Entree gold presentation_march_2012


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Entree gold presentation_march_2012

  1. 1. On the Path to Production Rio Tinto Entrée Gold at Bingham CanyonOyu Tolgoi Headframe Entrée JV Discovery Hole March 2012
  2. 2. Cautionary Statement This corporate update 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. Forward-looking statements include, but are not limited to, the future price of gold, copper and molybdenum, the estimation of mineral reserves and resources, the realization of mineral reserve and resource estimates, the timing of an updated resource estimate on Ann Mason, plans to prepare a Preliminary Economic assessment on Ann Mason, the timing and amount of estimated future production, costs of production, capital expenditures, cost and timing of the development of new deposits, success of exploration activities, permitting time lines, requirements for additional capital and government regulation of mining operations. While Entrée Gold Inc. (“Entrée” or 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, amongst others(1), the effects of general economic conditions, 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 also known and unknown risk factors which may cause the actual results, performances or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to international operations, including political and economic risk in Mongolia, recent global financial conditions, as well as those factors described in the section entitled “Risk Factors” in the Company’s Annual Information Form dated March 25, 2011 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. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events, or otherwise. Accordingly, readers should not place undue reliance on forward- looking statements. The Companys exploration activities are under the supervision of Robert Cann, P.Geo., Vice President, Exploration of Entrée. Mr. Cann is a “qualified person” as defined in National Instrument 43-101- Standards of Disclosure for Mineral Projects (“NI 43-101”). Mr. Cann has reviewed the technical information contained in this corporate update. All minerals reserves and mineral resources have been calculated in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and NI 43-101. Cautionary Note to United States Investors: United States investors are advised that while the terms “measured mineral resources”, “indicated mineral resources” “inferred mineral resources” and “probable mineral reserves” are recognized and required by Canadian regulations, the United States Securities and Exchange Commission (SEC) does not recognize them. United States investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be upgraded to a higher category, or converted into mineral reserves. Inferred mineral resources have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally minable. Disclosure of “contained ounces” is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute reserves as in place tonnage and grade without reference to unit measures. Accordingly, information contained in this corporate update containing descriptions of the Company’s mineral properties may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder. The information in this corporate update is for informational purposes only. Readers should not rely on the information for any purpose other than to gain general knowledge of Entrée. This information is not intended to be, and should not be construed as, part of an offering or solicitation of securities. Note 1: See the technical report titled "Lookout Hill Property Technical Report" dated June 9, 2010 prepared by AMEC Minproc Limited, a copy of which is available on SEDAR at www.sedar.com. Note 2: Ann Mason is estimated to contain an inferred resource of 810.4 million metric tonnes grading 0.40% copper, using a 0.30% copper cut-off. Accompanying molybdenum is estimated at 165.9 million metric tonnes at a grade of 0.01% molybdenum. Based on these figures, the Ann Mason deposit contains approximately 7.1 billion pounds of copper. At 0.20% copper cut-off, Ann Mason is estimated to contain an inferred resource of 1410.0 million metric tonnes grading 0.34% copper. Accompanying molybdenum is estimated at 165.9 million metric tonnes at a grade of 0.01% molybdenum. Based on these figures, the Ann Mason deposit contains approximately 10.6 billion pounds of copper. See the technical report titled “NI 43-101 Compliant Technical Report on the Ann Mason Property, Nevada, USA” with an effective date of March 11, 2011 prepared by Wardrop Engineering Inc. and Robert Cann, P.Geo., Entrée’s Vice President, Exploration, a copy of which is available on SEDAR at www.sedar.com. TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 2
