From the President & CEO
Entrée Gold Inc. is a Canadian mineral resource company successfully meeting the global demand for products derived from gold, copper, molybdenum and coal. We are achieving this goal through concerted exploration efforts. With operations in Mongolia, China, the United States and Canada, Entrée has assembled a portfolio of exploration projects balanced between grass roots, advanced exploration and pre-production. We have raised over C$100 million since our inception in 2002, and our market capitalization has grown from under $4 million to over $250 million. Our treasury stands at over C$35 million, providing us with ample funds to weather economic uncertainty and expand our portfolio.
Most notably, Entrée is a large landholder in Mongolia, where it holds two mining licences and one exploration license comprising the Lookout Hill property. Lookout Hill completely surrounds the Oyu Tolgoi project of Ivanhoe Mines, known to host some of the world’s richest and largest porphyry copper-gold-molybdenum deposits.
Ivanhoe Mines is our joint venture partner on a portion of Lookout Hill achieved through the expenditure of US$35 million of exploration and development in just over three years. Their aggressive exploration efforts led to the discovery of the Hugo North Extension and the Heruga Deposit on our Lookout Hill property. These deposits now form a very important part of the world class Oyu Tolgoi mineralized copper-gold system. Ivanhoe Mines is also our second largest shareholder.
The discovery of significant mineralization on Entrée’s ground has attracted the attention of Rio Tinto, now our largest shareholder through a series of private placements and warrant exercises. Rio Tinto is also a major shareholder of Ivanhoe Mines and has committed up to US$1.5 billion to the development of Oyu Tolgoi.
In 2007, Entrée entered into a partnership with Empirical Discovery LLC to explore for porphyry copper and molybdenum mineralization in Arizona and New Mexico. Our discovery of porphyry- style mineralization near Lordsburg, NM demonstrates the viability of Empirical’s proprietary geophysical interpretation techniques that were instrumental in determining the preliminary targets at Lordsburg.
In 2009, Entree optioned two large contiguous properties in the Yerington porphyry copper district through agreements with HoneyBadger Exploration Ltd. and Bronco Creek Exploration for the Blackjack and Roulette land packages, respectively. This region has seen renewed interest in the last few years and Entrée’s shareholders now have a foothold in this highly prospective area.
In November 2009, Entrée 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 a tract of land that is contiguous with the Blackjack and Roulette properties and hosts the Ann Mason copper-molybdenum deposit. The acquisition of PacMag, including the Ann Mason deposit, should more than double Entrée’s current worldwide copper assets. The agreement is subject to an independent assessment on behalf of PacMag, a PacMag shareholder vote and regulatory approval by the Australian Securities and Investments Commission and governing bodies.
We are also applying our expertise to exploring the Huaixi project in southeastern China, a past producing copper-pyrite mine with potential for hosting buried porphyry copper mineralization. In keeping with our mandate to acquire premium properties that complement our current project portfolio, we recently added the Crystal Property that may be acquired through an agreement with Taiga Consultants Ltd. The property is an early-stage copper-molybdenum target located in British Columbia, Canada.
Our shares currently trade on the following exchanges: TSX (“ETG”), NYSE Amex (“EGI”) and Frankfurt (“EKA), giving us exposure to three influential investing communities. A considerable treasury, strong partners, superior exploration properties and world class deposits grant Entrée the depth and stability necessary to succeed and grow, even in challenging economic climates.
I thank you for your interest and hope that you will participate in the continued success of Entrée Gold Inc.
Sincerely,
Gregory G. Crowe
President & CEO
