VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct 3, 2012) - Exeter Resource Corporation (NYSE MKT:XRA) (NYSE Amex:XRA) (XRC.TO) (EXB.F) ("Exeter" or the "Company") is pleased to provide an update on the Caspiche gold-copper project in the Maricunga region of Chile. Recent activities have focused on enhancing and advancing the necessary engineering studies for the potential development of the extensive, near-surface, copper-free, oxide blanket at Caspiche as a relatively simple heap leach operation.
Activities completed include the following:
Engineering Study - Power Line Extension:
Previous studies on the Caspiche oxide deposit considered that power would be supplied from generators installed at the project site. Exeter contracted POCH, an engineering group based in Chile but with offices and operations in Mexico, Colombia, the USA and Australia amongst others, to complete an engineering study to consider the feasibility of extending the existing Maricunga mine power line to Caspiche, a distance of 12 kilometres. The line would be used to supply power initially to the heap leach operation.
The cost of the extension of the power line and all associated electrical infrastructure and substations is estimated to be in the region of US$12 million ("M"), approximately US$10M less than that assumed in earlier studies utilizing on-site generators. More importantly, grid power would provide cheaper electricity to the operation.
The study includes the following key conclusions:
Knight Pièsold has completed a geotechnical evaluation of the Caspiche project area, which included a field campaign of 43 trenches, 18 drill holes and collecting some 90 samples. The objective was to test key sites to evaluate their suitability for process facilities and heap leach pads, amongst others.
The study conclusions show that the project can be built using conventional construction methodology with key parameters of:
In addition, the study calculated a preliminary estimate that more than 2,000,000 cubic metres of material suitable for concrete aggregate is available, largely eliminating the need to locate aggregate sources outside of the project construction area.
Caspiche Hydrology and Hydrogeological Study:
The study, conducted by Schlumberger Water Services ("SWS"), was focussed around the heap leach project and open pit, although consideration has been taken of the overall project footprint where applicable. SWS used Exeter''s water level monitoring measurements from 24 drill holes, drilled two additional hydrogeological holes, carried out a field testing program of slug, packer and pumping tests and fitted 2 drill holes with vibrating wire piezometers for long term monitoring of water table changes.
Preliminary report conclusions include:
Exploration drilling for a new water source dedicated exclusively to the Caspiche project began in May before being curtailed by weather. A news release specific to water exploration drilling can be expected.
Exeter''s Unique Position
Exeter Chairman, Mr. Yale Simpson states: "Exeter is in a unique position for a junior explorer. We have a world class gold-copper asset in an excellent jurisdiction, $57 million cash and no debt. In my view the current share price does not reflect the potential future value of the Company, a value that, if realized, could well be a multiple of our current valuation given a further improvement in metal prices and economic conditions. Another Caspiche-size deposit has not been found for years, simply because they are increasingly scarce in a world starved for natural resources."
PS. Great project, good cash position. One day with PMs and commods heading higher, XRC's value will be partially to fully realized if not by themselves or via a takeout.