PROJECTS - Patagonia

Cerro Moro

In August 2006, Exeter discovered a system of high grade gold-silver veins in the southern part of the large Cerro Moro vein system. For 12 months drilling was focused on a 950 metre long area referred to as the Escondida vein system. From August, 2007 the drilling emphasis shifted to testing extensions to the Escondida vein and 22 exploration targets located outside of the initial discovery area. From September 2008, a single rig will focus on additional drilling on the Escondida vein.

Please Click here to view the latest 43-101 on Cerro Moro 6.52MB PDF

Ownership

Exeter became the 100% owner of Cerro Moro project in late 2007 with CVSA retaining a 2% net smelter return royalty from production on the project.

Cerro Moro Sector

In March, 2008 Exeter announced it had signed a Letter of Intent for a strategic alliance with Fomicruz, the Santa Cruz Provincial Mining Company, whereby that company may hold a 5% equity interest in Cerro Moro upon the receipt of all permits and authorisations required for production, and Exeter may earn an 80% interest (resulting in a joint venture Fomicruz 20% and Exeter 80%) in a large block surrounding Cerro Moro by spending US$10 million. This new block includes strike extensions of the mineralized Escondida vein.

Fomicruz Alliance

Location

Cerro Moro is located in north-eastern Santa Cruz Province, approximately 70 kilometers southwest of Puerto Deseado. Access to the project area is via gravel provincial highways with a network of tracks providing reasonable to good access within the project area. The established Cerro Vanguardia gold-silver mine is located 130 kilometres west of the property.

Cerro Moro Location

Current Drilling Program:

Drilling at Cerro Moro for the six months to September 2008 focussed on step out and infill drilling on the Escondida vein, where mineralization has now been intersected over a 4.3 kilometre strike length and still remains open along strike and at depth. A second rig drilled extensions of other recent high grade vein discoveries, such as Silvia and Gabriela, and a third rig was focused on new vein discoveries.

Since March 2008, drill testing of veins with a combined strike length of 11 kilometres has progressed. In excess of 30 kilometres of vein strike length has been identified on the property to date, and in excess of 20 drill targets have been identified. Given the extensive gravel cover, additional geophysical surveys are planned to help identify new structures and targets.

The high grade veins are relatively rich in sulphides and are preferentially eroded. The effect is that the veins have little surface expression, quite unlike the prominent silica-rich veins in the northern section of the property. Furthermore the Escondida veins are generally covered by a thin veneer of recent marine gravels making the use of geophysics a valuable exploration tool for Exeter.

From September 2008, a single drill rig will work on the property with a focus of infill drilling on the Escondida vein system to provide data for an independent resource estimation during the first half of 2009.

Testing for depth extensions of the Escondida vein near the western boundary of Exeter’s tenementswill continue. Drilling at Escondida will also continue to test the area between the recently discovered north west extension and the previously defined area, some 400 metres to the south east.

The following longsections provides a summary of significant drill intersections released to end September 2008 on the Escondida and Gabriela veins.

Escondida Longitudinal Sections to September 2008 (in three parts)

Contoured gold grades times true width

View Larger version 2.6MB jpg

Contoured gold grades times true width

Contoured silver grades times true width

View Larger version 2.7MB jpg

Contoured silver grades times true width

Contoured gold equivalent grades times true width

View Larger version 2.6MB jpg

Contoured gold equivalent grades times true width

Gabriela Longitudinal Sections to October 2008

Contoured gold grades times true width

View Larger version 1.7MB jpg

Contoured gold grades times true width

Contoured silver grades times true width

View Larger version 1.7MB jpg

Contoured silver grades times true width

Contoured gold equivalent grades times true width

View Larger version 1.7MB jpg

Contoured gold equivalent grades times true width

Preliminary Metallurgy

Preliminary metallurgical test work on ore grade samples was completed in 2007 with results indicating high gold recoveries. An extensive metallurgical testing programme, including leaching and grinding testwork, has been progressing since early 2008, including the drilling of large diameter (PQ) diamond core holes for grinding testwork samples.

Results of the more extensive programme have indicated high recoveries for both gold and silver, averaging 99% and 92% respectively. The results received to date indicate that each stage of the selected flowsheet, which utilises flash flotation, gravity concentration and a conventional leach of the gravity tails, is contributing to the overall recovery. The contributions of each process stage vary from vein to vein, however when combined in a single process, the overall recoveries have been consistently high. The high silver recoveries are significant as indications are that around 40% of the metal value from veins discovered to date may come from silver.

Flowsheet development is well advanced, based on composite samples from Escondida Central – Oxide, Escondida Central – Fresh, Escondida East and Gabriela. These areas were selected because of the extensive drill sample material available. They also provide a wide variety of gold:silver ratios. Recoveries for specific vein composites were all high, suggesting the flowsheet will be robust.

Click here to read the 13th August 2008 news release detailing results of the recovery testwork.

Internal conceptual development options studies will commence in the second half of 2008. It is anticipated that both open cut and underground mining methods will facilitate the optimum extraction of the higher grade mineralisation.

Geology

The basement geology comprises gently-dipping rhyolitic ignimbrites, felsic flows, acid to intermediate tuffs, tuff breccias and volcaniclastic sediments belonging to the Middle to Upper Jurassic Chon Aike and Matilde Formations. The volcanic rocks are locally overlain by Tertiary basalts and Quaternary gravels and sediments.

Low-sulphidation style epithermal gold and silver mineralization is primarily associated with a number of quartz-bearing veins which strike over distances ranging between 240 and 1250 meters. The silver content of the mineralization is frequently considerable, with many trench and drill holes assaying in excess of 500 g/t silver.

