Caspiche

PROJECTS - Chile

The Caspiche Project is located in the Maricunga Belt of Chile, a world class gold province. The property is 10 kilometres north of Barrick and Kinross Gold’s Cerro Casale gold-copper deposit and 15 kilometres due south of Kinross Gold’s Refugio Mine. The new Volcan gold deposit owned by Andina is 35 kilometres north northeast of Caspiche;

Cerro Casale Gold-Copper Deposit, 22.9 million ounces of gold at a grade of 0.69 grams per tonne (“g/t”) and 5,800 million pounds of copper grading 0.25% (Kinross NI 43-101 Report, August 22nd 2006).
Refugio Gold Mine, 5.4 million ounces of gold at a grade of 0.76 g/t (Kinross NI 43-101 Report, December 31st 2006)
Volcan Deposit, 6.9 million ounces gold at a grade of 0.55 g/t (Andina 43-101 Report, October 2007)

View the latest 43-101 on Caspiche 6.23MB PDF

View Caspiche on Google Earth (File opens with Google Earth)

View Caspiche drill holes in 3D on COREBOX

View of proposed current +9300 metre drilling program.

This proposed program commenced in October and will entail three rigs drilling holes at “step-out” distances of 200 metres from holes drilled last season. This may give a size the resource and provide Inferred resources for our initial 43-101 resource estimate in Q2, 2009.

Figure 1: Southern Maricunga Belt Mineral Deposits on Satellite Imagery.

In 2007 Exeter reported an important gold mineralized intersection of 304 metres (1,003 ft) grading 0.9 grams/tonne (“g/t”) gold (0.026 oz/ton) from drill hole CSR-013. This was the first hole drilled by Exeter to test the porphyry potential of the property. The hole reached 344 meters which was the ultimate capacity of the drill rig. More recently hole CSR-016 intersected 719 meters grading 1.0 g/t (0.032 oz/ton) gold and 0.38% copper.

The Agreement

In October of 2005 Exeter signed an option agreement with Anglo American Chile Limitada and Mantos Blancos S.A. (collectively "Anglo American") over a number of prospective gold projects in the Maricunga metallogenic belt of Chile, one being the Caspiche Project. The terms of the agreement provide for increasing annual drilling and exploration commitments over five years. Exeter has now spent the required US$2.55 million to exercise the option, and will complete 15,500 metres drilling later in 2008. It currently proposes to exercise the option for 100% ownership in January, 2010 which will trigger advance annual payments of $250,000 deductible from future royalties. Anglo American will be entitled to a 3% net smelter return from production.

The Target

Exeter’s target at Caspiche is analogous to that at Cerro Casale, and comprises:

a near surface potentially heap leachable gold “blanket” ore body, underlain by
a gold-copper “porphyry” ore body that would require conventional flotation to produce a saleable gold-copper concentrate.

Exeter Exploration

Exeter commenced field exploration on the optioned Anglo American Maricunga projects in November, 2005 - following a compilation of existing data. All properties were visited and following reconnaissance exploration were rated according to their apparent potential. This led to the identification of the Caspiche property as the best opportunity for Exeter.

Caspiche has a combined area of 1262 hectares. From a data review combined with surface mapping and sampling Exeter identified three target zones on the property: (1) Caspiche Central Epithermal Mineralization zone with epithermal gold potential in the central west of the property, (2) Caspiche Central Porphyry - a porphyry gold-copper system beneath the Caspiche Central Epithermal Mineralization, and (3) Caspiche III - a zone of epithermal gold-silver mineralization in the east of the property.

Figure 2: Caspiche Property, Principal Prospects and Exeter Drill Holes.

In 2006 Exeter undertook detailed geophysical surveying aimed at identifying resistive anomalies (Controlled Source Audible Magneto Tellurics, CSAMT), and reprocessed airborne magnetic data from a helicopter survey completed by previous explorers. Geological mapping and geochemical sampling were also conducted on the large target areas.

