Wednesday, June 2, 2010
Industry Watch: Al Korelin's Guest is Yale Simpson, Executive Chairman of Exeter Resource Corp.
Nationally syndicated radio show personality Al Korelin from the Korelin Economics Report hosts Industry Watch. For Wednesday June 2, 2010 Al's guest is Mr. Yale Simpson, Executive Chairman of Exeter Resource Corp. Al and Yale talk about the recently release drill results on its Caspiche Project in Chile which boasts a resource of 41.2 million gold equivalent ounces*.
Focused on building a mid tier mining company, Exeter Resource Corporation is a Canadian public company listed on the TSX and NYSE Amex exchanges. Its focus is the discovery, evaluation and development of gold deposits in the Maricunga district in Chile.
In April, 2010 the Company announced an updated resource on its giant gold-copper Caspiche porphyry project in the Maricunga district in northern Chile, which showed:
INDICATED RESOURCES: 14.3 m. ounces of gold, 3.5 billion pounds of copper and 33.6 m. ounces of silver+
INFERRED RESOURCES: 10.0 m. ounces of gold, 2.9 billion pounds of copper and 26.7 m. ounces of silver
The new gold equivalent endowment of Caspiche using only gold and copper now stands at:
INDICATED RESOURCES: 23.9 million gold equivalent ounces +
INFERRED RESOURCES*: 17.8 million gold equivalent ounces.
The interim indicated resource is 785 Mt (million metric tons) at a grade of 0.57 g/t gold (grams per metric ton) and 1.33 g/t silver including 690 Mt at a grade of 0.20% copper.
The additional inferred resource is 688 Mt at a grade of 0.45 g/t gold and 1.21 g/t silver, and includes 675 Mt at a grade of 0.19% copper.
The resource is a National Instrument 43-101 ("NI 43-101") compliant mineral resource estimate for Caspiche completed by independent AMEC International. This is an interim mineral resource estimate from drilling partially completed from the ongoing 2009-2010 program. This estimate uses all prior drilling from Exeter and third parties to end 2009, and includes all assay results received to Feb 6th, 2010.
Exeter's Caspiche Project in Chile (option to own 100% from Anglo American Chile Limitada) is a gold-copper porphyry system, a type of deposit common to many of the world's largest open pit gold-copper mines. It is located 15 kilometres (8 miles) south of Kinross Gold's Refugio mine (+6 million ounce gold resource), and 10 kilometres (6 miles) north of the very large Cerro Casale gold-copper deposit (24 million ounce gold resource), owned by Kinross Gold (25%)and Barrick Gold (75%).
In March 2010 Exeter shareholders approved the proposal to undertake a spin-out transaction pursuant to which the assets of Exeter would be separated into two highly focused companies. As a result, Exeter transferred to Extorre Gold Mines (XG) the Cerro Morro and Don Sixto projects and its exploration properties in Argentina, together with approximately $25 million in cash. Exeter retained all assets relating to the Caspiche gold-copper discovery in Chile, together with approximately $43 million (m) in working capital, to allow it to become a Maricunga district, Chile, focused exploration company.
The Company is curtailing its six rig drilling program in May due to the onset of winter conditions. A further estimated 10 kilometres of drilling is required to bring inferred resources into the indicated category, and to expand the resource from where it currently clearly remains open. This program is scheduled to recommence in October 2010.
An additional 15 kilometres of drilling has been conducted following that included in the last published resource, and a new resource is scheduled for September 2010.
The company is fast tracking infrastructure, metallurgical, engineering and environmental programs which will form an integral part of a prefeasibility study (PFS). The PFS will continue through 2011, and progress development studies have been scheduled for release in Q1 and Q4 next year.
The Company has budgeted C$22 million to conduct this program from March through to December 2010.
For details on the Cerro Moro Gold-Silver Project, the Don Sixto Project and other Argentinean exploration projects, please now proceed to the XG website.
For more information about Exeter Resource Corp. please visit: http://www.exeterresource.com
To learn more about the Korelin Economics Report visit http://kereport.com
To learn more about Industry Watch with Al Korelin visit http://evenkeelmedia.com
*AMEC chose to report the resource above a Au equivalent cutoff. For this they used prices of US$950/oz for Au and $2.30/lb for Cu. The formula used to calculate Au equivalents is Au(g/t) + Cu (%) * (Cu Price [$/lb]/Au Price [$/oz]) * (Rec Cu/Rec Au)*0.06857*10000. Where Rec = % recovery and 0.06857 = conversion g*lb/oz. Au and Cu are the block kriged Au and Cu grades. Projected metallurgical recoveries were 75% and 85% for Au and Cu respectively in sulphide material and 50% for Au in the oxide zone. Recoveries are based on benchmarking of similar deposits.