Feb 19 2015
Exeter Resource Corporation is pleased to announce further positive results from the expanded water exploration drilling program for its Caspiche gold-copper project in northern Chile. The Company believes it has discovered an extensive, new, subterranean aquifer with no apparent connection to surface water, or other aquifers in the area.
Individual pump testing of the five large diameter exploration wells, drilled thus far at the Peñas Blancas water concession, has confirmed strong constant water flows and rapid recharge rates. The aggregate flow rate that was tested at constant rates, was over 300 litres per second ("L/s"), with individual wells varying from 45 L/s to 85 L/s. This aggregate flow rate is considerably above Exeter's previously targeted estimate of 200+ L/s.
Initial testing comprised a range of flow rates on each well using a multi-stage down hole pump followed by monitoring of how quickly the water level recovered (recharge). Based on these results, water was then pumped at a selected rate for 48 hours while measuring levels in nearby monitoring holes as well as those at some distance. The water level in all five wells recovered to 95% of the original level in a few minutes, and 100% within an hour. Water levels in nearby monitoring holes dropped by less than one metre and recovered quickly. Water quality samples taken from each of the holes is considered good, for what is typically a saline water region in Chile.
Exeter's CEO, Wendell Zerb, said, "The results of this water exploration program are considerably better than our original expectations, both in the quantity and quality of water discovered. We believe the new, lower capex, staged mine development options for Caspiche will use a fraction of the significant potential that the Peñas Blancas aquifer could ultimately provide. As an example, the 2014 PEA calculated that the 30,000 tonne per day ("tpd") standalone oxide operation would require a peak water supply of less than 50 L/s. Furthermore, we believe that the Peñas Blancas water discovery could provide an excellent long term water resource for other potential users in this arid, largely unpopulated region of Chile."
"Our priorities now are to finalize the exploration program before the end of May and apply for water rights for the water discovered. To better define the extent of the aquifer and increase the probable water inventory, the Joint Venture ("JV") is planning for up to two, additional large diameter exploration drill holes to be completed prior to the onset of the upcoming Chilean winter. Additional steps also include planning for and commencing a detailed scientific and environmental program using experienced consultants. The objective of this next program will be to accurately model the zone, its interactions with adjacent areas, consult on possible uses with other stakeholders and communities as a basis for extraction plans."
Exeter has been exploring for water in this remote, high altitude area, for over five years, and has extensive knowledge of the climatic factors through its two meteorological stations and baseline environmental studies. The only significant infrastructure in the Peñas Blancas area is an international road between Chile and Argentina which cuts through the aquifer zone. The area is flat and covered with sands and gravels formed from a large mountain range to the south. The extensive winter snowfall from this range and the surrounding area is believed to be the source of the recharge to the aquifer.
Andinor Limitada, a specialist Chilean water drilling company, is the principal contractor for the water program. Supervision of the program by Exeter and JV personnel is augmented by expert, independent, external consultants.
Jerry Perkins, Exeter´s VP Development and Operations and a "qualified person" ("QP") within the definition of that term in National Instrument 43-101, Standards of Disclosure for Mineral Projects, has reviewed and approved the technical information in this news release.
The economic analysis contained in the PEA is considered preliminary in nature. No inferred mineral resources form part of the PEA studies and no mineral reserves for the PEA have been established. Mineral resources are not mineral reserves and have no demonstrated economic viability. There is no certainty that economic forecasts outlined in the PEA will be realized. The PEA and the April 2012 Mineral Resource (as defined) may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant factors.