Entr�e Gold Announces Third Quarter 2011 Results
Vancouver, B.C., November 4, 2011 � Entr�e Gold Inc. (TSX:ETG; NYSE-Amex:EGI; Frankfurt:EKA - "Entr�e" or the
"Company") has today filed its interim operational and financial
results for the quarter ended September 30, 2011. Interim Financial Statements
and the accompanying Management�s Discussion and Analysis (�MD&A�) are
available on the Company website at www.entreegold.com.
Highlights for the three month period ended
September 30, 2011 include:
- Announcement of further assay
results from nine deep diamond drill holes on the Ann Mason deposit in
Nevada, including 702 metres averaging 0.41%
copper, in hole EG-AM-11-009 (see news release dated July 14, 2011).
- Initiation of metallurgical
testing for Ann Mason.
- In
Mongolia, Entr�e-Oyu Tolgoi LLC joint venture property drilling continues:
- one drill rig is testing the
continuation of mineralization north of the currently defined reserves on
Hugo North Extension; and
- a
second drill rig has been mobilized to focus on the Southwest Heruga target.
To date in 2011, four deep
exploration holes have been completed to the north of the Hugo North Extension
deposit but were unsuccessful in reaching the target. On the Heruga Deposit, two existing holes were deepened but did
not intersect significant mineralization. An additional hole tested an IP target
to the southwest of Heruga and intersected advanced argillic alteration with low copper values.
- Nine engineering holes totalling 13,587 metres have
been completed in 2011 to test the geotechnical character of Lift 1 at
Hugo North Extension and to test the area of a planned shaft to the west
of Hugo North Extension.
- Excavator trenching was
completed at the Zone III gold prospect at Entree�s 100% owned Shivee West property in Mongolia, in preparation for
drilling in the fourth quarter.
- Sale of asset backed
securities, netting approximately US$2,700,000.
- On September 20, 2011, the
Company entered into a purchase and sale agreement with a private
Mongolian company to sell the Togoot license for
cash consideration of approximately US$1,600,000. The transaction is
expected to close in the fourth quarter of 2011;
- Continuation of exploration and
infill drilling at Ann Mason with 20,114 metres
drilled to September 30, 2011 (both diamond drilling and reverse
circulation).
- Net loss decreased to
US$3,506,238 compared to a net loss of US$6,547,970 in the three months
ended September 30, 2010.
The Hugo North Extension and Heruga
deposits comprise part of the Oyu Tolgoi
copper-gold mining complex in Mongolia. Rio Tinto is manager of the project.
First ore production from Oyu Tolgoi
is expected by late 2012 with commercial production commencing in 2013.
During the three months ended September 30, 2011, the Company incurred a net
loss of US$3,506,238 ($0.03 per share) compared to a net loss of US$6,547,970
($0.06 per share) in the three months ended September 30, 2010. The decrease in
net loss is primarily due to the combination of decreased mineral exploration
activities in Mongolia as the Company continues to focus on its Yerington
copper porphyry projects, the gain on sale of its asset backed commercial paper
and a deferred income tax recovery. As at September 30, 2011, the Company had
working capital of US$10,321,520, including cash of US$10,477,360.
Greg Crowe, President and CEO, commenting on the third quarter noted,
"Exploration work during this quarter has concentrated on the Ann Mason
and Blue Hill projects in Nevada. Drilling continues to reinforce our belief in
the potential of this property. The discovery of near-surface oxide
mineralization between Blue Hill and Ann Mason has revealed an important new
area to focus further exploration.�
SELECTED
FINANCIAL INFORMATION
|
|
As at September 30, 2011
(US$)
|
As at December 31, 2010
(US$)
|
|
Working capital (1)
|
10,321,520
|
21,268,201
|
Total assets
|
64,897,779
|
81,359,098
|
Total long term
liabilities
|
13,727,938
|
16,158,190
|
|
(1) Working Capital is defined as Current Assets less
Current Liabilities
The Interim
Financial Statements and MD&A are also available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
ABOUT ENTR�E GOLD INC.
Entr�e Gold Inc. is a Canadian mineral exploration company focused on the
worldwide exploration and development of copper and gold prospects. The
Company�s flagship Lookout Hill property in Mongolia completely surrounds the Oyu Tolgoi project of Oyu Tolgoi LLC (�OTLLC�), a
subsidiary of Ivanhoe Mines and the Government of Mongolia. A portion of the
Lookout Hill property is subject to a joint venture with Oyu
Tolgoi LLC. The joint venture property hosts the Hugo
North Extension copper-gold deposit and the Heruga
copper-gold�-molybdenum deposit. Excellent exploration potential remains on the
joint venture property for the discovery of additional mineralized zones.
Entr�e has either a 20% or 30% interest (depending on the depth of
mineralization) on all minerals extracted from the joint venture property.
In North America, the Company is exploring for porphyry-related copper systems
in Nevada and New Mexico. The primary asset is the Ann Mason property in
Nevada, which hosts an inferred mineral resource of 810.4 million tonnes grading 0.40% copper at a 0.30% copper cut-off (7
billion pounds of contained copper) and considerable potential for additional
targets.
The Company is also seeking additional opportunities to utilize its expertise
in exploring for deep and/or concealed ore deposits. Rio Tinto and Ivanhoe
Mines are major shareholders of Entr�e, holding approximately 13% and 12% of
issued and outstanding shares, respectively.