March 31, 2010
Entr�e
Announces Increased Heruga Resource
Vancouver, B.C.- Entr�e Gold Inc. (TSX:ETG; NYSE
AMEX:EGI; Frankfurt:EKA � �Entr�e� or the �Company�) announces an updated Inferred
Mineral Resource estimate for the Heruga copper, gold, and molybdenum
deposit, which has been incorporated into an independent NI 43-101 compliant
technical report that has been filed on SEDAR (www.sedar.com). The Heruga deposit on the
Entr�e-Ivanhoe Joint Venture Property is now estimated to contain 910 million
tonnes grading 0.48% copper, 0.49 grams per tonne (�g/t�) gold and 141 parts
per million (�ppm�) molybdenum for a copper equivalent* (�CuEq�) grade of
0.87%, using a 0.60% CuEq cut-off grade - see Table 1 below.
The updated resource
estimate was received from joint venture partner and project operator, Oyu
Tolgoi LLC (formerly known as Ivanhoe Mines Mongolia Inc. XXK
-�OTLLC�). Now that conditions precedent of the Investment Agreement
have been satisfied, as announced on March 31, 2010, OTLLC will be owned
jointly by Ivanhoe Mines Ltd. (TSX:IVN; NYSE:IVN; NASDAQ:IVN), and the
Mongolian government, with the parties holding equity interests of 66% and
34% respectively. OTLLC, in turn, will hold (as a participant) up to an 80%
interest in the Entr�e-Ivanhoe Joint Venture. Please see the Company�s
Annual Information Form, filed on March 31, 2010, for more information.
This latest inferred
resource estimate represents a 20% increase in tonnage and a 15% increase in
contained CuEq pounds of copper (at a 0.6% CuEq cut-off) over the March 2008
resource estimate. Based on these new figures, the Heruga deposit could
contain 9.5 billion pounds of copper and 14 million ounces of gold.
Greg Crowe, President and
CEO of Entr�e commented, �The increased Inferred Mineral Resource estimate
for Heruga clearly demonstrates the potential of this growing deposit. Heruga
hosts some of the highest gold-copper ratios within the Oyu Tolgoi
mineralized trend, along with a considerable molybdenum content. The
deposit has been traced northwards onto OTLLC�s property where it remains
open and appears to deepen. Most importantly for Entr�e, geological and
geophysical data suggests a possible offset to the Heruga deposit south of
the currently drilled resource. Along this trend, there is an
additional four kilometres of highly prospective untested ground on the
Javhlant licence.�
Table
1. Heruga Deposit Inferred Mineral Resource
Mineral Resource Inventory, Heruga Deposit � Entr�e-Ivanhoe Joint
Venture Property
|
Cut-off
(CuEq%)
|
Tonnage
(�000 t)
|
Cu
(%)
|
Au
(g/t)
|
Mo
(ppm)
|
CuEq
(%)
|
Contained Metal
|
Cu
(�000 lb)
|
Au
(�000 oz)
|
CuEq
(�000 lb)
|
>1.00
|
190,000
|
0.57
|
0.96
|
155
|
1.26
|
2,370,000
|
6,000
|
5,260,000
|
>0.60**
|
910,000
|
0.48
|
0.49
|
141
|
0.87
|
9,570,000
|
14,000
|
17,390,000
|
>0.30
|
2,180,000
|
0.35
|
0.33
|
102
|
0.61
|
16,730,000
|
23,000
|
29,470,000
|
*CuEq estimated using $1.35/pound (�lb�)
copper (�Cu�), $650/ounce (�oz�) gold (�Au�) and $10/lb molybdenum (�Mo�).
The equivalence formula was calculated assuming that gold and molybdenum
recovery was 91% and 72% of copper recovery respectively. The contained gold,
copper and molybdenum in the tables have not been adjusted for recovery.
** The 0.6% CuEq cut-off is highlighted as the base case resource for
underground bulk mining.
The base case reporting CuEq cut-off grade of 0.6% CuEq is consistent with
cut-off grades applicable to mining operations exploiting similar deposits
and with cut-offs applied to the nearby Hugo North and Hugo South
deposits. The presence of potentially economic concentrations of
molybdenum at Heruga has led to a revision of the CuEq formula used for the
other Oyu Tolgoi deposits.
The Heruga deposit is situated within the Company�s Javhlant mining
licence immediately south of the Oyu Tolgoi copper and gold deposit and
within the Entr�e-Ivanhoe Joint Venture Property. Forty-three drill
holes totaling over 58,000 metres (including daughter holes) have been used
in the resource estimate. The holes are located on ten sections spaced at 150
to 300 metre intervals over a strike length of 2.2 kilometres.
Three of the forty-three holes (over 4,870 metres) were drilled on the Oyu
Tolgoi licence immediately north of the common border with Javhlant.
These additional holes have confirmed the extension of Heruga mineralization
northward to and across the Entr�e-Ivanhoe Joint Venture Property boundary.
The mineralized system within the Javhlant licence starts at a vertical
depth of approximately 500 metres, has a strike length of over 2.2 kilometres
north-south, a vertical extent varying between 400 to 800 metres and a width
of 200 to 300 metres. The deposit remains open to the north, south and
east.
As currently defined, the shallower southern portion of the deposit is
believed, based on geology and geophysics, to be fault offset two to three
kilometres to the west. This highly prospective area extends for four
kilometres southward within the Javhlant licence.
Drill maps from the Heruga deposit are posted on Entr�e�s web site at www.entreegold.com and Ivanhoe Mines�
website at www.ivanhoemines.com.
Quality Assurance and Quality
Control
Scott Jackson and John Vann, both Directors of Quantitative Group from
Perth, Australia, performed an independent audit at the Oyu Tolgoi site on
OTLLC�s exploration practices and found them to be in line with industry best
practices. The updated mineral resource estimate at Heruga was completed by
OTLLC under the direct supervision of Scott Jackson and John Vann.
SGS Mongolia LLC prepares the split core at the project site and assays
all samples at its facility in Ulaanbaatar, Mongolia. The QA/QC program is
managed on site by OTLLC. In-house, matrix-matched copper-gold-molybdenum
standards and blanks are inserted at the sample preparation lab on the
project site to monitor the quality control of the assay data. QA/QC data
were reviewed by Scott Jackson, John Vann and a third independent consultant,
Dr. Barry Smee, P.Geo.
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 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) comprising
the 179,590 hectare Lookout Hill property. The application to convert
the Togoot licence to a mining licence is currently under review. Lookout
Hill completely surrounds the 8,500-hectare Oyu Tolgoi project of OTLLC, and
hosts the Hugo North Extension copper-gold deposit and the Heruga
copper-gold-molybdenum deposit.
Under the terms of the
joint venture, Entr�e is carried through to production, at its election, by
debt financing from OTLLC with interest accruing at OTLLC�s 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 advance 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 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 an agreement with Empirical Discovery
LLC. In 2009, Entr�e optioned two large contiguous properties, Blackjack and
Roulette, in the Yerington porphyry copper district of Nevada through option
agreements with HoneyBadger 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. 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 in excess of C$40 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@entreegold.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.
Such statements include those relating to the development of the Oyu Tolgoi
project and the Heruga deposit in particular. 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)
|