Mar 2 2011
Exeter Resource Corporation (TSX:XRC) (NYSE Amex:XRA) (FRANKFURT:EXB) has announced that it has entered into an option agreement with Xstrata Copper to acquire 100% of the Sideral project adjacent to its Caspiche gold-copper porphyry property in the Maricunga gold district of Chile.
The Sideral property covers 1,190 hectares (2,941 acres) and is located immediately east of Exeter's Caspiche tenure of 1,260 hectares (3,114 acres). Previous exploration has highlighted anomalous gold-copper surface geochemistry coincident with geophysical (electrical) anomalies comparable to those that define the Caspiche Porphyry. Additional electrical geophysical work and sampling has already begun on the property to further expand and define these anomalies. Preliminary drill testing is expected to commence in early March, 2011.
Justin Tolman, Exeter's Caspiche Project Manager stated "Global exploration has repeatedly demonstrated that one of the best places to find a new porphyry system is near an existing one. This has been evidenced by recent discoveries close to a number of known porphyry deposits elsewhere in Chile.
"Exeter's exploration team is very positive on the discovery potential of such a key under-explored block of Maricunga lands. We are particularly keen to apply our porphyry experience to a project located in such close proximity to Caspiche. If there is a discovery to be made I am confident our team has the experience to make it.
"Drilling on existing geophysical targets at Sideral will commence in early March, immediately following completion of the Caspiche infill drilling program where we have two rigs employed. The aim of that program has been to lift higher grade "inferred" mineralization into the "measured and indicated" categories. We plan to contract additional rigs for the discovery drilling program at both Sideral and Caspiche Regional, with a minimum of 3,000 metres ("m") (9,843 feet ("ft")) planned for each project before the season closes for winter in May."
The agreement with Xstrata provides for Exeter to acquire 100% of the Sideral property by meeting escalating annual drilling requirements, to a total of 15,000 m (49,213 ft), within four years. After the 15,000 m (49,213 ft) of drilling is completed, Xstrata has a once only back in right to acquire a 60% interest in the property, provided the discovery of a deposit of greater than 100 million tons at +0.5% copper has been made. Should Xstrata elect to back in, it will be required to repay Exeter three times its expenditure on the property. In the event that Xstrata does not exercise its back in right, its interest will revert to a 2% NSR. Exeter has the right to purchase 50% of the NSR for $10 million, leaving Xstrata with a 1% NSR.
Justin Tolman, Exeter's Capsiche project manager and 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.
Source: Exeter Resource Corporation