ENTRÉE GOLD REPORTS INITIAL RESULTS OF
PRE-FEASIBILITY DRILLING AT ANN MASON, NEVADA
Vancouver, B.C., January 21, 2015 – Entrée Gold Inc. (TSX:ETG; NYSE MKT:EGI; Frankfurt:EKA - "Entrée" or the "Company") has received complete assay results from the first 20 holes of the previously announced pre-feasibility drill program at its 100% owned Ann Mason project in the Yerington district of Nevada.
Highlights from initial drill results include: EG-AM-14-041 with 390 metres of 0.35% copper, EG-AM-14-050 with 176 metres of 0.35% copper, EG-AM-14-046, the eastern-most drill hole, with 112.3 metres of 0.34% copper, EG-AM-14-057 with 327.4 metres of 0.38% copper, and EG-AM-14-065 with 150 metres of 0.38% copper.
Greg Crowe, President and CEO of Entrée stated, “The assay results received to date from our in-fill drill program look very promising, and will be used to upgrade the current mineral resources to the Measured and Indicated categories. Ann Mason is revealing itself to be a large, uniform copper deposit with very consistent grades, located in one of the best mining jurisdictions in the world. This drill program represents a significant step towards pre-feasibility, and advances Ann Mason along a development timeline. The next step will be to complete an updated resource estimate and PEA in the first half of 2015, and commence updated metallurgy studies.”
The infill drill program commenced in August 2014 and, with the final hole in progress, will be completed by the end of January 2015. The program comprised 40 holes and a total of approximately 19,200 metres combined reverse circulation (“RC”) pre-collars and core. Assay results on the last 20 holes are pending. The work is designed to upgrade the mineral resources contained in the 2012 Preliminary Economic Assessment Phase 5 pit ("2012 PEA" - see News Release of October 24, 2012) from Indicated and Inferred to a mix of Measured and Indicated categories. An updated drill plan and a table of detailed drill hole information is available on www.entreegold.com.
The 2012 PEA envisions a 24 year conventional open pit mine and sulphide flotation mill operating at a throughput rate of 100,000 tonnes per day and is based on mineralization contained within the Phase 5 pit. Over the life of mine, the 2012 PEA estimates average copper recovery of approximately 93%, producing a clean, 30% copper concentrate with average annual production of 214 million pounds of copper. There is potential to increase the mine life of Ann Mason through additional drilling and engineering studies.
The 2012 PEA is preliminary in nature and includes Inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the 2012 PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Discussion of Results
Results are reported in Table 1 below for the first 20 holes of the 40 hole program and largely completes infill drilling in the west-half of the deposit. Holes with pending assays are mainly located in the east-half of the deposit. RC pre-collars were largely restricted to barren, overlying volcanics. Drilling changed to HQ diameter core continually sampled over 2 metre intervals once mineralized rocks of the Yerington batholith were encountered or hole conditions dictated the change to core. Depths of holes ranged from 274.9 metres to 884.9 metres, depending on position within the Phase 5 pit, and hole angles varied from -60 to -90 degrees. It is important to note that 13 of the 20 holes reported in this press release ended in mineralization (copper values greater than the 0.15% copper cut-off). Only one hole (EG-AM-14-049) failed to return any significant results, and this hole was drilled along the northernmost border of the Phase 5 pit, in an area where mineralization was not expected.
Drill result highlights include:
·
EG-AM-14-041, located near the centre of the deposit, with 390 metres of 0.35% copper;
·
EG-AM-14-046, with 112.3 metres of 0.34% copper;
·
EG-AM-14-050, with 176 metres of 0.35% copper; and
·
EG-AM-14-057, with 327.4 metres of 0.38% copper, including 0.42% copper and 0.12 grams per tonne (“g/t”) gold over 200 metres.
Most of the reported drill hole intervals include sections with higher copper grades, many in the 0.40% to 0.60% copper range, as reported in Table 1. In addition, several holes returned intervals with higher than average gold (0.09 to 0.15 g/t) and silver grades (1.21 to 2.77 g/t), including holes EG-AM-14-041, 045, 046, 056, and 057. Finally, several holes intersected higher than average molybdenum grades, further outlining the molybdenum domain previously discussed in the 2012 PEA.
