Entrée Gold Inc.
Entrée Gold Inc.:
Corporate news transmitted by DGAP – a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Drilling on Entrée’s Lookout Hill Project Intersects Copper and Gold
Mineralization 7.5 km North of the Entrée – Ivanhoe Property Boundarylling
on Entrée’s Lookout Hill Project Intersects Copper and Gold Mineralization
7.5 km North of the Entrée – Ivanhoe Property Boundary
Vancouver, B.C., Monday, October 30, 2006 – Entrée Gold Inc. (TSX: ETG;
AMEX: EGI; Frankfurt: EKA – ‘Entrée” or the ‘Company”) reports that
drilling on its Lookout Hill project, 7.5 km along strike to the north of
the Entrée-Ivanhoe joint property boundary, has intersected widespread,
shallow, copper and gold mineralization. The mineralization, in the Ulaan
Khud Zone of Lookout Hill (see map on www.entreegold.com), occurs in the
same geological setting as that of Oyu Tolgoi.
Company President, Greg Crowe, commented: ‘These results are exciting.
Although the copper and gold values encountered to date are sub-economic,
similar grade material was intersected in early-stage drilling in areas
peripheral to the Southwest Oyu Tolgoi open-pit ore body. The presence of a
mineralized system this far to the north of the main Oyu Tolgoi deposits
illustrates the regional scope of this rich copper and gold system and
suggests continued potential for the discovery of additional deposits.”
Drilling on the Entrée – Ivanhoe Agreement
Pursuant to its Earn-in Agreement with Entrée, Ivanhoe Mines Ltd. (TSX:
IVN, NYSE: IVN; NASDAQ: IVN – ‘Ivanhoe”) has been conducting condemnation
drilling in the vicinity of a proposed airport and water pipeline route 4.5
km to 8.5 km north of Entrée’s Copper Flats area (see map on
www.entreegold.com). To date, Ivanhoe has completed 18
holes, totaling 11,433 metres, in this area.
Several of these holes intersected a quartz monzodiorite (‘QMD”) very
similar to that associated with the Hugo Dummett mineralization, and the
same Devonian aged stratigraphic section of rocks as those that lie
immediately above the Hugo North ore body. Approximately 7.5 km along
strike to the north of the property boundary, or approximately 6.9 km north
of the inferred resource of 6.6 billion pounds of copper and 3.2 million
ounces of gold at Copper Flats (see Entrée news of February 1, 2006), three
drill holes, EGD110, EGD118 and EGD120, have intersected copper and gold
mineralization (see table below). This mineralization lies at relatively
shallow depths, below unmineralized, unconsolidated Cretaceous cover that
average 100 metres to 125 metres in thickness.
The three drill holes suggest a northeasterly-trending, southeast-dipping,
mineralized body of approximately 125 metres in true thickness.
Mineralization extends from near surface to a minimum of 450 metres downdip
and remains open in all directions. In addition, two holes (EGD089 and
EGD096), located approximately 1.5 km north of EGD118, intersected
mineralized quartz stockwork with copper values.
HolHolee FroFrom To
EGD089 810 886 76 0,25 0,03
936 958 22 0,25 0,03
998 1010 12 0,31 0,03
1062 1086 24 0,28 0,05
EGD096 1128 1140,9 12,9 0,30 0,03
EGD110 366 520 154 0,34 0,08
EGD118 214 344 130 0,35 0,11
268
(end
of
hole)
EGD120 228 40 0,34 0,42
Mr. Crowe noted: ‘The shallow mineralization is also noteworthy because, at
these depths, Entree’s joint venture interest increases to 30%. A large
amount of additional drilling will be required along this structure, a
strike distance of approximately 10 km, commencing from immediately north
of the previously-defined resource (of which the most northerly hole is
EGD053 – see map on wwwwww.entreegold.com.entreegold.com) to the northern
Entrée-Ivanhoe-BHP property boundary. It should also be noted that an
additional 5 km of untested Entrée ground lies along the projection of the
Oyu Tolgoi mineralized system to the south of Ivanhoe’s Oyu Tolgoi
concession.”
IndIndependent Exploration on Entrée’s 100% Owned Lookout Hillependent
Exploration on Entrée’s 100% Owned Lookout Hill
The Company has completed, to date, seven diamond holes, totalling 6,169.4
metres, on targets within the portion of Lookout Hill that lies outside the
Ivanhoe Earn-in Agreement. Approximately 2,000 metres remain to be drilled
in the 2006 exploration program. Targeted areas include the West Grid
geophysical and/or geochemical targets, the Ring Dyke, the Zone III gold
system, and the Zones I and II areas of alteration and geophysical targets.
West Gridt Grid
The large, and geologically-complex, West Grid area remains at an early
exploration stage. Three drills are now testing numerous, deep,
geophysical, geochemical and geological targets in this area. Drilling was
slow earlier in the season because of technical difficulties and the
availability of only a single drill.
