Exeter Resource Corp. (AMEX: XRA) shares jumped 50 cents, or 14 percent, to $4.09 in today’s afternoon trading, still rocking from yesterday’s news regarding diamond drilling on its Casphiche gold porphyry target in Chile.The company announced it has committed to a minimum 5,000 meters of new reverse circulation and diamond drilling, following up on a drill hole that intersected 304 meters of mineralization gold. The company said in a press release that drilling contracts are in the final stages for the commencement of the new program.
“We expect the properties to be a 10 million ounce plus deposit,” Angus Roxburgh, investor relations for Exeter, told Market News First.
The company declined further comment regarding stock movement or properties at this time.
Exeter operates in South America, in the discovery, evaluation, and mining of gold-silver deposits, primarily focusing on operations in Argentina and Chile.
Exeter announced news earlier this week regarding political developments in Argentina. The company reported a 90-day suspension on the issuance of new environmental permitting related to open pit mining. The governor of Mendoza Province, Argentina, issued the suspension, pending a review of proposed regulations.
The company said the decree is expected to have no impact on its Don Sixto Gold Project.
“We welcome clear environmental regulations in the Province, and a suspension of new environmental approvals is a sensible option that gives the government time to consider the current system in the lead-up to federal, provincial and local elections in October,” said Exeter Chairman Yale Simpson. “The timing of the political process should not disrupt the development of our Don Sixto Project, where we will be focused on data analysis and engineering studies in support of a feasibility study for the next 12 months. We expect the new government to have regulations in place in time for the submission of our Environmental Impact Report, next year.”
In the press release, Simpson added that Exeter’s current exploration has shifted to its Cerro Moro gold and silver project in the Santa Cruz Province as it advances its Caspiche Project in Chile.
“We are truly now a multi-project company, with the exploration expertise and projects inventory to continue to generate new discoveries,” concluded Simpson.