RE: RE: CommentWe shouldn't be in any rush to exit a central property in one ofthe biggest gold fields in the world.50 million plus ozs for thisregion is not out of the question. Cero casales is a few miles away. itcontains about 24 million ozs. Look at their property reports and thereare a very significant drilled out indications of other potentialorebodies. Kinross and barrick are focusing on cero casales but thereis so much potential for a multi deposit horizen there.
abput20 miles north you have andina sitting on 10 million ounces of gold.They look to be sitting on a series of deposit opportunities.. and inconversations I had with someone close to the company that they wereconfident that there was a excellent chance to come up with more goldif money could be committed for drilling... Take a look at this pictureoff their latest presentation... The region we are in seems to bereplete with gold deposits whether it be yamanas deposit adjoining theandina property or Maricunga which is much closer. Didn't kinross justsay they were going to look around maricunga to develop more gold thisvery week. I don't know if they meant they were looking at caspiche.
wellcaspiche is sitting right there in the very middle of one of the mostprolific gold belts in the world. sunshine20 has mentioned thepotential for satellite orebodies near caspiche central but there isexcellent exploration potential on the rest of the property. NOw justbecause the market does not know how to value caspiche is no excusejust to take a low ball offer and cut and run off to cerro morrow. Theinvestment community hasn't got a clue how to value cerro morroeither.. Taking a low ball offer for caspiche and running is not theticket..... I gathered from my conversation that andina wanted thepotential of their property acknowledged in any buyout offer .... weshould hold our heads up high and ask for some kind of recognition ofthe caspiche potential... perhaps some kind of small contributiontowards the costs of the modestly sized mill that cerro morrowrequires... otherweise the dilutions will continue... I guarantee youthe company will be back diluting the shares again within a year. Thatis because it would take much much more then $28 million to drill upcaspice to measured and indicated.... andina has 100 kilometers ofdrilling down already.
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I agree there is no need to rush and I don't believe Exeter management is in any rush. It would be extremely unusual for a drill-inferred deposit to be sold and the price wouldn't be that good. More likely in the short term that Exeter would enter a JV with a major that requires funding all exploration and development up to a production decision in exchange for a 50% interest. If management can get away with it, they should also require the JV partner to carry Exeter into production and to pay Anglo's 3% NSR, that would be a dream deal. Otherwise, Exeter should just drill until it is clear we have a world class gold deposit with over 12 million ounces in at least Indicated resource.
Andina's Volcan project goes down only 300 meters and a large portion is thinner than that. It is in many ways similar to the oxide zone over Caspiche or the Caspiche III target. It can easily take 10,000 meters to drill out each 1 million ounces of such a deposit and this is why Exeter didn't pursue Caspiche III any further for now. By contrast, a porphyry deposit like Caspiche Central or Cerro Casale requires substantially less drill definition work, on the order of 2,000 or 3,000 meters per 1 million ounces for Measured or Indicated. Getting all the way to reserves doesn't take that much more drilling, either. For example, I believe the copper-gold portion at Cerro Casale will be 25 million ounces of P&P Reserves based on about 100,000 meters drilled, which is the same amount drilled at Volcan to get 10 million ounces of Measured, Indicated and Inferred. The reason for the difference is the monolithic and vertical nature of the Maricunga porphyries.