Entrée Budgets $7 Million for 2008 Exploration
May 5, 2008
Vancouver, B.C., May 5, 2008 - Entrée Gold Inc. (TSX:ETG; AMEX:EGI; Frankfurt:EKA – “Entrée” or the “Company”) plans to spend approximately $7 million on exploration activities on its projects in the United States, China and Mongolia this year.
“Many public junior resource companies have faced considerable market pressure in the last several months. In contrast, the prices of commodities such as gold and copper have been sustained at near market highs. Entree is committed to advancing our exploration projects as we believe that the long term fundamentals supporting these commodity prices remain intact,” noted Entrée’s President and CEO, Greg Crowe.
Work has begun on a large land position in Arizona and New Mexico, where the Company is seeking buried porphyry targets in the most prolific copper producing district in North America. Entrée has recently formed a Wholly Foreign Owned Enterprise (“WFOE”) in China and has commenced a mapping program on the Huaixi project. Exploration in Mongolia is planned to commence this spring, once the weather improves in the south Gobi desert.
Arizona and New Mexico
Over the last several months, Entree has assembled a portfolio of promising early-stage projects in Arizona and New Mexico. Through its agreements with Empirical Discovery LLC, Entrée has acquired exploration rights to over 24,600 acres (9,995 hectares) located southeast of Safford, Arizona and extending into New Mexico. An additional 10,800 acres (4,370 hectares) has been acquired near Bisbee, Arizona.
Six targets have been identified to date: Duncan, Ash Peak, Dixie and Abbot in Arizona, and Gold Hill and Lordsburg in New Mexico (see map at www.entreegold.com). Geophysical surveying has commenced on Duncan and Gold Hill. Work on the other projects is being scheduled as exploration and environmental permits are approved.
Approximately $2 million has been budgeted for work in Arizona, exclusive of drilling. The current geophysics program includes 95 line kilometres of deep-penetrating induced polarization/resistivity, CSAMT, AMT and Vector IP. Once drill targets have been identified, further funds are expected to be allocated for testing these targets.
Entrée has recently been advised that its application to form a WFOE in China has been approved. The formation of a WFOE allows Entrée to operate as a 100% owned legal entity in China and conduct exploration activities.
A budget of $750,000 has been allocated to fund a preliminary prospecting and mapping program on the Huaixi project and to set up administrative offices in Beijing and Wenzhou. As the season progresses and targets are evaluated, additional funds may be designated for drilling.
A preliminary budget of $2.5 million has been approved for further work on Entrée’s Lookout Hill property that lies outside of the Entrée-Ivanhoe Mines Ltd. agreement area (see map on www.entreegold.com). Pending favourable results, an additional $1.3 million may be made available for drilling.
In-fill drilling is currently underway at the Heruga deposit, located within Entrée’s Javhlant concession that forms part of the Entrée-Ivanhoe Mines agreement area. Ivanhoe Mines is Entrée’s partner and project operator for this work. An inferred resource estimate for the Heruga deposit of 760 million tonnes grading 0.48% copper, 0.55 g/t gold and 142 ppm molybdenum for a copper equivalent grade of 0.91%, using a 0.60% copper equivalent cut-off grade was recently announced (see news release dated March 12, 2008).
The Mongolian Parliament continues to debate potential changes to the Minerals Law.
Quality Assurance and Quality Control
Robert Cann, P.Geo., Entrée’s Vice-President, Exploration, a qualified person as defined by National Instrument 43-101 (“NI 43-101”), supervised the preparation of the information in this release.
ABOUT ENTRÉE GOLD INC.
Entrée Gold Inc. is a Canadian mineral exploration company focused on the worldwide exploration and development of gold and copper prospects. Most notably, the Company is a large landholder in Mongolia, where it holds three exploration licences that comprise the 179,590-hectare Lookout Hill property. Lookout Hill completely surrounds the 8,500-hectare Oyu Tolgoi project of Ivanhoe Mines, and hosts the Hugo North Extension of the Hugo Dummett deposit and the newly discovered Heruga deposit.
The Company continues to explore its large landholdings in Mongolia as well as evaluating new opportunities throughout the region and elsewhere in Asia. Entrée plans to explore the Huaixi copper project in Zhejiang Province in China, under the terms of an agreement with the No. 11 Geological Brigade. In North America, the Company is exploring for copper-molybdenum porphyry systems in the southwest USA. The Company is also seeking additional opportunities to utilize its expertise in exploring for deep and/or concealed ore deposits.
Ivanhoe Mines and Rio Tinto are major shareholders of Entrée, holding approximately 15% and 16% of issued and outstanding shares respectively.
|Mona Forster, VP & Corporate Secretary
Entrée Gold Inc.
E-mail: [email protected]
This News Release contains forward-looking statements. Forward-looking statements are statements which relate to future events. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.
While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. Except as required by applicable law, including the securities laws of the United States, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results. Readers are referred to the sections entitled “Risk Factors” in the Company’s periodic filings with the British Columbia Securities Commission, which can be viewed at www.SEDAR.com, and with the United States Securities and Exchange Commission, which can be viewed at www.SEC.gov.