Exeter enters new veins at La Cabeza (October 03, 2005)

Exeter Resource (XRC-V) has cut several intervals of high-grade gold in a newly discovered vein system in the Cuello West area of its La Cabeza gold project in Mendoza province, Argentina.

The discovery hole, no. LCP-169, encountered three mineralized zones yielding 3 metres (beginning at a depth of 34 metres) grading 7.8 grams gold per tonne, 3 metres (from 52 metres) of 2 grams gold, and 6 metres (from 67 metres) of 15.5 grams.

Exeter says the preliminary results are based on a cutoff grade of 0.5 gram gold. Check assays results are pending. The hole is part of an ongoing drill program aimed at expanding resources at La Cabeza.

The Cuello West veins lie within the preliminary designs for the Cuello open pit; the area had previously not contained any gold resources.

The new system is situated around 75-125 metres west of the main Cuello vein, under partial sand cover. So far, it has been traced for some 150 metres and remains open to the north, south and at depth. Further drilling is planned.

The Cuello West discovery came amid the first batch of drill results from an ongoing 14,000-metre, 3-rig drilling program.

Earlier this summer, continuous rock-chip sampling on the Mercedes and Labio South zones at La Cabeza yielded from 1 gram gold over 2 metres to 22 grams over 6 metres. Other highlights are 9.1 grams over 10 metres and 9.4 grams over 6 metres. Mercedes is a new discovery, while the Labio South zone represents extensions of known sub-parallel veins.

Channel sampling on the Cuello East zone returned up to 14 metres of 2.54 grams and 6 metres of 30.3 grams.

At the end of June, La Cabeza was estimated to host an indicated resource of 6.2 million tonnes grading 2 grams gold per tonne, with another 12.1 million tonnes of inferred material running 1.3 grams gold. The estimates are based on a cutoff grade of 0.5 gram gold.

The resource estimates do not include results from the new zones.

Engineering, metallurgical and other studies continue.

The latest discovery sent shares in Exeter 8, or nearly 7% higher to $1.26 in busier-than-usual afternoon trading in Toronto on Sept. 22.

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