|
September 16, 2010
News Release
ENTR�E
GOLD TO ACQUIRE INTEREST
IN LUKKACHA PROPERTY, PERU
Vancouver, B.C., September 16,
2010 - Entr�e Gold Inc. (TSX:ETG; NYSE AMEX:EGI;
Frankfurt:EKA � �Entr�e� or the �Company�) is pleased to announce that it has
entered into a conditional agreement with a private Peruvian company whereby
Entr�e, through its wholly-owned Peruvian subsidiary, Exploraciones
Apolo Resources S.A.C. (�Apolo�), may acquire an initial 70% interest in the
Lukkacha property located in Tacna Province of southeastern Peru.
Lukkacha is located in the southern Peru porphyry belt, one of the world�s
most prolific copper districts. The property consists of five
concessions totaling 2,900 hectares which cover two large areas of surface
alteration, iron oxides and quartz veining approximately 50 kilometres along
the structural trend southeast from the giant Toquepala mining operation of
Grupo Mexico. Toquepala is a porphyry Cu-Mo deposit which has been in
production for over 50 years, and has current reserves of 2.21 billion tonnes
@ 0.48% Cu and 0.02 % Mo using a 0.24% Cu cut-off. The Cuajone deposit,
another Grupo Mexico operation, is located in the same belt and has published
reserves of 1.91 billion tonnes grading 0.51% Cu and 0.02% Mo using a 0.20%
Cu cut-off. Concentrates from Toquepala and Cuajone are smelted at the
port city of Ilo, 130 kilometres west of Lukkacha.
The property has never been drilled and represents a unique opportunity
for grass roots exploration within a major copper district. The focus
of initial work at Lukkacha will be to map the differing alteration styles
apparent at surface in order to define targets for the first round of drill
testing. Widespread intense alteration and surface leaching of sulphides
suggests the possibility of enriched secondary copper sulphides in addition
to primary mineralization. The anticipated drilling program will specifically
test for the occurrence of a blanket of enriched copper sulphides.
The property is situated within 50 kilometres of the international border
with Chile, and initiation of work is subject to Apolo obtaining a Supreme
Decree allowing it to work on the property. Subject to obtaining the Supreme
Decree, Apolo may earn a 70% interest by making cash payments totaling
US$215,000 and expending a minimum of US$1.5 million on exploration, to include
a minimum 6,000 metres of diamond drilling, within 24 months. Once
Apolo has vested a 70% interest, it may acquire a further 30% interest by
paying the vendors US$2 million within 24 months. The vendors would retain a
2% NSR, half of which may be purchased at any time for US$1 million.
The agreement is subject to regulatory acceptance, and a finder�s fee is
payable.
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
8,500-hectare Oyu Tolgoi project of Ivanhoe Mines. A portion of the Lookout
Hill property is subject to a joint venture with Ivanhoe Mines, through its
subsidiary 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.
Under the terms of the joint venture, Entr�e is carried through to
production, at its election, by debt financing from Ivanhoe Mines with
interest accruing at Ivanhoe Mines� actual cost of capital or prime +2%,
whichever is less, at the date of the advance. Debt repayment may be
made in whole or in part from (and only from) 90% of monthly available cash
flow arising from its sale of product. Such amounts will be applied
first to payment of accrued interest and then to repayment of
principal. Available cash flow means all net proceeds of sale of
Entr�e�s share of products in a month less Entr�e�s share of costs of operations
for the month.
In North America, the Company is exploring for porphyry-related copper
systems in Nevada, Arizona and New Mexico. The primary asset in Nevada
is the Ann Mason property, which contains an inferred mineral resource and
considerable potential for additional targets. Entr�e optioned
two contiguous properties to Ann Mason, Blackjack and Roulette, through
option agreements with HoneyBadger Exploration Ltd. and Bronco Creek
Exploration Inc.
The Company is also seeking additional opportunities to utilize its
expertise in exploring for deep and/or concealed ore deposits. With a
treasury of approximately C$30 million, the Company is well-funded for future
activities.
Rio Tinto and Ivanhoe Mines are major shareholders of Entr�e, holding approximately
13% and 12% of issued and outstanding shares, respectively.
FURTHER INFORMATION
Monica Hamm - Manager, Investor Relations
Entr�e Gold Inc.
Tel: 604-687-4777
Fax: 604-687-4770
Toll Free: 866-368-7330
E-mail: mhamm@entr�egold.com
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 include, but are not limited to: the ability of the
company to make economic discoveries and advance its projects to development
or production, the impact of amendments to the laws of countries in which
Entr�e carries on business; and other statements that are not historical
facts. 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 forward-looking statements.
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 at www.SEDAR.com, and with the United States Securities and
Exchange Commission, which can be viewed at www.SEC.gov.
|
Entr�e Gold
Inc.
1201 - 1166 Alberni Street
Vancouver, BC
Canada V6E 3Z3
Telephone: (604) 687-4777
Facsimile: (604) 687-4770
Toll-free: 866-368-7330
info@entreegold.com
(TSX: ETG)
(NYSE Amex: EGI)
(Frankfurt: EKA)
|