Entr�e Gold Reports on Second
Quarter 2012
Entr�e Gold Inc. (TSX:ETG; NYSE
MKT:EGI; Frankfurt:EKA - "Entr�e" or the "Company") has
today filed its interim operational and financial results for the quarter ended
June 30, 2012.
Greg Crowe, President and
CEO commented, "Both of our senior projects are advancing rapidly.
During the second quarter, Rio Tinto confirmed its funding for Phase 1 and
Phase 2 construction of the Oyu Tolgoi mining complex. Ivanhoe Mines, now
known as Turquoise Hill Resources, successfully closed a $1.8 billion rights
offering in July, which is a key component of the funding commitments.
Phase 2 includes the development plan for Lift 1 of the Entr�e � Oyu Tolgoi LLC
Hugo North Extension deposit. In addition, Rio Tinto has provided a
bridge loan to ensure uninterrupted progress of development and has committed
to fully support a project finance package of US$3-4 billion. In Nevada,
recent metallurgical results yielded excellent copper recoveries for both the
Ann Mason sulphide deposit and the Blue Hill oxide target. These results
will be considered as part of the Preliminary Economic Assessment expected
within the second half of 2012.�
Highlights for the quarter
ended June 30, 2012 and beyond include:
Mongolia
Lookout Hill Joint
Venture
- On
April 18, 2012, Ivanhoe Mines (now known as Turquoise Hill Resources Ltd.,
�Turquoise Hill�) announced that it has signed a binding memorandum of
agreement with its majority shareholder Rio Tinto that establishes Rio
Tinto�s support for a series of funding measures expected to cover all
projected capital requirements for the Oyu Tolgoi mining complex for the
next four to five years.
- On
April 25, 2012, Entr�e announced that core hole EJD0034A collared on the
eastern flank of the Heruga deposit intersected 590 metres of 0.33%
copper, 0.70 grams per tonne (�g/t�) gold and 56 parts per million
(�ppm�) molybdenum, or 0.80% copper equivalent (�CuEq�). This
intersection is not included in the reported Heruga inferred resource
estimate (see news release of March 30, 2012) and may represent an eastward
step-out to the deposit.
- On July
27, 2012, Turquoise Hill announced the closing of its $1.8 billion rights
offering, with proceeds to be used to advance the construction and
development of the Oyu Tolgoi mining complex.
Development of the Oyu Tolgoi
mining complex continues at a rapid pace, with Turquoise Hill announcing on
June 28, 2012 that Phase 1 construction was 90% complete. First
development ore has been delivered to the crusher, marking yet another key
milestone for the project team and stakeholders. As this project
advances, the Company looks forward to first development production from the
Lift 1 underground operations on the Entr�e � Oyu Tolgoi LLC (�OTLLC�) joint
venture ground expected in 2015.
Entr�e�s joint venture
partner, OTLLC, continues to explore various targets on the Entr�e-OTLLC joint
venture ground. Diamond drilling of a Cretaceous covered area, located 7
kilometres north of Hugo North Extension and to the west of Ulaan Khud,
commenced June 25, 2012. Twenty-nine shallow initial holes are planned
and when complete the more prospective areas will be filled in with additional
holes. Results will be used for locating subsequent diamond drill holes.
Ten holes had been completed to the end of June.
Shivee West
Entr�e continues to explore
its adjacent 100% owned Shivee West property. In April 2012, Entr�e
mobilized a field crew to Mongolia to focus on geological mapping, excavator
trenching and sampling in the Argo Zone, Zone III and Khoyor Mod areas.
In total, 22 trenches (1,723 metres) were excavated. The area of
Argo gold mineralization was extended 140 metres further north from
mineralization defined by 2011 reverse circulation drilling. The Argo
Zone now measures approximately 400 metres long by up to 130 metres wide.
One of the trench samples returned 81.4 g/t gold over 3 metres,
confirming and expanding 2011 high-grade gold values.
Khoyor Mod is a new
discovery located approximately 6 kilometres south of Argo and comprises a 250
metre by 300 metre area of quartz stockwork within Devonian sediments.
The stockwork is anomalous in gold (trace to 0.58 g/t) and copper (67 �
505 ppm) and is indicative of a porphyry target.
USA
Ann Mason, Nevada
Entr�e�s second major
project is the Ann Mason Project in the Yerington district of Nevada. The
Ann Mason Project includes the Ann Mason copper-molybdenum deposit, the Blue
Hill copper oxide target, and several early-stage copper targets, including
Blackjack, Roulette and Minnesota.
- Preparation
of the Preliminary Economic Assessment (�PEA�) is currently underway.
- Drilling
results from the final three Ann Mason drill holes (Holes -028, -029 and
-030) were released on July 30, 2012. These results extended
mineralization to the west and to depth. These results were not part
of the resource estimate released at the end of March 2012 but will be
included in an updated resource estimate as part of the PEA.
- Metallurgical
testing of two additional, Ann Mason chalcopyrite-pyrite sulphide core
composite samples, averaging 0.20% and 0.28% copper, respectively.
