Vancouver, B. C., July 29, 2008 - Exeter Resource
Corporation (AMEX:XRA, TSX-V:XRC, Frankfurt: EXB - "Exeter" or the
"Company")
reports that diamond drilling has returned 3.55 metres (11.6 feet) at a grade of 471.9 grams
per tonne gold (13.68 ounces per ton) 400 metres (1,312 feet)
southeast of the previously known high grade mineralization on the Escondida
vein system. This is the highest
grade drill intersection returned to date at Cerro Moro in
Santa Cruz Province, Argentina and opens an additional potential 2.3 kilometre (1.4 miles)
southern extension to the high grade mineralized Escondida Vein
which had previously been traced over a distance of two kilometres (1.2
miles).
Silver assays for this new drill hole, MD373, are
awaited but visual logging suggests that the silver grade will be similarly
high.
Significant new results from drilling on the
Escondida trend include the following:
- 3.55 metres ("m") (11.6 feet
("ft")) at a grade of 471.9 grams per tonne ("g/t")
gold (13.68 oz/ton), from a down hole depth of
150.45 m (493.6 ft), including
- 1.20 m (3.9 ft) at a grade of 841.4 g/t gold
(24.40 oz/ton) in hole MD373;
- 3.0 m (9.8 ft) at a grade of 11.2 g/t gold
(0.32 oz/ton) and 308 g/t silver (8.9 oz/ton), for a gold equivalent
grade* of 16.4 g/t (0.48 oz/ton), from a down hole depth
of 94.0 m (308.4 ft), including
- 1.0 m (3.3 ft) at a grade of 28.6 g/t gold
(0.83 oz/ton) and 620 g/t silver (18.0 oz/ton), for a gold equivalent
grade* of 38.9 g/t (1.13 oz/ton), from a down hole depth of
95.0 m (311.7 ft), in hole
MRC254;
- 1.0 m (3.3 ft) at a grade of 32.6 g/t gold
(0.95 oz/ton) and 167 g/t silver (4.8 oz/ton), for a gold equivalent grade* of
35.4 g/t (1.03 oz/ton), from a down hole depth of 57.0 m
(187.0 ft),
and
- 1.78 m (5.8 ft) in a
second vein at a grade of
10.5 g/t gold (0.30 oz/ton) and 477 g/t silver (13.8 oz/ton),
for a gold
equivalent grade* of 18.4 g/t (0.53 oz/ton), from a down
hole depth of 130.22 m (427.2 ft), including
- 0.98 m (3.2 ft) at a grade of 18.3 g/t gold
(0.53 oz/ton) and 797 g/t silver (23.1 oz/ton), for
a gold
equivalent grade* of 31.6 g/t (0.92 oz/ton), from a down
hole depth of 130.22 m (427.2 ft), in hole MD260.
Drill holes MRC178 and 254 have extended the
previously known mineralization at Escondida by 160 m (525 ft) along strike
to the northwest, while holes MD258A and MD260 have increased the depth of
the Escondida Central Zone by 60 m (197 ft). (refer to table of drilling
results below).
Exeter's Exploration Manager, Matt Williams,
commented: "The bonanza intersection in MD373 was a "blind
discovery" below shallow reverse circulation ("RC") percussion
holes that tested a south-eastern extension of the Escondida structure
beneath gravel cover which was predicted by geophysical surveys.
"The RC hole above MD373 returned only slightly
anomalous gold values, however, with this latest result, the discovery of ore
grade mineralization below low grade near-surface material is becoming
increasingly frequent at Escondida.
"Exeter's detailed ground magnetic data are
interpreted to show that the Escondida structure continues for an additional
two kilometres (1.2 miles) to the southeast of MD373 for a total trend length
of 4.3 kilometres (2.6 miles).
"The Escondida vein system is the primary gold
structure that we have delineated to date at Cerro Moro, and we will continue
to drill test it for additional bonanza grade zones at depth and along
strike. We are currently compiling drilling results for other mineralized
veins at Cerro Moro which will be released when the data has been verified
and interpreted.