Complete results have now been received for three of seven holes drilled
this season, EG06-039, EG06-040, and EG06-041. The only complete new hole
since the Company’s last exploration update (news release September 13,
2006) is EG06-041. Other assay results are pending.
EG06-041 was drilled beneath previously reported EG06-040 and intersected
Carboniferous and Devonian stratigraphy, without significant gold or copper
results. The induced polarization (‘IP”) anomaly in this area remains
unexplained.
A total of 3,290 metres, in 18 holes, of shallow reverse circulation (‘RC”)
drilling has been completed in the areas of the Zone III epithermal gold
target and the Zone I and Ring Dyke epithermal/porphyry-style targets.
Ring Dyke Zone
Holes EGRC06-001 to EGRC06-007 were drilled on a wide spacing (700 metres
to 1,000 metres apart) in the early-stage Ring Dyke zone, to test a blind
IP anomaly. They succeeded in partially delineating a large, sulphide-rich
epithermal, or high-level porphyry, system, underlying a variable thickness
of unmineralized Cretaceous cover. The best RC assay results were:
• 5 metres (from 76 metres to 81metres) of 0.06% copper (‘Cu”) in
EGRC06-001,
• 5 metres (from 212 metres to 217 metres) of 0.09% Cu in EGRC06-005, and
• 982 parts per billion (‘ppb”) gold (‘Au”) (from 171 metres to 172 metres)
in EGRC06-006.
A deeper test of this large, 2.0 km by 2.5 km area, using a diamond drill,
is planned for next season.
Zone III
RC holes EGRC06-008 to EGRC06-012 were drilled in peripheral areas of the
Zone III epithermal gold zone. Holes EGRC06-010- EGRC06-012 did not
encounter significant mineralization. EGRC06-008 and EGRC06-009 are
located at the north end of Zone III, approximately 350 metres north of the
diamond holes that were drilled in 2004 and 2005:
• EGRC06-008 returned 7 metres (from 14 metres to 21 metres) of 620 ppb Au
including 1 metre of 1.78 grams per tonne (‘g/t”) Au; 1 metre (from 29
metres to 30 metres) of 1.51 g/t Au, and 1 metre (from 63 metres to 64
metres) of 1.94 g/t Au.
• EGRC06-009 returned 1 metre (33 metres to 34 metres) of 891 ppb Au.
Results confirm the potential for extending the Zone III epithermal zone to
the north and to the south.
Holes EGRC06-013 to EGRC06-018 were drilled along the margins of the Zone I
advanced argillic zone and did not return significant gold or copper
values.
‘The drilling completed to date has been very useful in expanding our
geological knowledge of the various areas,” said Mr. Crowe. ‘In
particular, the rock types and alteration encountered in the West Grid area
confirm the similarities of its geological setting with that of the Oyu
Tolgoi ore deposits.
‘The exploration on our Lookout Hill property is still in the early stages.
Historically, BHP-Magma drilled 23 holes before selling Oyu Tolgoi to
Ivanhoe, who subsequently drilled an additional 137 holes before
intersecting the gold-rich, high-grade core of Southwest Oyu Tolgoi.
Entrée has completed only 7 holes to date in the West Grid area. There
remains a large number of drill targets on our 100% owned ground that
warrant further testing.”
Manlai Exploration Update
Exploration at Entrée’s Manlai Mongolian project this year has focused on
following up targets defined by last year’s work. It has consisted of a 13
km infill time domain IP survey, 8 diamond drill holes, totaling 4,270
metres (mainly in the East Target area), and additional geological mapping.
The drilling and mapping has greatly enhanced the Company’s understanding
of the geological setting. The drilling was successful in partially
defining a mineralized, porphyry-style stockwork over an area approximately
250 metres by 500 metres. This zone is still open along strike and to
depth.
Two additional holes (EGU06-011 and EGU06-012) have been completed since
the Company’s news release of September 13, 2006; however, assay results
have not yet been received. The following is a summary of this year’s
drilling at Manlai:
• EGU06-009 returned 259.1 metres (from 299.9 metres to 559.0 metres) of
821 parts per million (‘ppm”) Cu, including 70 metres (from 386.0 metres to
456.0 metres) of 1,330 ppm Cu.
• EGU06-010 returned 202 metres (333.0 metres to 535.0 metres) of 857 ppm
Cu, including 89 metres (378 metres to 465 metres) of 1,174 ppm Cu.
• EGU06-012, located in the East Target area was a 500 metre step-out to
the northwest from EGU06-009. The hole did not intersect significant
visible mineralization and encountered only weak alteration and quartz
stock veining. Either a fault is present between EGU06-009 and EGU06-012,
as interpreted by geophysics, surface mapping and drill results, or hole
EGU06-012 was collared too far south to intersect the more
northwesterly-trending system, as defined in holes EGU06-005, EGU06-009,
and EGU06-010 (see map on wwwwww.entreegold.com.entreegold.com). This
system of porphyry-style quartz stockwork, with associated k-feldspar
alteration and copper-gold+/- molybdenum mineralization, remains open along
strike and to depth.
