Vancouver, B.C., October 18, 2017 – Entrée Resources Ltd. (TSX:ETG; NYSE American:EGI – the “Company” or “Entrée”) is pleased to announce that Amec Foster Wheeler Americas Limited (“Amec Foster Wheeler”) has completed its initial data review, and has commenced work on an updated National Instrument 43-101 Technical Report (the “Technical Report”) relating to Entrée’s 20% participating interest in the Entrée/Oyu Tolgoi joint venture (“Entrée/Oyu Tolgoi JV”) in Mongolia.
The updated Technical Report will include:
•an updated reserve case for the first lift (“Lift 1”) of the Hugo North Extension block cave on the Entrée/Oyu Tolgoi JV property. The reserve will be based on information contained within the 2016 Oyu Tolgoi Feasibility Study finalized in May 2016 by Entrée’s joint venture partner Oyu Tolgoi LLC (“OTLLC”). First development production from Lift 1 on the Entrée/Oyu Tolgoi JV property is expected in approximately 2021; and
•a Preliminary Economic Assessment of Entrée’s interest in both Lift 2 of the Hugo North Extension copper-gold deposit (“Lift 2”) and the Heruga copper-gold-molybdenum deposit (“Heruga”).
The Technical Report is expected to be completed by January 2018.
Stephen Scott, Entrée’s President and CEO comments, “We are very excited work has commenced on the updated Technical Report, which will be a significant milestone for the Company and help investors understand the tremendous underlying value of Entrée’s flagship asset. Completion of the Technical Report will enable us to discuss preliminary economics for potential future phases of the Oyu Tolgoi mine, beyond Lift 1, including Lift 2 and Heruga, where a significant amount of the Entrée/Oyu Tolgoi JV’s mineralization occurs.”
Oyu Tolgoi Underground Project Update
Entrée management and representatives from Amec Foster Wheeler recently visited the Oyu Tolgoi underground development project and supporting infrastructure in Mongolia. Based on the visit and recent disclosure by Turquoise Hill Resources, Entrée is pleased to confirm that the development of Shaft 4, which will be the first physical development work on the Entrée/Oyu Tolgoi JV property, is scheduled to commence in 2018. Shaft 4 will provide the necessary ventilation required to support mining of the northern part of the Hugo North deposit (including Hugo North Extension on the Entrée/Oyu Tolgoi JV property), which is reported to contain some of the highest-grade copper-gold mineralization in the entire Oyu Tolgoi project. Completion of Shaft 4 is expected in 2021, with first development production from Hugo North Extension Lift 1 also expected in 2021.
The site visit, led by senior OTLLC team members, provided Entrée management with an opportunity to tour some of the main surface infrastructure, including the concentrator and tailings facilities and to also go underground to observe some of the development work completed to date. In addition, Entrée management was able to review plans with OTLLC for the immediate and medium-term future. Entrée is pleased to report that project development, including both direct production and supporting infrastructure, appears to be on track and is being completed to the highest safety and operating standards.
Mr. Scott continues, “The commencement of physical work on the Entrée/Oyu Tolgoi JV property in 2018 is the second important milestone and will bring the Company one step closer to becoming a producing mining company in just three years, a timeframe coincident with market expectations of global copper supply moving towards a deficit position. The resources case in Turquoise Hill’s most recent technical report on the Oyu Tolgoi project filed in October 2016 indicates an estimated mine life in excess of 95 years based on current estimated resources and throughput rates. In the context of world class mining projects such as Oyu Tolgoi, which often take several decades from initial discovery to first production, the time between now and first development production on the Entrée/Oyu Tolgoi JV property in 2021 is extremely short.”
Additional near-term milestones for the project include the commissioning of Shaft 2, completion of the Oyut II Camp, commencement of work on Shafts 3 and 4, and completion of Shaft 5.
Robert Cinits, P.Geo., Entrée's Vice President, Corporate Development, a Qualified Person as defined by National Instrument 43-101, has approved the technical information in this release.
ABOUT ENTRÉE RESOURCES LTD.
Entrée Resources Ltd. is a well-funded Canadian mining company with a unique carried joint venture interest on a significant portion of one of the world’s largest copper-gold projects – the Oyu Tolgoi project in Mongolia. Entrée has a 20% carried participating interest in the Entrée/Oyu Tolgoi JV, with a 30% interest in all mineralization identified above 560 metres elevation on the Entrée/Oyu Tolgoi JV property. Sandstorm Gold Ltd., Rio Tinto and Turquoise Hill Resources Ltd. are major shareholders of Entrée, holding approximately 14%, 10% and 8% of the shares of the Company, respectively. More information about Entrée can be found at www.EntreeResourcesLtd.com.
ABOUT THE ENTRÉE/OYU TOLGOI JV PROPERTY
The Oyu Tolgoi project includes two separate land holdings: the Oyu Tolgoi mining licence, which is held 100% by OTLLC (66% Turquoise Hill Resources; 34% Government of Mongolia), and the Entrée/Oyu Tolgoi JV property, which is a partnership between Entrée and OTLLC. Rio Tinto is managing the construction of Lift 1 of the Hugo North underground block cave on both the Oyu Tolgoi mining licence and the Entrée/Oyu Tolgoi JV property. The portion of the Hugo North copper-gold deposit that lies on the Entrée/Oyu Tolgoi JV Property is known as Hugo North Extension. The Entrée/Oyu Tolgoi JV property also includes the Heruga copper-gold-molybdenum deposit and a large prospective land package.
The Entrée/Oyu Tolgoi JV property contains approximately 14% of the measured and indicated copper equivalent* pounds and 22% of the inferred copper equivalent* pounds estimated in the Hugo North deposit, approximately 10% of all measured and indicated gold ounces and approximately 62% of all inferred gold ounces estimated in the entire Oyu Tolgoi project, and approximately 94% of the inferred copper equivalent* pounds estimated in the Heruga deposit.
*Copper equivalency is calculated using assumed metal prices of US$3.01/lb Cu, US$1,250/oz Au, US$20.37/oz Ag, and US$11.90/lb Mo; metallurgical recoveries are considered in the formulae. Based on mineral resources reported in Turquoise Hill’s 2016 Technical Report, “Turquoise Hill Resources Ltd., Oyu Tolgoi, 2016 Oyu Tolgoi Technical Report, October 2016.
Wij kregen tijdens ons verblijf in Canada een presentatie van Stephen Scott President and CEO of Entrée Res. en waren onder de indruk van de toekomstige mogelijkheden van het bedrijf. zie voor meer op