Magallanes
On May 9, 2006 Exeter announced a new agreement with Rio Tinto Mining to explore 48 gold - silver and/or copper targets in Southern Chile. Rio Tinto has one time option after 5000m drilled on any project to earn 60% back in by paying Exeter 3x expenditure. If there is no back in, Rio retain a 1% Net Smelter Royalty with no expenditure commitments should a project go to production.
Exeter undertook a regional helicopter programme aimed at visually identifying areas of potential mineralization. Forty-one targets were recognized and these were prioritized giving 7 priority 1 vein targets, 5 priority 1 zones of silicification and 7 priority 1 zones of strong iron oxide staining. During this program the Zodiac vein system was discovered and mineral tenements were pegged to cover it.
Zodiac (100% Exeter)
The Zodiac property is located within a belt of Jurassic-Cretaceous calcalkaline volcanics and marine sediments. Four zones of vein mineralization have been identified to date the most important of these being the Cristina and Cutter sectors. At both these sectors mineralization occurs in a series of sub-vertical to west dipping south-southeast striking epithermal and mesothermal gold bearing quartz ± base metal veins. At Cristina there are 4 principal veins with widths up to 10 meters. These can be traced along strike for over 2.5 kilometers. At Cutter there are two principal veins and a number of subordinate structures occurring in an area measuring approximately 600 by 250 meters.
Twenty-nine continuous channel samples have been taken over exposed portions of the veins. These indicate the best gold mineralization to be in the southern extensions to the veins in areas untouched by the previous mining activity which focussed on Cu bearing portions (see table below).
Significant results from channel samples.
| Channel | From | To | Length | Au g/t | Ag g/t | Cu % | Pb % | Zn % |
|---|---|---|---|---|---|---|---|---|
| ZC-08 | 0.00 | 5.50 | 5.50 | 0.19 | 143 | 3.62 | 0.30 | 0.41 |
| ZC-14 | 1.00 | 3.30 | 2.30 | 4.01 | 181 | 1.87 | 0.35 | 1.09 |
| ZC-20 | 1.00 | 9.35 | 8.35 | 2.33 | 62 | 1.07 | 1.13 | 0.50 |
| ZC-28 | 0.00 | 5.40 | 5.40 | 3.69 | 24 | 0.04 | 0.04 | 0.02 |
In the 2007-2008 season Zonge Geophysics were contracted to run a 24-line kilometer gradient array Induced Polarization – resistivity survey. The survey highlighted the areas of mapped veins and delineated potential additional structures as well as extensions to the existing veins under cover.
A base line study has been conducted on the property and an environmental impact report has been prepared for permitting an initial 10,000 meters drilling.