Exeter explores as engineers study La Cabeza

Vancouver – Recent exploration by Exeter Resource (XRC-V) has enhanced the potential of La Cabeza, an advanced gold project in southern Mendoza province, Argentina,

The project is at the pre-feasibility stage, however delays caused by engineering contractors with competing work commitments, coupled with the need for additional drilling, have pushed back the expected delivery date to late June of this year.

In the meantime, Exeter is carrying out a reconnaissance program for new mineralized zones and extensions of known zones. Recent channel chip-sampling at surface within the Mandibula zone returned encouraging results, including grades of up to 50.8 grams gold per tonne over 2 metres. Another channel returned 8.7 grams over 6 metres.

Additional channel sampling outlined high-grade surface mineralization outside the known footprint of the Luna zone. Results of this work include 5.1 grams over 20 metres and 6.8 grams over 12 metres.

Environmental and engineering work is continuing at La Cabeza, which at last report hosted a global resource estimated at 11.9 million tonnes grading 1.83 grams gold per tonne, or about 718,000 contained ounces, using a 0.5-gram cutoff grade. The pre-feasibility study will incorporate results from a recently completed reverse-circulation drill program.

About half the known resources are within 50 metres of surface, while 80% are within 100 metres of surface. An open-pit mine is envisioned, however exploration has revealed higher-grade mineralization at depth that could be mined by underground techniques.