Empirical Land Package
Entrée entered into two separate agreements with Empirical Discovery LLC to explore for and develop porphyry copper and porphyry copper-gold targets in southeastern Arizona and southwestern New Mexico.
Through the first agreement with Empirical in July 2007, Entrée acquired exploration rights to over 9,995 hectares (24,600 acres) located southeast of Safford, Arizona and extending into New Mexico. Under the terms of the agreement, Entrée has the option to acquire an 80% interest in any of the properties by incurring exploration expenditures totaling a minimum of US $1.9 million and issuing 300,000 shares within 5 years. If Entrée exercises its option, Empirical may elect within 90 days to retain a 20% participating interest or convert to a 2% NSR royalty, half of which may be purchased for US $2 million.
In March 2008, Entrée entered into a second agreement with Empirical and acquired exploration rights to an additional 4,370 hectares (10,800 acres) near Bisbee, Arizona. Under the terms of the Bisbee agreement, Entrée has the option to acquire an 80% interest in any target within this area by incurring exploration expenditures totaling a minimum of US $1.9 million and issuing 150,000 shares within 5 years of the anniversary of the effective date. If Entrée exercises its option, Empirical may elect within 90 days to retain 20% participating interest or convert to a 2% NSR royalty, half of which may be purchased for $2 million. Entrée’s ground position covers the area to the north and northeast of the former Bisbee Mine.
Entrée – Empirical Areas of Interest
Initial exploration on the properties included geophysics, geochemistry and geology on six separate targets. Entrée used proprietary geophysical interpretation techniques developed by the principals of Empirical to locate buried porphyry targets. Three of the targets were subsequently drilled resulting in the discovery of porphyry copper-gold mineralization on the Lordsburg prospect in New Mexico. In addition to Lordsburg, the remaining active targets are Oak Grove in New Mexico and Abbot and Dixie in Arizona.
Lordsburg, New Mexico
The Lordsburg prospect is the most advanced target in the land package under option from Empirical. The Lordsburg claims cover 3,885 hectares (9,600 acres) adjacent to the historic Lordsburg copper-gold-silver district.
Over 6,000 metres of drilling was carried out in 2008 and 2009 at Lordsburg. Several intercepts of potentially economic grades and widths of porphyry copper-gold mineralization were intersected in several drill holes. Significant results are summarized in the table below.
Significant Lordsburg Drill Results
|
Hole No. |
Interval
(m) |
Length
(m) |
Cu
(%) |
Au
(g/t) |
CuEq*
(%) |
|
EG-L-08-002 |
156.0 - 466.0 |
310.0 |
0.14 |
0.08 |
0.19 |
|
including |
182.0 - 211.3 |
29.3 |
0.21 |
0.12 |
0.29 |
|
including |
240.0 - 254.0 |
14.0 |
0.33 |
0.26 |
0.50 |
|
EG-L-08-005 |
0.0 - 134.0 |
134.0 |
0.13 |
0.12 |
0.21 |
|
EG-L-08-006 |
11.2 - 130.0 |
118.8 |
0.20 |
0.20 |
0.33 |
|
EG-L-08-007 |
6.0 - 152.0 |
146.0 |
0.13 |
0.16 |
0.23 |
|
EG-L-08-008 |
280.0 - 332.0 |
52.0 |
0.18 |
0.05 |
0.21 |
|
EG-L-09-010A |
34.0 - 84.0 |
50.0 |
0.18 |
0.21 |
0.31 |
|
And |
216.0 - 256.0 |
40.0 |
0.15 |
0.13 |
0.23 |
|
EG-L-09-011 |
28.0 - 66.0 |
38.0 |
0.15 |
0.20 |
0.28 |
|
EG-L-09-012 |
96.0 - 252.0 |
156.0 |
0.19 |
0.12 |
0.27 |
|
including |
118.0 - 212.0 |
94.0 |
0.25 |
0.15 |
0.35 |
|
including |
152.0 - 212.0 |
60.0 |
0.31 |
0.21 |
0.44 |
*Copper Equivalent (CuEq) has been calculated using assumed metal prices (US$1.35/pound for copper and US$650/ounce for gold) and no metallurgical factor; % CuEq. = % Cu + (g/t Au*18.98)/29.76.
A zone of surface alteration and anomalous geochemistry exceeds 1.2 kilometres in length and 600 metres in width. Within this zone, drilling has confirmed sub-surface mineralization over a 600 x 600 metre area.
Mineralization appears best developed in the contact areas between a feldspar porphyry stock and volcanic rocks. Potassic alteration and sulphide-quartz veining are associated with the strongest areas of mineralization.
Oak Grove (New Mexico)
Oak Grove is an early stage exploration target located 8 kilomtres southeast of Freeport McMoRan’s Tyrone open pit copper mine..
Abbot & Dixie (Arizona)
The Dixie target is located approximately 6 kilometres north-northeast of the historic Bisbee copper-gold-silver mining camp and along a prominent structural trend that extends from Bisbee northeastward through the Entrée property under Cretaceous, post-mineral cover. . North-northeast trending structures are reported to be an important control to mineralization in this area.
Induced polarization surveys completed in 2009 have outlined an area of high chargeability coincident with the 2 kilometre x 3 kilometre magnetic low that defines the Dixie exploration target. A drill program is currently being planned to test the geophysical anomalies.
Abbot is an early-stage exploration target is located 10 kilometres north of Bisbee, Arizona. Additional induced polarization surveys are required to test the 2 kilometre x 3.5 kilometre magnetic low that defines the target.
