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October 14, 2010
Entr�e Gold Provides Exploration Update On U.S.
Properties
Vancouver, B.C. � Further
to the news release of September 22, 2010 detailing exploration on its
Yerington area projects, Entr�e
Gold Inc. (TSX:ETG; NYSE AMEX:EGI; Frankfurt:EKA � �Entr�e� or the �Company�)
provides an exploration update on its other properties located in the
historically productive areas of the southwestern U.S., where it is
applying advanced exploration techniques as a key part of its search for
buried porphyry-style copper-gold targets.
The work in New Mexico and Arizona reflects Entr�e�s two-pronged strategy
that builds on its flagship Lookout Hill joint venture in Mongolia along with
other exploration projects in important mineral districts in the Americas.
The southwestern U.S. has been the most productive copper region in
North America, but since the late 1980s exploration activity has decreased
significantly.
Recent increases in copper and gold prices have sparked renewed interest
in this region. This has created an opportunity to apply new
exploration methods and technology in the search for concealed deposits.
Three of Entr�e�s projects in Arizona and New Mexico were generated under
agreements with Empirical Discovery LLC (�Empirical�), a private Denver-based
group. Empirical has developed proprietary processing and interpretive
software to generate targets from regional geophysical databases. Entr�e has
leveraged this knowledge, along with the expertise of its technical team, to
discover a new copper-gold porphyry system peripheral to the historic
Lordsburg mining camp in New Mexico. It is important to note that this
discovery was found in an area previously known only for vein style
mineralization.
Greg Crowe, Entr�e�s President and CEO commented, �Utilization of
Empirical�s proprietary software, in combination with the drill testing of
several targets generated since 2007, has helped refine our target selection
criteria. Success at Lordsburg has aided us in identifying highly
prospective untested areas, such as Bisbee and Oak Grove. These sites
are a key focus of our future exploration activities in the U.S. We are
continuing to expand our policy of accumulating significant copper and gold
inventories as well as growing those inventories organically through
selective and successful exploration efforts.�
Lordsburg, New Mexico
Evaluation of the Lordsburg porphyry copper-gold discovery (see News
Releases dated January 15, 2009 and October 8, 2009) continues, with
permitting of additional drill sites in process. This discovery, within 3
kilometres of the centre of the historic Lordsburg mining camp which has been
intermittently active for over 100 years, validates the exploration
methodology being used by Entr�e and Empirical. To date Entr�e has
completed 12 holes on the property, confirming near-surface mineralization
over an area of 600 x 600 metres. Grades in several holes (e.g.
EG-09-12, 96 metres grading 0.25% copper and 0.15 g/t gold, or 0.35% copper
equivalent) are similar to those of a number of producing mines in the
region.
Oak Grove, New Mexico
Surface use agreements for the Oak Grove property located 45 kilometres
northeast of Lordsburg, and 6 kilometres southeast of the Tyrone Mine
operations of Freeport-McMoran are nearly complete. The target is a buried 5
x 5 kilometre magnetic high which resembles the signature of several known
porphyry copper orebodies in the region. Once access is obtained,
Entr�e plans to carry out several lines of induced polarization (IP)
geophysics to guide selection of targets for initial drill testing. The property
reportedly has not been previously drill tested.
Bisbee, Arizona
Environmental permits for the planned drilling at Bisbee have been
received and drilling is expected to commence in the final quarter of
2010. The target is a well-defined magnetic low/chargeability high
geophysical feature measuring 3 x 2 kilometres located 6 kilometres from the
past-producing Lavender pit at Bisbee along a prominent north-northeast
structural trend. The Lavender pit was the major producer in the Bisbee camp
(past production of more than 7 billion pounds copper), which was the
cornerstone of the Phelps Dodge mining company � now Freeport McMoran.
Meadow Valley, Arizona
This property was acquired through the merger with PacMag Metals and is
located in the prolific southern Arizona copper district. Current and past
producers include Morenci, Sierrita, Mission and Twin Buttes as well as new
or potential producers at Safford and Rosemont. The property is located 30 km
south of the Rosemont deposit of Augusta Resources where published NI 43-101
Proven and Probable reserves totaling 546 million tonnes grading 0.45% Cu and
0.015% Mo have been defined to support a 20 year mining operation with first
production planned in 2012.