In June, 2008, consultant geologist, N.J. Callan, completed a 1:10,000 geological mapping program of the entire Cerro Moro tenements. A summary map and link to the legend is presented below:

Cerro Moro Geology

Geology Map Legend

Click the thumbnail to download a PDF version of the legend for the Geology Map

Previous Exploration

A significant amount of exploration (including trenching and diamond and percussion drilling) had been conducted on the Cerro Moro Project prior to Exeter’s involvement, making it the most advanced of the package of projects optioned through the CVSA Agreement. Gold-silver mineralized veins occur over a large 100 square kilometer area which is extensively blanketed by shallow marine sediments.

Early exploration located 16 vein structures and 6 areas of stockwork or disseminated mineralization. No previous geophysical surveys were known to have been conducted at Cerro Moro prior to the Exeter programs, and all drilling by previous explorers was targeted at outcropping vein systems.

Of the 22 targets identified by CVSA, 11 of the targets were tested with 2 or 3 diamond and/or reverse circulation percussion drill holes. With one exception, drill hole spacings were in the order of 150 to 250 meters. Nineteen shallow diamond drill holes, totalling 1005 meters, were completed on seven prospects. The average diamond drill hole length was 53 meters to achieve an average vein intersection depth of only 30 metres below surface. Fifteen reverse circulation percussion holes, totalling 1577 meters, were drilled on 6 prospects, to an average down hole depth of 105 meters.

Exeter management believed that the limited, wide-spaced drilling undertaken on the individual prospects was not an effective test of the extensive mineralized system at Cerro Moro. Significant potential remained to locate extensions of existing veins and new veins below the thin marine gravel cover.

Exeter Exploration Program

Prior to mid 2006, Exeter completed 2066 meters of reverse circulation drilling, essentially to test prominent outcropping quartz veins in the northern part of the vein system. This program had mixed success, finding generally low to moderate grade gold-silver mineralization in veins of limited width.

In mid 2006, Exeter commenced drilling on a poorly exposed relatively sulphide-rich vein referred to as the Carla Vein. One drill hole returned a wide, high grade gold-silver intersection and encouraged our exploration team to prospect, trench and expose the Escondida and Esperanza South vein systems, which are characterized by relatively high-sulphide mineralization and high grade gold-silver values.

Exeter used two geophysical methods to define targets on the property. The first was a very detailed ground magnetometry survey to define geological structures. The initial survey (total survey coverage 2339 line kilometres) took 18 months to complete and was oriented east-west to define northerly trending vein systems. When it was determined that the important high grade sections of the Escondida and Carla vein systems generally have an easterly trend (sub-parallel to the original survey lines), additional surveying on a north-south grid was completed.

The Company commenced extending coverage of the detailed ground magnetometry survey in April 2008, using its own geophysical crew and equipment. The following map displays the areas currently in progress with blocks A, B, and C expected to be completed during September-October, 2008.

Exploration

The second geophysical method was induced polarisation/resistivity surveying to measure sulphides and/or the silica content of structures (total survey coverage 375 line kilometres). Additionally different host rocks have different resistivity responses. When host rocks are displaced by faulting a sharp contact is observed in the resistivity response and these faults often contain mineralised veins. The resistivity data from this survey has been very effective when combined with the magnetometry data. Additional resistivity surveying was completed in July 2008, coupled with the new program of extensive geological mapping referred to previously.

The geophysical surveys are credited with the identification of numerous drilling targets, particularly those under marine sedimentary cover. Where outcrop is available, Exeter is able to use rock chip sampling, soil geochemistry and trenching data to refine targets for drilling.

Three drill rigs worked on site from November 2007 to September 2008, collectively drilling around 3000 metres per month. Two of the rigs are combination RC/diamond rigs, with a third diamond rig. The company uses RC drilling for its discovery drilling programme, and where practical drills RC pre-collars on step out and infill drilling on discovered veins, while coring through the mineralized veins.

The northwest strike extension to the Escondida vein, some 400 metres along strike from the areas previously drilled on the structure, was under 30 to 40 metres of marine gravels and low grade mineralisation. This suggests the mineralized body has not been eroded. Drilling is continuing to test for depth extensions at the far west portion of Escondida, as well as testing the 400 metre vein strike length between the far west discovery area and the previously drilled western zone.

A very useful detailed structural-geological report on the mineralisation with implications for further exploration discoveries at Cerro Moro has been drafted by epithermal-structural expert, Dr. Greg Corbett in December, 2007, following his field examination in November; please click here to read.

Exeter Cerro Moro Report - Dr. Greg Corbett, November, 2007 (2.3MB)

Further information on Dr. Corbett may be obtained from his website, (http://www.corbettgeology.com).

Significant Drilling Results

Following are tables of significant results ( publicly released up to early November 2008) for the Escondida, Loma Escondida, Esperanza, Gabriela, Silvia, Carla, Deborah and Patricia prospects.