Initial exploration focused on potential for high sulphidation epithermal style mineralization on the Caspiche III target. Drill targets were selected based on mapped prospective geology combined with high resistivity geophysical targets. High resistivity equates to strong silicification, which is commonly associated with high sulphidation epithermal gold-silver deposits. Later exploration efforts were directed to the porphyry potential at Caspiche Central with one hole, CSD-018, aimed at a buried geophysics target to the northeast of the Caspiche Central target. To date Exeter has drilled 26 holes. The final two holes did not reach target depths due to the onset of winter conditions on site. These are to be completed next season.

Table 1: Drill Collar Details for Holes Drilled on the Caspiche Property by Exeter.

Hole	Easting	Northing	Elevation	Depth (m)	Azimuth	Dip	Location
CSR-001	473127	6937334	4560	94	0	-70	Surveyed
CSR-001A	473125	6937336	4560	238	0	-70	Surveyed
CSR-002	473350	6937487	4610	187	20	-70	Surveyed
CSR-003	473682	6937473	4635	250	0	-70	Surveyed
CSR-004	472930	6937730	4630	185	0	-70	Surveyed
CSR-005	471910	6938450	4540	300	355	-70	Surveyed
CSR-006	474140	6937200	4680	264	0	-70	Surveyed
CSR-007	472595	6938095	4545	300	0	-90	GPS
CSR-008	474110	6937100	4680	300	0	-70	GPS
CSR-009	473120	6937580	4620	300	25	-60	GPS
CSR-010	473270	6937470	4593	260	0	-60	GPS
CSR-011	473650	6937340	4608	186	0	-60	GPS
CSR-012	473950	6937070	4655	340	0	-60	GPS
CSR-013	470870	6937370	4370	344	60	-60	GPS
CSD-014	470923	6937063	4412	741	60	-60	GPS
CSD-015	470624	6937351	4333	1001	60	-60	GPS
CSD-016	470816	6937220	4370	792	60	-60	GPS
CSR-017	470504	6937285	4327	73	60	-60	GPS
CSD-018	470275	6937692	4268	704	60	-65	GPS
CSR-019	471118	6937388	4403	240	60	-60	GPS
CSR-020	470722	6937509	4362	250	60	-60	GPS
CSR-021	470903	6936864	4430	152	60	-60	GPS
CSR-022	470867	6937146	4386	231	60	-60	GPS
CSR-023	470795	6936993	4390	200	60	-60	GPS
CSD-024	470948	6937602	4400	750	250	-65	GPS
CSD-025	471010	6937460	4396	336	240	-65	GPS
CSD-026	471167	6937313	4400	209	240	-60	GPS

Note: CSR = Reverse Circulation hole and CSD = Diamond hole.

Drilling – Caspiche Central Porphyry Target

In the 1990’s Newcrest tested the porphyry potential at Caspiche Central with three drill holes. The area of the drilling is entirely covered by alluvium material.

Table 2: Newcrest Caspiche Central Porphyry Mineralized Holes (not NI43-101 compliant).

Hole	From (m)	To (m)	Width (m)	Gold g/t	Copper %
CDH-2b	64	330	266	0.47	0.22
including	126	154	28	0.9	0.43
and	214	274	60	0.6	0.27
CDH-03	28	326	298	0.54	0.17
including	28	58	30	0.7	0.01
and	222	326	104	0.7	0.23
CDH-12	16	326	310	0.3	0.08

Exeter drilled hole CSR-013, the final hole for the 2006-2007 season into the area prospective for porphyry style mineralization at Caspiche Central. This was the first hole to be drilled on this target by Exeter and was sited over a pronounced geophysical anomaly (Induced Polarization Chargeability) that had been delineated by Newcrest. The anomaly had been partly tested by Newcrest drill holes, CDH-2b and CDH-3, although it was clear to Exeter that there remained significant potential for a deposit the size of the nearby Cerro Casale or Refugio deposits.

