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June 7, 2010
News Release
Entr�e
Gold Commences Drill Program On Blackjack And Roulette, Nevada
Vancouver, B.C., June 07, 2010 - Entr�e Gold Inc. (TSX:ETG; AMEX:EGI; Frankfurt:EKA
� �Entr�e� or the �Company�) has commenced drilling on the Blackjack and
Roulette copper projects, located in the historic Yerington copper camp of
Nevada.
The Blackjack property is
held under option from Honey Badger Exploration Inc. (TSX.V: TUF � �Honey
Badger�) and covers approximately 4,250 hectares (10,500 acres). The Roulette
property is held under option from Bronco Creek Exploration Inc. � (a
wholly-owned subsidiary of Eurasian Minerals Inc. - TSX.V:EMX � collectively
�Bronco Creek�) and covers approximately 1,760 hectares (4,350 acres)
immediately south of Blackjack.
The two contiguous
projects are west of, and adjacent to, the Blue Hills copper target on the
Ann Mason property, owned by PacMag Metals Limited (ASX:PMH �
�PacMag�). Entr�e and PacMag recently announced that PacMag
shareholders voted in favour of a business combination between the two
companies (see news release of June 4, 2010).
Planned drilling at
Blackjack consists of seven drill holes totaling 2,800 metres (including
reverse circulation (�RC�) pre-collars in two holes). Five diamond
holes will test a copper soil geochemical anomaly located immediately west of
the Blue Hills copper oxide prospect. Two holes will test a strong
airborne geophysical anomaly located at the northeast corner of the claim
block. This anomaly is coincident with a ground IP anomaly defined
during a recently completed 43.5 kilometre IP/Resistivity survey.
Planned drilling on
Roulette comprises four holes totaling 3,200 metres of combined RC and
diamond drill holes. Two of the holes will target coincident strong
magnetic and soil geochemical anomalies. Two additional holes will test
magnetic lows interpreted to be the source area of an offset granitic dike
swarm (host rock to copper mineralization elsewhere in the Yerington
district).
The Yerington district,
with historical copper production of approximately 1.8 billion pounds of
copper, is presently one of the most active base metal exploration areas in
the USA, with programs underway by Nevada Copper Corp. and Quaterra Resources
Inc. The pending PacMag acquisition, combined with existing agreements on
Roulette and Blackjack, gives Entr�e a significant presence in one of the
major copper camps in North America. The combination of excellent
location, excellent infrastructure, significant resources and long mining
history makes Yerington an attractive investment location.
QUALIFIED
PERSON
Robert Cann, P.Geo.,
Entr�e�s Vice-President, Exploration and a Qualified Person as defined by
National Instrument
43-101, has reviewed the technical information in this news release.
ABOUT
ENTR�E GOLD INC.
Entr�e Gold Inc. is a
Canadian mineral exploration company focused on the worldwide exploration and
development of gold and copper prospects. The Company flagship property is in
Mongolia, where it holds two mining licences (Shivee Tolgoi and Javhlant) and
one exploration licence (Togoot). Lookout Hill completely surrounds the
8,500-hectare Oyu Tolgoi project of Ivanhoe Mines, and hosts the Hugo North
Extension copper-gold deposit and the Heruga copper-gold-molybdenum
deposit. A portion of the Shivee Tolgoi mining licence and the entirety
of the Javhlant mining licence are subject to a joint venture with Ivanhoe
Mines, through its subsidiary Oyu Tolgoi LLC (formerly known as Ivanhoe Mines
Mongolia Inc. XXK � �IMMI�).
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.
The Company continues to
explore its 100%-owned landholdings in Mongolia, while also evaluating new
opportunities throughout eastern Asia. Entr�e is exploring the Huaixi
copper project in Zhejiang Province in China, under the terms of an agreement
with the No. 11 Geological Brigade.
In North America, the
Company is exploring for porphyry-related copper systems in Arizona and New
Mexico under two agreements with Empirical Discovery LLC. In 2009, Entr�e
optioned two contiguous properties, Blackjack and Roulette, in the Yerington
porphyry copper district of Nevada through option agreements with Honey Badger
Exploration Ltd. and Bronco Creek Exploration Inc.
In November 2009,
Entr�e announced an agreement with PacMag Metals Limited to implement
Australian Schemes of Arrangement to acquire all of the issued shares and
options of PacMag. PacMag holds the rights to land contiguous with the
Blackjack and Roulette properties and hosts the Ann Mason deposit. On
June 4, 2010, PacMag shareholders and optionholders voted overwhelmingly in
favour of approving the business combination between the two companies.
The transaction is expected to close on or before June 30, 2010.
In British Columbia,
Entr�e has the right to earn 100% interest in the early stage
copper-molybdenum Crystal property through an agreement with Taiga
Consultants Ltd.
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$38
million, the Company is well funded for future activities.
Rio Tinto and Ivanhoe
Mines are major shareholders of Entr�e, holding approximately 15% and 14% of
issued and outstanding shares, respectively.
FURTHER
INFORMATION
Monica Hamm, Manager,
Investor Relations
Entr�e Gold Inc.
Tel: 604-687-4777
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: completion of drill
program in Nevada, anticipated results ofsaid drilling program, successful
resolution of regulatory and administrative issues related to the Schemes of
Arrangement, the timing of commencement of full construction of the Oyu
Tolgoi Project; the estimated timing and cost of bringing the Oyu Tolgoi
Project into commercial production; anticipated future production and cash
flows; target milling rates; the ability of the partners to arrange financing
for construction of the Oyu Tolgoi Project; the impact of amendments to the
laws of Mongolia and other 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 .
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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)
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