About Us

Entrée Resources Ltd. ("Entrée" or the Company") is a Canadian mining company with a unique carried 20% or 30% joint venture 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 partnership between Entrée and OTLLC.

The Entrée/Oyu Tolgoi JV Property comprises the eastern portion of the Shivee Tolgoi mining licence, and all of the Javhlant mining licence, and surrounds most of 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 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, Oyu Tolgoi is expected to be the fourth largest copper mine in the world. Rio Tinto is the operator of the existing open pit mine on the Oyu Tolgoi mining licence and is currently managing the construction of the Oyu Tolgoi Lift 1 underground mine on both the Oyu Tolgoi mining licence and the Entrée/Oyu Tolgoi JV Property. In addition to its interest in the Entrée/Oyu Tolgoi JV Property, Entrée holds a 100% interest in Shivee West, the western portion of the Shivee Tolgoi mining licence, which is immediately adjacent to the Oyu Tolgoi mining licence.

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 from Hugo North Extension Lift 1 ("2021 Reserve Case"). The 2021 Reserve Case aligns Entrée’s disclosure with that of other Oyu Tolgoi project stakeholders with respect to OTLLC’s 2020 Oyu Tolgoi Mongolian Statutory Study ("OTMSS20") (formerly called the 2020 Oyu Tolgoi Feasibility Study (OTFS20)) completed on Hugo North (including Hugo North Extension) Lift 1. 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 OTMSS20 and the 2021 Reserve Case is subject to future refinements and updates. Surface and underground drilling programs on the Oyu Tolgoi mining licence and the Entrée/Oyu Tolgoi JV Property will support the evaluation by OTLLC of different design and sequencing options for Lift 1 Panels 1 and 2. The Hugo North Extension deposit is located at the northern portion of Panel 1. As reported by Turquoise Hill Resources Ltd. ("Turquoise Hill"), 2022-2023 drilling will focus on potential future mining areas which are on the Lift 1 horizon and currently excluded from the mineral reserve. The planned drilling is expected to increase orebody knowledge and extend the current mine design. A budget has been approved by the Entrée/Oyu Tolgoi joint venture ("Entrée/Oyu Tolgoi JV") Management Committee for 2022 Lift 1 drilling on the Entrée/Oyu Tolgoi JV Property. The Panel 1 design optimization study is scheduled for completion in H1 2023.

Both the 2021 Reserve Case and the 2021 PEA are based on information supplied by OTLLC or reported within OTMSS20. Neither OTMSS20 nor the results of the 2021 Reserve Case reflect the impacts of the COVID-19 pandemic, or other known delays including later than planned commencement of the Panel 0 undercut on the Oyu Tolgoi mining licence, lateral development scope changes, and delays to the forecast completion dates for Shafts 3 and 4. As part of its 2022 cost and schedule update, OTLLC is reviewing schedules for Shafts 3 and 4, and a program of work is underway to maximize the productivity of their development. The potential impact of any further schedule slippage to Shafts 3 and 4 on the timing of Panels 1 and 2 is under also review by OTLLC. Shafts 3 and 4 are required to provide ventilation to support production from Panels 1 and 2 during ramp up to 95,000 tonnes per day ("tpd”). 

Under the terms of the Entrée/Oyu Tolgoi JV, 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. The joint venture agreement also provides for Entrée to take its share of products in kind. Entrée’s interest therefore has many of the characteristics of a royalty, while still providing the benefits of a producer.

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.

Last Updated: June 2022