CSR-013 intersected a wide zone of mineralization, at a higher grade, than Newcrest’s previous holes, 304 metres (1,003 ft) grading 0.9 g/t gold (0.026 oz/ton), from a down hole depth of 40 metres. It was terminated in economic tenor mineralization at the final drilling capability of the RC rig. The gold porphyry target remained open to depth as well as to the north, south, east and west. Copper appeared at a down hole depth of 214 metres, indicating potential for an upper “leachable” gold section (devoid of copper) that averaged 0.9 g/t gold.

Exeter contracted Major Drilling to provide two diamond drill rigs for the 2007-2008 season. A third reverse circulation drill rig was also contracted for a period principally to assist with testing the upper gold blanket. The first hole, CSD-014, was collared 300 meters to the south of CSR-013. The new hole intersected an upper oxide silica cap mineralized zone from 0 to 148 meters, followed by 593 meters of porphyry stockwork mineralization that continued to the end of the hole at 744.7 meters. The potential “leachable” near surface gold zone in CSD014 is 148 meters in downhole length at a grade of 0.57 g/t gold, which includes 60 meters at a grade of 0.7 g/t gold.

Diamond drill hole CSD-015 was collared 400 meters to the northwest of hole CSD-014 and 250 meters to the west of CSR-013. Assays for CSD-015 returned 56.05 meters at a grade of 0.35 g/t gold in oxide material, from a depth of 57.95 meters. This interval was followed by 887.4 meters at a grade of 0.62 g/t gold and 0.27 % copper in the sulphide zone.

Diamond drill hole CSD-016 was drilled 200 meters northeast of CSD-014 and 200 meters southwest of CSD-015. The hole intercepted 718.75 meters (2,358 feet) at a grade of 1.0 g/t gold and 0.38% copper, from a depth of 73 meters. The upper gold blanket component was 92 meters at a grade of 0.41 g/t gold from 73 meters downhole. The lower sulphide component was 626.75 meters grading 1.1 g/t gold and 0.43 % copper. The hole ended at the limit of the drills capacity of 791.75 meters. The final 2.75 meters (9 ft) of drill core recovered from the hole assayed 0.74 g/t (0.021 oz/ton) gold and 0.35% copper.

Due to the onset of winter conditions CSD-026 was suspended at a depth of 209 meters in the oxide zone, while CSD-025 was suspended at a depth of 336 meters in high-grade primary gold-copper mineralisation. These are to be completed next season. CSD-018 was collared to test a strong geophysical anomaly located some 400 meters to the north and intersected the outer pyrite halo of the gold-copper porphyry.

Table 3: Caspiche Central Drill Hole Mineralised Intercepts

Diamond Hole	OXIDE GOLD MINERALIZATION					GOLD-COPPER MINERALIZATION
	From	To	Width	Gold	Copper	From	To	Width	Gold	Copper
	(m)	(m)	(m)	(g/t)	(%)	(m)	(m)	(m)	(g/t)	(%)
CSD-014	0	148	148	0.57	0.02	148	740.7	592.7	0.44	0.25
CSD-015	58	114	56	0.35	0.02	114	1001.4	887.4	0.62	0.27
CSD-016	73	165	92	0.41	0.01	165	791.8	626.8	1.08	0.43
CSD-024	0	209	209	0.29	0.02	209	766.3	557.3	0.36	0.15
CSD-025	44	212	168	0.64	0.01	212	336.05*	124.1	1.17	0.36
CSD-026	68	135	67	0.19	0.01	135	208.95*	74.0	0.32	0.13
RC Hole
CSR-013	40	214	174	0.88	0.01	214	344	130.0	0.87	0.22
CSR-019	32	154	122	0.30	0.00	154	240	86.0	0.20	0.08
CSR-020	6	126	120	1.16	0.01	126	250	124.0	0.45	0.08
CSR-021	10	152	142	0.31	0.01	Not tested
CSR-022	22	150	128	0.86	0.01	150	231	81.0	0.57	0.16
CSR-023	4	104	100	0.66	0.10	104	264	160.0	0.64	0.27

*Hole in Progress

To view assays and summary photo-geological logs please click on the links below:

Figure 3: Exeter Caspiche Central Drill Holes.

