco Resources Inc. that results from
exploration at the La Buena project have not met Company objectives
and that it is terminating the joint venture agreement.
The Phase I Drill Program at La Buena included the completion of
four drill holes. The drilling targeted both geological and
geophysical targets without returning economically significant
results.
* |
Gold
equivalent (AuEq) value is based on gold, silver and copper
revenues (prices and recoveries involved). AuEq [troy oz] = [Au g/t
* Rec Au * throughput annual tonnes]/31.1 + [[Cu% * Rec Cu *
throughput annual tonnes]*2204] * copper price lbs/gold price troy
oz. Assumed recoveries for Au 72% and 89.5% for Cu. Assumed prices
$1250 for Au and $2.75 for Cu. |
** |
Disclaimer: These are initial guidelines or concepts and objectives
of the proposed studies that require detailed evaluation and
engineering work to determine logistical and economic viability.
These figures could change and should not be relied upon. There is
no certainty that the figures or objectives outlined in this press
release will be realized in the studies. |
Jerry Perkins, Exeter´s VP Development and Operations and a
"qualified person" (¨QP¨) within the definition of that term in
National Instrument 43-101, Standards of Disclosure for Mineral
Projects, has reviewed and approved the technical information in
this news release.
About Exeter
Exeter is a Canadian mineral exploration and development
company. Its principal focus is the advancement of its 100% owned
Caspiche gold-copper project in Chile. Caspiche is one of the
largest known undeveloped gold-copper deposits in the America's and
is situated in the Maricunga gold district, between the Maricunga
mine (Kinross Gold Corp.) and the Cerro Casale gold-copper deposit
(Barrick Gold Corp. and Kinross Gold Corp.). The Company continues
to evaluate new opportunities related to the advancement of
Caspiche.
The Company currently has cash reserves of C$38 million and no
debt.
EXETER RESOURCE CORPORATION
Wendell Zerb, P. Geol, 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 in relation to the
Company's belief as to potential to establish new opportunities or
realize the concepts or objectives of current studies for the
advancement of Caspiche, exploration results, timing of water
exploration and drilling, potential to acquire adequate quantities
of water and new projects 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 negotiations and
misjudgments in the course of preparing forward-looking
information. In addition, there are known and unknown risk factors
which could cause the Company's 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 Company's 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
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, 2012 dated April 1, 2013 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 Commission's (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. standards, unless such
information is required to be disclosed by the law of the Company's
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
Exeter Resource CorporationWendell Zerb, CEO orRob Grey, VP
Corporate Communications604.688.9592 or Toll-free:
1.888.688.9592604.688.9532exeter@exeterresource.comwww.exeterresource.com
Exeter Resource Corp. Ordinary Shares (Canada) (AMEX:XRA)
Historical Stock Chart
From Nov 2024 to Dec 2024
Exeter Resource Corp. Ordinary Shares (Canada) (AMEX:XRA)
Historical Stock Chart
From Dec 2023 to Dec 2024