Exeter Resource Corporation (NYSE MKT:XRA) (TSX:XRC)
(FRANKFURT:EXB) ("Exeter" or the "Company") is pleased to announce
it is evaluating a new approach for the potential development of
the Caspiche gold-copper deposit in Chile. The Company will assess
options for open pit mining the near surface oxide zone, and
subsequent underground mining of the central, higher grade portion
of the underlying gold copper sulphide deposit.
The goal is to investigate lower capital cost and scaleable
mining alternatives that are more flexible and appropriate to
economic conditions in the foreseeable future than the large scale,
capital intensive super pit scenario proposed in the January 2012
pre-feasibility study.
The new approach is to consider both a standalone open pit oxide
gold operation as well as a similar initial operation that then
later combines with underground mining of the central higher grade
gold copper sulphide core. Santiago based engineering
consultancies, NCL Construccion y Ingenieria ("NCL") and Alquimia
Conceptos S.A. ("Alquimia") are conducting the initial studies.
Exeter's President/CEO Wendell Zerb states "Our project is
unique in that it provides development optionality. Unlike a number
of deposits in the Maricunga region of Chile, Caspiche has a
surface oxide gold zone with very little waste rock ("a low strip
ratio") and relatively rapid gold recovery characteristics ("fast
leach kinetics"). In addition, within the larger Caspiche gold
copper sulphide deposit, a central, higher grade core potentially
lends itself to modest cost, large scale open stope underground
mining. The benefit could be a staged mine plan, starting with open
pit mining of the oxide gold zone and transitioning to underground
mining of the gold copper zone ".
Co-Chairman, Yale Simpson states "We believe our new approach to
developing Caspiche makes maximum use of its unique features. Once
economics are confirmed, we believe this approach would represent a
superior corporate strategy under the existing market conditions
and set a new benchmark in the trend to lower capex, staged mine
development. This initiative does not preclude the potential
development of a large scale open pit scenario under different
market circumstances."
Development Concept for the Gold Copper Sulphide zone
The Caspiche sulphide deposit hosts a central more intensely
mineralized core that has considerably higher grades and better
metallurgical characteristics than the broader scale sulphide
deposit. This higher grade zone, has dimensions up to 500 metres by
300 metres by +1,000 metres vertically, and is associated with a
strongly mineralized diorite porphyry unit. Both copper and gold
recoveries have been shown to be higher in this zone and higher
concentrate grades can be achieved, according to existing
testwork.
To view a level plan of the higher grade core at Caspiche click
here.
To view a cross section of Caspiche click here.
The study will target mining the higher grade zone using
selective, top-down, open stope mining methods, rather than the
bottom-up (block cave) underground approach previously evaluated by
the Company. The objective is to accelerate access to the higher
grade core with lower upfront capital expenditures. Initial
targeted throughput is 15,000 tonnes per day with future expansions
targeting up to 27,000 tonnes per day(ii). This represents a
potential scale of peak annual gold equivalent(i) production from
an underground operation of 350,000 ounces(ii). Other anticipated
advantages to a smaller scale, but higher grade operation include
greatly reduced water and power requirements when compared to the
previous large scale open pit scenario proposed in the January 2012
pre-feasibility study.
Sulphide Study Objectives(ii):
-- Confirm the uniformity of the higher grade sulphide core.
-- Confirm that it lends itself to large scale, sub-level open stope
mining.
-- Confirm the practicality of underground access using two declines, one
of which is dedicated to high capacity conveyor haulage and determine
that an underground crushing and conveying system will support a large
scale mining initiative.
-- Confirm that a top down mining approach reduces development timeframes
compared to other underground bulk mining alternatives.
-- Confirm the conceptual practicality of using tailings for paste fill of
the primary and secondary stopes.
-- Reduced initial capital requirements.
-- A reduced project footprint: minimal waste rock, smaller tailings
requirement, and a smaller concentrator plant.
-- Reduced electricity and water requirements.
Development Concept for the Oxide Gold Zone
In the Company's January 2012 Pre-Feasibility Study, gold within
oxidized material was to be mined as part of the large scale open
pit operation. High throughput (70,000 tonnes per day) levels
provided solid economics under the framework of a large scale
operation. In order to reduce initial capital while expanding the
oxide mine life, Exeter is now evaluating a reduced throughput mine
plan targeting 100,000 ounces of gold production per year (30,000
tonnes per day) over a 10 year mine life(ii).
Oxide Gold Study Objectives(ii):
-- Targeting 10 year mine life with 100,000 ounce annual gold production.
-- Reduced initial capex.