  3. 3. On the Path to Production Hugo North Extension and Heruga, Mongolia Oyu Tolgoi Development Construction 75% Complete HNE Production in 2016* TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 3*Per IDP-10
  4. 4. On the Path to ProductionAnn Mason, Nevada 8.0 Billion lbs Copper Indicated 7.3 Billion lbs Copper Inferred TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 4
  5. 5. Corporate StrategyStriking the balance between opportunity and risk United States Mongolia 100% Entrée Entrée-OTLLC JV Ann Mason Hugo North Extension Blue Hill Heruga Earn-In Agreement 100% Entrée Roulette Shivee West Cu-Mo Cu-Au-Mo Grass Roots Exploration United States ● Mongolia ● Australia ● Peru TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 5
  6. 6. Resources Indicated Resource 1.1B CuEq* lbs (with 0.5M oz Au) 0.6% Cut-offIndicated Resource Hugo North Extension 8.0 B Cu lbs Mongolia 0.2% Cut-off or 5.4 B Cu lbs 0.3% Cut-off Hugo North Extn Inferred Resource Heruga 4.1B CuEq* lbs (with 3M oz Au) Nevada 0.6% Cut-off HNE and Heruga Ann Mason Inferred Resource 7.3 B Cu lbs 0.2% Cut-off or 3.5 B Cu lbs 0.3% Cut-off *CuEq estimated using US$1.35/lb Cu, US$650/oz Au, US$10/lb Mo. Figures are NI 43-101 compliant. TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 6
  7. 7. Strategic Partners Rio Tinto (13%)* 51% of Ivanhoe Standstill expired January 2012 Commitment >US$3.7 billion Ivanhoe Mines (11%)* Oyu Tolgoi, Mongolia Entrée-OT LLC JV US$35,000,000 JV earn-in >US$54 million to date Entrée 20% - Ivanhoe 80% (deep) Entrée 30% - Ivanhoe 70% (shallow) Carried to production *Issued & Outstanding TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 7
  8. 8. Shareholder Base Fully Diluted 12% 10% 56% 8% Held by top 13 7% Shareholders 4% 4% 2% 2% 2% 1% 1% 1% 1% TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 8
  9. 9. Board of DirectorsGreg Crowe President & CEO, DirectorJames Harris Chairman, DirectorMichael Howard Deputy Chairman, DirectorLindsay Bottomer VP Business Development, DirectorPeter Meredith DirectorMark Bailey DirectorAlan Edwards Director TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 9
  10. 10. Financial InformationTreasury (As of March 2012) ~Cdn$18 millionIssued and Outstanding 128,400,000 Options - 10,800,000 (Average price ~Cdn$1.98)Fully Diluted 139,200,00052 week High / Low Cdn$3.14 / $1.05Analyst Coverage TD Newcrest Hallgarten & Co. LLC TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 10
  11. 11. Growth Through Exploration & Acquisitions • Mongolia New gold zone discovered at Shivee West in 2011 Drilling on JV property • USA Drilling at Ann Mason, NV Drill permits pending at Oak Grove and Lordsburg, NM TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 11
  12. 12. Entree Gold - USA USA TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 12
  13. 13. PropertiesYerington,NevadaUSA • Rated No. 1 mining jurisdiction in USA • Underdeveloped camp with significant Cu • Positioned for major company investment • Yerington Mine Produced 1.9 billion lbs Cu (1918-1982) • Pumpkin Hollow - Nevada Copper 5.9 billion lbs Cu @ 0.55% (M&I) (0.2% Cu cut-off) • Entrée Prospects Blackjack Minnesota Roulette Shamrock TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 13
  14. 14. Ann Mason Property, Nevada 8.0 billion lbs Cu Indicated 1,115 Mt @ 0.33% Cu 0.2% Cu cut-off (5.4 billion lbs Cu Indicated 640 Mt @ 0.38% Cu 0.3% Cu cut-off) 7.3 billion lbs Cu Inferred 1,131 Mt @ 0.29% Cu 0.2% Cu cut-off (3.5 billion lbs Cu Inferred 444 Mt @ 0.36% Cu 0.3% Cu cut-off) Drill Highlights • 650 m of 0.39% CuEq (AM-11-010) • 988 m of 0.38% CuEq (AM-10-001) • 759 m of 0.49% CuEq (AM-10-020) • 783 m of 0.41% CuEq (AM-10-024)* Copper equivalent estimated using US$2.50/lb Cu, US$15/lb Mo, Au US$1000/oz and Ag US$ 15/oz. *See news releases dated Sept 6, 2011, Feb 7, 2011 and Mar. 1, 2012. TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 14
  15. 15. Ann Mason Deposit Yerington, Nevada 100% Entrée 0.15% Cu Outline 1.3 km No RoyaltiesMajor Deposit 2.3 X 1.3 km >1000 m depthPremier Location PEA Planned Approx. 0.15% Cu Outline H2 - 2012 TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 15
