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Exeter Resources / XRC.t


drbubb
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I haven't stopped looking for Gold-related opportunities, but I have a growing "war-chest" for a possible future price dip

 

Exeter Resources: Measured and Indicated - 21.3 Million Ounces Gold + 5.3 Billion Pounds Copper

 

BTW, I did recently put about 2% of my Cash into Call options on this "undervalued" Gold stock.

 

Exeter Resources / XRC.t ... update

xxxm.gif

 

If the stock hits Canaccord's target ($11+), it would vastly outperform gold, with much less risk.

My 2%, will trade as if I had invested 20% of my cash or more in Gold - I like "intelligent leverage" like this,

and it illustrates the "gold re-entry strategy" that I am developing, and may implement slowly in the weeks

and months to come.

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XRC.t Weekly chart ... update

xxxi.gif

 

NEWS

====

10/27/2010

Raised $50 million, selling 8.06million shares at C$6.20.

"To advance the Caspiche project and for general working capital."

09/13/2010

Exeter Upgrades Caspiche Mineral Resource To:

Measured and Indicated - 21.3 Million Ounces Gold + 5.3 Billion Pounds Copper

Inferred - 5.1 Million Ounces Gold + 1.4 Billion Pounds Copper

04/13/2010

Exeter Increases Caspiche Resource To:

Indicated - 14.3 Million Ounces Gold + 3.5 Billion Pounds Copper

Inferred - 10.0 Million Ounces Gold + 2.9 Billion Pounds Copper

 

/ website, news :: http://www.exeterresource.com/

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Recently got a position in this one too. Some more news just out:

EXETER INITIATES PRE-FEASIBILITY STUDIES AT CASPICHE

EXETER INITIATES PRE-FEASIBILITY STUDIES AT CASPICHE

VANCOUVER, Nov. 22 /CNW/ - Exeter Resource Corporation (NYSE-AMEX:XRA, TSX:XRC, Frankfurt:EXB - "Exeter" or the "Company") has engaged Aker Solutions of Santiago, Chile, an internationally recognised engineering group, to carry out two pre-feasibility studies for its Caspiche gold-copper project in Chile. The first study which will consider a stand-alone "oxide gold" project to mine the upper part of the deposit is scheduled to be available in early Q2-2011. The second study, to be run concurrently with the oxide study, will consider mining both the oxide and sulphide deposits. That study is scheduled to be available in Q3-2011.

 

The decision to proceed to the pre-feasibility study stage (PFS) follows Exeter's September 2010 resource update, which reported that 80% of the total Caspiche resource fell within the Measured and Indicated (M&I) resource categories. Specifically, the update reported M&I* resources of 21.3M (million) ounces of gold, 48.4M ounces of silver and 5.3B (billion) pounds of copper. This resource is based on 1,316Mt (million metric tons) at a grade of 0.50 g/t gold (grams per metric ton) and 1.14 g/t silver, including 1,217Mt at a grade of 0.20% copper. In addition to the M&I mineral resources, Exeter reported an Inferred* mineral resource of 5.1M ounces of gold, 14.5M ounces of silver and 1.4B pounds of copper, based on 458Mt at a grade of 0.35 g/t gold and 0.98 g/t silver, including 449Mt at a grade of 0.15% copper.

 

Yale Simpson, Exeter's Executive Chairman said, "The commencement of the PFS process is clearly a milestone for Exeter as we transition from the high risk "discovery stage" of exploration into project development. We are very pleased therefore to secure and appoint Aker Solutions for the Caspiche pre-feasibility studies.

 

"Aker has an excellent track record, having recently completed a number of pre-feasibility and feasibility studies, including the basic engineering for Pan Pacific Copper's (now Nippon-Mitsui) +$2 billion Caserones copper project south of Caspiche. Aker is also the construction management contractor for Kinross Gold's Maricunga Mine expansion project, located immediately north of the Caspiche site. Aker's familiarity with local operating conditions was an important factor in selecting the firm for the two studies.

 

"Interestingly, we see two mining scenarios for Caspiche, a smaller oxide gold mine that we could potentially develop quickly to generate cash flow, or a much larger, and longer term "total project" to realise the ultimate value of the deposit. The oxide gold study will examine the economics of a stand-alone project to develop the shallow gold "blanket" that over lies the sulphide deposit. This upper, gold-only deposit is potentially exploitable by open pit mining combined with conventional heap leaching. Importantly, the waste to ore ratio is anticipated to be less than 0.3:1, with much of the waste being available for heap leach pad construction. The advantage of an oxide gold mine is the expected modest capital requirement for such a project and the compatibility of a project at this scale to fit within existing local infrastructure.

