Exeter Resource Corp.
Last week, XRA has entered into a letter of intent with Fomicruz SE, a company owned by the Government of Santa Cruz Province, Argentina. When the agreement is finalized, the terms will likely be the following:
* Fomicruz SE will acquire a 5% interest in Exeter’s 176 square kilometre Cerro Moro project;
* Exeter will have the right to earn up to an 80% interest in 763 square kilometres of Fomicruz SE exploration properties (see map) adjoining the Cerro Moro project by incurring US$10 million in exploration expenditures over a number of years;
* Exeter will fund all exploration and development costs of the Cerro Moro project and Fomicruz SE will repay an agreed amount of those costs from 50% of Fomicruz SE’s share of net revenue from future operations.
Earlier in the week, we had a chance to speak to Matthew Williams, an Exploration Manager at Exeter. Exploration work is going at 100 percent capacity during the short summer season in South America. A lot of drill results can be expected all the way through August 2008 as the current core samples get assayed in busy laboratories.
The management is very optimistic about Caspiche Project in Chile. There should be good indications about the size of the deposit in just a few short months.
At Cerro Moro, a resource estimate should be out in the second half of 2008, at which point a preliminary economic assessment will commence. Cerro Moro has a very large number of high grade veins, some of them sticking out at the surface. The management would like to define a 500,000 to 1,000,000 ounce reserve and concentrate on bringing a smaller operation into production before following up and expanding its Cerro Moro resource to its target of 2 to 4 million ounces.
From : From :
www.resourcestockguide.com
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