Locked cycle flotation testing on a 105 micron grind size showed 92%
copper recovery on both samples into a 21-25% copper concentrate.
- Metallurgical
recoveries ranging from 82.7% to 87.0% copper have been returned from
column leach tests of four crushed drill core composites from the Blue
Hill oxide target, located 2 kilometres northwest of the Ann Mason
deposit.
Corporate
Highlights
- Gorden
Glenn was appointed to the board of directors of Entr�e on June 18,
2012. Mr. Glenn has over 20 years of mining, exploration and
investment banking experience.
- On May
2, 2012, the Company replaced its existing alliance agreement with
Empirical Discovery, LLC, with an agreement pursuant to which the Company
will purchase a 100% interest in the Lordsburg and Oak Grove properties in
New Mexico, subject to a 2% net smelter return (�NSR�) royalty. The
aggregate purchase price for the properties is $100,000 and 500,000 shares
of the Company. Each NSR royalty may be bought down to 1% for $1
million if the option is exercised on or before January 1, 2015. The
buydown option may be extended to January 1, 2016 or January 1, 2017, in
which case the buydown price will be $2 million and $200,000 will be
payable for each 12 month extension. The buydown price and extension
payments are payable in cash or a combination of cash and common shares of
the Company at the Company�s election.
- Through
a combination of staking and purchase agreements, the Company has acquired
or entered into agreements to acquire a total of 63 unpatented and
patented lode claims within or contiguous to the boundaries of its Ann
Mason Project, for aggregate consideration of $3,621,170 and 40,000 common
shares. In order to complete the acquisition of these additional
claims, Entr�e is required to pay $1,500,000 by September 13, 2012.
- Subsequent
to June 30, 2012, Entr�e acquired a 100% interest in 17 patented lode
claims within the boundaries of the Ann Mason Project for $100,000 and a
2% NSR royalty on the claims. These claims are located approximately
5 kilometres north of the Blue Hill target.
For the three months ended
June 30, 2012, net loss decreased to US$3,244,705 compared to a net loss of
US$3,617,950 in the three months ended June 30, 2011. During the three
months ended June 30, 2012, Entr�e incurred slightly lower operating
expenditures, primarily from decreased general and administrative expenses
relative to the three months ended June 30, 2011. These decreases were
offset by a recorded deferred income tax recovery in the period, decreased loss
from the Entr�e-OTLLC Joint Venture and a gain on sale of mineral property
interests.
SELECTED FINANCIAL INFORMATION
|
|
As at June 30, 2012
(US$)
|
As at June 30, 2011
(US$)
|
|
Working capital (1)
|
10,512,000
|
13,471,418
|
Total assets
|
67,332,879
|
74,086,807
|
Total long term liabilities
|
12,878,412
|
14,859,171
|
|
(1)Working Capital is
defined as Current Assets less Current Liabilities
The Company�s Interim
Financial Statements and accompanying management�s discussion and analysis for
the quarter ended June 30, 2012 and its Annual Information Form for the year
ended December 31, 2011 are available on the Company website, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. Unless otherwise noted, all
figures in this news release are reported in United States dollars.
QUALIFIED PERSON
Robert Cann, P.Geo.,
Entr�e�s Vice-President Exploration, a Qualified Person as defined by NI
43-101, has approved this release.
ABOUT ENTR�E GOLD INC.
Entr�e Gold Inc. is a
Canadian mineral exploration company balancing opportunity and risk with key
assets in Mongolia and Nevada. As a joint venture partner with a carried
interest on a portion of the Oyu Tolgoi mining complex in Mongolia, Entr�e Gold
has a unique opportunity to participate in one of the world�s largest
copper-gold projects managed by one of the world�s premier mining companies �
Rio Tinto. Oyu Tolgoi, with its series of deposits containing copper,
gold and molybdenum, has been under exploration and development since the late
1990s. Phase 1 is on the verge of production, and Entr�e Gold could see
first development production from the joint venture ground as early as
2015.
In addition to being on the
path to production in Mongolia, Entr�e Gold has been advancing its Ann Mason
Project in one of the world�s most favourable mining jurisdictions, Nevada.
The Ann Mason Project hosts a sizeable copper and molybdenum porphyry
deposit within an emerging copper camp. Entr�e Gold is preparing a PEA
for the Ann Mason Deposit to assess the economic viability of this asset.
Rio Tinto and Turquoise Hill (formerly Ivanhoe Mines) are major shareholders of
Entr�e, holding approximately 13% and 11% of issued and outstanding shares,
respectively. Rio Tinto, through its majority ownership of Turquoise
Hill, beneficially owns 23.6% of Entr�e�s issued and outstanding shares.
FURTHER INFORMATION
Mona Forster
Executive Vice President
Entr�e Gold Inc.
Tel: 604-687-4777
Fax: 604-687-4770
Toll Free: 866-368-7330
E-mail: mforster@entreegold.com