Exeter climbs on Cerro Moro results (October 15, 2007)

Vancouver — The Loma Escondida vein, at the Cerro Moro project in Argentina, is producing high-grade silver-gold intercepts for Exeter Resource (XRC-V, XRA-X).

The vein is located 500 metres north of the well-drilled Escondida vein. In recent drilling, Loma Escondida returned 1.3 metres of 77.9 grams gold per tonne and 4,153 grams silver starting from 27.4 metres below surface in hole 130. That hole was collared 160 metres west of hole 92, which cut a similar intercept of 1.4 metres grading 51.2 grams gold and 1,679 grams silver.

Hole 131 was drilled 60 metres west of hole 130 and intersected 4.3 grams gold and 305 grams silver over 2 metres, demonstrating the continuity of the narrow vein.

Exeter’s share price moved up 27 or 8.6% on the news to close at $3.42. The company has a 52-week trading range of $1.70-$4.48 and 37.8 million shares issued.

A few weeks earlier, Exeter released drill results from the Escondida vein. More specifically, the company announced that the Escondida West, Central, and East zones are, in fact, part of one continuous mineralized structure with a strike length of at least 950 metres.

At the eastern end of the strike, Exeter pulled 3.3 metres grading 34 grams gold and 2,331 grams silver, starting at 100 metres depth in hole 112. Hole 117 returned 19.5 grams gold and 93 grams silver over 1.6 metres and hole 118 hit 49.9 grams gold and 80 grams silver over 2 metres. Holes 117 and 118 were infill holes that intersected the vein in less prospective andesitic host rocks; both returned assays that were shorter but higher-grade than previously encountered in the area.

The mineralization at Cerro Moro is low-sulphidation gold and silver, primarily associated with quartz veins that strike over distances ranging from 240 to 1,250 metres.

Exeter signed an agreement to acquire the rights to all of AngloGold Ashanti (AU-N, AGD-L) subsidiary Cerro Vanguardia SA’s (CVSA) exploration projects, except those surrounding CVSA’s gold mine in Patagonia. Cerro Moro is the most advanced of the epithermal gold-silver properties in the agreement.

By August, Exeter completed 142 holes totalling over 10,000 metres of drilling at Cerro Moro, which triggered CVSA’s right to back in for a 60% interest. CVSA has 45 days to decide whether to take the back-in right, which would mean a cash payment to Exeter, as well as carrying the junior to completion of a bankable feasibility study. If CVSA does not exercise its option, its interest will revert to a 2% net smelter royalty.