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You have a limited exposure then. Good luck
Thanks for your help Malc. I will continue my DD on XRA and NBRI. I repect your opinion on both boards. You are accurate in your assment of NBRI to a point. My take on your opinion is that NBRI is too risky. You may be right, but I am looking for high risk high reward with 5% of my portfolio, which in this case NBRI fits the bill.
Crunch the NPV of the Caspiche mine according to the NI-43-101 and the PEA then divide by shares outstanding.
And yes, this is a Canadian company so NI-43-101 is totally valid. While I am leery of mining ventures in other countries by foreign operators in general, Chile is rather stable and "friendly" by South American standards. I think the likelihood of nationalization after infrastructure establishment is low.
In contrast Chavez pretended to be a friendly to foreign oil operators there and nationalized foreign corporate oil fields after they had completely built the infrastructure up - roads, refineries, everything.
If you dig more you will notice Kinross and Barrick operating very nearby, 9KM and 11KM north and south in the same PM belt in Chile.
The rub IMO is that while the XRA cash position is strong balance sheet wise they are going to need a half billion to get revenues rolling in my estimations. This is the reality of a major PM project.
There is always a rub Hornice. Nothing is a given in the market. Insiders have plenty of shares and warrants at five bucks if memory serves me correct.
To be fair we were expecting Kinross or Barrick might move in on the Caspiche years ago, but they have not. They might be trying to starve the company out and make them accept a very low ball offer. But even in that case I cannot see anything but an upside valuation from here.
If XRA has to go after this proven gold on its own it is going to take a serious cash infusion that will not produce a ROI until after this major CAPEX comes first.
I am cautiously optimistic here.
When you asked me the other day on the mining DD board which micros/junior I felt had a favorable valuation I mentioned XRA, but honestly I did not expect you to do any DD - Did not think you value my opinion much based on NBRI discussions. I am glad to see I was wrong sir. Hopefully you can understand my skepticism all things considered.
I had to clip my position here years ago when things went south market wise to protect my IRA from exposure. I bought back a 5% stake overall when the pps hit .50 and still holding those.
Best wishes and happy to offer insight but my DD is a bit rusty here admittedly.
I have been looking into XRA, and wow what a difference from NBRI. You have to love their balance sheet. No debt and there cash position alone is worth .40 a share. I don't see a lot of down side risk here.
Nice move today! My DD thinks this could be a monster play.I keep adding to my position.
A guy I read just just put out a nice report on Exeter. I bought a few shares today and also in the last week. I think we have a good one here.GL John
really strong moves.....maybe a little buyout interest?????
XRA. Making strong moves lately. Who knows the catalyst besides the POG?
Friday's volume was BUY not a sell or 'dump'.
I spoke to my broker at Schwab. They said there were two large blocks, one at around 4M shares followed by another at 6M shares that went thru Friday minutes before the market close. With 88M shares outstanding thats's just over 10% of the company.
Now that could have been a short seller settling, but something could be up. If it breaks up above $0.57 it will gap up. I am watching closely.
someone dumped over 10 million shares in the last 30 min, I think we will see mid 30's.
What is up with that insane volume at close on Friday?
Nice presentation. Glad you posted it.
Is this still expected to go up?
Exeter's November 2013 Investor Presentation
http://www.slideshare.net/ExeterResource/exeter-presentationnov202013
Finally breaking above a dollar --should hold this time technically and with better gold prices.
GO XRA!!
Caution, cause there is a nervous seller working. Very selective trading distribution in weak volume numbers.
The price action the past few days makes me want to get some more shares. We will watch the action tomorrow and possibly grab a few more next week?
Excellent choice of words for most of us!
All very true. This is a speculation, but one I have chosen to select.
Drilling is one thing, but proving it is another, which means the shovel needs to start moving earth.
Speculation mode! What you buy today. You might be holding for a while.
Always the fear of unreasonable dilution and or private placements at this stage of the game.
My opinion!
We got in at $0.82 today. Recent reports by the company said that they have about $0.52 Ca/$0.51 US per share in cash. That is only about
$0.31 /share for all of the resources in the ground.
Super leverage.
This could go lower, but my gut says that in a few years we will look back and wonder why we didn't buy more.
