Entree Gold Receives Mongolian Mining Licences
October 26 2009 - 8:00AM
PR Newswire (US)
VANCOUVER, Oct. 26 /PRNewswire-FirstCall/ -- Entree Gold Inc.
(TSX:ETG; NYSE Amex:EGI; Frankfurt:EKA - "Entree" or the "Company")
announces that its application for conversion of the Shivee Tolgoi
and Javhlant exploration concessions to mining licences has been
approved by the Mineral Resources Authority of Mongolia and the
licences have been received. The eastern portion of the Shivee
Tolgoi licence and the entire Javhlant licence are subject to a
joint venture with Ivanhoe Mines Ltd., through its subsidiary,
Ivanhoe Mines Mongolia Inc. LLC (TSX: IVN; NYSE: IVN; NASDAQ: IVN -
collectively "Ivanhoe Mines"). Mining licences have a 30 year term
with two renewals of 20 years each possible. Greg Crowe, President
and CEO of Entree stated: "The granting of the mining licences
provides the long term security necessary for Entree and its joint
venture partner, Ivanhoe Mines, to advance the known deposits at
Oyu Tolgoi through development to production. It also provides
sufficient time for testing the potential along strike extensions
to Entree's Hugo North Extension and Heruga deposits and for the
diligent and systematic exploration of other copper, gold and
molybdenum prospects. The granting of these mining licenses
represents a pivotal moment in the advancement of our Mongolian
assets." Shivee Tolgoi (54,760 hectares) and Javhlant (20,346
hectares) completely surround Ivanhoe Mines' Oyu Tolgoi mining
licence. Conversion of these licences has now consolidated a
sizeable land position upon which the Oyu Tolgoi mining complex
will be established. Title to the portion of the Shivee Tolgoi
licence outside of the joint venture ("Shivee Tolgoi West") is 100%
owned by Entree LLC, the Company's Mongolian subsidiary. The
Company believes that further exploration is warranted on Shivee
Tolgoi West, which covers over 35,000 hectares, to identify
additional mineralization which could be processed through the Oyu
Tolgoi facilities. Successful conversion of these exploration
licences to mining licences was a condition precedent to the
Investment Agreement signed between Ivanhoe Mines, our largest
shareholder Rio Tinto (NYSE:RTP)(LSE:RIO.L)(ASX:RIO.AX) and the
Mongolian government on October 06, 2009. These mining licences are
contained within the Contract Area covered by the Investment
Agreement. Under the terms of the Entree-Ivanhoe Mines joint
venture, Entree retains either a 20% or 30% carried interest on
these licences, dependent on the depth of mineralization. ABOUT
ENTREE GOLD INC. Entree Gold Inc. is a Canadian mineral exploration
company focused on the worldwide exploration and development of
gold and copper prospects. The Company flagship property is in
Mongolia, where it holds two mining licences and one exploration
licence comprising the 179,590 hectare Lookout Hill property.
Lookout Hill completely surrounds the 8,500-hectare Oyu Tolgoi
project of Ivanhoe Mines, and hosts the Hugo North Extension of the
Hugo Dummett copper-gold deposit and the Heruga
copper-gold-molybdenum deposit. The Company continues to explore
its large landholdings in Mongolia, including the coal discovery
Nomkhon Bohr. Entree is also evaluating new opportunities
throughout the region and elsewhere in Asia. Entree is exploring
the Huaixi copper project in Zhejiang Province in China, under the
terms of an agreement with the # 11 Geological Brigade. In North
America, the Company is exploring for porphyry-related copper
systems in Arizona and New Mexico under agreements with Empirical
Discovery LLC, in Nevada through option agreements with HoneyBadger
Exploration Inc. and Bronco Creek Exploration Inc. and in British
Columbia through an agreement with Taiga Consultants Ltd. The
Company is also seeking additional opportunities to utilize its
expertise in exploring for deep and/or concealed ore deposits. With
a treasury in excess of C$40 million, the Company is well funded
for future activities. Ivanhoe Mines and Rio Tinto are major
shareholders of Entree, holding approximately 15% and 16% of issued
and outstanding shares respectively. This News Release contains
forward-looking statements. Forward-looking statements are
statements which relate to future events. In some cases, you can
identify forward-looking statements by terminology such as "may",
"should", "expects", "plans", "anticipates", "believes",
"estimates", "predicts", "potential" or "continue" or the negative
of these terms or other comparable terminology. Such statements
include those relating to the development of the Oyu Tolgoi project
and the conversion of the Shivee Tolgoi and Javlant exploration
licence to mining licences. These statements are only predictions
and involve known and unknown risks, uncertainties and other
factors that may cause our or our industry's actual results, levels
of activity, performance or achievements to be materially different
from any future results, levels of activity, performance or
achievements expressed or implied by these forward-looking
statements. While these forward-looking statements, and any
assumptions upon which they are based, are made in good faith and
reflect our current judgment regarding the direction of our
business, actual results will almost always vary, sometimes
materially, from any estimates, predictions, projections,
assumptions or other future performance suggested herein. Except as
required by applicable law, including the securities laws of the
United States, the Company does not intend to update any of the
forward-looking statements to conform these statements to actual
results. Readers are referred to the sections entitled "Risk
Factors" in the Company's periodic filings with the British
Columbia Securities Commission, which can be viewed at
http://www.sedar.com/, and with the United States Securities and
Exchange Commission, which can be viewed at http://www.sec.gov/.
DATASOURCE: Entrée Gold Inc. CONTACT: Monica Hamm, Manager,
Investor Relations, Entree Gold Inc., Tel: (604) 687-4777, Toll
Free: (866) 368-7330, E-mail: ; Peter Oates, Corporate
Communications, Entree Gold Inc., Tel: (604) 687-4777, Toll Free:
(866) 368-7330, E-mail:
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