• EGU06-011 tested the Central Target zone, located 3 km to the west of
the East Target zone tested by EGU06-005 to EGU06-010. This area was tested
in 2005 by drill holes EGU05-002 and EGU05-004 and is defined by a strong
IP anomaly and by zones of stockwork-style quartz veining, carrying weak
lead-zinc mineralization.
Drilling has finished for the 2006 exploration season. Results will be
compiled and assessed as the first step in planning 2007 work.
Quality Control and Quality Assurance
Entrée exploration programs are under the supervision of Robert Cann,
P.Geo., Entrée’s Vice-President, Exploration and a qualified person as
defined by National Instrument 43-101. Mr. Cann is responsible for the
preparation of technical information in the Company’s news releases. Split
core samples were prepared and analyzed at SGS Mongolia LLC in Ulaanbaatar,
Mongolia. Prepared standards and blanks are inserted at the project site to
monitor the quality control of the assay data. Drill intersections
described in this news release are based on core lengths and may not
reflect the true width of mineralization.
Ivanhoe’s QA/QC program is monitored by independent consultant Dr. Barry
Smee, P.Geo., and managed on site by Dale Sketchley, M.Sc., P.Geo. SGS
Mongolia LLC prepares the split core at the project site and assays all
samples at its facility in Ulaanbaatar, Mongolia. Prepared standards and
blanks are inserted at the sample preparation lab on the project site to
monitor the quality control of the assay data.
ABOABOUT ENTRÉE GOLD INC.UT ENTRÉE GOLD INC.
Entrée Gold Inc. (www.entreegold.com) is a Canadian mineral exploration
company focused on gold and copper prospects. The Company is a large
landholder in Mongolia and has recently acquired an early stage copper
porphyry project in Arizona, USA.
Entrée holds a 100% interest in mineral concessions comprising the 179,590
hectare Lookout Hill (Shivee Tolgoi) property, which completely surrounds
the 8,500 hectare, Turquoise Hill (Oyu Tolgoi) project of Ivanhoe Mines
Ltd. (‘Ivanhoe”).
Lookout Hill Earn-in Agreementkout Hill Earn-in Agreement
Under an ‘Earn-In Agreement” announced in October 2004, Ivanhoe has the
right to earn an interest in approximately 40,000 hectares of Entrée’s
Lookout Hill property. Details of the Earn-In Agreement are available on
Entrée’s website at www.entreegold.com and on SEDAR at www.sedar.com.
Drilling conducted by Ivanhoe as part of the Earn-In Agreement has
confirmed the extension of the Hugo North Deposit onto
Lookout Hill. An initial inferred resource was estimated at 190,160,000
tonnes (calculated using a 0.6% copper equivalent cut-off), averaging 1.91%
copper equivalent, containing over 6.5 billion pounds of copper and 3.2
million ounces of gold (see Entrée’s news release of February 1, 2006).
Rio Tinto and Ivanhoe Investment in Entree
Significant investments by Rio Tinto plc (NYSE: RTP; LSX: RIO; ASX: RIO –
‘Rio Tinto”) and Ivanhoe have contributed to Entrée’s treasury, which
currently exceeds CDN$17 million. Entrée plans to use these funds to
explore its wholly-owned projects in Mongolia and Arizona, and acquire and
explore new projects, globally. Ivanhoe and Rio Tinto are the largest
shareholders of Entrée, holding approximately 15% and 9% of Entrée’s issued
shares, respectively. They have the option to increase their positions to
approximately 16% each, by exercising warrants at C$2.75 per share and
C$3.00 per share.
Rio Tinto Investment in Ivanhoe
On October 18, 2006, Rio Tinto announced its plans to invest up to US$1.5
billion to acquire a 33.35% equity interest in Ivanhoe, for the purpose of
funding the joint development of the Oyu Tolgoi copper-gold project in
Mongolia. This is a major vote of confidence by one of the world’s
pre-eminent mining companies in both the Oyu Tolgoi project and in
Mongolia. Ivanhoe now has a strategic partner with sufficient capital
resources to take the world’s richest porphyry copper-gold project to
production.
Rio Tinto further announced that it intended to join Ivanhoe in
negotiations with the Mongolian government for a long-term investment
agreement. Such an agreement would provide the basis for the financing and
development of Oyu Tolgoi. The Mongolian Government appointed a ‘working
group” in September to work with Ivanhoe for the preparation of an
agreement for submission to the Mongolian government’s cabinet.
Trading
Entrée is listed for trading on the TSX under the symbol ‘ETG”, on the AMEX
under the symbol ‘EGI” and on the Frankfurt Stock Exchange under the symbol
‘EKA”.
Value Relations GmbH
Tel: (069) 95 92 46 – 13;
Sternstr. 15
D-60318 Frankfurt
(c)DGAP 30.10.2006
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