VANCOUVER, Oct. 18, 2017 /PRNewswire/ - Entrée Resources
Ltd. (TSX:ETG; NYSE American:EGI – the "Company" or
"Entrée") is pleased to announce that Amec Foster Wheeler
Americas Limited ("Amec Foster Wheeler") has completed its initial
data review, and has commenced work on an updated National
Instrument 43-101 Technical Report (the "Technical Report")
relating to Entrée's 20% participating interest in the Entrée/Oyu
Tolgoi joint venture ("Entrée/Oyu Tolgoi JV") in Mongolia.
The updated Technical Report will include:
- an updated reserve case for the first lift ("Lift 1") of the
Hugo North Extension block cave on the Entrée/Oyu Tolgoi JV
property. The reserve will be based on information contained within
the 2016 Oyu Tolgoi Feasibility Study finalized in May 2016 by Entrée's joint venture partner Oyu
Tolgoi LLC ("OTLLC"). First development production from Lift 1 on
the Entrée/Oyu Tolgoi JV property is expected in approximately
2021; and
- a Preliminary Economic Assessment of Entrée's interest in both
Lift 2 of the Hugo North Extension copper-gold deposit ("Lift 2")
and the Heruga copper-gold-molybdenum deposit ("Heruga").
The Technical Report is expected to be completed by January 2018.
Stephen Scott, Entrée's President
and CEO comments, "We are very excited work has commenced on the
updated Technical Report, which will be a significant milestone for
the Company and help investors understand the tremendous underlying
value of Entrée's flagship asset. Completion of the Technical
Report will enable us to discuss preliminary economics for
potential future phases of the Oyu Tolgoi mine, beyond Lift 1,
including Lift 2 and Heruga, where a significant amount of the
Entrée/Oyu Tolgoi JV's mineralization occurs."
Oyu Tolgoi Underground Project Update
Entrée management and representatives from Amec Foster Wheeler
recently visited the Oyu Tolgoi underground development project and
supporting infrastructure in Mongolia. Based on the visit and recent
disclosure by Turquoise Hill Resources, Entrée is pleased to
confirm that the development of Shaft 4, which will be the first
physical development work on the Entrée/Oyu Tolgoi JV property, is
scheduled to commence in 2018. Shaft 4 will provide the
necessary ventilation required to support mining of the northern
part of the Hugo North deposit (including Hugo North Extension on
the Entrée/Oyu Tolgoi JV property), which is reported to contain
some of the highest-grade copper-gold mineralization in the entire
Oyu Tolgoi project. Completion of Shaft 4 is expected in 2021, with
first development production from Hugo North Extension Lift 1 also
expected in 2021.
The site visit, led by senior OTLLC team members, provided
Entrée management with an opportunity to tour some of the main
surface infrastructure, including the concentrator and tailings
facilities and to also go underground to observe some of the
development work completed to date. In addition, Entrée management
was able to review plans with OTLLC for the immediate and
medium-term future. Entrée is pleased to report that project
development, including both direct production and supporting
infrastructure, appears to be on track and is being completed to
the highest safety and operating standards.
Mr. Scott continues, "The commencement of physical work on the
Entrée/Oyu Tolgoi JV property in 2018 is the second important
milestone and will bring the Company one step closer to becoming a
producing mining company in just three years, a timeframe
coincident with market expectations of global copper supply moving
towards a deficit position. The resources case in Turquoise Hill's
most recent technical report on the Oyu Tolgoi project filed in
October 2016 indicates an estimated
mine life in excess of 95 years based on current estimated
resources and throughput rates. In the context of world class
mining projects such as Oyu Tolgoi, which often take several
decades from initial discovery to first production, the time
between now and first development production on the Entrée/Oyu
Tolgoi JV property in 2021 is extremely short."
Additional near-term milestones for the project include the
commissioning of Shaft 2, completion of the Oyut II Camp,
commencement of work on Shafts 3 and 4, and completion of Shaft
5.
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.
ABOUT ENTRÉE RESOURCES LTD.
Entrée Resources Ltd. is
a well-funded Canadian mining company with a unique carried joint
venture interest on a significant portion of one of the world's
largest copper-gold projects – the Oyu Tolgoi project in
Mongolia. Entrée has a 20% carried participating interest in
the Entrée/Oyu Tolgoi JV, with a 30% interest in all mineralization
identified above 560 metres elevation on the Entrée/Oyu Tolgoi JV
property. Sandstorm Gold Ltd., Rio Tinto and Turquoise Hill
Resources Ltd. are major shareholders of Entrée, holding
approximately 14%, 10% and 8% of the shares of the Company,
respectively. More information about Entrée can be found at
www.EntreeResourcesLtd.com.
ABOUT THE ENTRÉE/OYU TOLGOI JV PROPERTY
The Oyu
Tolgoi project includes two separate land holdings: the Oyu Tolgoi
mining licence, which is held 100% by OTLLC (66% Turquoise Hill
Resources; 34% Government of Mongolia), and the Entrée/Oyu Tolgoi JV
property, which is a partnership between Entrée and OTLLC. Rio
Tinto is managing the construction of Lift 1 of the Hugo North
underground block cave on both the Oyu Tolgoi mining licence and
the Entrée/Oyu Tolgoi JV property. The portion of the Hugo North
copper-gold deposit that lies on the Entrée/Oyu Tolgoi JV Property
is known as Hugo North Extension. The Entrée/Oyu Tolgoi JV property
also includes the Heruga copper-gold-molybdenum deposit and a large
prospective land package.
