Exeter Resource Corporation

EXETER RESOURCE CORPORATION
TSX ‘XRC’ and NYSE-Amex ‘XRA’
 
26.4 million ounces gold, 6.7 billion pounds copper
 
Exeter, a Canadian exploration company, controls 100% of the world class Caspiche gold-copper discovery in Chile. The Company has a treasury of $75 million and no debt.

Exeter is a feasibility stage exploration company operating exclusively in Chile. The Company owns 100% of the very large Caspiche gold-copper deposit. NI43-101 compliant resources total 21.3 million oz. gold and 5.3 billion lbs. copper in the measured and indicated categories.

Exeter will complete a mine pre-feasibility study in Q4-2011. The study will model annual production rates of +700,000 ounces gold and 200,000,000 lbs. copper. Current activities include diamond drilling, water drilling, advanced metallurgical testing and an environmental baseline study.  Drilling on new exploration targets is scheduled.

Project Overview

To view information on Argentinean Projects including Cerro Moro, previously held by Exeter and subject to the spin out to new entity, Extorre Gold Mines Limited (XG), please proceed to the XG website; CLICK HERE.

CHILE

Maricunga:
In October of 2005 Exeter signed an option agreement with Anglo American Chile Limitada and Mantos Blancos S.A. (collectively "Anglo American") over a number of prospective gold projects in the Maricunga metallogenic belt of Chile, including the Caspiche Project comprising an area of over 12.6 square kilometres. The terms of the agreement provide for increasing annual drilling and exploration commitments over five years.

Following discovery of the Caspiche central porphyry style gold-copper mineralisation in May 2007, Exeter has drilled over 45,000m on the property including a number of widely spaced deep drillholes which have intersected potentially ore grade mineralisation to depths of over 1000 vertical metres (3,300 feet).

On April 6, 2010 an updated NI43-101 compliant resource statement was released using all available drilling results to February 6th, 2010. The major milestone for this resource was the maiden announcement of both indicated and inferred resources at the project. This interim indicated resource is 14.3 million ounces of gold, 33.6 million ounces of silver and 3.5 billion pounds of copper. The new inferred resource contains an additional 10.0 million ounces of gold, 26.7 million ounces of silver and 2.9 billion pounds of copper.

The new gold equivalent endowment of Caspiche using only gold and Copper now stands at a total of 23.9 million gold equivalent ounces INDICATED and a further 17.8 million gold equivalent ounces INFERRED*.

A final 2010 resource is scheduled for completion at the end of Q3, 2010.

Exeter has now fulfilled the total expenditure and drilling requirements for the full term of the option agreement. It currently proposes to exercise the option for 100% ownership within 60 days from January 31st, 2011 which will trigger advance annual payments of $250,000 deductible from future royalties. Anglo American will be entitled to a 3% net smelter return from production.

A 10 month $22 million dollar work program from March through December 2010 is designed to expand and upgrade the resource along with concurrent infrastructure, metallurgical, engineering and environmental studies.

Caspiche

Location

The Caspiche Project is located in the Maricunga Belt of Chile, between Barrick and Kinross Gold’s Cerro Casale gold-copper deposit 10 kilometres to the south and Kinross Gold’s Maricunga Mine 15 kilometres to the north. Andina Minerals new Volcan gold deposit lies 35 kilometres north northeast of Caspiche. (See Figure 1).

The endowments for these deposits shown below demonstrate the potential of the area to host world class orebodies and recent success marks the Maricunga as an emerging world class gold province;

• Cerro Casale Gold-Copper Deposit, 21.2 million ounces of gold at a grade of 0.61 grams per tonne (“g/t”) and 5,308 million pounds of copper grading 0.22% (Kinross NI 43-101 Report, December 31st 2008).
• Refugio Gold Mine, 5.4 million ounces of gold at a grade of 0.76 g/t (Kinross NI 43-101 Report, December 31st 2006)
• Volcan Deposit, Measured and Indicated resources of 9.8 million ounces gold at a grade of 0.62 g/t and a further 0.77 million ounces of gold at 0.65g/t (Andina 43-101 Report, September 2009)

For futher information on the Caspiche project CLICK HERE.

Magallanes
On May 9, 2006 Exeter announced a new agreement with Rio Tinto Mining to explore 48 gold - silver and/or copper targets in Southern Chile. Rio Tinto has one time option after 5000m drilled on any project to earn 60% back in by paying Exeter 3x expenditure. If there is no back in, Rio retain a 1% Net Smelter Royalty with no expenditure commitments should a project go to production.

Exeter undertook a regional helicopter programme aimed at visually identifying areas of potential mineralization. Forty-one targets were recognized and these were prioritized giving 7 priority 1 vein targets, 5 priority 1 zones of silicification and 7 priority 1 zones of strong iron oxide staining. During this program the Zodiac vein system was discovered and mineral tenements were pegged to cover it.

Zodiac (100% Exeter)
The Zodiac property is located within a belt of Jurassic-Cretaceous calcalkaline volcanics and marine sediments. Four zones of vein mineralization have been identified to date the most important of these being the Cristina and Cutter sectors. At both these sectors mineralization occurs in a series of sub-vertical to west dipping south-southeast striking epithermal and mesothermal gold bearing quartz ± base metal veins. At Cristina there are 4 principal veins with widths up to 10 meters. These can be traced along strike for over 2.5 kilometers. At Cutter there are two principal veins and a number of subordinate structures occurring in an area measuring approximately 600 by 250 meters.

Twenty-nine continuous channel samples have been taken over exposed portions of the veins. These indicate the best gold mineralization to be in the southern extensions to the veins in areas untouched by the previous mining activity which focussed on Cu bearing portions (see table below).

In the 2007-2008 season Zonge Geophysics were contracted to run a 24-line kilometer gradient array Induced Polarization – resistivity survey. The survey highlighted the areas of mapped veins and delineated potential additional structures as well as extensions to the existing veins under cover.

A base line study has been conducted on the property and an environmental impact report has been prepared for permitting an initial 10,000 meters drilling.

For futher information on the Magallanes Project CLICK HERE.

Directors

Yale Simpson - Executive Chairman 

Bryce Roxburgh - President 

Louis Montpellier - Director 

Robert Reynolds - Director 

Julian Bavin - Director 

Douglas Scheving - Director 

John Simmons - Director 

Management & Operations

Bryce Roxburgh - Chief Executive Officer

Cecil Bond - Chief Financial Officer

Louis Montpellier - Vice President - Corporate Development and Legal Counsel

Jerry Perkins - Vice President Development & Operations

Rob Grey - Vice President Corporate Communications

Justin Tolman - General Manager - Chile

Gonzalo Damond - Commercial Manager

Click here for further information

Capital Structure

Issued & outstanding: 87,220,753
Warrants outstanding: 0
Options outstanding: 12,614,650
Fully Diluted Shares: 99,835,403

Treasury: C$75 M