Escondida:

Drill Hole From (m) To (m) Width (m) Gold (g/t) Silver (g/t) Gold Equivalent (g/t)*
ESCONDIDA FAR WEST
MRC161 45.0 46.0 1.0 1.1 20 1.5
and 61.0 62.0 1.0 1.3 84 2.7
MRC162 76.0 77.0 1.0 1.3 74 2.5
MRC175 68.0 74.0 6.0 11.5 311 16.7
including 71.0 73.0 2.0 31.1 746 43.6
MRC178§ 126.67 128.84 2.17 5.1 249 9.3
including 127.61 128.30 0.69 13.4 637 24.0
MRC254 94.0 97.0 3.0 11.2 308 16.4
including 95.0 96.0 1.0 28.6 620 38.9
MD206 18.66 19.45 0.79 2.7 348 8.5
MD206 38.85 41.25 2.40 2.7 166 5.5
MD216 94.00 101.53 7.53 33.2 2,219 70.2
including 97.87 100.63 2.76 86.7 5,915 185.3
includes 98.48 99.10 0.62 234.0 13,945 466.4
MD218 152.40 155.82 3.42 53.3 3,403 110.1
including 152.40 153.51 1.11 86.9 4,608 163.7
and 154.57 155.34 0.77 106.0 7,800 236.0
MD221 62.0 64.0 2.0 7.6 165 10.4
including 63.0 64.0 1.0 14.7 316 19.9
and 74.0 80.8 6.8 22.2 1,555 48.1
including 77.0 79.0 2.0 64.7 4,570 140.9
MD226 196.5 202.0 5.5 4.3 252 8.5
including 196.5 198.0 1.5 15.6 1,057 33.2
including 197.7 198.0 0.3 35.8 2,470 76.9
MD229 149.3 154.6 5.3 4.5 368 10.7
including 152.1 153.1 1.0 18.2 1,349 40.6
MD233 173.7 175.4 1.7 4.4 326 9.8
including 173.7 174.0 0.3 9.9 658 20.9
and 174.8 175.1 0.3 7.6 786 20.7
MD259A 185.96 194.95 8.99 2.0 211 5.5
including 194.25 194.95 0.70 17.9 2,003 51.3
MD398 113.03 115.00 1.97 53.8 +3,000** TBA
including 113.03 113.40 0.37 196 +3,000** TBA
ESCONDIDA WEST
MRC084 22.00 24.00 2.00 16.3 178 19.3
and 29.00 30.00 1.00 39.7 1,590 66.2
MD085 62.00 63.27 1.27 3.6 52 4.4
including 62.33 62.85 0.52 6.7 79 8.0
MD095 43.85 45.95 2.10 65.7 2,218 102.7
including 43.85 44.30 0.45 246.0 5,450 151.6
MD096 10.20 12.90 2.70 18.8 364 24.8
Including 11.00 12.00 1.00 44.6 919 59.9
MD122 39.70 40.00 0.30 2.3 100 4.0
MD123 32.70 36.96 4.26 3.0 141 5.3
including 33.80 34.75 0.95 8.6 315 13.8
MD124 76.00 78.00 2.00 4.4 471 12.2
MD145 50.43 50.75 0.32 3.6 228 7.4
MD149 41.00 42.55 1.55 6.5 620 16.9
including 42.15 42.55 0.40 21.1 2,060 55.4
MD169 34.85 37.25 2.40 6.1 230 9.9
including 35.70 37.25 1.55 8.6 295 13.6
MD228 78.0 82.1 4.1 16.1 865 30.5
including 80.8 81.4 0.6 93.0 4,535 168.6
MD258 157.0 159.0 2.0 2.9 28 3.5
and 201.7 210.0 8.3 1.7 72 2.9
including 201.7 204.0 2.3 3.3 31.3 3.8
including 206.0 207.0 1.0 3.2 261 7.6
and 217.9 218.9 1.0 6.1 365 12.2
including 218.6 218.9 0.3 14.3 749 26.8
and 226.75 227.10 0.35 11.7 1,230 32.2
and 229.8 234.0 4.2 1.4 86 2.8
MD260## 57.0 60.0 3.0 11.5 72 12.7
including 57.0 58.0 1.0 32.6 167 35.4
and 130.22 132.00 1.78 10.5 477 18.4
including 130.22 131.20 0.98 18.3 797 31.6
and 134.00 135.00 1.00 1.5 3 1.6
MD262 72.00 73.00 1.00 4.1 353 10.0
MD311 90.15 91.75 1.60 19.7 2,046 53.8
MD340 124.12 124.70 0.58 21.0 54 21.9
MD342 205.95 206.55 0.60 7.4 3,181 60.5
including 206.25 206.55 0.30 11.6 6,070 112.7
MD345 134.30 134.85 0.55 12.1 763 24.8
ESCONDIDA CENTRAL
MD061 38.53 41.20 2.67 27.3 245 30.8
including 39.26 40.69 1.43 50.1 436 56.3
MD064 30.00 40.40 10.40 11.6 777 22.7
including 37.55 38.60 1.05 105.8 7,142 207.8
MD082 131.30 135.00 3.70 94.9 211 98.4
including 131.30 132.89 1.59 220.1 427 227.2
MD088 32.00 33.70 1.05 7.8 10 8.0
and 35.40 38.10 2.70 6.7 288 11.5
including 36.60 37.30 0.70 13.6 646 24.3
MD089 77.15 80.00 2.85 30.3 1,173 49.8
including 78.08 78.40 0.32 263.0 9,370 419.2
MD090 68.00 69.70 1.70 49.7 346 55.4
including 68.00 69.15 1.15 70.9 341 76.6
MD091 84.52 88.90 4.38 37.3 221 35.6
including 85.50 85.85 0.35 431.0 562 440.4
MD098 77.49 81.32 3.83 127.2 4,281 198.6
including 79.30 80.40 1.10 419.9 13,630 647.1
MD104a 149.26 149.72 0.46 3.0 73 4.2
MD105 101.47 102.45 0.98 3.1 437 10.4
including 102.02 102.45 0.43 6.4 963 22.4
and 105.47 110.00 4.53 1.9 286 6.6
including 105.47 106.38 0.91 8.3 1,227 28.8
MD106 28.50 32.00 3.50 61.8 1,887 93.2
including 29.40 30.41 1.01 212.1 6,068 313.2
and 43.00 46.00 3.00 9.5 1,018 26.5
including 44.48 44.83 0.35 62.3 7,590 188.8
MD112 100.40 103.66 3.26 34.0 2,331 72.9
including 100.40 102.01 1.94 56.6 3,819 120.3
MD113 45.20 50.00 4.80 3.7 12 3.9
MD115 54.35 55.73 1.38 51.4 3,305 106.5
including 55.00 55.41 0.41 99.0 5,380 188.7
MD139 30.72 33.97 3.25 33.8 540 42.8
including 31.11 32.75 1.64 63.4 851 77.6
including 32.00 32.45 0.45 134.5 1,040 151.8
MD140 79.56 85.25 5.69 10.5 367 16.6
including 82.58 83.30 0.72 25.4 321 30.8
including 83.90 84.63 0.73 40.4 1,320 62.4
and 109.00 110.76 1.76 7.0 1,404 30.4
including 110.48 110.76 0.28 35.2 5,960 134.5
MD142 118.50 118.80 0.30 1.4 205 4.8
and 139.95 140.32 0.37 32.8 3,330 88.3
MRC159 11.0 14.0 3.0 1.1 5 1.2
MD171 17.00 18.00 1.00 0.6 170 3.4
MD270 251.67 252.03 0.36 34.8 1,305 56.5
ESCONDIDA EAST
MD087 30.06 32.07 2.01 19.1 409 25.9
including 31.03 32.07 1.04 35.9 747 48.3
MD107 85.84 86.17 0.33 2.4 27 2.9
MD108 23.08 24.06 0.98 18.2 619 28.5
MD109 126.50 128.73 2.23 2.7 86 4.1
including 126.80 127.20 0.40 10.5 259 14.8
MD110 26.00 29.08 3.08 24.6 538 33.6
including 27.39 29.08 1.69 43.3 971 59.5
MD111 26.80 27.78 0.98 79.2 572 88.7
including 27.40 27.78 0.38 197.0 1,230 217.5
MD117 43.99 45.60 1.61 19.5 93 21.0
including 44.88 45.60 0.72 34.4 155 36.9
MD118 50.63 52.60 1.97 49.9 80 51.2
including 52.30 52.60 0.30 198.5 172 201.4
MD135 76.00 78.20 2.20 9.3 140 11.6
MD137 72.28 73.13 0.85 20.9 200 24.2
including 72.78 73.13 0.35 35.9 325 41.3
MD148 130.63 134.00 3.37 2.1 14 2.3
and 140.00 141.00 1.00 0.8 95 2.4
MD151 98.40 99.20 0.80 11.6 26 12.1
MD152 99.40 100.17 0.77 9.4 92 10.9
ESCONDIDA FAR EAST
MD373 150.45 156.00 5.55 302.4 6,623 412.7
including 150.75 151.95 1.20 841.4 13,317 1,063
and 172.00 173.10 1.10 9.2 15.8 9.5
MD393 200.00 214.00 14.00 5.7 20 6.1
including 201.90 202.20 0.30 14.9 28 15.3
and 206.00 207.00 1.00 47.9 27 48.4
MD395 148.03 149.00 0.97 2.7 37 3.3
159.95 160.25 0.30 1.3 19 1.7
MD396 146.06 146.41 0.35 1.2 8 1.4
161.00 163.00 2.00 1.2 2 1.2
MD400 171.50 171.90 0.40 4.5 13 4.7

