Link: http://www.goldworld.com/articles/copper-gold-stocks/264

A Simplified Way to Compare Drill Results at end of article is sort of interesting way to try to get an early valueation.

Cheers! been in this one a few years, bought a position way back at $1.15, it looks like it could get interesting in the near future.

Good luck with your investing.


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Copper and Gold Stocks

Exeter Resources Returns 719 Meters Grading 1.0 g/t Gold and 0.38% Copper

By Gold World Staff
Tuesday, May 6th, 2008

Manyinvestors are surprised to learn that large copper mines often recoverconsiderable amounts of gold and other metals as a byproduct ofoperations. This gold often generates hundreds of thousands of dollarsper day in gross cash-flow for public copper production companies,making them copper and gold mining stocks.

Prominentexamples of these large copper/gold mines include the Bingham Canyonmine in Utah. Bingham Canyon is owned by Rio Tinto (NYSE: RTP, LSE: RIO, ASX: RIO) through Kennecott Utah Copper and contains roughly 7.5 million ounces of gold, producing over 500,000 ounces per year.

The world's largest copper and gold mine in terms of recoverable reserves is Freeport McMoRan's (NYSE: FCX)massive Grasberg mining complex in Indonesia. The Grasberg miningcomplex is estimated to contain over 48 million ounces of gold and hasproduced up to nearly 25,000 ounces of gold per day! At $1,000 perounce, that's $25 million gross per day! And that's just from themine's gold credits!

It's no surprise that these types of mineshave proved to be amazing profitable to the companies who own andoperate them. So when we see extra-ordinary copper and gold drill assayresults, we pay attention.

The Chliean Copper and Gold Stocks You Need To Know About

About a year ago we began to closely follow the exploration efforts at Exeter Resource's (AMEX: XRA, TSX-V: XRC) Caspiche copper/gold project, located in the prolific Maricunga Belt of Chile.

Exeter's 100% earn-in Caspiche property is situated 10 kilometers north of the joint-owned Barrick Gold (NYSE: ABX, TSX: ABX)/Kinross Gold (NYSE: KGC, TSX: K)Cerro Casale deposit, which contains about 5.4 million ounces of gold.The property is also 15 kilometers due south of the Kinross' Refugiomine, which contains 22.9 million ounces of gold and 5,800 millionpounds of copper.

In May 2007, Exeter Resources reported animpressive drill assay intersection from the Caspiche property thatreally caught our attention. It graded 0.9 g/t gold and and 0.25%copper over a nice wide 304 meters from a down hole depth of only 40meters.

More recently—March 28th to be exact—the companyreported even better drill results from the project. Diamond drill holeCSD-015 returned 632.1 meters grading 0.70 g/t gold and 0.28% copperfrom a down hole depth of 58 meters.

And now, we're pleased tosee that the company has recovered the best copper/gold bearingintersection to date from the Caspiche project.

Last Wednesday,Exeter Resources reported that diamond drill hole CSD-016 intersected afull 718.75 meters grading 1.0 g/t gold and 0.38% copper.

Takeit from us, CSD-016 is a pretty impressive drill hole. In fact, inorder for you can really appreciate how significant the latest drillresult is, let us attempt to assign a value to it.

At currentprices of US$872 an ounce, the value of gold in a one tonne block ofore grading 1.0 g/t would be worth US$28.04. Putting in the coppercredits—with current prices at US$3.87 per pound—adds another US$32.42into that same tonne, for a total value of US$60.42 per tonne.

In other words, the current value of metal contained in one tonne of ore that graded 1.0 g/t gold and 0.38% copper is US$60.42.

Comparatively,the value of the metal contained in diamond drill hole CSD-015 isUS$40.93, at current spot prices. Additionally, it's important toremember that CSD-016 is almost 100 meters longer than CSD-015 at over700 meters.

A Simplified Way to Compare Drill Results 

When comparing drill holes, we often simply multiply the width ofthe mineralized intersections to the value of metals in a tonne of oreto come up with a so-called working comparative value.

For example, the ore found in hole CSD-016 is worth US$60.42 pertonne. Multiply that by the intersection width of 718.75 meters, andyou come up with 43,426.875.

This number does not represent a monetary value. Rather we use this number for comparative reasons only.

Now let's compare hole CSD-016's working comparative value to the working comparitive value of hole CSD-015.

As we just mentioned the value of the metal contained in CSD-015 isUS$40.93 per tonne. Multiply that by the intersection width of 632.1meters, and you come up with a working comparative value of 25,871.853,which is significantly lower than hole CSD-016's working comparativevalue. This would suggest that hole CSD-016 is a better, morehighly-valued drill intersection.

The extent of the orebody and consistency of mineralization will bedefined by further drilling. Nonetheless, these drill holes appear tobe the beginning of a very significant mine complex.

Exeter'starget at Caspiche is a dual target analogous to that at Cerro Casale.This would include a near surface copper/gold potential heap leachableorebody underlain by porphyry gold-copper orebody expected to requireconventional flotation to separate a gold-copper concentrate.

We will continue to follow the progress of Exeter's Caspiche project in future issues of Gold World.

Good Investing,

Gold World Staff
www.GoldWorld.com