DESCRIPTION:  Exeter Resource Corporation is one of the most active exploration and mine development companies operating in South America. The company has C$75 million in cash, no debt and two principal assets: the Caspiche gold-copper porphyry discovery and the Cerro Moro high-grade gold-silver deposit.

Exeter is drilling a major gold-copper porphyry system in northern Chile. The deposit is located 10 miles from the Refugio Gold Mine (6.4 million ounces gold) owned by Kinross Gold, and 6 miles from the giant Cerro Casale deposit (24 million ounces gold, 5.5 billion pounds copper), jointly owned by Barrick Gold and Kinross Gold.

At Caspiche, Chile the inferred NI43-101 compliant resource is 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 (October 20, 2009 News Release).

In Cerro Moro, Argentina the inferred mineral (NI43-101 compliant) resource estimate totals 646,000 ounces gold equivalent*, at a grade of 18 grams per ton ("g/t") gold equivalent* (0.52 ounces per ton) and Escondida contributes 518,000 ounces gold equivalent* at a grade of 34 g/t gold equivalent* (0.99 ounces per ton).

New videos available, 1/10: Caspiche and Cerro Moro.

Click here Yale Simpson (Executive Chairman) gives audio-visual presentation on Exeter's progress at Caspiche and Cerro Moro (11/9/09)

Click here to listen to Al Korelin interview Yale Simpson, Chairman of Exeter Resources, who opines on the future of the gold market. (10/31/09)

"Exeter's 100%-owned Caspiche Au-Cu deposit is located in the Maricunga belt in Chile and is adjacent to Barrick's Cerro Casale and Kinross' Maricunga (Refugio) deposits. This district is known for very large mineralized Au and Au/Cu systems, of which Caspiche at over 30 million AuEq oz is now included. We currently value Exeter on metrics related to its ultimately being acquired. We apply a risk-adjusted value of US$25/oz AuEq to the bulk of inferred gold equivalent resources at Caspiche. We have based our metrics on a modest discount (to account for the early development stage of Caspiche) to historical takeovers in the Maricunga area of Chile, setting our target at $11.75. Exeter has announced its intention to spin out its assets into two focused companies, one holding Exeter's large Caspiche Au-Cu porphyry project in Chile (to retain the name Exeter) and $50 million in working capital and the other holding its Argentinean assets (NewCo), most notably the Cerro Moro high-grade Au-Ag project, as well as $25 million in working capital."
    -   Junior Mining Weekly (02/02/10)

"Last week Exeter Resources announced its intention to spin out its assets into two focused companies, one holding XRC's large Caspiche Au-Cu porphyry project in Chile (to retain the name Exeter) and $50 million in working capital and the other holding XRC's Argentinean assets ('NewCo'), most notably the Cerro Moro high-grade Au-Ag project, as well as $25 million in working capital. Exeter shareholders will be asked to vote on the proposal at a special meeting of shareholders, expected on March 4, 2010.
Dr. Eric Roth, currently Exeter's Mine Development Manager (Argentina), will be appointed CEO and President of Newco. Yale Simpson and Bryce Roxburgh will become co-Chairmen of Newco. The rationale for this transaction is both to unlock unrealized market value for Cerro Moro, as well as to protect shareholder interests should an offer materialize for Caspiche. Based on our assumptions for capital requirements to advance Caspiche, further equity dilution may be necessary to raise capital for Exeter (Chile NewCo). In our view, Caspiche represents one of the largest Au-Cu-Ag assets discovered in the last decade and its significance should draw the attention of numerous interested parties."
    -   Junior Mining Weekly (01/27/10)

"Cerro Casale is a huge prospective mine in-the-making. . .Its only rival in terms of size in the region is the nearby Caspiche gold/copper porphyry deposit, which weighs-in at 19.6 million gold ounces, 4.84 billion pounds of copper and 40 million silver ounces. And the deposit is still growing in size, according to its owner, a small Vancouver-based mining junior named Exeter Resource Corporation.

Exeter's management concedes that its resource estimate is still in the 'inferred' category—meaning that more drilling is still required to definitively confirm the exact size of its gold and copper riches. Yet, the well-financed and increasingly confident company is hoping to do even better. It is drilling well outside of the known deposit, hoping to significantly expand its gold and copper resources. If this transpires, it would obviously give Caspiche bragging rights over Cerro Casale—at least in terms of size.

That said, Exeter is already looking ripe for a potentially lucrative deal with a big league gold miner (which helps to explain the company's recent proposal to spin off its other gold assets into a new publicly traded company). Notably, the announcement last September of a more than doubling of Caspiche's asset base over previous estimates didn't go unnoticed by the world's major mining companies. Exeter says a number of them are already assessing its mineral database for Caspiche."
    -   Marc Davis, BNW News (01/25/10)

"Got the key to unlocking value? Exeter announced that it is splitting into two companies, with the newly formed company focusing on the development of the Cerro Moro gold-silver project in Argentina. Exeter plans to spin out its Argentine and Chilean assets and will retain all assets related to the Caspiche gold-copper discovery in Chile, together with about $50 million in working capital, while Cerro Moro and other Argentina exploration properties, together with about $25 million in working capital, will be transferred to a new company.

The spin-out is intended to unlock value outside of its giant Caspiche project. Contingent to closing, the new company will be required to seek a listing on a major stock exchange. The new company will focus initially on taking Cerro Moro through feasibility, project financing, development and into production. Shareholders will vote on the proposal March 4 and would result in Exeter shareholders receiving one share of the new company for each share held. Eric Roth, currently Exeter's mine development manager in Argentina, will be named Chief Executive and President of the new company. Yale Simpson and Bryce Roxburgh will become co-chairmen. Note, on Monday Canaccord Adams Senior Mining Analyst Wendell Zerb said that in light of recent M&A activity relating to Goldcorp's (G) and Barrick's (ABX) interest in purchasing 70% of the El Morro Cu-Au deposit in Chile, he has reiterated his view that Exeter's Caspiche Au-Cu deposit should ultimately be purchased by a large cap gold company looking for future large-scale Au-Cu production."
    -   Morning Coffee, Canaccord Capital (01/20/10)

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