Vancouver, B.C., August 13, 2008 - Exeter Resource Corporation
(AMEX:XRA, TSX-V:XRC, Frankfurt:EXB - "Exeter" or the
"Company") reports that metallurgical recoveries averaging 99% for gold
and 92% for silver have been obtained from recent testwork. The
testwork was conducted on representative composite samples taken from four of the most important high grade
mineralized zones at its Cerro Moro project in Santa Cruz Province,
Argentina.
In September 2007, Exeter reported good gold recoveries and
acceptable, but variable, silver recoveries from selected assay reject
samples in preliminary metallurgical testwork. The recent metallurgical
program, which targeted in particular improved silver recoveries, was carried
out on representative diamond drill core intersections and included simulated
gravity concentration and flash flotation stages within a milling circuit
followed by conventional leaching.
Detailed Test Results:
Metallurgical flowsheet development is being carried out on eight
composites comprised of drill core intersections from separate mineralized
zones at Cerro Moro. The first phase of the current testwork program was
designed to be carried out on the four zones where most holes have been
drilled to date, thereby providing a larger amount of material for initial
metallurgical investigation. The four zones tested were Escondida Central -
Oxide, Escondida Central - Fresh, Escondida East and Gabriela.
Test results are summarized in the following table and figures:
Zone
|
Gold
|
Silver
|
Silver:
Gold
Ratio
|
Head
Grade
g/t
|
Recovery
%
|
Tail
g/t
|
Head
Grade
g/t
|
Recovery
%
|
Tail
g/t
|
Gabriela
|
0.83
|
97.7
|
0.02
|
129
|
93.3
|
9
|
155
|
Escondida East
|
9.49
|
99.6
|
0.04
|
129
|
91.2
|
12
|
14
|
Escondida Central
- Oxide
|
19.7
|
99.5
|
0.11
|
686
|
90.1
|
73
|
35
|
Escondida Central
- Fresh
|
19.4
|
99.7
|
0.06
|
558
|
92.3
|
46
|
29
|
With overall precious metal recoveries high, it is significant to note
the role of each of the three recovery processes is contributing differently,
but effectively, to the total recovery in each composite tested.. The results
also demonstrate the value of conventional leaching as a scavenger process in
achieving high recoveries of both metals.
Jerry Perkins, metallurgist and Exeter's VP of Development commented:
"High silver recoveries will
be extremely important at Cerro Moro, as drilling results to date suggest
that silver may contribute some 40% of revenue from potential production from
the gold-rich Escondida vein where silver/gold ratios appear
to increase with depth, a trend that may be similar at other gold-rich veins.
"The ability to
recover +90% of both the gold and silver will have a very positive impact on
the economics of the project particularly with silver
potentially comprising 80% of the future metal value in some veins, such as
Gabriela.
"These new results suggest that the selected flowsheet will be
effective in dealing with the different high grade zones and the variable
styles of mineralization found at Cerro Moro. It is a simple flowsheet that
has so far demonstrated the potential to provide high recoveries irrespective
of grade or location.
"The second phase of the current testwork program, now well
advanced, is testing the flowsheet on composites from Esperanza (Central and
East), Loma Escondida and the Escondida West zones. As discoveries such as
the Escondida South zone (announced recently) are made, we will add new
composites to the testwork series.
"We expect to complete resource estimates in the second quarter
of 2009, which will be followed by a scoping study using the metallurgical
and other infrastructure studies that we currently have underway. We plan to
expedite the various development studies to allow for a development decision
later in 2009."
Quality Control and Assurance
Jerry Perkins, a "Qualified Person" within the definition of
that term in National Instrument 43-101, Standards of Disclosure for Mineral
Projects, has supervised the preparation of the technical information
contained in this report.
About Exeter
Exeter Resource Corporation is a Canadian mineral exploration company
focused on the discovery and development of gold and silver properties in
South America. The Company currently has $30 million in its treasury..
The Company has secured rigs for a planned +40,000 m (+125,000 ft) drilling
program on its Caspiche
Gold-Copper Project in Chile (option over 100%), expected to commence in the first week of October,
2008 (weather permitting). The project is located between the Refugio mine
(Kinross Gold Corp) and the giant Cerro Casale gold-copper project (Barrick
Gold Corp and Kinross Gold Corp). Details of the planned program will be
reported in September.
The Cerro
Moro Gold-Silver Project (100% owned by Exeter) in Santa Cruz
Province, Argentina, is generating high grade to 'bonanza grade' drilling
results within an extensive epithermal vein system. Exeter is currently
working through a back-log of some 8,000 samples being assayed and expects it
to clear over the next two months. Important results will be released as they
are received. Drilling is continuing utilizing three drill rigs with our
focus being to establish a high grade gold-silver resource amenable to open
pit mining by the second quarter of 2009.
As a result of anti-mining legislation
passed in 2007 in
Mendoza Province, Argentina, the further development of the advanced Don Sixto Gold Project has been
put on hold. The Company has filed suit in the Mendoza Courts to challenge
the constitutionality of the new legislation, which has the effect of banning
conventional gold mining in the province. The Company will continue to work
with authorities in Mendoza, and with representatives of other mining
companies, to effect legislative amendment.
The Company has a broad foothold in the
Patagonia region through separate strategic alliances with Cerro Vanguardia
S.A. (an AngloGold Ashanti subsidiary), and Rio Tinto Mining and Exploration
Chile.
You are invited to visit the Exeter web
site at www.exeterresource.com.
EXETER
RESOURCE CORPORATION
Bryce Roxburgh
President and CEO
For further information, please contact:
B. Roxburgh, President or
Rob Grey, VP Corporate Communications
Tel: 604.688.9592 Fax: 604.688.9532
Toll-free: 1.888.688.9592
|
Suite 1260, 999 West Hastings St.
Vancouver, BC Canada V6C2W2
exeter@exeterresource.com
|
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 the
Company's belief as to the extent and timing of its drilling programs,
exploration results, metallurgical recoveries, establishment of resources and
potential production from its properties. Forward-looking statements involve
known and unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company to vary from any
future results, performance or achievements expressed or implied by the
forward-looking statements. Factors that could cause actual results to differ
materially from the forward-looking statements include, among others, risks
associated with project development; 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; and
tax consequences to U.S. investors; and other risks and uncertainties,
including those described in the Company's Annual Information Report for the
financial year ended December 31, 2007, dated March 28, 2008 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. All statements are made as of the
date of this news release and the Company is under no obligation to update or
alter any forward-looking statements except as required under applicable
securities laws.
THE TSX VENTURE
EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY
OR ACCURACY OF THIS NEWS RELEASE