Caspiche Central Geology

Dr Richard Sillitoe, a renowned geological consultant, recently undertook a review of all Caspiche drill core. Much of the information provided in this Caspiche Central Geology section is from Dr Sillitoe’s report. For a copy of the entire report, please contact Rob Grey (V.P. Investor Communications) rgrey@exeterresource.com.

Mineralization

Caspiche Central has two dominant mineralization styles being (1) an upper Oxide Gold Zone (believed to be potentially heap leachable based on past scouting testwork) and (2) a Lower Porphyry Stockwork Gold-Copper Zone.

The Oxide Gold Zone is exposed in two outcrops and it was these that first drew attention to the presence of gold mineralization on the property. The Oxide Gold zone contains portions of high sulphidation epithermal mineralization comprising intense silica flooding with abundant kaolin and alunite and subordinate pyrophyllite. This zone also contains portions of oxidized porphyry stockwork mineralization, observed only in drill core. The Caspiche Oxide Zone is deeper developed than in most other Maricunga Porphyry deposits having an average vertical thickness calculated from drilling of around 150 meters.

The Lower Porphyry Stockwork Gold-Copper Mineralization is extensive having been drill tested to a vertical depth of over 750 meters, and with east-west and north-south dimensions of over 500 meters. Although the porphyry body has only limited drilling to date none of the holes have intersected post mineral stocks suggesting that the entire mass is mineralized. Mineralization also remains open to the east, west, and south and to depth. The Porphyry Stockwork Gold-Copper Zone is typified by asymmetrical stockwork veining (“A” type). High grade Gold-Copper mineralization is associated with broad sectors containing intense veining.

Chalcopyrite and minor pyrite are the main sulphide minerals in the potassic zone, with chalcopyrite presumed to contain much of the gold. The sulphides occur as extremely fine-grained, disseminated grains in “A-type” quartz veinlets, which constitute 50% or more of the early diorite porphyry. The advanced argillic overprint caused reconstitution of the sulphide assemblage and resulted in higher pyrite contents plus enargite and lesser tennantite.

Alteration

Commonly in this type of combined epithermal high sulphidation-porphyry hydrothermal system the epithermal mineralization develops near to the surface with the porphyry stockwork mineralization developing below at depths greater than 1 kilometre. However, in the Maricunga Belt of Chile there several deposits have the high sulphidation zone located immediately above the porphyry stockwork zone, or even overlapping with it, as is the case for Caspiche. This phenomenon is believed to be due to rapid erosion whilst the hydrothermal mineralizing system is active, a process referred to as “telescoping”.

Epithermal high sulphidation related alteration comprises zones of strong silica flooding-to vuggy silica and kaolinite altered rock with lesser alunite and minor pyrophylite. Three alteration styles are recognized in the porphyry-mineralized zone being 1. an inner k-feldspar rich potassic zone that grades outward into 2. a biotite rich potassic alteration and 3. an advanced argillic alteration comprising predominantly kaolinite with lesser alunite which overprints the earlier potassic alteration. This late stage advanced argillic overprint is thought to have resulted during the waning of the hydrothermal system when acid sulphate fluids collapsed downward overprinting earlier alteration types. K-feldspar converts to kaolinite, biotite to chlorite and magnetite to specular haematite. At depth stockwork “A” type veining is associated with potassic alteration. The large zone of stock work veining in advanced argillic alteration at shallower levels represents primary potassic altered rocks that were subsequently overprinted by the late stage advanced argillic alteration.