* Gold equivalent grade is calculated by dividing the silver assay result by 60, adding it to the gold value and assuming 100% metallurgical recovery.
# MRC denotes a reverse circulation percussion drill hole, and MD denotes a diamond drill hole.
§ Although MRC178 is designated as a RC percussion drill hole, the intersection presented in the above table represents a diamond core.
## The intersection between 57.0 to 60.0 metres represents mineralisation within the RC percussion pre-collar portion of the diamond drill.
** One sample assayed above the 10,000 g/t silver assay limit for the method and the final results are awaited, but the result for the intersection will be at least 3,000 g/t silver.

NOTE: All intervals calculated at a 0.5 g/t gold cut-off, except for MD270, MD311, MD373, MD340, MD342, MD345, MD393, MD395, MD396, MD398 and MD400 which utilise a 1.0 g/t gold cut-off.
Drill widths presented above are drill intersection widths and may not represent the true widths of mineralization.

Drilling at Escondida Central has focussed on the detailed delineation of bonanza-grade and high-grade shoots, to an approximate vertical depth of 125 metres from surface. Significantly, high-grade gold and silver mineralisation at Escondida Central is associated with elevated base metal assays, as displayed in the following table:

Drill Hole From
(m)		 To
(m)		 Width
(m)		 Gold
(g/t)		 Silver
(g/t)		 Gold Equiv.
(g/t)*		 Cu
%		 Pb
%		 Zn
%
MD064 37.55 38.60 1.05 105.8 7,142 224.8 0.6 2.4 4.2
MD082 131.30 132.89 1.59 220.1 427 227.2 0.2 1.5 0.8
MD089 78.08 78.40 0.32 263 9,370 419.2 0.1 1.4 3.7
MD098 79.30 80.40 1.10 419.9 13,630 647.1 0.4 2.1 3.4
MD106 44.48 44.83 0.35 62.3 7,590 188.8 0.1 1.1 1.4
MD112 100.40 102.34 1.94 56.6 3,819 120.3 0.3 0.9 1.7
MD115 55.00 55.41 0.41 99.0 5,380 188.7 0.3 2.7 3.1

* Gold equivalent grade is calculated by dividing the silver assay result by 60, adding it to the gold value and assuming 100% metallurgical recovery.

