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August 5, 2010
News Release
ENTR�E GOLD BUDGETS $3.7 MILLION FOR NEVADA
EXPLORATION
Vancouver, B.C., August 5, 2010 -
Entr�e Gold Inc. (TSX:ETG; NYSE AMEX:EGI; Frankfurt:EKA � �Entr�e� or the
�Company�) has approved a total of US$3.7 million for work on its Ann Mason
property in Nevada. The property was acquired as part of the transaction
whereby Entr�e acquired all of the shares of PacMag Metals Limited, which
closed on June 30, 2010 (NR dated June 30, 2010).
A budget of up to US$2.7 million has been approved to conduct
deep-penetrating induced polarization (�IP�) geophysical surveys, to be
followed by core drilling to explore the potential for higher grade
mineralization at depth and for extensions west of the currently defined Ann
Mason resource. This resource totals in excess of 7 billion pounds of
copper (NR dated January 26, 2010) associated with porphyry-style
mineralization and alteration, which includes a bornite-bearing, higher grade
core zone. Approximately 9,100 metres of drilling is planned in nine
holes.
The Blue Hills copper oxide zone straddles the western boundary of the Ann
Mason property. A budget of US $1.07 million has been proposed to
conduct detailed geochemical sampling and drilling to test the extent of
shallow oxide copper mineralization in this area. Drilling is expected to consist
of 15 to 20 holes totaling between 4000 and 5000 metres. In addition, the
Company is currently conducting a $1.1 million exploration program on the
adjoining Blackjack property to the west, which is under option from
HoneyBadger Exploration Inc. (TSX-V:TUF). This program includes drilling of
the western portion of the Blue Hills anomaly where it extends onto the
Blackjack property.
Lindsay Bottomer P.Geo., Entr�e�s Vice President Business Development, who
is a Qualified Person as defined by NI 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 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.
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 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 further pursuit of projects in prospective
jurisdictions, Entr�e optioned two 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. The properties are contiguous with the Ann Mason property,
recently acquired through the acquisition of PacMag Metals Limited.
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$32 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. 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: the ability of the
company to make economic discoveries and advance its projects to development
or production, the impact of amendments to the laws of 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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