I am new here. What is expected news-wise in the next few months?
Yes sir this is only down because of gold being down exeter has no debt and they are literally sitting on a gold mine imo this is a huge long term play triple your money in the next 24 months
Still loading?
XRA - Any news or rumors on this one? Chart looks like it could bounce with momo.
$XRA video chart: http://www.qualitystocks.net/videocharts.php
No idea. There is a report that International Speculator reiterated a Buy recommendation on Exeter, but I can't see that being worthy of a 23% uptick.
What is behind this big bounce in XRA today?
Exeter Video Update On Caspiche
Rob Grey was interviewed by Al Korelin about the state of the Caspiche project. Rob explains how the company is trying to advance the project while preserving shareholder value in these troubled markets.
Watch The Exeter Caspiche Update Video Here
EXETER PROVIDES UPDATE ON WATER EXPLORATION AND ENVIRONMENTAL
STUDIES FOR CASPICHE GOLD PROJECT, CHILE
Monday 15 October 2012
Exeter Resource Corporation (NYSE MKT:XRA)(NYSE Amex:XRA)(TSX:XRC)(FRANKFURT:EXB) ("Exeter" or the "Company") is pleased to provide a further update on studies in support of the potential staged development of the Caspiche gold-copper project located in the Maricunga region of Chile.
Earlier studies conducted by the Company indicated the potential to recover gold from oxide ore in the upper 200 metres of the Caspiche deposit. This "Oxide Project" would represent the first stage of the potential commercial development of the very large Caspiche deposit.
Recent activities relating to water supply development and an environmental impact assessment application ("EIA") for the Oxide Project include the following:
-- Data compilation and water balance studies on Exeter's optioned Rio
Penas Blancas water rights. Initial results indicate sufficient water
may be sustainably available for the scale of operation being considered
for the Oxide Project.
-- Continued collection of environmental base line data to support the EIA
required for development of the Oxide Project. Activities include an
evaluation of any potential for acid rock drainage from waste dumps and
a continuation of community studies to align the Caspiche project with
International Labour Organisation Article 169 pertaining to indigenous
communities.
Water Supply:
As previously reported, Exeter continues to investigate the Rio Penas Blancas and Rio Aguas Dulces areas, where the Company has an option over granted surface water rights. The option covers a total of 300 litres a second ("l/s") from surface flows into Laguna Verde. Schlumberger Water Services ("SWS"), Exeter's consultant for this work, is supervising comprehensive measurement and test programs with the objective of modelling the potential harvesting of a portion of these water flows on a sustainable basis. Parameters being measured include stream flow and temperature measurements, lake bathymetry and levels, water quality and meteorological conditions.
The Oxide Project water requirement is approximately 85 l/s, substantially below the 300 l/s of water covered by the water rights optioned to Exeter.
The preliminary report from SWS indicates the following key conclusions:
-- Rio Penas Blancas water flows change seasonally in the range of 200 to
700 l/s. These data are comparable with other investigations in the
area. Rio Aguas Dulces flows range between 20 and 60 l/s.
-- SWS's estimate of the groundwater flow rate additional to surface flow
is 30 l/s
-- Laguna Verde volumes and levels have been reducing slowly during a 35
year long dry period. Average current depth is approximately 6 metres
("m").
-- The water balance models indicate that a five year draw down of 85 l/s
for the potential Oxide Project from the optioned water would reduce the
Laguna Verde level by approximately 1m. Consideration of smaller scale
heap leach options would have a proportionately smaller effect.
-- There is no evidence of significant variation in the electrical
conductivity of the lake's water column with depth, which suggests that
the water column is well-mixed.
Exeter has discussed a proposed on-going water monitoring and modelling program with the Chilean Water Authority, the DGA, and is submitting a Memorandum of Understanding to the DGA to work together on the potential development of this hydric resource. This co-operation is expected to assist the DGA in understanding the hydraulic characteristics of an area where they have little or no data. This approach would help ensure that Exeter follows the guidelines of the DGA and could reduce the environmental review process timeline if and when Exeter applies to extract such flows.
Separately, Exeter has scheduled a December drilling campaign (weather and access conditions permitting) at Cuenca One, its granted water exploration tenement, at an estimated cost of $1.3 million. This program could be expanded following a water discovery. This exploration program is aimed at discovering and evaluating a potential water source for both the initial heap leach stage and the following larger sulphide stage development of the Caspiche project.