Rock Types

Four dominant rock types are present at Caspiche which in order from oldest to youngest are andesitic volcanics, micro-diorite, early diorite porphyry and inter-mineral quartz diorite. Observations to date indicate that the early diorite porphyry carries the highest grade mineralization. It intrudes both the andesitic volcanics and the micro-diorite causing a spotted hornfels texture in the micro-diorite proximal to the contact. The inter-mineral quartz diorite unit contains both stockwork veining and xenoliths of quartz vein material indicating assimilation of pre-existing stockwork mineralized rocks during intrusion.

Figure 4: Schematic Model for Mineralization on the Caspiche Central Gold-Copper Deposit.

The geology and mineralization observed at Caspiche is analogous to that of the Cerro Casale deposit located 10 kilometres to the south. The wide mineralized intercepts drilled by holes CSD-014, CSD-015 and CSD-016 indicate that Caspiche is another large Gold-Copper Porphyry deposit and as such it has very significant exploration potential.

Future Exploration

Exeter has three objectives for the forthcoming exploration season:

To define the limits of mineralization on the Caspiche Central Gold-Copper deposit.
To complete sufficient drilling to allow a 43-101 compliant “drill indicated” resource to be established.
To drill test two other porphyry targets on the property delineated by geophysical, geological and geochemical surveys conducted last season.

Exeter intends to have at least 4 drill rigs operating on the project in the 2008-2009 season that commences in October.

Drilling - Caspiche III Epithermal Target

Exeter commenced drilling on the Caspiche project early in 2007 with the aim of testing the Caspiche III epithermal target with 7 drill holes. Results suggested that mineralization was deeper than expected, so a follow-up drill program was undertaken to test potential for mineralisation nearer to surface. Holes drilled in the later program intersected significant widths of mineralisation but again there was considerable cover, suggesting a probable difficulty in establishing the near term viability of the Caspich III epithermal target.

Drilling confirmed the presence of a high-sulphidation epithermal gold system at Caspiche III. Mineralization is interpreted to lie within flat lying replacement zones that are probably related to a nearby intrusive body which has yet to be intersected by drilling.

Table 4: Significant Exeter Drill Intercepts from the Caspiche III Epithermal Gold + Silver Target

Hole	From (m)	To (m)	Width (m)	Gold g/t	Silver g/t
CSR-002	52	76	24	1.1	23
CSR-002	172	178	6	1.7	16
CSR-006	144	166	22	1.5	1.6
CSR-008	42	58	16	1.3	5
CSR-010	166	202	36	1.3	26
CSR-011	96	108	12	1.2	4
CSR-012	94	110	16	2.1	2

Table 5: Significant Results from Previous Drilling on Epithermal Targets (not 43-101 compliant)

Hole	From (m)	To (m)	Width (m)	Gold g/t	Silver g/t
CDH-05	0	126	126	0.7	6
CDH-05	126	200	74	0.5	2
CDH-14	92	150	58	0.5	25
SHC-05	2	48	46	1	6
SHC-07	2	50	48	0.5	10
SHC-10	2	50	48	0.7	1
SPC-01	26	58	32	0.7	13
SPC-05	2	102	100	0.5	1

Quality Control and Assurance

Drill widths presented above are drill intersection widths and may not represent the true widths of mineralization. Gold assay results presented are preliminary and have not been calculated using a gold cut-off grade, or with any cutting of high grades.

All diamond drill core samples are split on regular two-metre intervals and represent either sawn half HQ-size or NQ-size core. Gold samples were prepared and assayed by fire assay (50 gram charge) whilst copper was assayed with a four acid digestion and atomic absorption spectroscopy (AAS). The primary laboratory is ALS Chemex in Chile, an ISO-9001:2000 certified laboratory. Standard, blank and duplicate samples are used throughout the sample sequence as checks for the exploratory reverse circulation and diamond drilling.

Glen Van Kerkvoort, Exeter’s Chief Geologist 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.

43-101 Report:

26 April, 2008 (Details 6.23 MB - PDF)

24 December, 2007 (Details 6.72 MB - PDF)

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