The Caspiche Project is located in the Maricunga Belt of Chile, between Barrick and Kinross Gold’s Cerro Casale gold-copper deposit 10 kilometres to the south and Kinross Gold’s Maricunga Mine 15 kilometres to the north. Hocschild’s Volcan gold deposit lies 35 kilometres north northeast of Caspiche.
The endowments for these deposits shown below demonstrate the potential of the area to host world class orebodies and recent success marks the Maricunga as an emerging world class gold province;
Exeter fulfilled the total expenditure and drilling requirements for the full term of the option agreement for Caspiche. It exercised the option to purchase 100% ownership of the Caspiche property in early 2011. This exercise agreement provides for an extension of the required time line to production to 15 years, adds additional tenure to the package and details the 3% net smelter royalty due to Anglo from production. Advance royalty payments of US$250,000 per year to March 2021 and thence US$1 million per year to March 2026 are payable and terminate upon commencement of commercial production. The Caspiche mineral properties are also subject to a further 0.08% NSR payable to a private entity.
In June 2013 Exeter announced that its application for surface rights had been granted by the Chilean Government. Exeter already has a lease agreement with the Chilean Government for the surface rights that correspond to its initial mineral rights in the area, and the new easement extends this area to cover most of its additional tenements as well as all surfaces that may be required for Caspiche development. The easement gives Exeter the right to carry out work and install all of the infrastructure and surface modifications required for the potential development of a mining operation, including roads, excavations, stockpiles, buildings, pipelines, power lines, tailings storage facilities and the like. In consideration for securing the easement rights, Exeter will make annual payments through to 2022, with an initial payment of US$1.5 million. The easement excludes specific surface rights in areas owned by the indigenous community, the Comunidad Colla Rio Jorquera y sus afluentes (CCRJ).
The Caspiche property has a combined area of 1262 hectares, with control across a total property holding in the area for Exeter of 7,616 hectares over 6 times the original land package acquired from Anglo.