Entree Gold Discovers Coal in Mongolia
Vancouver, B.C., August 25, 2008 - Entr�e
Gold Inc. (TSX:ETG; AMEX:EGI; Frankfurt:EKA - "Entr�e" or the
"Company") announces a new coal discovery on its 100% owned Togoot
license, which forms the western portion of its Lookout Hill Property in
Mongolia. Exploration in 2008 is focused on a number of geological targets on
the Togoot license including the new coal discovery, Nomkhon Bohr.
Entr�e is evaluating a coal target known as Nomkhon
Bohr, located in the northwest corner of the license, approximately 60
kilometres northwest of Ivanhoe Mines Ltd. (TSX: IVN; NYSE: IVN; NASDAQ: IVN -
"Ivanhoe Mines") Oyu Tolgoi copper-gold deposits and 70 kilometres
southeast of the Tavan Tolgoi coal deposit. A haul road, currently used
to transport coal from Tavan Tolgoi to China,
passes within five kilometres of Nomkhon Bohr.
Greg Crowe, President and CEO of Entr�e, stated
"The discovery of coal on our 100%-owned Togoot license greatly enhances
the exploration potential of our Lookout Hill project. The location of
the discovery is particularly important as it occurs close to the haulage road
currently used to ship coal from the rich Tavan Tolgoi deposit to China.
Should this coal discovery proceed to development, it is well situated with
respect to both the Chinese market and to the developing Oyu Tolgoi copper-gold
project. Entr�e is proceeding with a full evaluation of Nomkhon
Entr�e has been evaluating the Nomkhon Bohr area with
geological mapping, magnetic and induced polarization ("IP")
geophysical surveys, excavator-assisted trenching, and core drilling. The
work to date has traced the target over a strike length of 1,000 metres, and it
remains open along strike to the east and to the west and downdip.
Seven trenches totalling 620 metres and five core
holes totalling 467 metres have been completed; however, only two of the five
holes completely tested the target and the remaining three holes were abandoned
due to drilling problems. Hole EG-08-068 intersected three
multi-metre-thick coal-bearing horizons of 13.50 metres, 25.65 metres, and 7.57
metres apparent thickness - within these horizons are coal seams of variable
apparent thickness. Hole EG-08-071 encountered two coal-bearing horizons
with interbedded mudstones and coal over apparent thicknesses of 21.40 metres
and 57.40 metres. Hole EG-08-072 intersected the coal-bearing horizon at
42.05 metres but the hole was abandoned at 66.60 metres. The quality of
coal within the target is as yet undetermined. Drill core samples
have been submitted for analysis to SGS Tianjin China;
however, results are not expected for several weeks.
The coal target continuity appears to be predictable
from hole to hole, and from trench to trench. Further drilling to test
the downdip continuity of the coal-bearing horizons is planned, as well as further
trenching along strike.
Entr�e has contracted with Norwest Corporation, an
international natural resource consulting group, to evaluate the geology of the
Nomkhon Bohr discovery and intends to have Norwest assist with ongoing
James R. Foster, P.Geo., Entr�e's Project Manager -
Lookout Hill, and a qualified person as defined by NI 43-101, supervised the
preparation of the 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. Most notably, the Company is a large landholder in Mongolia,
where it holds three exploration licenses that comprise the 179,590-hectare
Lookout Hill property. Lookout Hill completely surrounds the
8,500-hectare Oyu Tolgoi project of Ivanhoe Mines, and hosts the Hugo North
Extension of the Hugo Dummett deposit and the newly discovered Heruga deposit.
In July 2008, Entr�e formed a joint venture with
Ivanhoe Mines' wholly-owned Mongolian subsidiary on approximately 40,000
hectares of the Lookout Hill property. Pursuant to an "Earn-in
Agreement" announced in October 2004, Ivanhoe Mines' subsidiary earned a 70% interest in
mineralization above a depth of 560 metres and an 80% interest in
mineralization below a depth of 560 metres by spending US$35 million on the
joint venture property. Details of the Earn-In Agreement are
available on Entr�e's website at www.entreegold.com and on SEDAR at
The Hugo North Extension on Lookout Hill, identified
through drilling conducted by Ivanhoe Mines as part of the Earn-In Agreement,
contains an Indicated Resource of 117 million tonnes averaging 1.8% copper and
0.61 g/t gold for a copper equivalent grade of 2.19%. The contained metal
in this Indicated Resource is estimated at 4.6 billion pounds of copper and 2.3
million ounces of gold. An additional Inferred Resource for this area is
estimated at 95.5 million tonnes grading 1.15% copper and 0.31 g/t gold for a
copper equivalent grade of 1.35%, containing 2.4 billion pounds of copper and
950,000 ounces of gold. Both the Indicated and Inferred Resources use a 0.6%
copper equivalent cut-off grade. No consideration was made for
metallurgical recoveries. (See the Company's news release from March 29,
On March 12, 2008, Entr�e announced an initial mineral
resource estimate prepared for the Heruga copper, gold, and molybdenum deposit,
under the supervision of Quantitative Group, Perth
Heruga is estimated to contain an Inferred Resource of 760 million tonnes
grading 0.48% copper, 0.55 g/t gold and 142 ppm molybdenum for a copper
equivalent grade of 0.91%, using a 0.60% copper equivalent cut-off grade.
Based on these figures, the Heruga deposit is estimated to contain at least
eight billion pounds of copper and 13.4 million ounces of gold. Drilling
is being conducted by joint venture partner, Ivanhoe Mines.
The Company continues to explore its large
landholdings in Mongolia as
well as evaluating new opportunities throughout the region and elsewhere in Asia.
Entr�e plans to explore 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 copper-molybdenum porphyry systems
in the southwest USA.
The Company is also seeking additional opportunities to utilize its expertise
in exploring for deep and/or concealed ore deposits.
Ivanhoe Mines and Rio Tinto are major shareholders of
Entr�e, holding approximately 15% and 16% of issued and outstanding shares
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 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.