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Exeter Resources Begins Latest 20,000 Meter Drilling Programme at the Caspiche

Published: 01:24 21 Oct 2009 AEDT

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Exeter Resource Corporation (NYSE-AMEX:XRA, TSX-V:XRC, Frankfurt :EXB) reported that a new 20,000 meter  drilling program on the Company’s Caspiche gold-copper Project has commenced. The purpose of the program is to define further value in the National Instrument 43-101 compliant inferred mineral resource of 19.6m ounces gold and 4.8bn pounds copper.

In September, Exeter released the results of the previous drilling programme, a total of 25,187 metres of drilling across including 44 drill holes produced a NI 43-101 compliant updated resource statement. The Revised statement estimated in-situ inferred resources of 19.6 million ounces of gold, 137 million ounces of silver and 4.84 billion pounds of copper.

Exeter has mobilised two drill rigs, which are now on site with two additional rigs are contracted to arrive later in October, each rig has a depth capacity in excess of 1,500m.

The current drilling programme has two objectives, firstly to define the outer limits of the deposit, beyond the drill holes completed to date. This objective is important as the deposit appears to be open to the southwest and to depth. Furthermore, drill hole ‘CSD42’ drilled last season, intersected gold mineralization 400m west of the main zone, indicating the potential for a second porphyry body. Other targets also warrant drilling as possible satellite deposits to the Caspiche Central deposit.

The second objective is to in-fill drill the higher grade central zone to bring it up to an “indicated resource” category. It is intended that the in-fill drilling will confirm the integrity of the coherent central zone that contains a large proportion of the inferred resources. The coherent central zone represents approximately 66% the inferred gold-copper resource in 50% of the resource tonnage.

Exeter believe that this zone of elevated grades will be a key factor in conceptual mine development studies. The infill drilling will also provide substantial material for metallurgical testwork on both oxide and sulphide mineralization.

Drilling results will be released as they become available, Exeter have targeted Q3-2010 to update the NI43-101 compliant mineral resource estimate.


Exeter’s Chairman, Yale Simpson commented on the latest drilling programme:


“Our prime objective is to advance the metallurgical, infrastructure and engineering programs that were initiated last season. The closer we can advance such studies to pre-feasibility standards, the higher the level of confidence in the project, hence increased value to our shareholders. Our current budget for the program is $14 million.”


In his accompanying statement Yale Simpson also emphasised the increased efficiency the Caspiche Project experienced due to the ongoing development of the surrounding Maricunga mining district in Chile. According to the Exeter Chairman the other projects that are also advancing towards development have provided an insight which will enable a ‘considerably easier’ cost estimation process.


Through the development of the Caspiche project, Exeter Resources has sourced well respected engineering and mining groups to assist in the advancement towards its feasibility study and conceptual mine development studies.
Exeter has undertaken metallurgical tests of samples from the 1.6 million ounce gold oxide zone earlier this year.

Initial column leach tests on agglomerated “½” crush size material gave rapid gold recoveries of 77-84%. Six large diameter holes totalling 800 m (2,625 ft) will provide coarser material to investigate crush size – recovery relationships and kinetics for preliminary heap leach design criteria.


Exeter commissioned G&T Metallurgical Laboratories in Kamloops, Canada to evaluate the additional resource which was identified in September’s updated resource estimate. Fourteen lengthy intercepts of sulphide mineralization are being characterised by mineralogical techniques and flotation testwork. The information is expected to allow the selection of composites for flowsheet development and further testwork which is planned to start before the end of the year and continue through the first quarter of 2010.


The company has contracted NCL Ingenieria y Construcciones of Santiago, to perform conceptual mining studies for both oxide and sulphide portions of the deposit. Detailed infrastructure and environmental studies will commence when these studies are complete. Recognizing the critical need for water, the Company has identified probable water sources and is taking steps to secure the appropriate rights.


In other matters, Exeter resources has announced the amendment to the previous NI 43-101 Resource Estimate, following validation Exeter identified an error in the estimation of silver values. The resource estimate was conducted by AMEC International (Chile) SA. AMEC has acknowledged the error and has re-estimated the silver resource in the deposit. The primary elements of value for gold and copper have been rechecked and have been confirmed to be correct.


The re-estimated inferred silver resource associated with the project is calculated as 40m ounces of silver at a grade of 1.12 parts per million (ppm). This represents a 4% decrease in the contained gold equivalent ounces calculated by Exeter.


Exeter and AMEC do not consider the decrease in the silver resource to be a material change to the project as AMEC did not include silver in their gold equivalent calculations nor in their marginal cost mining scenarios.
AMEC will issue a correction to the NI 43-101 compliant technical report associated with this part of the inferred mineral resource estimate


The Caspiche Project, represents the larger of the two major prospects in development by Exeter Resources. The company’s other major project, the Argentinean Cerro Morro prospect reported further bonanza gold and silver grades from its ongoing drilling programme at Escondida vein.  Last week the company revealed that an additional 25 diamond holes had yielded significantly high grade gold and silver mineralization. The majority of drill holes returned significant results and nine of which hitting bonanza gold and silver grades.


The intervals intersected by the drill holes at the Escondida West, Central and Far West sectors included 4.36metres at 177.5 grams per tonne gold equivalent , 6.61m at 146.0 g/t gold equivalent, 3.12m at 92.3 g/t gold equivalent, 5.85m at 73.9 g/t gold equivalent and 2.03m at 369.8 g/t gold equivalent.


An additional 27 diamond drill holes have been drilled at the Escondida Far West sector, bringing the total infill programme to 165 diamond drill holes for 15,000m of core.


At Cerro Morro, Exeter is earning an 80% interest in the property in a joint venture with Santa Cruz province-owned local mining business Fomento Minera de Santa Cruz Sociedad del Estado.

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