With bullion prices at all-time highs and world-class gold discoveries becoming ever more elusive, the investment industry is gambling increasingly sizeable sums of money on major mines-in-the-making. A recent example of this new trend involves Exeter Resource Corporation (TSX.V: XRC) (NYSE-A: XRA). Specifically, a handful of top-tier investment banks snapped up the high-flying mining junior’s CDN $57.5 million equity financing last month in less than 24 hours.
Of Exeter’s war chest, a sizeable amount is being used to develop one of the world’s largest gold discoveries in recent years. The Caspiche gold/copper deposit in Chile is a veritable monster that weighs in at 33.7 million gold ‘equivalent’ ounces. (This ‘equivalent’ metric involves silver and copper by-product metals that are valued using baseline prices of US $12 for silver and US $2.00 per pound for copper, while US $800 is used for the gold valuation). Stated another way, Caspiche boasts an inferred resource estimate of 19.8 million ounces of gold, 40 million ounces of silver and 4.8 billion pounds of copper.
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