Drilling by
The results are based on three holes which tested the epithermal gold deposit in southern Mendoza province.
Two of the holes were drilled at the Luna zone. Hole 114 intersected 6 metres averaging 18.2 grams gold per tonne, including 3 metres of 34.1 grams, starting at 12 metres below surface, whereas hole 115, drilled 50 metres to the north, intersected 27 metres averaging 2.9 grams gold, including 9 metres of 5.9 grams, from 24 metres down-hole.
The third hole tested the Ojo zone and returned 3 metres of 0.6 gram gold.
Drilling is ongoing, and will include at least 2,800 metres. Engineering and environmental studies are planned, along with metallurgical tests.
Exeter’s $1.1-million, prefeasibility drill program is aimed at converting inferred resources to the indicated category. At last report, these stood at 11.9 million tonnes averaging 1.83 grams gold, at a 0.5-gram cutoff. If the cutoff is raised to 1 gram, the inferred resource drops to 6.8 million tonnes at 2.82 grams.
About 80% of inferred resources are within 100 metres of surface. Based on a recent scoping study, Exeter estimates capital costs for a combined open-pit/underground operation to be US$22 million.
The scoping study estimates annual production of 35,000-45,000 oz. from the open pit and 45,000-60,000 oz. from underground operations. Definitive numbers await the prefeasibility study.
La Cabeza is Exeter’s most advanced project in Argentina. The junior recently dropped an option to acquire the Papagallos project after initial fieldwork failed to produce attractive targets. Reconnaissance work is under way at the newly acquired Cerro Moro gold-silver project in Patagonia.
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