Exeter extends La Cabeza gold (May 09, 2005)

Vancouver – Exeter Resource (XRC-V) has expanded zones of gold mineralization on its La Cabeza project in west-central Argentina.

Reverse circulation (RC) drilling successfully targeted potential extensions to known gold zones, returning numerous significant near surface intercepts.

Drilling of potential Ojo zone extensions delivered intersections of 12 metres averaging 1.7 grams gold per tonne in hole LCP-137 and 9 metres of 4.3 grams gold in hole LCP-139. Mineralization, east and south of the known zone, cut what appears to be faulted extensions of Ojo.

RC drilling east of the Luna zone returned up to 12 metres of 2.4 grams gold in hole LCP-148.

Testing both east and west of the Cuello Vein intersected parallel vein systems. The Cuello East and Cuello West returned drill intercepts of 9 metres at 5.5 grams gold in the former (hole LCP-143) and 3 metres of 3.2 grams gold in the latter (hole LCP-143).

Gold mineralization at La Cabeza occurs as disseminations and blebs in quartz veins, stockworks and siliceous breccias in the contact zone of the rhyolitic ignimbrite and fine-grained felsic porphyry intrusives. It is a low-sulphidation epithermal system.

La Cabeza has an inferred resource of 12 million tonnes grading 1.8 grams gold, at a 0.5 gram gold cut-off grade, containing just over 700,000 oz. of gold. Exeter’s prefeasibility study is expected by June 2005 and will encompass a revised resource calculation along with engineering, metallurgical and environmental studies.

The company is earning a 100% interest in La Cabeza for US$3 million in exploration and development expenditures plus a down-stream payment of $2.5 million or 2.5 million shares at the company’s option. Staged, annual payments, totalling US$525,000, are due to the original property owners who also retain a 3.5% NSR.

Exeter also has 25 epithermal gold-silver projects, in Argentina’s Patagonia region, under option from a subsidiary of AngloGold Ashanti (AU-N). A partnership with Rio Tinto (RTP-N) has the company also exploring epithermal gold projects in southern Chile.