  16. 16. Porphyry Copper Deposits Western North America Red Chris 0.6 619 Mt 0.5 Ann Mason* 0.3% Rosemont Safford Carlota% Copper 640 Mt 543 Mt 243 Mt 64 Mt 0.4 Mt Milligan* Copper Mtn 707 Mt 233 Mt Tyrone 0.3 Morenci Ann Mason* 0.2% Highland Valley 180 Mt 1115 Mt 440 Mt Gibraltar 3200 Mt 460 Mt 0.2 0.1Ann Mason inferred resources: 0.3% Cu cut-off – 444 million tonnes averaging 0.38% CuEq -- 02% Cu cut-off – 1,131 million tonnes averaging 0.31% Cu Eq.*Copper equivalent indicated resources TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 16
  17. 17. Properties Arizona New Mexico USA Partners: Empirical Discovery Explore for buried porphyry Cu-Mo targets • Proprietary geophysical techniques • Four properties drilled Entrée discovery at Lordsburg • Intercepts to 0.44% CuEq* over 60 m • Further exploration planned Other targets • Oak Grove* Copper equivalent estimated using US$1.35/lb Cu and US$650/oz Au. See news release dated Oct. 8, 2011. TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 17
  18. 18. MongoliaTSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 18
  19. 19. Shivee Tolgoi - Oyu Tolgoi Trends TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 19
  20. 20. Oyu Tolgoi Trend 2.2% CuEq 0.9% CuEqSee Note 1 of Cautionary Statement. Figures are NI 43-101 compliant. IVN IDP 10 and ETG Technical Report - www.SEDAR.comThe mineral reserves are not additive to the mineral resources.Copper equivalent estimated using US$1.35/lb Cu, US$650/oz Au, US$10/lb Mo. A 0.6% CuEq cutoff was used. TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 20
  21. 21. Entrée-OTLLC JV Deposit ResourcesEntrée ownership - 20% Carried Interest Hugo North Extension Heruga Cu-Au Cu-Au-Mo Probable Mineral 27Mt ore Reserves* 1.85% Cu and 0.72 g/t Au 1B lbs Cu / 0.53M oz Au Indicated Resources** 5.6B lbs CuEq 117 million tonnes*** - 1.8% Cu, 0.61 g/t Au 4.6B lbs Cu / 2.3M oz Au Inferred 2.8B lbs CuEq 17.4B lbs CuEq Resources** 95.5 million tonnes***- 1.15% Cu, 0.31 g/t Au 910 million tonnes*** 2.4B lbs Cu / 0.95M oz Au 0.48% Cu, 0.49 g/t Au, 0.014 % Mo 9.6B lbs Cu / 14M oz Au HUGOSee Note 1 of Cautionary Statement. Figures are NI 43-101 compliant. IVN IDP 10 and ETG Technical Report - www.SEDAR.com NORTH* The mineral reserves are not additive to the mineral resources. EXTENSION** Copper equivalent estimated using US$1.35/lb Cu, US$650/oz Au, US$10/lb Mo.*** 0.6% CuEq cutoff. HERUGA TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 21
  22. 22. Hugo North Extension Cu-Au Deposit & Heruga - Moving Forward Current • Premier Asset • High Grade – Long life • OT Construction 75% Complete • Entrée Carried to Production Timeline for Entrée’s Assets • First Ore from HNE 2016* • 50+ Year Mine Life • HNE & Heruga Deposits Remain Open TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 22*Per IDP-10
  23. 23. Exploration Potential TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 23
  24. 24. Argo and Zone III Gold TargetsShivee West (100% Entrée) • 2.5 km Magnetic Low Parallel to OT Trend • Low Sulphidation Epithermal Signature • Limited Drilling • High Grade Surface Samples • 42.4 g/t Au over 4 m • 19.3 g/t Au over 3 m • 2011 Drill Results • 1.82 g/t Au over 14 m (hole 112) including 9.32 g/t Au over 2 m • 2.21 g/t over 3 m (hole 111) • 2.08 g/t Au over 8 m (hole 123) including 5.60 g/t over 2 m TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 24
  25. 25. Current Copper Assets 12 10 7.3 B lbs Cu 0.2% Cu cut-off 8 8.0 B lbs Cu 0.2% Cu cut-off Billions (lbs) 6 3.5 B lbs Cu Nevada Nevada_0.2% Cut-off 0.3% Cu cut-off Ann Mason Mongolia 5.4 B lbs Cu 4 0.3% Cu cut-off 2 Mongolia Includes HNE 4.1 B lbs CuEq* Mineral Reserves 1.1 B lbs CuEq* (with 3M oz Au) (with 0.5M oz Au) 0 Indicated Indicated Inferred Inferred*CuEq estimated using US$1.35/lb Cu,US$650/oz Au, US$10/lb Mo.Figures are NI 43-101 Compliant. TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 25
  26. 26. Advancing our Assets100% Owned Assets Joint Venture Ann Mason, Nevada Hugo North Extension & Drilling 2012 Heruga, Mongolia PEA in late 2012 On-going Development to 2016 First Production in 2016* Shivee West, Mongolia Drilling Argo Zone 2012 Production to post 2070* Exploration Drilling in 2012 *Per IDP-10 TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 26
  27. 27. Copper Resources vs. Share Price $4.00 Share price 20 $3.50 Billion Pounds Copper $3.00 16Share Price $2.50 12 $2.00 $1.50 8 $1.00 4 $0.50 $0.00 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 Indicated (Billion lbs) Inferred (Billion lbs) TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 27 *0.2% Cu Cut-off
  28. 28. Monica Hamm – Manager Investor Relations mhamm@entreegold.com 604-687-4777 www.entreegold.comTSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 28