Two water exploration holes were drilled earlier this year at Cuenca One. One was abandoned due to poor drilling conditions and the second was prematurely terminated at a depth of 250m in encouraging "damp gravels" due to deteriorating winter weather conditions. Major underground aquifers and reservoirs in this region are typically located at depths of some 500m.
The Company will also conduct a preliminary evaluation of a second water exploration tenement which was recently granted.
Environmental Studies:
Exeter is continuing environmental baseline studies to support the Oxide Project. Activities include:
-- Evaluating the acid rock drainage ("ARD") potential of the oxide ore and
overburden within the potential open pit limits so that potential acid
generation sources can be defined, if in fact they do exist. The
oxidised and "leached" nature of rocks associated with the Oxide Project
should minimise potential ARD issues.
-- Continued air quality monitoring and measurement of the amount of PM10,
PM2.5 and suspended dust. PM10 and PM2.5 are technical terms that relate
to respirable (breathable) particulate matter ("PM"), and the proportion
that is smaller than the indicated size measured in microns (millionths
of a metre). Equipment approved under Chilean law must be used for such
measurements.
-- Continuation of the water quality monitoring of the Caspiche basin
(which would host the potential mine and the processing facilities) and
Laguna Verde (where we have optioned surface water).
-- Finalization of the baseline study of flora, vegetation, archaeology and
fauna for an alternative access road and power line. The Company
believes such alternate access would represent a significant project
infrastructure improvement.
-- Providing project activity information and working with local
communities to understand and minimise any impact of our activities, now
and in the future, especially with respect to the investigation of sites
of cultural importance.
Jerry Perkins, a "qualified person" within the definition of that term in National Instrument 43-101, Standards of Disclosure for Mineral Projects, has supervised the preparation of the technical information contained in this news release.
http://www.exeterresource.com/pdf/2012_news/Exeter_news_121015.pdf
Exeter Provides Update on the Caspiche Oxide Gold Heapleach Project
Date : 10/03/2012
Exeter Resource Corporation (NYSE MKT:XRA) (NYSE Amex:XRA) (TSX:XRC) (FRANKFURT:EXB) ("Exeter" or the "Company") is pleased to provide an update on the Caspiche gold-copper project in the Maricunga region of Chile. Recent activities have focused on enhancing and advancing the necessary engineering studies for the potential development of the extensive, near-surface, copper-free, oxide blanket at Caspiche as a relatively simple heap leach operation.
Activities completed include the following:
-- An engineering study considering the feasibility of a power line extension from the nearby Maricunga mine supply to provide power requirements for a potential oxide heap leach operation.
-- A geotechnical evaluation of the proposed Caspiche mine site, focused primarily on the footprint of the oxide heap leach operation.
-- A hydrological and hydrogeological study on the Caspiche area, focused on the heap leach operation but also, where applicable, incorporating the overall mine (oxide plus sulphide) and process plant footprint.
Engineering Study - Power Line Extension:
Previous studies on the Caspiche oxide deposit considered that power would be supplied from generators installed at the project site. Exeter contracted POCH, an engineering group based in Chile but with offices and operations in Mexico, Colombia, the USA and Australia amongst others, to complete an engineering study to consider the feasibility of extending the existing Maricunga mine power line to Caspiche, a distance of 12 kilometres. The line would be used to supply power initially to the heap leach operation.
The cost of the extension of the power line and all associated electrical infrastructure and substations is estimated to be in the region of US$12 million ("M"), approximately US$10M less than that assumed in earlier studies utilizing on-site generators. More importantly, grid power would provide cheaper electricity to the operation.
The study includes the following key conclusions:
-- There is sufficient capacity in both the existing substation connected to the National grid and the power line to the Maricunga mine to carry the additional load estimated for the Caspiche heap leach project.
-- The power line extension would follow a reasonably smooth corridor and as such there are no additional construction constraints over and above those associated with the altitude at which the power line would be constructed.
-- The power line corridor takes consideration of potential future
installations associated with the larger concentrator project and does not interfere with them.