Loma Escondida:

Drill Hole# From
(m)		 To
(m)		 Width
(m)		 Gold
(g/t)		 Silver
(g/t)		 Gold Equivalent
(g/t)*
LOMA ESCONDIDA
MD092 18.90 20.30 1.40 51.2 1,679 79.2
including 19.23 20.00 0.77 90.9 2,930 139.7
MD093 15.92 16.39 0.47 2.6 66 3.7
MD094 12.49 12.79 0.30 4.8 348 10.6
MD130 27.40 28.71 1.31 77.9 4,153 147.1
27.40 27.77 0.37 261.0 13,183 480.7
MD131 21.00 23.00 2.00 4.3 305 9.4
21.00 21.76 0.76 8.4 546 17.4
MD133 58.00 59.00 1.00 1.7 107 3.5
MD189 54.0 54.5 0.5 48.5 2,940 97.5
MD191 54.4 54.7 0.3 36.2 1,270 57.4
MD195 40.54 41.28 0.74 57.5 5,226 144.6
including 40.54 40.90 0.36 117 10,480 291.7
MD197 21.0 22.0 1.0 11.7 911 26.8
including 21.7 22.0 0.3 35.5 2,170 71.6
MD243 95.72 96.40 0.68 35.1 3,252 89.3
including 95.72 96.10 0.38 62.5 5,780 158.8
MD245 90.57 90.87 0.30 16.0 652 26.8
MD300 40.60 41.55 0.95 8.8 932 24.3
including 41.10 41.55 0.45 17.6 1,805 47.7

* Gold equivalent grade is calculated by dividing the silver assay result by 60, adding it to the gold value and assuming 100% metallurgical recovery.
# MRC denotes a reverse circulation percussion drill hole, and MD denotes a diamond drill hole.

NOTE: All intervals calculated at a 0.5 g/t gold cut-off, except holes MD243, MD245 and MD300 that were calculated at a 1.0 g/t gold equivalent cut-off.
Drill widths presented above are drill intersection widths and may not represent the true widths of mineralization.

Drilling at Loma Escondida has focussed on delineating the high-grade, albeit relatively narrow, gold-silver mineralised shoots. As at the Escondida Prospect, the higher-grade gold-silver intersections are associated with anomalous base metal values:

Drill Hole From
(m)		 To
(m)		 Width
(m)		 Gold
(g/t)		 Silver
(g/t)		 Gold Equiv.
(g/t)*		 Cu
ppm		 Pb
ppm		 Zn
ppm
MD092 18.90 20.30 1.40 51.2 1,679 79.2 141 3,199 220
including 19.23 20.00 0.77 90.9 2,930 139.7 200 5,442 298
MD094 12.49 12.79 0.30 4.8 348 10.6 30.0 1,040 31
MD130 27.41 28.72 1.31 77.9 4,153 147.1 557 5,286 365
including 27.41 27.78 0.37 261.0 13,183 480.7 1,760 17,500 705
MD131 21.00 23.00 2.00 4.3 305 9.4 195 236 230
including 21.00 21.76 0.76 8.4 546 17.4 307 390 238

Esperanza:

Drill Hole# From
(m)		 To
(m)		 Width
(m)		 Gold
(g/t)		 Silver
(g/t)		 Gold Equivalent
(g/t)*
ESPERANZA
MRC038 34.0 38.0 4.0 3.7 292 8.6
and 49.0 51.0 2.0 7.8 729 19.9
including 49.0 50.0 1.0 11.8 1,050 29.3
MRC057 38.0 41.0 3 4.0 323 9.4
and 78.0 81.0 3 2.1 76 3.3
MRC059 20.0 24.0 4 3.2 271 7.8
MRC060 15.0 18.0 3 1.0 115 2.9
MD076 42.58 45.60 3.02 5.6 664 15.1
MD077 33.23 34.89 1.66 1.1 123 2.8
MD315 121.86 122.91 1.05 4.2 364 10.2
including 121.86 122.26 0.40 8.1 919 23.5
ESPERANZA SOUTHEAST (in rhyolite)
MD-099 33.70 48.73 15.03 1.2 78 2.5
including 35.33 38.87 3.54 3.3 190 6.5
MD-100 36.95 40.25 3.30 6.9 206 10.3
MD-101 32.37 38.46 6.09 7.5 141 9.9
including 35.00 38.00 3.00 13.3 248 17.5
ESPERANZA SOUTHEAST (in andesite)
MD-102 39.77 40.77 1.00 1.5 121 3.5
MD-103 9.04 10.55 1.51 10.7 341 16.4
including 9.61 10.55 0.94 17.1 511 25.6

* Gold equivalent grade for silver is calculated by dividing the silver assay by 60 and assumes 100% metallurgical recovery.
# MRC denotes a reverse circulation percussion drill hole, and MD denotes a diamond drill hole.

NOTE: All intervals calculated at a 0.5 g/t gold cut-off, except hole MD315 that was calculated at a 1.0 g/t gold equivalent cut-off.
Drill widths presented above are drill intersection widths and may not represent the true widths of mineralization.

