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Entrée Gold Inc. is a resource company engaged in the exploration and advancement of premium copper and gold prospects worldwide. Currently, Entrée’s land holdings are located in the southern part of Mongolia and southeastern Arizona, USA.
Mongolia
Entrée has focused its advanced-stage exploration efforts on the Lookout Hill property in the south Gobi desert of Mongolia comprised of three contiguous mining concessions covering more than 179,000 hectares. Entrée’s Lookout Hill property completely surrounds Ivanhoe Mines’ Oyu Tolgoi copper-gold discovery, host to the world-class Hugo Dummett deposit. The Hugo North Extension is the northern part of the deposit that extends onto Entrée’s Copper Flats zone of Lookout Hill.
In March 2007, Entrée announced an updated mineral resource estimate for the Hugo North Extension on Copper Flats. The Hugo North Extension is now estimated to contain an indicated resource of 117 million tonnes grading 1.80% copper and 0.61 grams per tonne (g/t) gold (a copper equivalent grade of 2.19%). The contained metal in this indicated resource is estimated to contain 4.6 billion pounds copper and 2.3 million ounces gold. In addition, an inferred resource for this area is estimated at 95.5 million tonnes grading 1.15% copper and 0.31 g/t gold (a copper equivalent grade of 1.35%), containing 2.4 billion pounds of copper and 950,000 ounces gold. Both the indicated and inferred resources use a 0.6% copper equivalent cut-off grade.
Copper-gold mineralization has also been found 7 km to north of Copper Flats on Entrée’s ground. The discovery of this zone referred to as Ulaan Khud, has extended the known mineralization along strike over 10 km.
In addition to the work underway on the Hugo North Extension, Entrée is actively exploring the remainder of the 100% owned Lookout Hill project and the Manlai project 120 km to the north. Entrée announced a newly discovered area of molybdenum mineralization on Lookout Hill in January 2007, west of Ivanhoe Mines’ Oyu Tolgoi project. Elevated molybdenum has previously been associated with the Oyu Tolgoi system and the relationship between the two areas is currently undefined. Establishing a better understanding of this new zone is a key initiative for 2007.
Arizona
In May 2006, Entrée secured an option to acquire the Sol Dos copper project, located in the prolific Safford district of southeastern Arizona. The early-stage Sol Dos property is located strategically near one of the premier copper districts in the world; host to Phelps Dodge’s Lone Star, Dos Pobres, San Juan and Sanchez deposits and the Morenci Mine. Drilling commenced in April 2007 on targets outlined by IP and magnetometer surveys in 2006.
Investments by Rio Tinto and Ivanhoe Mines Ltd.
Entrée and Ivanhoe Mines entered into an Earn-In and Equity Participation Agreement in November 2004. Rio Tinto and Ivanhoe Mines participated in a Private Placement in Entrée in July 2005, adding over US$18 million to the treasury. Warrants associated with the Private Placement were exercised June 2007 resulting in an additional US$20.4 million. These investments and the recent exercise of warrants represent a strong endorsement by two of the world’s most prominent mining companies in Entrée’s management and property holdings, as well as the investment potential in Mongolia. In October 2006, Rio Tinto announced that it would invest up to US$1.5 billion to acquire up to a 33.35% equity interest in Ivanhoe for the purpose of funding the joint development of Oyu Tolgoi in Mongolia. Entrée is in sound financial condition, with ~US$32.5 million in the treasury and is well-positioned to build upon the value of the Company.
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