Geotechnical Evaluation:
Knight Piesold has completed a geotechnical evaluation of the Caspiche project area, which included a field campaign of 43 trenches, 18 drill holes and collecting some 90 samples. The objective was to test key sites to evaluate their suitability for process facilities and heap leach pads, amongst others.
The study conclusions show that the project can be built using conventional construction methodology with key parameters of:
-- Conventional cut and fill slope angles ranging from 1.5 - 2:1.
-- Earth fill slopes of 1.5:1.
-- Foundation thicknesses of 1m or greater depending on size of structure.
-- Compaction to be 95% of modified Proctor maximum dry density or to a minimum relative density of 80%.
In addition, the study calculated a preliminary estimate that more than 2,000,000 cubic metres of material suitable for concrete aggregate is available, largely eliminating the need to locate aggregate sources outside of the project construction area.
Caspiche Hydrology and Hydrogeological Study:
The study, conducted by Schlumberger Water Services ("SWS"), was focused around the heap leach project and open pit, although consideration has been taken of the overall project footprint where applicable. SWS used Exeter's water level monitoring measurements from 24 drill holes, drilled two additional hydrogeological holes, carried out a field testing program of slug, packer and pumping tests and fitted 2 drill holes with vibrating wire piezometers for long term monitoring of water table changes.
Preliminary report conclusions include:
-- A mean annual precipitation of 113 millimetres ("mm") was determined, of which 67 mm corresponds to precipitation as snow and 46 mm to precipitation as rain.
-- At the latitude of the Caspiche project area, the bulk of the precipitation falls during the Chilean winter. Summer precipitation
rates are low, reflecting the weak nature of the Bolivian winter effect at the relatively southerly latitude of the Caspiche study area.
-- The hydrological modelling indicates that inflow to the surface of the waste rock dump is between approximately 0.6 and 1.08 litres/second (annual average) for the mean annual precipitation.
-- The rate of water infiltration from the waste rock dump to the
underlying groundwater system is very low. At the end of operations the dump would be capped, or alternatively measures put in place to remove snow cover from the dump surface with the possibility of reducing infiltration to zero.
Water Exploration
Exploration drilling for a new water source dedicated exclusively to the Caspiche project began in May before being curtailed by weather. A news release specific to water exploration drilling can be expected.
Exeter's Unique Position
Exeter Chairman, Mr. Yale Simpson states: "Exeter is in a unique position for a junior explorer. We have a world class gold-copper asset in an excellent jurisdiction, $57 million cash and no debt. In my view the current share price does not reflect the potential future value of the Company, a value that, if realized, could well be a multiple of our current valuation given a further improvement in metal prices and economic conditions. Another Caspiche-size deposit has not been found for years, simply because they are increasingly scarce in a world starved for natural resources."
Mr Jerry Perkins, Vice President Operations a qualified person as defined in NI 43-101, is responsible for preparing the information contained in this news release.
http://www.exeterresource.com/pdf/2012_news/Exeter_news_121003.pdf
XRA - Daily Chart approaching a directional decision point where support from short term ascending channel converges with resistance from longer term descending wedge. On top of that, XRA is trading within an ascending triangle which is a bullish reversal pattern that is nearing its apex. This may help serve as a technical catalyst to take the price higher.
Exeter Resource rated a "Sell" by Mine2Capital with $1.75 price target
Mon 10:40 am by Proactiveinvestors
Exeter, a Canadian exploration company, controls 100% of the world class Caspiche gold-copper discovery in Chile. The Company has a treasury of $74 million and no debt.
The junior explorer's flagship asset is the 100 per cent-owned Caspiche Project.
Exeter Resource Corp. (TSE:XRC) was the subject of a new research report from Mine2Capital, which issued a "Sell" recommendation and a $1.75 target price.
Exeter Resource Corp. is a Canadian public company whose focus is to maximize shareholder value through the discovery, evaluation and development of gold projects in the Maricunga district in Chile.
The junior explorer's flagship asset is the 100 per cent-owned Caspiche Project which is a gold-copper porphyry system, an orebody common to many of the world's largest open pit gold-copper mines.
Caspiche is located in the prolific Maricunga mineral belt which is currently undergoing massive expansion and investment in mineral projects from some of the worlds’ largest gold miners.
