Exeter Resource Corporation

Advancing the world-class Caspiche project in Chile

Caspiche, Chile

Mineral Resources

On April 11, 2012, mineral resource estimates for the Caspiche Project were prepared by Mr. Ted Coupland, MAusIMM (CP), at the time, Director and Principal Geostatistician of Cube Consulting Pty Ltd (“Cube”). Mr. Patrick Adams MAusIMM(CP), Director and Principal Geologist of Cube has reviewed and validated the April 2012 Mineral Resource noted below.

The April 2012 Mineral Resource reported from within the ‘reasonable prospects’ resource shell are summarised in tables below. Oxide material was reported above 0.18 g/t AuEq1 cut-off and sulphide material was reported above 0.30 g/t AuEq1 cut-off. Note that the PEA does not include inferred mineral resources.

Material Class Tonnes (Mt) Au g/t Cu % Ag g/t AuEq1 g/t Au Eq3(MOz)
Oxide Measured 65.9 0.46 - 1.55 0.46 1.0
Oxide Indicated 55.6 0.39 - 1.63 0.40 0.7
Total Oxide Meas + Ind 121.5 0.43 - 1.58 0.43 1.7
Sulphide Measured 554.2 0.58 0.23 1.16 1.02 18.3
Sulphide Indicated 727.9 0.48 0.18 1.17 0.84 19.6
Total Sulphide Meas + Ind 1,282.1 0.52 0.20 1.17 0.92 37.9
Total Meas+Ind 1,403.6 0.51 0.19 1.20 0.88 39.6
Material Class Tonnes(Mt) Au g/t Cu % Ag g/t AuEq1 g/t Au Eq3(MOz)
Oxide Inferred 2.5 0.23 - 1.18 0.23 0.0
Sulphide Inferred 195.6 0.29 0.12 0.91 0.52 3.3
Total Oxide Inferred 198.1 0.29 0.12 0.91 0.52 3.3

3. AuEq = resource tonnes * AuEq1
1. The following formula was used in calculating AuEq values in each block of the model:

formula-01
where Au and Cu are the block kriged Au and Cu grades, PAu and PCu are the Au and Cu prices (US$1,150/oz and US$2.50/lb, respectively), and RAu and RCu are the Au and Cu projected metallurgical recoveries, 65% and 85%, respectively for sulphide material and 78% for Au and 11% for Cu in the oxide zone.

A sub set of the April 2012 Mineral Resource, reflected in the table below, using a cut off of 0.75 g/t AuEq2, was selected as appropriate for the reporting of mineral resources intended for underground exploitation based on preliminary economic cut off studies commissioned by Exeter during October 2013.

Material Class Tonnes(Mt) Au g/t Cu % Ag g/t AuEq2 g/t
Sulphide Measured 378.6 0.71 0.30 1.30 1.28
Sulphide Indicated 431.6 0.64 0.27 1.40 1.16
Total Sulphide Meas + Ind 810.2 0.67 0.29 1.35 1.22

2. The following formula was used to calculate AuEq values in each estimated block of the model:
formula-02
where Au, Ag and Cu are the block kriged gold, silver and copper grades, PAu, PAg and PCu are the gold, silver and copper prices (US$1,250/oz, US$15/oz and US$2.75/lb, respectively). RAu and RCu are the Au and Cu projected metallurgical recoveries based on a number of S % thresholds. The following table shows the recovery factors for gold, silver and copper within the Oxidized, and Sulphide domains and the DP and Non-DP stratigraphic units by sulphur threshold.

Caspiche Recovery Factors (NCL Nov 2013)

Oxides/Sulphides Stratigraphic Unit (Domain) S% Threshold RAu RCu RAg
Oxide OB (100) No threshold 0.75 0.00 0.34
Oxide All Others No threshold 0.78 0.00 0.34
Sulphide DP (400) Less than or equal to 2.0 0.75 0.92 0.40
Sulphide DP (400) Greater than 2.0 & less than or equal to 2.5 0.725 0.90 0.40
Sulphide DP (400) Greater than 2.5 0.68 0.86 0.40
Sulphide Non-DP Less than or equal to 2.5 0.70 0.88 0.40
Sulphide Non-DP Greater than 2.5 0.68 0.86 0.40

DP=Diorite porphyry, principal host rock to higher grade mineralization at Caspiche

In the April 2012 Mineral Resource estimate Cube assessed reasonable prospects of economic extraction by applying preliminary economics for potential open pit and underground mining methods. The assessment does not represent an economic analysis of the deposit. Marginal cut-off parameters used in the April 2012 Mineral Resource estimate are as follows:

Parameters Oxide Sulphide
Processing (US$/t) Cost 3.4 7.80
Recovery (%) 78 72
Gold Price (US$/oz) 1,150 1,400
Copper Price (US$/lb) NA 2.5
Refining Cost (US$/oz) 6 6
Cut-off AuEq (g/t) 0.12 1.00


Mineral resources are not mineral reserves and do not have demonstrated economic viability.

The potential development of the April 2012 Mineral Resource may be materially affected by legal, political, environmental or other risks.