Gabriela:

Drill Hole
#		 From
(m)		 To
(m)		 Width
(m)		 Gold
(g/t)		 Silver
(g/t)		 Gold Equivalent
(g/t)*
GABRIELA
MD163 33.8 35.9 2.1 3.6 610 13.7
including 34.2 34.8 0.6 7.4 1,280 28.7
and 46.5 47.5 1.0 1.2 358 7.2
MD164§ 41.7 42.6 0.9 1.3 243 5.3
MD179 29.58 32.00 2.42 2.2 286 7.0
including 30.65 31.44 0.79 4.3 440 11.6
MD181 71.9 72.3 0.4 3.7 614 13.9
and 74.9 84.8 9.9 1.2 229 5.1
including 82.0 84.8 2.8 2.6 480 10.6
and 88.9 89.4 0.5 1.9 326 7.3
and 109.0 110.0 1.0 1.7 216 5.3
MD183 20.5 24.1 3.6 2.9 506 11.3
including 21.5 22.1 0.6 6.4 1,090 24.5
including 22.6 23.0 0.4 6.0 990 22.5
and 25.4 30.9 5.5 1.3 161 4.0
including 25.9 27.3 1.4 2.2 374 8.4
including 29.5 30.0 0.5 2.6 144 5.0
MD184 23.8 24.6 0.8 1.8 260 6.2
MRC264 39.0 48.0 9.0 1.5 196 4.8
including 39.0 42.0 3.0 3.0 314 8.3
MRC266 54.0 56.0 2.0 2.4 317 7.7
MD318 31.00 36.74 5.74 1.6 221 5.3
including 33.77 36.40 2.63 3.0 394 9.6
MD321 54.60 59.78 5.18 3.4 421 10.4
including 58.97 59.78 0.81 15.9 2,080 50.5
MD322 248.90 257.20 8.30 0.7 137 3.0
including 252.35 252.65 0.30 3.5 617 13.8
and 253.90 254.55 0.65 3.6 722 15.7
MD323 49.00 51.28 2.28 1.0 144 3.4
and 54.74 57.78 3.04 3.0 370 9.2
including 56.20 56.77 0.57 6.5 946 22.2
MD324 166.64 169.52 2.88 1.5 244 5.5
including 167.05 167.37 0.32 2.3 826 16.1
MD327 185.58 187.87 2.29 1.7 262 6.0
including 185.58 186.44 0.86 2.8 416 9.8
MD328 163.20 163.75 0.55 2.4 869 16.9
MD337 173.00 174.00 1.00 0.8 181 3.8
and 176.00 177.93 1.93 1.4 177## 4.4##
MD357 138.74 139.11 0.37 1.7 166 4.4
and 141.89 143.00 1.11 0.7 369 6.8
MD362 128.85 142.00 13.11 1.0 124 3.1
including 129.73 130.74 1.01 6.3 658 17.3
MD364 110.95 113.79 2.84 3.0 474 10.9
including 112.39 113.79 1.40 4.5 709 16.3
MD366 113.84 117.34 3.50 1.0 138 3.3
MD368 158.56 167.74 9.18 1.6 272 6.2
including 158.56 162.90 4.34 3.1 502 11.5
MD371 74.85 75.35 0.50 15.4 2,630 59.3
and 77.00 81.05 4.05 9.8 1,510 35.0
including 77.35 79.00 1.65 21.1 3,157 73.7
and 87.30 87.60 0.30 2.6 303 7.6
and 97.50 98.60 1.10 1.7 59 2.7
and 104.00 104.85 0.85 6.0 1,246 26.7
MRC372 79.0 81.0 2.0 5.5 987 22.0
and 83.0 84.0 1.0 0.5 94 2.1
and 86.0 87.0 1.0 0.5 78 1.8

* Gold equivalent grade for silver is calculated by dividing the silver assay by 60 and assumes 100% metallurgical recovery. Gabriela appears to be a silver rich vein; however, gold equivalent grades are included here for ease of comparison.
# MRC denotes a reverse circulation percussion drill hole, and MD denotes a diamond drill hole.
§ Drill hole MD164, actually intersected mineralization greater than 0.5 g/t gold in the interval 2.0 – 3.5 metres, however given that the core recoveries in this interval was significantly less than required for reporting purposes this interval was assigned a gold grade of zero.
## The intersection quoted for hole MD337, from 176.30 to 177.57 m, contains silver results that assayed over the upper limit of the method at 200 g/t and require re-assaying. For the calculation of the above intersection a value of 200 g/t silver was assumed.

NOTE: All intervals previous to hole MD318 calculated at a 0.5 g/t gold cut-off, and all holes post MRC266 calculated at a 1.0 g/t gold equivalent cut-off.
Drill widths presented above are drill intersection widths and may not represent the true widths of mineralization.

Silvia:

Drill Hole From
(m)		 To
(m)		 Width
(m)		 Gold
(g/t)		 Silver
(g/t)		 Gold Equivalent
(g/t)*
SILVIA
MRC154** 74.15 74.45 0.3 25.6 138 27.9
and 111.43 113.17 1.74 12.2 37 12.8
including 111.43 112.40 0.97 21.4 53 22.3
MRC155 24.0 27.0 3.0 10.0 159 12.6
MRC156 34.0 37.0 3.0 4.9 62 5.9
including 36.0 37.0 1.0 12.9 113 14.8
and*** 85.68 86.19 0.51 7.9 67 9.0
MRC186 64.0 65.0 1.0 2.2 3 2.3
and 73.0 75.0 2.0 11.6 85 13.0
MRC187# 10.0 11.0 1.0 7.3 2 7.3
and 50.0 51.0 1.0 1.4 6 1.5
MRC188 9.0 12.0 3.0 12.0 97 13.6
MD290 159.00 159.96 0.96 4.3 9 4.4
MRC377 5.0 7.0 2.0 14.3 3 14.3
5.0 6.0 1.0 27.3 5 27.3

* Gold equivalent grade is calculated by dividing the silver assay result by 60, adding it to the gold value and assuming 100% metallurgical recovery.
** MRC denotes a percussion drill hole, however this new intersection represents a diamond core extension of a previous hole.
*** The results of this portion of the RC percussion drill hole MRC156 represent a diamond core extension of the hole.
# Note: MRC187 also intersected mineralisation greater than 0.5 g/t gold between the interval 54.0 to 57.0 metres, however the recoveries were significantly less than reporting requirements. In addition drill hole MRC190 (refer to plan) intersected mineralisation well greater than 0.5 g/t gold between the interval 64.0 to 67.0 metres, however the recoveries were also significantly less than for reporting requirements.