The Meadow Valley project consists of 50 claims covering a zone of
reported copper mineralization drilled by a private group in the 1970s.
Specific details of this drilling are unavailable, but recently completed IP
surveying over the core area has confirmed a strong chargeability anomaly
coincident with the area of previous drilling and surface
mineralization. Entr�e is assessing the data from Meadow Valley in
order to plan a 2011 exploration program.
Rainbow Canyon, Nevada (Gold)
The Rainbow Canyon property is located 40 kilometres east of Reno, Nevada
in an area of excellent infrastructure. PacMag Metals staked the ground
in 2009 to cover an extensive area of historical workings which yield
anomalous gold values. The setting and mineralization as evidenced by
outcrops and dump material is low sulphidation epithermal gold veins hosted
within volcanic rocks of the Walker Lane Trend, which contains the
past-producing Comstock, Goldfields and Paradise Peak precious metal
camps. Surface sampling by PacMag yielded numerous strongly anomalous
gold results, including four samples assaying greater than 10 g/t gold from a
total of 44 samples collected.
Entr�e is currently evaluating how best to advance the property, either
through internally-funded exploration or in partnership with a gold-focused
group.
Sentinel, North Dakota (Uranium)
The Sentinel uranium project is located approximately 50 kilometres
southwest of the city of Dickinson, North Dakota. The project consists of a
mineral lease of approximately 2,100 hectares which includes the Church
uranium deposit, and two nearby non-contiguous prospecting permits covering
approximately 1,160 hectares. Entr�e acquired the project as part of the
PacMag acquisition in June 2010.
Near-surface uranium mineralization occurs in multiple stacked
shallow-dipping beds of lignite (brown coal). The main concentration is in
the �21� unit, which is widespread and ranges in thickness from 0.6 to 1.2
metres. Drilling at a nominal 100 x 100 metre spacing has defined an
initial JORC-compliant resource which is open to expansion.
Uranium is not one of Entree�s main commodity foci, and the Company is
looking to joint venture or sell the project to a uranium-focused group.
QUALIFIED PERSON
Robert Cann, P.Geo., Entr�e�s Vice-President Exploration, a Qualified
Person as defined by National Instrument 43-101 (�NI 43-101�), has reviewed
the technical information contained in this release.
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.
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$23 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 and forward-looking information (together,
�forward-looking statements�) within the meaning of applicable securities
laws and the United States Private Securities Litigation Reform Act of 1995,
with respect to the extent and timing of its drilling and exploration
programs, the successful completion of surface access agreements, its
exploration results, the potential for financing its activities and its
desire to seek joint venture partners with respect to certain properties.
These forward-looking statements are made as of the date of this news
release. Users of forward-looking statements are cautioned that actual
results may vary from the forward-looking statements contained herein.
While the Company has based these forward-looking statements on its
expectations about future events as at the date that such statements were
prepared, the statements are not a guarantee of the Company�s future
performance and are subject to risks, uncertainties, assumptions and other
factors which could cause actual results to differ materially from future
results expressed or implied by such forward-looking statements. Such
factors and assumptions include, among others, the effects of general
economic conditions, the prices of gold and copper, changing foreign exchange
rates and actions by government authorities, uncertainties associated with
legal proceedings and negotiations and misjudgments in the course of
preparing forward-looking statements. In addition, there are known and
unknown risk factors which could cause the Company�s actual results,
performance or achievements to differ materially from any future results,
performance or achievements expressed or implied by the forward-looking
statements. Known risk factors are described in the Company�s Annual
Information Form for the financial year ended December 31, 2009, dated March
31, 2010 filed with the Canadian Securities Administrators and available at www.sedar.com. Although the Company has attempted to
identify important factors that could cause actual actions, events or results
to differ materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results not to be as
anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on
forward-looking statements. The Company is under no obligation to
update or alter any forward-looking statements except as required under
applicable securities laws.
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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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