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About Us
Entrée Resources Ltd. ("Entrée" or the "Company") is a Canadian mining company with a unique carried 20% or 30% joint venture participating interest (depending on the depth of mineralization) in an integral part of the Oyu Tolgoi copper-gold mining project in Mongolia.
The Oyu Tolgoi project includes two separate land holdings: the Oyu Tolgoi mining licence, which is held by Oyu Tolgoi LLC ("OTLLC") and the Entrée/Oyu Tolgoi joint venture property ("Entrée/Oyu Tolgoi JV Property"), which is a joint venture partnership between Entrée and OTLLC.
The Entrée/Oyu Tolgoi JV Property comprises the geographical area covered by the Shivee Tolgoi and Javkhlant mining licences, and surrounds the Oyu Tolgoi mining licence. The Entrée/Oyu Tolgoi JV Property includes Lift 1 and Lift 2 of the Hugo North Extension copper-gold deposit and the majority of the Heruga copper-gold-molybdenum deposit. The Entrée/Oyu Tolgoi JV Property also includes an extensive, highly prospective exploration land package, which covers almost 10 kilometers strike length to the north and about 5 kilometres strike length to the south of the current 12-kilometre long Oyu Tolgoi trend of world class porphyry deposits.
Entrée has a 20% participating interest in mineralization extracted below 560 metres elevation, which includes all of the Hugo North Extension and Heruga deposits, and a 30% participating interest in mineralization identified above 560 metres elevation. The mineral resources at Hugo North Extension include a Probable reserve, which is part of the Oyu Tolgoi Lift 1 underground block cave mining operation currently in development and early stages of production by project operator Rio Tinto.
The Oyu Tolgoi project is widely recognised as one of the world’s largest and most important new copper-gold mines. When the Lift 1 underground reaches peak production by ~2030, Oyu Tolgoi is expected to be the fourth largest copper mine in the world. The Lift 1 mine plan incorporates the development of three panels (Panels 0, 1, and 2), and in order to reach full sustainable production from the underground operations, all three panels need to be in production. In March 2023, Rio Tinto announced the commencement of underground production from Lift 1 Panel 0 on the Oyu Tolgoi mining licence (100% OTLLC) (See Rio Tinto’s news release dated March 13, 2023 titled “Underground production celebrated at Oyu Tolgoi” available on its website at www.riotinto.com). First development work on the Hugo North Extension deposit in the northern portion of Panel 1 commenced in October 2024. Panel 1 production on the Oyu Tolgoi mining licence is currently anticipated to commence in ~2027.
In the second quarter 2023, OTLLC completed technical studies for Panels 1 and 2 mine design and schedule optimization. Rio Tinto has reported the studies have resulted in de-risked, resilient mine designs that provide a pathway to ramp-up (see Rio Tinto’s Oyu Tolgoi Site Visit materials dated July 11, 2023 (and in particular pages 70-83 of "Financial Community Visit to Oyu Tolgoi Site - Slides") on its website at www.riotinto.com). The technical studies have been incorporated into an updated 2023 Oyu Tolgoi Feasibility Study ("OTFS23") which is subject to acceptance by applicable regulatory bodies in Mongolia.
With the technical studies for Lift 1 Panels 1 and 2 completed, attention has shifted to the design of Hugo North (including Hugo North Extension) Lift 2. Drilling programs to support a Lift 2 Pre-Feasibility Study are in progress. Mineralization from Lift 2 will be included in an updated resource model for Hugo North (including Hugo North Extension).
Entrée’s Technical Report for its interest in the Entrée/Oyu Tolgoi JV Property discusses a Feasibility Study based on mineral reserves attributable to the Entrée/Oyu Tolgoi joint venture ("Entrée/Oyu Tolgoi JV") from Hugo North Extension Lift 1 ("2021 Reserve Case"). The Technical Report also includes a Preliminary Economic Assessment ("2021 PEA") on a conceptual Hugo North Extension Lift 2. The 2021 PEA is based on Indicated and Inferred mineral resources from Lift 2, as the second potential phase of development and mining on the Hugo North Extension deposit. The results of the 2021 Reserve Case and 2021 PEA can be found in the Technical Report that is filed on SEDAR+ and HERE. The Lift 1 mine design presented in the 2021 Reserve Case is based on OTLLC’s 2020 Oyu Tolgoi Feasibility Study ("OTFS20").
Under the terms of the Joint Venture Agreement between Entrée and OTLLC, with an effective date of June 30, 2008 as amended on February 3, 2025 (the "JVA"), only capital costs incurred on the Entrée/Oyu Tolgoi JV Property may be allocated to Entrée, and Entrée has elected to have OTLLC debt finance its share of costs, including capital costs, with interest accruing at OTLLC’s actual cost of capital or prime plus 2%, whichever is less, at the date of advance. Any repayment of debt comes from 90% of monthly available cash flow resulting from the sale of Entrée’s share of products. Entrée recognizes capital costs incurred by OTLLC on the Oyu Tolgoi mining licence that are necessary or used for Entrée/Oyu Tolgoi JV operations as a usage charge made to Entrée’s operating account when Entrée/Oyu Tolgoi JV mine production is actually milled.
Entrée also holds royalty interests in Peru and Australia.
Entrée Resources is led by an experienced team of mining, corporate finance and corporate governance professionals. The Company’s high-quality asset, strong financial position and world class operating partners position Entrée for long term sustainable success.