NOTE: All intervals calculated at a 0.5 g/t gold cut-off, except holes MD290 and MRC377 that were calculated at a 1.0 g/t gold equivalent cut-off.
Drill widths presented above are drill intersection widths and may not represent the true widths of mineralization.

Carla:

Drill Hole# From
(m)		 To
(m)		 Width
(m)		 Gold
(g/t)		 Silver
(g/t)		 Gold Equivalent
(g/t)*
CARLA
MRC44 26 27 1 8.0 684 19.4
MRC45 46 56 10 15.4 790 28.6
including 47 49 2 43.6 2293 81.8
MD066 20.16 35.75 15.59 6.6 198 9.5
including 31.3 35.15 3.85 22.3 678 32

* Gold equivalent grade is calculated by dividing the silver assay result by 60, adding it to the gold value and assuming 100% metallurgical recovery.
# MRC denotes a reverse circulation percussion drill hole, and MD denotes a diamond drill hole.

NOTE: All intervals calculated at a 0.5 g/t gold cut-off.
Drill widths presented above are drill intersection widths and may not represent the true widths of mineralization.

Deborah:

Drill Hole# From
(m)		 To
(m)		 Width
(m)		 Gold
(g/t)		 Silver
(g/t)		 Gold Equivalent
(g/t)*
DEBORAH
MRC025 23 27 4.0 2.8 19 3.1
MRC027 29 32 3.0 4.5 98 6.1
MRC028 28 30 2.0 10.7 127 12.8
MRC029 26 29 3.0 6.5 197 9.8
MRC030 14 19 5.0 4.8 105 6.5
MRC032 27 29 2.0 6.5 124 8.6
MRC052 59 64 5 2.9 74 4.1
MRC053 41 55 14 3.0 61 4.1
including 49 50 1 13.0 142 15.3
MRC055 31 34 3 2.4 17 2.7
MD063 80.13 88.00 7.87 1.0 23 1.3
including 82.10 84.13 2.03 1.5 60 2.4

* Gold equivalent grade is calculated by dividing the silver assay result by 60, adding it to the gold value and assuming 100% metallurgical recovery.
# MRC denotes a reverse circulation percussion drill hole, and MD denotes a diamond drill hole.

NOTE: All intervals calculated at a 0.5 g/t gold cut-off.
Drill widths presented above are drill intersection widths and may not represent the true widths of mineralization.

Patricia:

Drill Hole# From
(m)		 To
(m)		 Width
(m)		 Gold
(g/t)		 Silver
(g/t)		 Gold Equivalent
(g/t)*
PATRICIA
MD067 49.64 51.10 1.46 7.5 934 23.1
including 50.03 50.60 0.57 18.1 2,290 56.2
MD069 49.40 49.89 0.49 1.3 162 3.6
MD071 25.00 26.29 1.29 2.1 10 2.2
MRC202 38.0 40.0 2.0 8.6 1,238 29.3
MRC207 59.0 61.0 2.0 2.0 194 5.2
MRC219 36.0 38.0 2.0 2.9 3 2.9
MD250 141.55 142.20 0.65 2.0 93 3.6
MD251 141.00 142.00 1.00 4.9 6 5.0

* Gold equivalent grade for silver is calculated by dividing the silver assay by 60 and assumes 100% metallurgical recovery. Patricia appears to be a silver rich vein; however, gold equivalent grades are included here for ease of comparison.
# MRC denotes a reverse circulation percussion drill hole, and MD denotes a diamond drill hole.

NOTE: All intervals calculated at a 0.5 g/t gold cut-off, except holes MD250 and MD251 that were calculated at a 1.0 g/t gold equivalent cut-off..
Drill widths presented above are drill intersection widths and may not represent the true widths of mineralization.

Discovery Drilling Program:

To date there are at least 20 other prospects identified at Cerro Moro that have anomalous drilling or anomalous surface sampling that require follow-up. Results have been compiled from 28 drill holes on 14 separate veins located within the larger Cerro Moro vein field and are summarized on the following map:

Discovery Drilling

New results are summarized in the following table:

