July 23, 2009
Gold Announces Option Agreement with HoneyBadger Exploration
July 23, 2009 - Entr�e Gold Inc. (TSX:ETG; NYSE Amex:EGI;
Frankfurt:EKA � �Entr�e� or the �Company�) announces that the Company has
entered into an agreement with HoneyBadger Exploration Inc. (TSX.V:TUF -
�HoneyBadger�) to explore for and develop porphyry copper targets in the
Yerington porphyry copper district of western Nevada .
HoneyBadger has assembled a substantial land package covering over
12,500 acres (5,080 hectares), known as the Yerington West Project.
Under the terms of the agreement, Entr�e may acquire up to an 80% interest
in a portion of the Yerington West Project, known as the Blackjack
Property. The agreement is subject to completion of due diligence and
Entr�e may exercise its first option to acquire 51% after incurring
minimum expenditures of US$900,000 in the first year of exploration and
issuing 37,500 shares and reimbursing HoneyBadger for up to $206,250 of
expenditures previously incurred on the property. If results from the
initial exploration program are encouraging, the Company may increase its
interest by a further 29% (to 80% in total) by making payments of US$375,000
and issuing 375,000 shares within 3 years. Entr�e has committed to
carry HoneyBadger through the completion of 10,000 metres of drilling,
including any done within the first year.
The Blackjack Property consists of 484 claims covering almost 10,000 acres
(4,000 hectares) of prospective ground centred about 8 miles (13 kilometres)
west of the town of Yerington, Nevada in an area with excellent
infrastructure and a long history of mining. The Yerington district reached
prominence after the discovery of copper in 1865. Anaconda Copper
produced almost 2 billion pounds of copper from the Yerington Mine, located 4
miles (6 kilometres) to the southeast of the Blackjack Property, between 1952
and 1978. Nevada is a highly regarded
mining jurisdiction, having been rated third out of 71 mining and exploration
jurisdictions worldwide in the most recent Fraser Institute survey.
The area around Yerington is currently experiencing renewed exploration
activity. Numerous companies, such as Nevada Copper Corporation, Quaterra
Resources Inc., and PacMag Metals Limited, are active in the region and have
recently made or developed important discoveries. The Blackjack
Property is immediately adjacent to Quaterra�s MacArthur deposit and to PacMag�s
Ann Mason deposit, both of which have substantial copper resources
defined. Nevada Copper�s Pumpkin Hollow copper skarn deposit is about 8
miles (13 kilometres) to the southeast.
Entr�e and HoneyBadger are planning an aggressive drill program commencing
in the fourth quarter 2009. This program is expected to test numerous
targets generated from a recently completed high-definition airborne AirMt
magnetotelluric survey along with geological and geochemical targets.
This agreement with HoneyBadger is part of Entr�e�s strategy to explore
for large porphyry copper deposits, using the knowledge and experience gained
from working on our projects in Mongolia and
North America . The Company�s current agreements with
Empirical Discovery LLC have resulted in the discovery of porphyry copper
mineralization near Lordsburg , New
Mexico , in a mining district previously
known only for vein-style copper-gold mineralization.
ABOUT ENTR�E GOLD
Entr�e Gold Inc. is a Canadian mineral exploration company focused on the
worldwide exploration and development of gold and copper prospects. In North
America, the Company is exploring for porphyry-related copper systems in Arizona
and New Mexico under
agreements with Empirical Discovery LLC and now in Nevada
through an option agreement with HoneyBadger
The Company is a large landholder in Mongolia ,
where it holds three exploration licenses comprising the 179,590 hectare
Lookout Hill property. Lookout Hill completely surrounds the
8,500-hectare Oyu Tolgoi project of Ivanhoe Mines, and hosts the Hugo North
Extension of the Hugo Dummett copper-gold deposit and the Heruga
The Company continues to explore its large landholdings in Mongolia
, including the coal discovery Nomkhon Bohr.
Entr�e is also evaluating new opportunities throughout the region and
elsewhere in Asia .
Entr�e is exploring the Huaixi copper project in Zhejiang
China , under the terms of an
agreement with the No. 11 Geological Brigade.
The Company is also seeking additional opportunities to utilize its
expertise in exploring for deep and/or concealed ore deposits. With a
treasury in excess of C$50 million, the Company is well funded for future
Ivanhoe Mines and Rio Tinto are major shareholders of Entr�e, holding
approximately 15% and 16% of issued and outstanding shares respectively.
Monica Hamm - Manager,
Entr�e Gold Inc.
Toll Free: 866-368-7330
Peter Oates - Investor
Entr�e Gold Inc.
Toll Free: 866-368-7330
This News Release contains forward-looking statements. Forward-looking
statements are statements which relate to future events. In some cases, you
can identify forward-looking statements by terminology such as �may�,
�should�, �expects�, �plans�, �anticipates�, �believes�, �estimates�,
�predicts�, �potential� or �continue� or the negative of these terms or other
comparable terminology. These statements are only predictions and involve
known and unknown risks, uncertainties and other factors that may cause our
or our industry�s actual results, levels of activity, performance or
achievements to be materially different from any future results, levels of
activity, performance or achievements expressed or implied by these
While these forward-looking statements, and any assumptions upon which
they are based, are made in good faith and reflect our current judgment
regarding the direction of our business, actual results will almost always
vary, sometimes materially, from any estimates, predictions, projections,
assumptions or other future performance suggested herein. Except as required
by applicable law, including the securities laws of the United States, the
Company does not intend to update any of the forward-looking statements to conform
these statements to actual results. Readers are referred to the sections
entitled �Risk Factors� in the Company�s periodic filings with the British
Columbia Securities Commission, which can be viewed
and with the United States Securities
and Exchange Commission, which can be viewed at www.SEC.gov.
1201 - 1166 Alberni Street
Canada V6E 3Z3
Telephone: (604) 687-4777
Facsimile: (604) 687-4770
(NYSE Amex: EGI)