A January 2012 pre-feasibility study (PFS) showed robust economics and strong leverage to gold prices. The PFS estimates pre-tax NPV of US$2.8 billion at a 5 per cent discount rate, with average cash operating costs of US$606 per gold equivalent ounce (before copper and silver credits) and US$18 per gold equivalent ounce (after copper and silver credits).
Total production over a 19-year mine-life was pegged at 12.98 million ounces of gold, 4 billion pounds of copper and 14.7 million ounces of silver.
In a research note, Mine2Capital's mining analyst Alka Singh outlined that Caspiche was strategically located in the prolific Maricunga Mineral Belt in Chile, the longest standing democracy in the Latin America region.
The proximity to multi-million ounce gold deposits in the Maricunga Belt also creates an opportunity for shared infrastructure. Caspiche is located between Barrick (TSE:ABX)(NYSE:ABX) and Kinross Gold’s (TSE:K)(NYSE:KGC) Cerro Casale gold-copper deposit 10 kilometres to the south and Kinross's Maricunga Mine 15 kilometres to the north.
Andina Minerals' (CVE:ADM) Volcan gold deposit lies 35 kilometres north northeast of Caspiche.
Exeter also has a strong management with expertise in gold-copper exploration with geologists Yale Simpson and Bryce Roxburgh with over 30 years of mining experience.
In terms of risks, the Mine2Capital report highlighted that scarcity of water was an issue in the area. However, Exeter has entered into an option agreement with a private company to purchase water rights for 300 litres per second, located about 150 km to the north of the project.
Also, Barrick made a recent decision to shelve its Cerro Casale project in Chile, which lies 10 km south of Caspiche and hosts a similar-sized deposit and grades.
"We believe the US$4.8 billion estimated capex for Caspiche will also experience cost over-runs," Mine2Capital's Singh said.
Singh also wrote that Exeter has yet to provide a feasibility study, secure financing and construct the mine.
"New mines often face commissioning issues, which need to be addressed."
Exeter will also require additional funds for exploration and development of its flagship project and other exploration-stage assets. As of March 2012, Exeter C$68 million in cash, sufficient for its 2012 planned exploration and other operations.
"However, the company may have to raise additional funds of over US$300 million (for the heap leached oxide-only ore) or over US$5 billion for developing the Caspiche super-pit option," the Mine2Capital analyst said.
Although politically stable, Chile however is not completely geologically stable and lies in a seismically active zone.
As for near-term catalysts, investors can expect to see additional drill results from regional targets, a pre-feasibility study of the heap leach project next year with production at Caspiche in early 2016.
http://www.proactiveinvestors.com/companies/news/33187/exeter-resource-rated-a-sell-by-mine2capital-with-175-price-target-33187.html
Here is some information that you may find interesting regarding price pivot points
http://investorshub.advfn.com/Price-Pivot-Point-Reversals-2151/
Can you explain what you mean by daily price pivot low? I'm looking at a bullish flag about to break out.
couldn't agree more hurricane
7 straight green day...up 45% in the process. This stock was WAY oversold considering there is over $61 million in the coffers, no debt, and they're 100% owners of Caspiche with 30 million oz of gold equivalents.
With only 98 million outstanding shares, XRA might be one of the most undervalued juniors out there.
XRA - Weekly Chart
Buy signal issued last week, especially after Friday's nice 11% move. The significance of last week's buy signal is that one of the primary signals was the RSI moving up out of oversold territory (<30). This condition hasn't occurred on the weekly chart since October 2008 when XRA was trading under $1.00.
Last week's buy signal was confirmed by an oversold MACD crossover as well as an oversold Stochastics crossover. Both these indicators are still in oversold territory, but the indicators crossed their respective signal lines.
The chart is currently in a pretty lengthy and steep descending wedge. It currently appears that $1.75 is the short term resistance formed with this wedge. A move above $1.75 in the next two weeks could indicate a breakout from this pattern and such a move could signal the beginning of a reversal that has been a long time coming.
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Exeter Resource Corporation is a Canadian public company listed on the TSX Venture and NYSE Amex exchanges. Our focus is the discovery, evaluation and development of gold deposits in Chile and Argentina.
