Exeter?s Caspiche Mine In Chile Is Proving To Be One Of The Largest Finds In Recent History

The latest resource estimate for the Caspiche gold/silver/copper project in the Maricunga region of Chile was released by gold explorer Exeter Resource Corp. The resource is low grade, but bulk minable and drilling to date has shown a NI 43-101 compliant inferred resource of 1,117 Mt (1.23 billion st) grading 0.55 g/t (0.016 oz/st) gold, 3.81 g/t (0.111 oz/st) silver and 0.22 percent copper. Exeter said these findings make the in situ metals amounts of 609 t (19.6 million oz) of gold, 4.4 kt (137 million oz) of silver and 4.84 billion lbs of copper, which the company relates as 33.7 million gold equivalent ounces using assumed metal prices of $23.33/g ($800/oz) for gold, 35 cents/g ($12/oz) for silver and $2/lb for copper. The deposit is almost midway between Barrick?s Cerro Casale gold deposit and Kinross? Refugio Mine. In a statement Exeter chairman Yale Simpson said ?This updated resource estimate places Caspiche firmly among the world?s largest gold-copper discoveries in recent years and clearly supports our decision to aggressively drill the property, despite the global economic decline. ?We expect that the very substantial copper and silver credits will be extremely important, and will markedly impact the potential viability of Caspiche. Specifically, using metal prices of US$2/lb copper, $23.33/g ($800/oz) gold and 35 cents/g ($12/oz) silver, the 4.84 billion lbs of copper and 4.2 kt (137 million oz) of silver are equivalent to 376 kt and 62 t (12.1 and 2 million oz) of gold, respectively. ?Our recent drilling has defined what appears to be a coherent higher grade central zone associated with a definable early stage diorite intrusion. We expect this zone will be important in developing various mining and economic models for the project,? Simpson said. Exeter is still drilling the deposit to expand the re-source estimate further to the southeast and at depth and to upgrade the higher grade central zone to the indicated category. Simpson said, ?Exeter intends to enhance the value of Caspiche by continuing to de-risk the project through ongoing exploration, metallurgy, engineering, water and environmental studies. These studies will continue through the next 12 months and will lead to a conceptual development study. A timeline for the release of that study is being formulated. The project budget for the next 12 months is C$14 million.? Mineweb reported that Caspiche is likely too big of a deposit and at too high of altitude for Exeter to handle alone. Exeter will be looking to other majors, or perhaps the Chinese, to help develop this huge orebody. But, in the meantime, it also has its high grade Cerro Moro deposit in Argentina, which could be brought to production relatively quickly and at relatively low cost.