The Entrée/Oyu Tolgoi JV property contains approximately 14% of
the measured and indicated copper equivalent* pounds and 22% of the
inferred copper equivalent* pounds estimated in the Hugo North
deposit, approximately 10% of all measured and indicated gold
ounces and approximately 62% of all inferred gold ounces estimated
in the entire Oyu Tolgoi project, and approximately 94% of the
inferred copper equivalent* pounds estimated in the Heruga
deposit.
*Copper equivalency is calculated using assumed metal
prices of US$3.01/lb Cu, US$1,250/oz Au, US$20.37/oz Ag, and US$11.90/lb Mo; metallurgical recoveries are
considered in the formulae. Based on mineral resources reported in
Turquoise Hill's 2016 Technical Report, "Turquoise Hill Resources
Ltd., Oyu Tolgoi, 2016 Oyu Tolgoi Technical Report, October 2016.
This news release contains forward-looking statements within
the meaning of the United States Private Securities Litigation
Reform Act of 1995 and forward-looking information within the
meaning of applicable Canadian securities laws with respect to
corporate strategies and plans; the value and potential value of
assets and the ability of Entrée to maximize returns to
shareholders; anticipated future production and mine life;
completion of an updated Technical Report that includes a
Preliminary Economic Assessment of Entrée's interest in Lift 2 of
the Hugo North Extension deposit and the Heruga deposit; first
physical development on the Entrée/Oyu Tolgoi JV property; the
expected timing for commencement and completion of work on Shaft 4;
the expected timing of first development production from Lift 1 of
the Hugo North Extension deposit; construction and continued
development of the Oyu Tolgoi underground mine, including project
milestones; anticipated business activities; proposed acquisitions
and dispositions of assets; and future financial
performance.
While the Company has based these forward-looking statements
on its expectations about future events as at the date that such
statements were prepared, the statements are not a guarantee of
Entrée's future performance and are based on numerous assumptions
regarding present and future business strategies, local and global
economic conditions, legal proceedings and negotiations and the
environment in which the Company will operate in the future,
including the price of copper, gold and silver, and the status of
the Company's relationship and interaction with the Government of
Mongolia, OTLLC, Rio Tinto and
Turquoise Hill Resources. With respect to the construction and
continued development of the Oyu Tolgoi underground mine, important
risks, uncertainties and factors which could cause actual results
to differ materially from future results expressed or implied by
such forward-looking statements and information include, amongst
others, the timing and cost of the construction and expansion of
mining and processing facilities; the timing and availability of a
long term power source for the Oyu Tolgoi underground mine; the
ability of OTLLC to draw down on the supplemental debt under the
Oyu Tolgoi project finance facility and the availability of
additional financing on terms reasonably acceptable to OTLLC,
Turquoise Hill and Rio Tinto to further develop Oyu Tolgoi; delays,
and the costs which would result from delays, in the development of
the underground mine; projected copper, gold and silver prices and
demand; and production estimates and the anticipated yearly
production of copper, gold and silver at the Oyu Tolgoi underground
mine. Other uncertainties and factors which could cause
actual results to differ materially from future results expressed
or implied by forward-looking statements and information include,
amongst others, unanticipated costs, expenses or liabilities;
discrepancies between actual and estimated production, mineral
reserves and resources and metallurgical recoveries; the size,
grade and continuity of deposits not being interpreted correctly
from exploration results; fluctuations in commodity prices and
demand; changing foreign exchange rates; actions by Rio Tinto,
Turquoise Hill and/or OTLLC and by government authorities including
the Government of Mongolia; the
availability of funding on reasonable terms; the impact of changes
in interpretation to or changes in enforcement of laws, regulations
and government practices, including laws, regulations and
government practices with respect to mining, foreign investment,
royalties and taxation; the terms and timing of obtaining necessary
environmental and other government approvals, consents and permits;
the availability and cost of necessary items such as power, water,
skilled labour, transportation and appropriate smelting and
refining arrangements; and misjudgments in the course of preparing
forward-looking statements.
In addition, there are also known and unknown risk factors
which may cause the actual results, performance or achievements of
the Company to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements and information. Such factors include,
among others, risks related international operations, including
legal and political risk in Mongolia; risks associated with changes in the
attitudes of governments to foreign investment; risks associated
with the conduct of joint ventures; discrepancies between actual
and anticipated production, mineral reserves and resources and
metallurgical recoveries; global financial conditions; changes in
project parameters as plans continue to be refined; inability to
upgrade Inferred mineral resources to Indicated or Measured mineral
resources; inability to convert mineral resources to mineral
reserves; conclusions of economic evaluations; future prices of
copper, gold, silver and molybdenum; failure of plant, equipment or
processes to operate as anticipated; accidents, labour disputes and
other risks of the mining industry; delays in obtaining government
approvals, permits or licenses or financing or in the completion of
development or construction activities; environmental risks; title
disputes; limitations on insurance coverage; as well as those
factors discussed in the Company's most recently filed Management's
Discussion and Analysis and in the Company's Annual Information
Form for the financial year ended December
31, 2016, dated March 10, 2017
filed with the Canadian Securities Administrators and available at
www.sedar.com. Although the Company has attempted to identify
important factors that could cause actual actions, events or
results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking statements. The Company is under no obligation to
update or alter any forward-looking statements except as required
under applicable securities laws.
SOURCE Entrée Resources