The Caspiche project is situated in the Maricunga gold district, between the Refugio mine and the Cerro Casale gold deposit.
According to the company, the aquifer is within the same high altitude region of the Andes where other mining companies hold granted water rights.
Exeter Resource plans to initiate a water exploration program comprising field mapping, geophysics, drilling and pump testing during the fourth quarter of 2011.
Applications for two additional water exploration concessions in the area are still being processed by the relevant government authorities.
Exeter said that a mine at Caspiche is estimated to require less than 100 litres/second for the initial heap leach gold phase of the mine, rising to as much as 1,000 litres/second for a full scale sulfide mining operation.
The company has also reported that the pre-feasibility study for the Caspiche project, including in-pit crushing and conveying of waste rock remains on schedule for completion before the end of this year.