-- Low strip ratio and rapid leach kinetics based on previous studies.
-- Modest/achievable water requirements.
-- Trade off potential for generator power versus grid power.
Detailed internal evaluation by NCL and Alquimia of these mining
scenarios is ongoing. Exeter expects to announce the scheduling of
formal economic studies in Q1 2014.
Reduced Water Requirements and Water Strategy
Previous studies for the large scale open pit mining operation
indicated water requirements of approximately 1,000 litres per
second (l/s). Current expectations, based on the preliminary
objectives outlined, are that water requirements could be 50 l/s
for the standalone oxide operation(ii) and up to 250 l/s for the
sulphide mine development(ii). Exeter's current exploration
activities are targeting securing sufficient water to meet those
requirements. The Company anticipates providing an update on water
exploration activities in Q4/13.
(i)Gold equivalent (AuEq) value is based on gold, silver and
copper revenues (prices and recoveries involved). AuEq (troy oz) =
(Au g/t (i) Rec Au (i) throughput annual tonnes)/31.1 + ((Cu% (i)
Rec Cu (i) throughput annual tonnes)(i)2204) (i) copper price
lbs/gold price troy oz. Assumed recoveries for Au 72% and 89.5% for
Cu. Assumed prices $1250 for Au and $2.75 for Cu.
(ii) Disclaimer: These are initial guidelines or concepts and
objectives of the proposed studies that require detailed evaluation
and engineering work to determine logistical and economic
viability. These figures could change and should not be relied
upon. There is no certainty that the figures or objectives outlined
in this press release will be realized in the studies.
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 engineering technical
information in this news release.
About Exeter
Exeter is a Canadian mineral exploration and development
company. Its principal focus is the advancement of its 100% owned
Caspiche gold-copper project in Chile. Caspiche is one of the
largest known undeveloped gold-copper deposits in the America's and
is situated in the Maricunga gold district, between the Maricunga
mine (Kinross Gold Corp.) and the Cerro Casale gold-copper deposit
(Barrick Gold Corp. and Kinross Gold Corp.). The Company continues
to evaluate new opportunities related to the advancement of
Caspiche.
Exeter has entered into a joint venture agreement (JV) with the
Chilean subsidiary of Canadian company Atacama Pacific Gold
Corporation (TSXV: ATM) for water exploration. The JV covers the
potential exploration for subsurface water associated with granted
tenements at Cuenca Two and Laguna Verde, located in northern
Chile. Each company owns a 50% interest in each water tenement and
will incur 50% of the costs associated with exploration.
The Company currently has cash reserves of C$43 million and no
debt.
About NCL Construction y Ingenieria (NCL)
NCL is a consulting company formed in Santiago, Chile, in 1985.
Its main objective is to provide focused advice and solutions for
mining companies requiring specialized services mainly in the
fields of ore resources estimation, mine design and planning (for
open pit and underground methods), mine equipment selection,
optimization of mine unit operations and mining cost
estimation.
NCL has successfully completed a wide range of studies and
projects within its field of expertise through the different stages
in mining project development and has completed conceptual studies
to bankable feasibility studies for clients on a global basis. It
has also a relevant experience in the area of project assessments
and valuations, due diligence and technical audits. The company's
office in Santiago employs 36 full time mining engineers and total
permanent staff of 45 people.
About Alquimia Conceptos S.A. (Alquimia)
Alquimia was formed in 2002, in response to a growing industry
demand for specialized consultancy in mining-metallurgical
processes, which allow optimizing the operations of existing
plants, as well as designing and evaluating the feasibility of new
projects.
Since inception Alquimia has carried out over 250 projects in
both consulting and engineering studies, with nearly 500,000
man-hours sold to major mining projects in Chile with clients
including Anglo American, Codelco, Xstrata Copper and Minera
Esperanza amongst others.
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 potential to establish new opportunities for
the advancement of Caspiche, exploration results, timing of
exploration and drilling at La Buena, 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;
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; tax consequences to U.S. investors; and other
risks and uncertainties, including those described in the Company's
Annual Information Form for the financial year ended December 31,
2012 dated April 1, 2013 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.
NEITHER THE TSX NOR ITS REGULATION SERVICES PROVIDER (AS THAT
TERM IS DEFINED IN THE POLICIES OF THE TSX) ACCEPTS RESPONSIBILITY
FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE
Contacts: Wendell Zerb, CEO or Rob Grey, VP Corporate
Communications 604.688.9592 Toll-free: 1.888.688.9592 604.688.9532
(FAX)exeter@exeterresource.com
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