At March 24, 2009 the Company had C$40 million, a cash reserve considered sufficient to fund two years of expenditure at current levels of activity, including drilling on the Company’s Caspiche and Cerro Moro projects. Exeter plans to retain sufficient cash reserves so that the longer term viability of the Company is ensured.
Exeter’s Caspiche Project in Chile (option to own 100% from Anglo American Chile Limitada) is a gold-copper porphyry system, a type of deposit common to many of the world's largest open pit gold-copper mines. It is located 15 kilometres (8 miles) south of Kinross Gold's Refugio mine (+6 million ounce gold resource), and 10 kilometres (6 miles) north of the very large Cerro Casale gold-copper deposit (24 million ounce gold resource), jointly owned by Kinross Gold and Barrick Gold.
On March 24, 2009 Exeter announced an interim National Instrument 43-101 (“NI 43-101”) compliant mineral resource estimate for Caspiche, for drilling to the end of 2008. The inferred resource is 8.73 million ounces gold and 2.09 billion pounds of copper, or 12.65 million gold equivalent ounces (refer to March 24, 2009 News Release). The additional 3.92 million ounces of gold equivalent is calculated using a copper conversion price of $1.50 per pound and a gold price of $800 per ounce. The resource estimate leaves the deposit open for expansion to the west, south and to depth.
A second mineral resource estimate is proposed in September 2009. It will be based on all data up to the seasonal close of drilling in May 2009. The Company plans to recommence drilling in October 2009 and to continue that program through to May 2010. The budget through to September 2010 provides for $16 million in expenditures and includes drilling to further expand the resource, in-fill drilling of the highest grade area to “indicated resource” status, infrastructure studies and metallurgical testwork.
The Company’s ultimate intention with regard to the Caspiche asset is to negotiate a transaction with a major mining company, which will enable us to realize all or part of the value of the Caspiche discovery for the benefit of shareholders.
The Cerro Moro Gold-Silver Project in Santa Cruz Province, Argentina is 100% owned by Exeter, with the Santa Cruz Government Mining Company, Fomicruz S.E. entitled to a 5% interest, on completion of mine permitting.
Since the onset of the financial crisis, the Company has focused on the very high grade Escondida vein system at Cerro Moro. We believe Cerro Moro has the potential to be developed as a low capital cost mining operation and the possibility of increasing the resource base is excellent.
An initial NI 43-101 compliant resource estimate based on 464 drill holes is scheduled to be released in Q2-2009. The Company will also restart drilling in Q2-2009, when drilling permits are received. One rig will further evaluate the known high grade Escondida Vein, where drilling has indicated significant near surface mineralization. A second rig will test a property immediately north west of the defined Escondida Vein, where geophysical data suggests a potential continuation of the Escondida Vein over a strike length of 2.0 kilometres (1.25 miles). That property is subject to a joint venture wherein Exeter can earn an 80% interest from Fomicruz S.E., by incurring certain exploration expenditures.
From Q4-2009 onwards, Cerro Moro activities will likely focus on mine development studies. The gold deposit should benefit from being very high grade by industry standards, and being near the port of Puerto Deseado where substantial infrastructure is available. It is also within an established gold-silver district, with mines owned by AngloGold Ashanti, Pan American Silver, Coeur d’Alene Mines and Minera Andes/Hochschild.
The Don Sixto Gold Project is located in Mendoza Province, Argentina (Exeter option to own 100%). Following detailed drilling conducted through 2005-2006 the Company announced a NI 43-101 compliant estimate of gold resources in 2007. At a 0.5 g/t gold cut-off grade the "measured and indicated resource" is 925,000 ounces of gold (20.48 million tonnes at an average grade of 1.40 g/t gold) and the "inferred resource" is 334,000 ounces of gold (9.29 million tonnes at a grade of 1.12 g/t gold). The resource is detailed on this website.
In June 2007, the Mendoza government passed legislation that severely restricts mining in Mendoza Province. Exeter immediately suspended exploration on the Don Sixto property and filed an action in the Supreme Court to have the legislation declared unconstitutional. The Company will continue to work with all levels of government, industry, unions and other interested parties to demonstrate that the project, if economically viable, could be developed responsibly and on a sustainable basis.