Drill Hole§ From
(m)		 To
(m)		 Width
(m)		 Gold
(g/t)		 Silver
(g/t)		 Gold Equivalents*
(g/t)
Nini-Esperanza Gap
MRC209 44.0 46.0 2.0 0.9 150 3.4
MRC211 82.0 84.0 2.0 2.6 322 8.0
including 82.0 83.0 1.0 4.6 567 14.1
MRC215 34.0 35.0 1.0 1.5 143 3.9
Tres Lomas
MD276 22.40 23.77 1.37 5.3 367 11.4
Ornella
MRC303 8.0 9.0 1.0 2.7 23 3.1
Susy
MRC314 30.0 32.0 2.0 1.4 72 2.6
Conceptual Targets#
MRC341 96.0 97.0 1.0 0.5 27 0.9
MRC347 39.0 41.0 2.0 0.6 3 0.6
MRC349 48.0 51.0 3.0 2.3 0 2.3
MRC350 27.0 28.0 1.0 0.6 10 0.8
MRC351 69.0 70.0 1.0 2.2 136 4.5
Romina#
MRC360 20.0 22.0 2.0 3.7 60 4.7
including 21.0 22.0 1.0 6.8 103 8.5
Michelle
MD384** 17.0 20.0 3.0 1.3 BDL N/A
54.00 56.00 2.00 3.4 100 5.0
including 55.00 55.40 0.40 9.5 273 14.1
58.00 59.00 1.00 2.0 18 2.3
68.00 69.00 1.00 0.6 39 1.3
75.00 76.00 1.00 1.1 12 1.3
MD386 102.73 105.35 2.62 7.4 147 9.9
including 103.18 103.50 0.32 42.3 541 51.3
Nini
MD383 52.62 53.38 0.76 2.1 225 5.9
MD388 65.43 67.57 2.14 1.3 141 3.7
74.00 75.00 1.00 1.2 1 1.2
83.00 84.00 1.00 1.7 2 1.7
87.00 88.00 1.00 3.1 4 3.2
MRC390 28.0 29.0 1.0 1.1 157 3.7
MRC392 48.0 49.0 1.0 1.4 8 1.6
Moro
MD394 126.40 127.05 0.65 3.4 192 6.6
MD397A 144.08 144.50 0.42 1.7 79 3.0
145.95 148.15 2.20 1.1 52 1.9
149.80 150.55 0.75 4.4 197 7.7
including 150.20 150.55 0.35 8.4 401 15.1
157.35 157.75 0.40 2.5 82 3.8

* Gold equivalent grade for silver in this news release is calculated by dividing the silver assay by 60 and assumes 100% metallurgical recovery.
§ The prefix “MRC” denotes a reverse circulation percussion drill hole, where “MD” denotes a diamond drill hole.
# The intervals for the “Conceptual Targets” and “Romina” prospects were calculated at a 0.5 g/t gold cut-off, with the remaining intervals calculated at a 1.0 g/t gold equivalent cut-off (with no cutting of high grades).
** The interval 17.0 to 20.0 m within diamond hole MD384, represents the RC percussion pre-collar portion of the hole.

In addition to the new results presented above, additional drilling was completed at Loma Escondida (MD243, MD245 and MD300), Patricia (MD250 and MD251), Silvia (MD290 and MRC377), and Esperanza (MD315) with the results presented above in the relevant tables for each prospect.

Discussion of Discovery Drilling Program Results:

Nini-Esperanza Gap: These three drill holes were sited to test the interpretation that the Nini and Esperanza structures are in fact the one structure, as indicated from the detailed ground magnetic data, in an area of significant Tertiary marine sediment cover. This does appear to be the case and further follow-up drilling is required to further test this target.

Tres Lomas: A prospect identified by previous explorers, located approximately 200 to 300 metres north of the Patricia Prospect, with only one non-significant pre-Exeter drill hole. The significant result from MD276 demonstrates additional follow-up is warranted.

Ornella: One scout hole to test a southwest trending feature identified in the ground magnetic data, which may well be a splay off the main Escondida structure. Although shallow, the anomalous intersection in MRC303, along with the proximity to Escondida, warrants additional drilling in the area.

Susy: This was interpreted as a northeast trending structure identified in the ground magnetic data that may displace the Gabriela structure at the northwestern end. Although relatively narrow and low grade, MRC314, as a first hole on the structure, is significantly anomalous to warrant additional testing of this structure.

Romina: An east-northeast trending structure interpreted from geological mapping and prominent in the ground magnetic data. This structure may displace the Gabriela structure at the southeastern end. The significant intersection in MRC360, the first of two drill holes into the +2 kilometre long structure, warrants further testing.

Michele: A prospect identified and drilled by previous explorers (four holes) is a northeast trending structure located approximately 8 kilometres east of Escondida. MD384 was a twin of pre-Exeter hole (where the results of the old hole are not available) with MD386 as a 50 metre step-back. The result from three more drill holes are awaited but this +700 metre long structure will require further drilling.

Nini: Drilling at the Nini prospect concentrated at the northwestern end of the 1.5 kilometre long structure (with the entire Nini-Esperanza trend now having been part tested over a 4 kilometre long strike). This structure has still only been tested to relatively shallow depths and will require further follow-up,

Moro: Drilling at the Moro structure, located approximately 3 kilometres to the northwest of Gabriela, concentrated on providing orientated diamond drill core to assist with the reappraisal of this prospect. Results from an additional 3 holes are awaited but early indications suggest this prospect will require additional drilling.

Silvia: The results of drill hole MRC377 are included above in the Silvia section, but in reality this hole is sited approximately 300 metres west of the Silvia prospect. The current interpretation places the Silvia prospect as an east-west trending ‘jog’ of the +2.5 kilometres long northeastern trending Barbara-Ana structure. MRC377 is the first hole to test the +800 metre southwestern portion of the Barbara-Ana structure, and although a very shallow intersection, the high gold grades encountered warrant significantly more drilling to test this structure.

Conceptual Targets: The five drill holes listed under “Conceptual Targets” (i.e.: yet to be named prospects) were sited to test prominent features interpreted from the ground magnetic data in an area of significant Tertiary marine cover (15 to 25 metres thick), approximately 3 kilometres north of Escondida . Drill holes MRC341, MRC347 and MRC349 all tested a +1 kilometre long, northwest trending feature, and the anomalous gold results demonstrate additional follow-up is required. Drill holes MRC350 and MRC351 tested a northeast trending feature, that appears to displace or terminate the previously mentioned feature. Of significance is that MRC351 was a 50 metre step-back hole of MRC350 and shows a significant increase in gold and silver values at depth. With a potential strike of +1 kilometre, this structure also warrants further follow-up.

Drilling Results to date can be viewed through the following links:

43-101 Report:

April, 2008 (Details 7.7 MB - PDF)

Nov, 2007 (Details 7 MB - PDF)

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