Table 1. Significant intercepts from 2014 Ann Mason drill holes.
Hole
From
(m)
To
(m)
Interval (m)
Cu
(%)
Au
(g/t)
Ag
(g/t)
Mo
(%)
EG-AM-12-031*
214.0
270.0
56.0
0.27
0.04
0.54
0.017
and
298.0
342.0
44.0
0.18
0.02
0.35
0.007
and
406.0
462.1
56.1
0.17
0.03
0.57
0.015
EG-AM-14-040*
186.0
643.8
457.8
0.31
0.02
0.62
0.005
Including
246.0
312.0
66.0
0.36
0.03
0.54
0.003
Including
370.0
462.0
92.0
0.39
0.02
0.78
0.003
including
520.0
584.0
64.0
0.39
0.03
0.61
0.007
EG-AM-14-041
290.0
680.0
390.0
0.35
0.05
0.84
0.003
including
350.0
410.0
60.0
0.55
0.06
0.74
0.004
including
472.0
520.0
48.0
0.50
0.07
1.05
0.002
including
540.0
574.0
34.0
0.44
0.14
2.15
0.001
including
600.0
644.0
44.0
0.38
0.09
1.73
0.001
EG-AM-14-042*
147.8
581.9
434.1
0.28
0.02
0.50
0.002
including
198.0
266.0
68.0
0.46
0.05
0.83
0.001
EG-AM-14-045
232.0
412.0
180.0
0.30
0.06
1.21
0.006
including
350.0
396.0
46.0
0.58
0.15
2.77
0.007
EG-AM-14-046*
271.3
383.6
112.3
0.34
0.05
1.21
0.011
including
302.0
372.0
70.0
0.40
0.07
1.66
0.012
EG-AM-14-047
324.0
406.0
82.0
0.24
0.01
0.29
0.003
EG-AM-14-048*
306.0
517.3
211.3
0.34
0.02
0.46
0.007
including
342.0
378.0
36.0
0.37
0.02
0.48
0.005
including
402.0
432.0
30.0
0.41
0.02
0.49
0.014
including
448.0
517.3
69.3
0.43
0.02
0.59
0.008
EG-AM-14-049
No significant results
EG-AM-14-050
234.0
410.0
176.0
0.35
0.02
0.46
0.004
including
276.0
330.0
54.0
0.42
0.01
0.44
0.004
including
384.0
410.0
26.0
0.50
0.05
1.31
0.009
and
522.0
558.0
36.0
0.35
0.10
1.70
0.003
EG-AM-14-051
286.0
300.0
14.0
0.20
0.01
0.29
0.001
and
314.0
324.0
10.0
0.22
0.01
0.22
0.018
EG-AM-14-052*
140.2
224.0
83.8
0.24
0.02
0.25
0.002
and
266.0
296.0
30.0
0.65
0.02
0.60
0.002
and
364.0
499.9
135.9
0.40
0.02
0.36
0.005
including
416.0
494.0
78.0
0.51
0.03
0.43
0.006
EG-AM-14-053*
174.0
204.0
30.0
0.19
0.02
0.34
0.005
and
234.0
274.9
40.9
0.22
0.02
0.40
0.002
EG-AM-14-054*
256.0
268.0
12.0
0.23
0.01
0.35
0.001
and
316.0
325.5
9.5
0.20
0.01
0.32
0.003
EG-AM-14-056*
204.1
451.7
247.6
0.32
0.06
1.38
0.004
including
322.0
451.7
129.7
0.44
0.10
2.31
0.003
EG-AM-14-057*
197.5
524.9
327.4
0.38
0.08
1.48
0.003
including
197.5
240.0
42.5
0.49
0.03
0.68
0.007
including
304.0
504.0
200.0
0.42
0.12
2.02
0.001
EG-AM-14-058
115.0
234.0
119.0
0.22
0.01
0.24
0.001
and
296.0
396.0
100.0
0.35
0.01
0.31
0.002
including
306.0
350.0
44.0
0.58
0.01
0.50
0.004
EG-AM-14-062*
48.8
86.0
37.2
0.18
0.01
0.50
0.001
and
108.0
160.0
52.0
0.20
0.01
0.36
0.001
and
214.0
280.0
66.0
0.28
0.01
0.17
0.002
and
294.0
434.0
140.0
0.26
0.02
0.41
0.009
including
296.0
358.0
62.0
0.33
0.02
0.37
0.007
EG-AM-14-063*
193.5
212.0
18.5
0.30
0.01
0.33
0.012
and
296.0
572.0
276.0
0.27
0.05
0.85
0.006
including
358.0
394.0
36.0
0.35
0.07
1.08
0.002
including
406.0
468.0
62.0
0.33
0.08
1.20
0.004
including
540.0
568.0
28.0
0.33
0.07
1.24
0.009
EG-AM-14-065*
221.0
884.9
663.9
0.29
0.04
0.75
0.004
including
221.0
264.0
43.0
0.33
0.02
0.42
0.004
including
298.0
380.0
82.0
0.38
0.03
0.82
0.002
including
510.0
