Exeter Resource Corporation: Water Drilling Program Identifies Important Water Resources
May 27, 2014 (Source: Marketwired) — Exeter Resource Corporation (NYSE MKT:XRA)(TSX:XRC)(FRANKFURT:EXB) (“Exeter” or the “Company”) is pleased to announce the completion of three large, production diameter, water drill holes at the Company’s water exploration concession (option for 90% interest) in northern Chile. All three drill holes have intersected potentially significant quantities of water based on preliminary evaluation using airlift testing. Down hole pump testing, a more definitive measurement technique to quantify water flow rates and the recharge rate, is now in progress. Subject to favourable weather conditions, these tests are expected to be completed within the next month and results will be released once all data is received.
On May 6th, 2014 Exeter released the results of a preliminary economic assessment (PEA) for its Caspiche gold-copper project in northern Chile. The PEA identifies three new low capex potential development options, all of which require modest quantities of water to support mining operations. Current expectations, based on the PEA, is that the 30,000 tonne per day (“tpd”) standalone oxide operation requires peak water requirements of less than 50 litres per second (“L/s”); while a 60,000 tpd open pit and 27,000 tpd gold copper sulphide pit expansion requires peak water of less than 190 L/s and a 60,000 tpd open pit and 27,000 tpd underground gold copper operation requires peak water consumption of approximately 150 L/s. The previous, January 2012 pre-feasibility study for the large scale open pit mining operation, indicated water requirements of approximately 1,000 L/s. See Exeter News Release NR 14-03 dated May 6th, 2014.
Exeter’s President/CEO Wendell Zerb states “These preliminary water results are very encouraging. Securing a source of water in the Maricunga would be a significant step in de-risking the Caspiche project. In addition, the new, low capex, staged alternatives outlined in our recent PEA, and securing quantities of water to support all of these alternatives, would open a realistic pathway to potential development for the Caspiche project.”
Exeter’s current water exploration objective is to secure sufficient water to meet the requirements outlined in the PEA. Terraqua, a specialist Chilean water drilling contractor, was contracted to complete a US$1.5 million exploration drilling program. Pump tests, currently in progress are expected to provide the basis for an application for water rights to the Dirección General de Aguas (DGA), the Chilean water authority.
Exeter’s Chilean subsidiary, Minera Eton (“Eton”) and the Chilean subsidiary of Canadian company Atacama Pacific Gold Corporation (“Atacama”) are jointly exploring for water in Northern Chile where Eton is earning an aggregate 90% interest in the Peñas Blancas (Laguna Verde) concession and other water concessions. See Exeter news release NR 14-02 dated February 27th, 2014.
Jerry Perkins, Exeter´s VP Development and Operations and a “qualified person” (¨QP¨) within the definition of that term in National Instrument 43-101, Standards of Disclosure for Mineral Projects, has reviewed and approved the technical information in this news release.
Exeter Resource Corporation is a Canadian mineral exploration company focused on the exploration and development of the Caspiche project in Chile. The project is situated in the Maricunga gold district, between the Maricunga mine (Kinross Gold Corp.) and the Cerro Casale gold deposit (Barrick Gold Corp. and Kinross Gold Corp.). The discovery represents one of the largest mineral discoveries made in Chile in recent years. The recently completed PEA was initiated with the aim of indicating the development optionality of this world class discovery. The securing of water required for potential project development is a priority and exploration is ongoing.
The Company currently has cash reserves of C$36 million and no debt.
EXETER RESOURCE CORPORATION
Wendell Zerb, P.Geol., President and CEO
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 in relation to the Company’s belief as to the potential significance of water discovered, the potential to establish new opportunities for the advancement of Caspiche, results from preliminary economic assessment including estimated annual production rates, capital and production costs, water and power requirements and metallurgical recoveries, expected taxation rates, timing of water exploration and securing adequate water, potential to acquire new projects and expected cash reserves. These forward-looking statements are made as of the date of this news release. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, outcomes or results anticipated in or implied by such forward-looking statements will occur or that plans, intentions or expectations upon which the forward-looking statements are based will occur. While the Company has based these forward-looking statements on its expectations about future events as at the date that such statements were prepared, the statements are not a guarantee that such future events will occur and are subject to risks, uncertainties, assumptions and other factors which could cause events or outcomes to differ materially from those expressed or implied by such forward-looking statements. Such factors and assumptions include, among others, the effects of general economic conditions, the price of gold, silver and copper, changing foreign exchange rates and actions by government authorities, uncertainties associated with negotiations and misjudgments in the course of preparing forward-looking information. In addition, there are known and unknown risk factors which could cause the Company’s actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Known risk factors include risks associated with project development; including risks associated with the failure to satisfy the requirements of the Company’s agreement with Anglo American on its Caspiche project which could result in loss of title; the need for additional financing; operational risks associated with mining and mineral processing; risks associated with metallurgical recoveries, water and power availability and changes in legislation affecting the use of those resources; fluctuations in metal prices; title matters; uncertainty and risks associated with the legal challenge to the easement secured from the Chilean government; 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; tax consequences to U.S. investors; and other risks and uncertainties, including those described herein and in the Company’s Annual Information Form for the financial year ended December 31, 2013 dated March 14, 2014 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. The Company is under no obligation to update or alter any forward-looking statements except as required under applicable securities laws.
Cautionary Note to United States Investors – The information contained herein and incorporated by reference herein has been prepared in accordance with the requirements of Canadian securities laws, which differ from the requirements of United States securities laws. In particular, the term “resource” does not equate to the term “reserve”. The Securities Exchange Commission’s (the “SEC”) disclosure standards normally do not permit the inclusion of information concerning “measured mineral resources”, “indicated mineral resources” or “inferred mineral resources” or other descriptions of the amount of mineralization in mineral deposits that do not constitute “reserves” by U.S. standards, unless such information is required to be disclosed by the law of the Company’s jurisdiction of incorporation or of a jurisdiction in which its securities are traded. U.S. investors should also understand that “inferred mineral resources” have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. Disclosure of “contained ounces” is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in place tonnage and grade without reference to unit measures.
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