Entrée is currently exploring for copper, gold, molybdenum and coal in Mongolia. Our flagship property is Lookout Hill, located in the south Gobi Desert in Mongolia near the border with China. Lookout Hill covers more than 179,000 hectares and surrounds Ivanhoe’s Oyu Tolgoi property. Oyu Tolgoi is host to the Hugo Dummett copper-gold deposit that is now recognized as the richest copper-gold porphyry deposit of its kind in history. In 2004 Ivanhoe entered an agreement with Entrée that allowed Ivanhoe to explore on the 40,000 ha portion of the property that surrounds the Oyu Tolgoi property to the north, south and east. Ivanhoe’s work has led to the discovery of two deposits with NI 43-101 compliant mineral resources on the Lookout Hill property, the Hugo North Extension to the north of Oyu Tolgoi, and Heruga to the south.
Current NI 43-101 resource estimates are outlined in the tables below.
Hugo North Extension Mineral Resource (Lookout Hill portion), February 2007
|
Class |
CuEq
Cut-off |
Tonnage
(tonnes) |
Copper
(%) |
Gold
(g/t) |
CuEq*
(%) |
Contained Metal |
|
Cu (‘000 lb) |
Au (oz) |
CuEq ('000 lb) |
|
Indicated |
0.6 |
117,000,000 |
1.80 |
0.61 |
2.19 |
4,643,000 |
2,290,000 |
5,649,000 |
|
Inferred |
0.6 |
95,500,000 |
1.15 |
0.31 |
1.35 |
2,421,000 |
950,000 |
2,842,000 |
Notes: Based on drilling completed to 01 Nov., 2006; effective date 20 Feb., 2007. *Copper Equivalent (CuEq) has been calculated using assumed metal prices (US$1.35/pound for copper and US$650/ounce for gold); %CuEq. = %Cu+(g/t Au*18.98)/29.76. The equivalence formula was calculated assuming that gold was 91% of copper recovery. The contained gold and copper represent estimated contained metal in the ground and have not been adjusted for the metallurgical recoveries of gold and copper.
Heruga Inferred Mineral Resource, February 2008
|
CuEq
Cut-off |
Tonnage
(tonnes) |
Copper
(%) |
Gold
(g/t) |
Mo
(ppm) |
CuEq*
(%) |
Contained Metal |
|
Cu (‘000 lb) |
Au (oz) |
CuEq ('000 lb) |
|
0.6 |
760,000,000 |
0.48 |
0.55 |
142 |
0.91 |
8,030,000 |
13,400,000 |
15,190,000 |
Notes: Based on drilling completed to 13 Feb.. 2008; effective date 21 Feb, 2008. *Copper Equivalent estimated using $1.35/pound copper, $650/ounce gold and $10/pound molybdenum; %CuEq = %Cu + ((g/t Au*18.98)+(Mo*0.01586))/29.76.. The equivalence formula was calculated assuming that gold and molybdenum recovery was 91% and 72% of copper recovery respectively. The contained gold, copper and molybdenum in the tables have not been adjusted for recovery. The 0.6% CuEq cut-off is highlighted as the base case resource for underground bulk mining.
Since 2008, three coal targets have been discovered on Entrée’s 100% owned Togoot Licence: Nomkhon Bohr, Coking Flats and Khar Suul. These discoveries form part of the rich Permian coal basin of Southern Mongolia which includes Tavaan Tolgoi, located approximately 75 kilometres to the northwest, and reputedly the largest undeveloped high quality coal resource in the world with an estimated 3.5 billion tonnes.
The Coking Flats and Khar Suul discoveries are associated with magnetic lows that have been traced over 10 kilometres in length. Unlike Nomkhon Bohr, these targets are covered by younger rocks. The geometry and potential economic significance are not well understood at this early stage of exploration.
Entrée is continuing to explore the Togoot Licence with drill testing of additional geophysical and geological targets. Exploration will focus on extensive areas of younger cover rocks, as these may conceal the favourable coal-bearing stratigraphy buried at shallow depths.