"We experienced reporting delays at Cerro Moro
while we gave sample preparation and assay priority to our Caspiche Project.
Concurrently, we also conducted a major assaying program of duplicate samples
and/or sample pulps for statistical purposes. With the delays behind us, we
now expect to receive assay results more quickly, enabling us to report
important results regularly".
Detailed Drilling Results - Escondida Vein:
Drill Hole
|
From
(m)
|
To
(m)
|
Width
(m)
|
Gold
(g/t)
|
Silver
(g/t)
|
Gold Equivalent*
|
(g/t)
|
(oz/ton)
|
MD373
|
150.45
|
154.00
|
3.55
|
471.9
|
pending
|
pending
|
pending
|
including
|
150.75
|
151.95
|
1.20
|
841.4
|
pending
|
pending
|
pending
|
MRC178�**
|
126.67
|
128.84
|
2.17
|
5.1
|
249
|
9.3
|
0.27
|
including
|
127.61
|
128.30
|
0.69
|
13.4
|
637
|
24.0
|
0.70
|
MD259A**
|
185.96
|
194.95
|
8.99
|
2.0
|
211
|
5.5
|
0.16
|
including
|
194.25
|
194.95
|
0.70
|
17.9
|
2,003
|
51.3
|
1.49
|
MRC254**
|
94.0
|
97.0
|
3.0
|
11.2
|
308
|
16.4
|
0.48
|
including
|
95.0
|
96.0
|
1.0
|
28.6
|
620
|
38.9
|
1.13
|
MD258
|
157.0
|
159.0
|
2.0
|
2.9
|
28
|
3.5
|
0.10
|
and
|
201.7
|
210.0
|
8.3
|
1.7
|
72
|
2.9
|
0.08
|
including
|
201.7
|
204.0
|
2.3
|
3.3
|
31.3
|
3.8
|
0.11
|
including
|
206.0
|
207.0
|
1.0
|
3.2
|
261
|
7.6
|
0.22
|
and
|
217.9
|
218.9
|
1.0
|
6.1
|
365
|
12.2
|
0.35
|
including
|
218.6
|
218.9
|
0.3
|
14.3
|
749
|
26.8
|
0.78
|
and
|
226.75
|
227.10
|
0.35
|
11.7
|
1,230
|
32.2
|
0.93
|
and
|
229.8
|
234.0
|
4.2
|
1.4
|
86
|
2.8
|
0.08
|
MD260#**
|
57.0
|
60.0
|
3.0
|
11.5
|
72
|
12.7
|
0.37
|
including
|
57.0
|
58.0
|
1.0
|
32.6
|
167
|
35.4
|
1.03
|
and
|
130.22
|
132.00
|
1.78
|
10.5
|
477
|
18.4
|
0.53
|
including
|
130.22
|
131.20
|
0.98
|
18.3
|
797
|
31.6
|
0.92
|
and
|
134.00
|
135.00
|
1.00
|
1.5
|
3
|
1.6
|
0.05
|
MD262
|
72.00
|
73.00
|
1.00
|
4.1
|
353
|
10.0
|
0.29
|
* Gold equivalent grade for silver in this news
release is calculated by dividing the silver assay by 60 and assumes 100%
metallurgical recovery.
� Although MRC178 is designated as a RC percussion
drill hole, the intersection presented in the above table represents diamond
drill core.
# The intersection from 57.0 to 60.0 metres
represents mineralization within the RC percussion pre-collar portion of the
diamond drill hole.
** Drill holes MRC178, MD259A, MRC254, and MD260
have not previously been reported in an Exeter news release, or interpreted
in context with newer results. The results from these holes were however
summarised in the National Instrument 43-101 compliant Technical Report
titled "Technical Report, Cerro Moro Project, Santa Cruz Province, Argentina",
by J. Perkins and M. Williams with an effective date of April 28, 2008. The
report can be viewed on Exeter's web site (www.exeterresource.com) or on SEDAR (www.sedar.com).
