PROJECTS - Don Sixto (La Cabeza)
Resources
Exeter announced in June, 2005, receipt of new independent estimate of gold resources at Don Sixto.
The new independent report now estimates an "indicated resource" at Don Sixto of 390,000 ounces of gold (6.2 million tonnes at an average grade of 2.0 g/t gold) and an "inferred resource" of 500,000 ounces of gold (12.1 million tonnes at a grade of 1.3 g/t gold), at a cut-off grade of 0.5 g/t.
At a higher, 1.0 g/t gold cut-off grade, the "indicated resource" is 3.5 million tonnes at a grade of 3.0 g/t gold for 330,000 ounces, and the "inferred resource" is 4.8 million tonnes at 2.2 g/t gold for 340,000 ounces.
Don Sixto Indicated and Inferred Resources
| Indicated (0.5 grams/tonne gold cut-off) | |||
|---|---|---|---|
| Zone | Tonnes | Grams/tonne Gold | Ounces Gold |
| Cuello | 1,240,000 | 3.08 | 123,000 |
| Ojo | 1,740,000 | 2.22 | 124,000 |
| Luna | 1,870,000 | 1.57 | 94,000 |
| Mandibula | 1,330,000 | 1.16 | 50,000 |
| Total | 6,200,000 | 2.0 | 390,000 |
| Inferred (0.5 grams/tonne gold cut-off) | |||
| Zone | Tonnes | Grams/tonne Gold | Ounces Gold |
| Cuello | 2,400,000 | 1.67 | 129,000 |
| Ojo | 1,530,000 | 0.93 | 46,000 |
| Luna | 3,620,000 | 1.16 | 135,000 |
| Mandibula | 3,970,000 | 1.03 | 131,000 |
| Cachete | 350,000 | 3.08 | 35,000 |
| Labio East | 100,000 | 4.44 | 14,000 |
| Labio South | 70,000 | 2.45 | 6,000 |
| Labio West | 80,000 | 1.67 | 4,000 |
| Total | 12,100,000 | 1.3 | 500,000 |
| Indicated (1.0 grams/tonne gold cut-off) | |||
| Zone | Tonnes | Grams/tonne Gold | Ounces Gold |
| Cuello | 910,000 | 3.93 | 115,000 |
| Ojo | 910,000 | 3.62 | 106,000 |
| Luna | 1,120,000 | 2.15 | 77,000 |
| Mandibula | 530,000 | 1.83 | 31,000 |
| Total | 3,500,000 | 3.0 | 330,000 |
| Inferred (1.0 grams/tonne gold cut-off) | |||
| Zone | Tonnes | Grams/tonne Gold | Ounces Gold |
| Cuello | 1,260,000 | 2.53 | 102,000 |
| Ojo | 380,000 | 1.67 | 20,000 |
| Luna | 1,270,000 | 2.01 | 82,000 |
| Mandibula | 1,260,000 | 1.76 | 71,000 |
| Cachete | 330,000 | 3.39 | 36,000 |
| Labio East | 90,000 | 4.96 | 14,000 |
| Labio South | 70,000 | 2.45 | 6,000 |
| Labio West | 90,000 | 2.04 | 6,000 |
| Total | 4,800,000 | 2.2 | 340,000 |
The revised mineral resources estimates for the Cuello, Luna, Ojo, and Mandibula deposits were made by Hellman & Schofield, Sydney, Australia using Multiple Indicator Kriging ("MIK") methodology applied to the Exeter database and geological models. The models, database, and supporting information were independently validated by Peter Allen of Australian Mine Design and Development ("AMDAD") of Brisbane, Australia. These revised resources were estimated using an additional 67 holes, totalling 4798 meters of drilling and 2050 meters of sawn channel sampling, conducted in 2004 and 2005.
The Cachete prospect resource was re-calculated internally by Exeter utilising a manual polygonal cross sectional method of estimation. Although new three-dimensional geological models were constructed for Cachete, it was deemed inappropriate to use MIK methods at this time, due to a lack of substantial drilling density. The previous resource estimates and assumptions for the Labio East, South and West prospects have been utilized, because the 2004 program did no work in these project areas. These estimates will be reviewed with the benefit of results of current drilling planned for these areas.
The new resource estimates have been described in a 43-101 Technical Report compiled by Exeter management. The report was co-authored and prepared under the supervision of Peter Allen of AMDAD, a "qualified person" independent of the Company under NI 43-101 of the Canadian Securities Administrators.
AMDAD also carried out conceptual pit designs for Cuello, Luna, Ojo, and Mandibula which showed that, in addition to the indicated resource within pit perimeters, a significant proportion of the inferred resource remained within the potential open pits.
Future Resource Estimations
A new gold resource estimate is scheduled for second quarter of 2007, following the completion of the 25,000 meter drilling program currently underway.
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