Vancouver, B.C., June 26, 2012 – Exeter Resource Corporation (NYSE-MKT:XRA, TSX:XRC, Frankfurt:EXB – “Exeter” or the “Company”) is pleased to provide an update on activities on its Caspiche project in the Maricunga gold belt of central Chile.
- The Company has been conducting geotechnical and metallurgical drilling at Caspiche and water exploration drilling north of Caspiche to place it in a position to commit to a feasibility study (“FS”) on the heap leachable portion of the Caspiche deposit.
- On the sulphide deposit, lower order technical studies to advance the project are continuing. These studies include metallurgical optimisations, process engineering and baseline environmental studies.
- The Company is cognisant of the difficult market conditions currently affecting equity markets. To this end a strategy has been formulated to cautiously advance the project in order to conserve the $61 million treasury.
- Project expenditures will be delayed, including the initiation of the heap leach project FS.
Exeter Going Forward
Exeter Chairman, Mr. Yale Simpson comments: “Exeter is in a unique position for a junior explorer. We have a world class gold-copper asset in an excellent jurisdiction and a very substantial treasury.
“In my view the current depressed share price does not reflect the potential future value of the Caspiche deposit, a value that could well be a multiple of our current valuation. The timing will depend on metal prices and world economic conditions.
“The Board is determined to see a higher valuation and to that extent Caspiche is ‘not for sale’. We have set aside the funds necessary to maintain the asset for the months or years necessary to bring value to our shareholders. We remind ourselves daily that no one has found another Caspiche-size deposit in Chile for years, simply because there aren’t many left to be found.
“We have a treasury sufficient to consider the acquisition of another project however such an acquisition cannot jeopardise the security of our Caspiche asset. Our view is simply that there are some very interesting opportunities becoming available, potentially for joint venture or ‘on sale’.”
Staging the Development of the Caspiche Project
On June 6, 2011, the Company released the “Oxide Gold Prefeasibility Study” (PFS-1), to demonstrate the potential economics of developing the upper gold zone at Caspiche as a stand-alone mining project. On January 17, 2012, the Company released the larger “Pre-Feasibility Study of the Caspiche Gold Project” (PFS-2), to demonstrate the potential economics of the total Caspiche gold- copper deposit, including the upper oxide gold zone.
PFS-1 was effective in showing that the development of the upper gold zone is potentially within the financial reach of a company of Exeter’s size. In contrast, PFS-2 predictably showed that the development of the larger project, with relatively high capital costs which are in line with comparable porphyry-type gold-copper projects, will likely require development by a major mining company or a joint venture group.
The study results demonstrate the potential for Caspiche to be developed in two phases. A simple heap leach gold project could be developed as Phase 1 followed by the development of the much larger sulphide gold-copper deposit as Phase 2. Phase 1 has the potential of being brought into production reasonably rapidly and at modest capital cost, to process both the oxide ore modelled in PFS-1, and potentially, some of the low copper content, leachable “MacNeill zone” sulphide ore which overlies the western edge of the gold-copper sulphide deposit. During Phase 1 the Company could continue the pre-development (engineering, infrastructure and environmental) studies relevant to Phase 2 of the project.
You are invited to visit the Exeter web site at www.exeterresource.com.
EXETER RESOURCE CORPORATION
President and CEO
Suite 1660, 999 West Hastings St.