High-grade gold and silver results from nine holes in Argentina had Exeter Resource(XRC-V, XRA-X) scaling the markets walls on Tuesday.
In Toronto on July 24 the Vancouver-based company saw its shares go up roughly 4% or 16 to $3.19 on 162,000 shares.
The company says that diamond drilling continues to expand the Escondida east vein system at its Cerro Moro project in the Santa Cruz Province.Highlights include:
- Hole MD106 – 3.5 metres grading of 61.8 grams per tonne gold and 3 metres grading of 9.5 grams gold and 1,018 grams silver for a gold equivalent grade of 26.5 grams gold.
- Hole MD110 – 3.08 metres grading of 24.6 grams gold and 538 grams silver for a gold equivalent grade of 33.6 grams gold per tonne.
- Hole MD111- 0.98 metres grading 79.2 grams gold and 572 grams silver for a gold equivalent grade of 88.7 grams gold per tonne.
- Hole MD115 – 1.38 metres grading 51.4 grams gold and 3,305 grams silver for a gold equivalent grade of 106.5 grams gold.
Gold equivalent grade was calculated by dividing the silver assay by 60 and assumes 100% metallurgical recovery.
Exeter says drill widths may not represent the true widths of mineralization.
Cerro Moro is one of 12 epithermal gold and silver properties under a strategic agreement with AngloGold Ashanti (AU-N, AGG-A).
The companies are looking to establish an open pit mine and will have drilled 10,000 metres on the property by late July.
That would allow AngloGold to back-in for a 60% stake in the project, and provide Exeter with a cash payment and the right to be free-carried to the completion of a feasibility study.
If AngloGold doesnt exercise its back-in right, its interest will revert to a 2% net smelter returns royalty.
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