Exeter pulls long gold intercepts at Caspiche (May 25, 2010)

Vancouver – Exeter Resource (XRC-T, XRA-X, EXB-F) has cut very long gold intercepts that expand the main mineralized zone at its flagship Caspiche project in Chile.

Drilled as part of a program designed to both move more of the resource into the indicated category and increase the overall resource, the latest results achieve both according to the company. To accomplish both, hole 62 and 63 were drilled as step-backs beyond the previous limits of drilling on the eastern side of the known resource.

Hole 62 cut 624 metres grading 0.85 grams gold per tonne and 0.28% copper from a depth of 424 metres, including 400 metres carrying 1 gram gold per tonne and 0.33% copper from 544 metres. Hole 63 hit 868 metres returning 0.6 gram gold and 0.33% copper from 404 metres downhole.

On the day the results were released the company’s share price shot up $1.13 to close at $7.91, a 16.7% increase.

Holes 62 and 63 were drilled 200 metres north and south respectively of drill holes 58 and 61, the results of which were released in early May. Hole 58 returned 1,152 metres averaging 0.5 gram gold and 0.31% copper from 118 metres downhole and hole 61 intersected 850 metres carrying 0.76 gram gold and 0.17% copper from a depth of 134 metres.

Also in early May the company released the results from hole 60. Roughly 550 metres west of hole 58 and 61, hole 60 cut 580 metres grading 0.47 gram gold and 0.2% copper from 129 metres depth. The company believes the results from this hole are important because it was drilled to define the limits of the low-grade intrusive area on the western edge of the main deposit, but instead it was well-mineralized. The better-than-expected result means the low-grade area has been reduced in size, increasing the economic mineralized area.

The company is still waiting on results from holes 68 and 70, drilled 400 metres and 200 metres further east of hole 63 to see if the economic mineralization continues further east.

In early April Exeter released an updated resource estimate for its Caspiche project that only contained drilling completed up until the end of last year. The resource now contains 785 million indicated tonnes grading 0.57 gram gold, 0.2% copper and 1.33 grams silver per tonne and a further 688 million inferred tonnes grading 0.45 gram gold, 0.19% copper and 1.21 grams silver.

With six drill rigs on site, the company has already completed 20,000 metres more drilling than was included in the latest resource estimate. A further 10,000 metres of drilling is planned for October when the Andean winter fades. The company plans to release an updated resource estimate in September.

The project is located in the Maricunga Belt of Chile, 10 km north of Barrick Gold’s (ABX-T, ABX-N) and Kinross Gold’s (K-T, KGC-N) Cerro Casale gold-copper deposit and 15 km south of Kinross Gold’s Refugio mine.

Exeter has a 52-week share price range between $2.83 and $9.32 and 75 million shares outstanding.