604.0
94.0
0.44
0.05
0.82
0.003
including
674.0
824.0
150.0
0.38
0.09
1.54
0.007
Notes:
·
Holes marked with “*” ended in mineralization.
·
Drill holes were not drilled in numerical order and those not listed in the table still have pending analytical results.
·
Drill intersections are based on drilled core lengths and may not reflect the true width of mineralization.
·
Hole EG-AM-12-031 and EG-AM-14-065 were pre-collared in 2012 and completed in 2014.
Holes EG-AM-14-049, 051, 053, 054 were all drilled on the margins of the deposit within the limits of the Phase 5 pit and intersected minor, weak mineralization as predicted by previous drilling and by the 2012 PEA block model.
QUALITY ASSURANCE AND CONTROL
RC chips and split core samples were prepared at Acme Analytical Laboratories (ACME) in Elko and Reno, Nevada and shipped by ACME to their lab in Vancouver, Canada for analyses. Prepared standards, blanks and duplicates are inserted at the project site to monitor the quality control of the assay data. Entrée has a chain of custody program to ensure sample security during all stages of sample collection, cutting, shipping and storage.
Drill intersections described in this news release are based on drilled core lengths and may not reflect the true width of mineralization.
2012 PEA AND QUALIFIED PERSON
Robert Cinits, P.Geo., Entrée’s Vice-President, Corporate Development, a Qualified Person as defined by National Instrument 43-101, has approved the technical information in this release.
The 2012 PEA titled “Amended and Restated Preliminary Economic Assessment on the Ann Mason Project, Nevada, U.S.A.” with an effective date of October 24, 2012, amended October 15, 2014, was prepared by AGP Mining Consultants Inc. and is available on SEDAR at www.sedar.com.
ABOUT ENTRÉE GOLD INC.
Entrée Gold Inc. is a Canadian mineral exploration company balancing opportunity and risk with key assets in Nevada and Mongolia. Entrée has been advancing its Ann Mason project in one of the world’s most favourable mining jurisdictions, Nevada. The Ann Mason project hosts the Ann Mason copper-molybdenum deposit as well as the Blue Hill copper deposit within the rejuvenated Yerington copper camp.
Additionally, as a joint venture partner with a carried interest on a portion of the Oyu Tolgoi mining project in Mongolia, Entrée has a unique opportunity to participate in one of the world’s largest copper-gold projects managed by one of the premier mining companies – Rio Tinto. Oyu Tolgoi, with its series of deposits containing copper, gold and molybdenum, has been under exploration and development since the late 1990s.
Sandstorm Gold, Rio Tinto and Turquoise Hill Resources are major shareholders of Entrée, holding approximately 12%, 11% and 9% of issued and outstanding shares, respectively.
FURTHER INFORMATION
Monica Hamm
Manager Investor Relations Entrée Gold Inc.
Tel: 604-687-4777
Fax: 604-687-4770
Toll Free: 866-368-7330
E-mail: mhamm@entréegold.com
