VANCOUVER, Feb. 7 /CNW/ - Entrée Gold Inc. (TSX:ETG; NYSE AMEX: EGI;
Frankfurt:EKA - "Entrée" or the "Company") has received assay results
from its first diamond drill hole completed on the Ann Mason deposit in
the Yerington district of Nevada. This hole (EG-AM-10-001) returned
987.8 metres averaging 0.31% Cu or 0.38% copper equivalent ("CuEq"),
including a higher grade section of 340 metres averaging 0.40% Cu or
0.51% CuEq. The hole bottomed in strong mineralization averaging 0.41%
Cu or 0.53% CuEq over the last 35.8 metres, indicating the continuation
of mineralization to greater depths. With completion of this hole,
copper mineralization has been extended for 325 metres below the limit
of the current resource.
Entrée's President & CEO, Greg Crowe, commented, "This result is an
excellent start to the program and supports our belief that the 100%
owned Ann Mason resource can be significantly expanded and upgraded.
The continuity of mineralization below the previous resource area
further illustrates the upside potential for the discovery of
Table 1. Significant intercepts from drill hole EG-AM-10-001
*Copper equivalent is calculated using assumed metal prices of: copper
US$2.50/lb; molybdenum US$15.00/lb; gold US$1000/oz; and silver
US$15.00/oz and assumed recoveries relative to copper of: molybdenum
70%; gold 85%; and silver 85%.
The primary copper sulphide mineralization (chalcopyrite and bornite) in
this hole has associated gold, silver and molybdenum values (see table
above) which were not systematically measured during previous drilling.
The hole collared in 40 metres of overburden and then cut increasingly
mineralized and altered intrusive host rocks. Significant copper
mineralization commences at approximately 100 metres depth, with
consistent grades greater than 0.3% Cu starting at a depth of 214
The Company currently has two drills operating at Ann Mason to expand
and better define the inferred resource estimate of 810 million tonnes
grading 0.40% Cu (at a 0.30% cut-off) for more than 7 billion pounds of
contained copper. Hole EG-AM-10-001 is located in the southwestern
portion of the resource (see map on www.entreegold.com). The two holes underway are located approximately 100 metres to the
northeast and 100 metres to the southwest. The planned program will
consist of approximately 20 infill and step-out holes.
Recently completed Induced Polarization ("IP") geophysical surveying
suggests that the Ann Mason sulphide system may extend for at least 3
kilometres west to the Blue Hill area, where recent drilling (see news
release dated November 17, 2010) has shown surface oxide copper
mineralization to be underlain by primary sulphide mineralization.
Future drilling will include testing for the possible continuation of
this copper system between Ann Mason and the Blue Hill area.
QUALITY ASSURANCE AND CONTROL
Split core samples were prepared and analyzed at ALS Minerals in Reno,
Nevada and Vancouver, BC. Prepared standards, blanks and duplicates 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
Robert Cann, P.Geo., Entrée's Vice-President Exploration, a Qualified
Person as defined by National Instrument 43-101 ("NI 43-101"), has
reviewed the technical information contained in this release.
ABOUT ENTRÉE GOLD INC.
Entrée Gold Inc. is a Canadian mineral exploration company focused on
the worldwide exploration and development of copper and gold prospects.
The Company's flagship Lookout Hill property in Mongolia completely
surrounds the Oyu Tolgoi project of Ivanhoe Mines and the Government of
Mongolia. A portion of the Lookout Hill property is subject to a joint
venture with Oyu Tolgoi LLC, a subsidiary of Ivanhoe Mines and the
Government of Mongolia. The joint venture property hosts the Hugo North
Extension copper-gold deposit and the Heruga copper-gold-molybdenum
deposit. Excellent exploration potential remains on the joint venture
property for the discovery of additional mineralized zones.
In North America, the Company is exploring for porphyry-related copper
systems in Nevada, Arizona and New Mexico. The primary asset is the Ann
Mason property in Nevada, which hosts an inferred mineral resource
estimate and considerable potential for additional targets.
The Company is also seeking additional opportunities to utilize its
expertise in exploring for deep and/or concealed ore deposits. With a
treasury of approximately CAD$21 million, the Company is well-funded
for future activities. Rio Tinto and Ivanhoe Mines are major
shareholders of Entrée, holding approximately 13% and 12% of issued and
outstanding shares, respectively.
This News Release contains forward-looking statements and
forward-looking information (together, "forward-looking statements")
within the meaning of applicable securities laws and the United States
Private Securities Litigation Reform Act of 1995, with respect to the
interpretation of exploration results, the potential for extending
known mineralized zones and discovering new mineralized zones, the
potential for expanding and upgrading existing resource estimates, and
planned exploration programs and budgets. These forward-looking
statements are made as of the date of this news release. Users of
forward-looking statements are cautioned that actual results may vary
from the forward-looking statements contained herein. 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 the Company's future performance
and are subject to risks, uncertainties, assumptions and other factors
which could cause actual results to differ materially from future
results expressed or implied by such forward-looking statements. Such
factors and assumptions include, among others, the effects of general
economic conditions, the prices of gold and copper, changing foreign
exchange rates and actions by government authorities, uncertainties
associated with legal proceedings and negotiations and misjudgements in
the course of preparing forward-looking statements. In addition, there
are known and unknown risk factors which could cause the Company's
actual results, performance or achievements to differ materially from
any future results, performance or achievements expressed or implied by
the forward-looking statements. Known risk factors are described in the
Company's Amended and Restated Annual Information Form for the
financial year ended December 31, 2009, dated November 2, 2010 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 Gold Inc.
For further information:
Manager, Investor Relations
Entrée Gold Inc.
Toll Free: 866-368-7330