In this news release all intervals are calculated at
a 0.5 g/t gold cut-off except MD373 where a 1.0 g/t gold cut-off was used.
To view and enlarge
the above map, please click on it.
Cerro Moro Exploration Update
An additional 20 diamond drill holes have been
drilled on the main mineralized portion of the Escondida structure over a 1.5
kilometre (0.9 mile) strike length on a 80 by 80 m (260 ft) pattern
(approx.). All 20 drill holes intersected the structure, extending the entire
zone to an average vertical depth of 150 to 200 m (492 - 656 ft) from
surface. The deepest hole to date has intersected visible mineralized veining
at a vertical depth of approximately 300 m (984 ft) from surface. The assay
results for this drilling are pending.
Drilling is continuing on the 700 m (2,300 ft) long
Gabriela silver vein, located approximately three kilometres (1.9 miles)
northeast of the Escondida Zone. A total of seven new diamond drill holes
have been completed to date with another five planned (depending on results).
Current drill hole spacing ranges from 80 by 80 m (260 by 260 ft), to 160 by
160 m (525 by 525 ft). The deepest hole intersecting visible mineralized
veining to date is at a vertical depth of 220 metres (722 ft) from surface.
Assay results are pending for all of these drill holes.
Drilling has also been conducted on many of the
other Cerro Moro vein systems, including the Loma Escondida, Silvia,
Esperanza and Patricia prospects; results are either pending or are currently
being compiled.
One of the three drill rigs currently on site has
been dedicated to reconnaissance drilling, with over 30 (predominantly RC
percussion) holes drilled to date. This drilling has tested anomalous surface
geochemistry and gravel covered targets with geological and/or geophysical
signatures analogous to known mineralized veins. Results are either pending
or are currently being compiled.
The assay results of over 50 drill holes are
expected over the coming weeks, and following verification and compilation,
the significant results will be updated regularly in news releases.
Quality Control and Assurance
Drill widths presented above are drill intersection
widths and may not represent the true widths of mineralization.
Gold assay results presented above are preliminary
with no cutting of high grades. Reverse circulation drill samples are
collected using a cyclone in one metre intervals; most samples are then
composited into three metre samples. All diamond drill core samples are split
on regular metre intervals or on geological contacts and represent sawn half
HQ-size core. Samples for MD373 were prepared and assayed by the screen fire
assay method at the ACME Analytical Laboratories Limited in Mendoza,
Argentina. The remaining samples were prepared at the ALS Chemex preparation
facility in Mendoza, Argentina and assayed by fire assay (50 gram charge) at
the ALS Chemex laboratory in Chile, all ISO-9001:2000 certified laboratories.
Check assaying of all samples assaying greater than
1.0 g/t gold is completed by ALS Chemex. Samples returning greater than 10
g/t gold and/or greater than 100 g/t silver are assayed using gravimetric
analyses. Standard and blank samples are used throughout the sample sequence
as checks for the diamond drilling reported in this release. Standard, blank
and duplicate samples are used throughout the sample sequence as checks for
the reverse circulation drilling.
Assaying by the screen fire assay method has been
implemented in conjunction with standard 50 gram fire assaying, for diamond
drill cores that contain visible gold. The procedure for screen fire assaying
involves crushing and sieving of a nominal 1,000 gram sample to a particle
size of 100 microns. All material which does not pass through the 100 micron
sieve is then assayed. Two fire assays are undertaken on the undersize
material as a check on homogeneity. The total gold content is then
calculated..
Matthew Williams, Exeter's Exploration Manager and 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 news release.
Other
The Company has received shareholder approval for
the issuance of 200,000 bonus shares to Mr. Paul Cholakos, Exeter's Chief
Operating Officer, pursuant to his engagement contract. The bonus shares vest
at a rate of 8,333 per month over the term of Mr. Cholakos contract.
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 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. Drilling is continuing
with three drill rigs. Our focus is to establish a high grade gold-silver
resource amenable to open pit mining by March, 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 and establishment of resources. 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