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The raw numbers are huge.

On Monday, Exeter Resource Corp. (NYSEMKT:XRA) released an updated resource estimate for its Caspiche project in Chile of 19.8 million ounces of gold, 137 million ounces of silver and 4.8 billion pounds of copper. On an equivalent ounce basis, the project holds 33.7 million ounces of gold at a cut-off grade of 0.94 grams per tonne.

That size alone should be enough reason for people to take the project seriously, according to Canaccord Adams analyst Wendell Zerb.

He wrote in a note to clients:

In our view, Caspiche represents one of the largest [gold-silver-copper] assets discovered in the last decade and its significance should draw the attention of numerous interested parties.

He added that Caspiche appears to be similar to the neighbouring Cerro Casale project, a very large but low-grade deposit owned by Barrick Gold Corp. (NYSE:ABX) and Kinross Gold Corp. (NYSE:KGC).

While Caspiche is very early-stage and a lot more work needs to be done to define the resource and the character of the mineralization, the early results are encouraging.

Mr. Zerb wrote:

We feel that given the size of the Caspiche system, metallurgical studies and a conceptual mining plan are important economic factors which, to date, remain in the early stages of development.

He raised his price target on the stock to C$8.00 a share (up from C$7.00) and maintained a "speculative buy" rating. He assigned a value of $25 per gold equivalent ounce at Caspiche, a modest premium to the peer group average at that stage of development.

Source: Exeter: Giant Gold Project Should Draw Interest