Entrée has been actively evaluating opportunities in China for several years. Many prospective areas of China remain under-explored or unexplored using modern technology. In November 2007, Entrée entered into an agreement with the Zhejiang Geological Brigade to explore for copper in Pingyang County, Zhejiang Province. Entrée has the right to earn a 78% interest in the Huaixi project by spending $3 million over a four year period.
The Huaixi project is located in Zhejiang Province, southeast China, approximately 60 kilometres southwest of Wenzhou City and 40 kilometres inland from the Pacific Ocean. The Huaixi project area is easily accessed from Wenzhou City via well maintained freeways and country roads. The project area is centered on Huaixi Village in western Pingyang County, and has been subject to small scale mining activity for pyrite, copper and gold since as early as 1956.
The hydrothermal system underlying the Huaixi property is emplaced in Cretaceous volcanics and sediments at an intersection of regional NW and NE-trending fractures. The property is situated in the middle of an 800 kilometre by 100 kilometre wide belt characterized by high-sulfidation-style alteration and is part of the larger, northeast- trending, Mesozoic Yanshanian Pacific Volcano-Plutonic belt.
Metal districts within the belt tend to occur at the intersection of northwest-trending (arc-normal) fractures and northeast-trending (arc or post-arc) fractures. Notable deposits found along this belt include the Zijinshan gold deposit in Fujian Province, and the Jinguashi gold deposit in Taiwan.
Surface exploration in 2008 and 2009, consisting of geological mapping, geochemical sampling and induced polarization geophysics defined a number of target areas having characteristics possible related to porphyry-type copper +/- gold mineralization.
A drill program consisting of six drill holes totaling 2,700 metres commenced in late 2009 and was completed in January 2010.
A follow up drill program is expected to commence in July 2010 and will test remaining significant geophysical and geochemical targets.