 

"The PFS for the total deposit involves +20,000 man-hours of engineering. It will examine three mining options. The first option is a "super pit" to a depth of up to 1,000 metres, mining both the oxide and sulphide zones entirely by open pit methods. The second option is an open pit mine to develop only the oxide deposit, followed by underground mining (block caving) of the central higher grade section of the sulphide deposit. The third option is a hybrid operation to open pit mine the oxide deposit and the upper part of the sulphide deposit, followed by underground mining of the lower sulphide zone."

 

== ==

 

XRC price rose a bit: 5.93 Change: +0.06 // Percent Change: +1.02%

Open: 5.93 High: 5.93 Low: 5.79 // Volume: 148,627

 

How am I playing it?

 

I bought April $4 calls at $2.23, giving me a "breakeven" price of $6.23,

with gearing and far less downside risk. My breakeven cost is virtually the same as recent pp investors paid.

 

If XRC hits Canaccord's target of $11. My $4 calls will be worth: $7 each, which would be a return of 214%

 

I am not expecting that, but I do think a takeover at $8 -10 is a real possibility.

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  • 2 weeks later...
I haven't stopped looking for Gold-related opportunities, but I have a growing "war-chest" for a possible future price dip

Exeter Resources: Measured and Indicated - 21.3 Million Ounces Gold + 5.3 Billion Pounds Copper

As stayed a week or so ago, I have bought April $4 calls on XRC, as an "alternative gold play".

 

Today, it seems the strategy is beginning to work:

 

XRC.t : 5.92 Change: +0.27 // Percent Change: +4.78% // chart-5d

Open: 5.66 High: 5.94 Low: 5.66 // Volume: 231,321

 

That's a massive outperformance relative to Gold.

(And my largest holding, Gold Wheaton / GLW.t, has been outperforming gold too.)

 

The "only gold" guys here might want to take note that other strategies work too.

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As stayed a week or so ago, I have bought April $4 calls on XRC, as an "alternative gold play".

 

Today, it seems the strategy is beginning to work:

 

XRC.t : 5.92 Change: +0.27 // Percent Change: +4.78% // chart-5d

Open: 5.66 High: 5.94 Low: 5.66 // Volume: 231,321

 

That's a massive outperformance relative to Gold.

(And my largest holding, Gold Wheaton / GLW.t, has been outperforming gold too.)

 

The "only gold" guys here might want to take note that other strategies work too.

 

Good stuff Dr B

 

I'm on board both of these and enjoying these moves. In fact my whole portfolio of gold juniors has blasted off - as I and many others suspected this period is party time for the quality juniors and are positioned appropriately. GORO is over $26!!! WOW!

 

Physical gold is still my largest holding though the out performance of the stocks is narrowing that :)

 

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Has anyone considered Northern Dynasty (NDM.to)?

 

They look even cheaper than Exeter on a resource base. Their deposit is huge. I calculate 130.7M ounce Au equivalent (261.5M in total, it's a 50/50 venture).

 

Whereas Exeter is 36M ounce Au equivalent.

 

Given there Market Caps, XRC = $16 per Au eq ounce, NDM = $6.67 per Au eq ounce.

 

Both at similar stages of development. NDM has the advantage of their partner funding all the development, so minimal share dilution, if any.

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  • 2 weeks later...
is this thing not quite low grade?

It is, and so needs high prices and the right mining approach.

No doubt, there is a higher grade core, but mining just that would glut the rest.

Engineering a solution is a dilemma which may be solved by high prices.

 

Think of XRC as a long dated call on Gold and Copper.

Playing it thru an option (an option on an option?) appeals to me, and my trade is nicely in-the-money now.

Has anyone considered Northern Dynasty (NDM.to)?

They look even cheaper than Exeter on a resource base. Their deposit is huge. I calculate 130.7M ounce Au equivalent (261.5M in total, it's a 50/50 venture).

 

Whereas Exeter is 36M ounce Au equivalent.

Given there Market Caps, XRC = $16 per Au eq ounce, NDM = $6.67 per Au eq ounce.

Both at similar stages of development. NDM has the advantage of their partner funding all the development, so minimal share dilution, if any.

Good call. CP !

Here's a comparison : NDM has shown a nice pop ! ... update

ndmtoxrc.gif

 

ndmtoxrc.gif

 

It seems that these Large high cost ore bodies can be "re-discovered" by investors in a market like this.

The revival of Nova Gold (NG.t) when Soros and Paulson invested was another example.

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  • 10 months later...

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