Exeter has other drill ready gold-silver targets in prospective regions of Patagonian Argentina and Chile that are currently on hold. The Company gained a broad foothold in the region through separate strategic alliances with Cerro Vanguardia S.A. (an AngloGold Ashanti subsidiary), and Rio Tinto Mining and Exploration Chile.
Exeter is well positioned for success. Our projects are proving to be uniquely valuable, and our strategic agreements with major companies provide a "pipeline" of growth opportunities.
NYSE-A: XRA TSX Venture : XRC FRANKFURT : EXB
The Daily View | The Big Picture Weekly View | |
2009 News | Projects | |
http://www.exeterresource.com/news_2009.php | http://www.exeterresource.com/projects.php |
Management | Contact Information | |
http://www.exeterresource.com/investors/executives_management.php | http://www.exeterresource.com/contact.php |
http://www.mineweb.com/mineweb/view/mineweb/en/page66?oid=100908&sn=Detail
SYDNEY -
High flying gold exploration junior, Exeter Resource Corp, has had the strategic split of the company into two separate entities approved by its shareholders. Exeter itself will now concentrate on the huge Caspiche gold/silver/copper project in the Maricunga region of the Chilean Andes, virtually halfway between Kinross' Maricunga mine (formerly known as Refugio) and Barrick's Cerro Casale project, while the spin-off company, to be called Extorre, will take on the group's Cerro Moro gold project, and other Argentinian gold exploration properties, with a view to bringing the former to production.
Mineweb first revealed the company's president, Bryce Roxburgh's, ideas to split in two last November - see Exeter's golden choices, and now this has come about with shareholder approval received with 99.83% in favour, with the final order agreeing the split granted by the Supreme Court of British Columbia on March 12th. The agreement should now be closed by March 22nd, with the distribution date for Extorre shares to Exeter's shareholders the day following. The shares have received preliminary approval for listing on the TSX, and while they are not yet to be listed on the NYSE-AMEX register, the new company plans to apply for listing on the OTCQX exchange for its U.S. shareholders and subsequently on the NYSE-AMEX. Listing is subject to Extorre meeting all listing requirements of those exchanges and receiving exchange acceptances of listing applications.
Exeter shares themselves will trade "ex-distribution" on the TSX on March 18, 2010 and on the NYSE-AMEX on March 24, 2010.
On closing, the new company, Extorre, will hold all of Exeter's former interest in the Argentinian Cerro Moro and Don Sixto Projects as well as its other Argentinian Patagonian exploration projects and an initial $25 million in capital from Exeter. Initial focus will be on development of the Cerro Moro Project, while exploration drilling will continue to test for new high grade vein targets. Exeter itself will continue to hold and focus on advancing its Caspiche Project.
Part of the reason for the split relates to the huge differences in project parameters between Caspiche and Cerro Moro and will enable two separate management teams to concentrate on two very different projects. Caspiche looks to be rivalling Barrick's Cerro Casale in size and grade, and so far has an inferred mineral resource estimate of 1,117 million tonnes at a grade of 0.55 grams per tonne gold and 1.12 grams per tonne silver including 1,017 tonnes at a grade of 0.22% copper. This equates to in-situ inferred resources of 19.6 million ounces of gold, 40 million ounces of silver and 4.84 billion pounds of copper (a total of 32.4 million gold equivalent ounces). The size of this deposit suggests a multi-billion dollar development to bring a large open pit to production and is therefore markedly different to the skills and financing necessary for the smaller Cerro Moro project.
The Cerro Moro project, as it is much smaller in scope and less costly to bring into production could be mined with a series of relatively small narrow open pits and by underground methods, being similar to AngloGold's Cerro Vanguardia which is relatively nearby in Argentina's Patagonia area. A mine here can be brought on stream relatively quickly by new company, Extorre, without necessarily having to bring in a jv partner. The current resource at Cerro Moro stands at 646,000 ounces gold equivalent at a grade of 18 grammes per tonne gold equivalent. This is almost entirely on the high grade Escondida vein, and with a number of other significant vein structures already delineated, the eventual resource will be very much larger. A new resource statement, which will still be primarily based on the Escondida vein drilling, is due next month.
The company split will enable two separate management teams to concentrate wholly on two very different types of projects, and is a move which Exeter management feels will strongly enhance shareholder value.
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