Entrée Gold Provides Exploration Update
July 7, 2006
Vancouver, B.C., July 7, 2006 - Entrée Gold Inc. (TSX: ETG; AMEX: EGI; Frankfurt: EKA – “Entrée” or the “Company”) reports on ongoing exploration on its 100% owned Lookout Hill and Manlai properties in Mongolia. The current programs commenced in late April 2006.
Entrée’s exploration on its 100% owned ground at Lookout Hill has consisted of geophysics, prospecting, geological mapping and diamond drilling. A total of 1,400 metres of diamond drilling has now tested one of several deep induced polarization (“IP”) targets, along strike to the south of Zones I/II and III and 10.5 kilometres to the west of Ivanhoe Mines Ltd.’s (IVN:NYSE, TSX, NASDAQ – “Ivanhoe”) Oyu Tolgoi mineralized system. To date, drilling has intersected probable Devonian stratigraphy with local quartz veining and disseminated sulphides. Copper and gold mineralization at Oyu Tolgoi is hosted within Devonian age volcaniclastics and sediments.
An additional 4,000 metres of diamond drilling is planned to test the potential of this structural system to host porphyry-related copper-gold mineralization. A second deep drill, scheduled to arrive on site in early August, will continue to test geophysical and geochemical targets. A reverse circulation drill is also scheduled to arrive in early August to test geophysical, geochemical and geological targets at the Ring Dyke and Zone III epithermal style gold targets.
Exploration to date at Manlai, located 120 km north of Lookout Hill, has consisted of IP, soil geochemistry, geological mapping, mechanical trenching and 500 metres of diamond drilling. Soil, drilling and trenching results are pending. IP surveys defined a significant chargeability anomaly extending south from Targets 3 and 4 (see Entrée’s news release of January 11, 2006). An additional 2,000 metres of drilling is planned, to test a number of geophysical, geochemical and geological targets.
Entrée/Ivanhoe Lookout Hill Earn-in Area
Ivanhoe currently has three rigs continuing infill and condemnation drilling on the optioned portion of the Lookout Hill project. Infill drilling is being done to support the upgrading of the inferred resource initially estimated on Entrée’s Copper Flats and Ivanhoe’s Hugo North areas (see Entrée’s and Ivanhoe’s news releases of February 1, 2006). The resulting new resources estimates will be used in the development of the Oyu Tolgoi project mine plan. Condemnation drilling is necessary to rule out the presence of near–surface, economic-grade mineralization in areas for which infrastructure is planned.
Mongolian Political Developments
Entrée continues to monitor developments in Mongolia relating to proposed amendments to the national mineral laws. At this time, the Company has no plan to suspend in-country exploration at Lookout Hill and Manlai.
Entrée plans to commence surface geophysical surveys (magnetics and deep penetrating induced polarization) on its Sol Dos property located in southeast Arizona in the third quarter 2006. Diamond drilling is expected to commence in the final quarter of 2006, once drill targets have been identified.
Entrée continues to evaluate potential acquisitions, worldwide, with a focus on promising copper and gold projects.
Quality Control and Assurance
Exploration programs are under the supervision of Robert Cann, P.Geo., Entrée’s Vice-President, Exploration and a qualified person as defined by National Instrument 43-101. Mr. Cann is responsible for the preparation of technical information in the Company’s news releases.
ABOUT ENTRÉE GOLD INC.
Entrée Gold Inc. (www.entreegold.com) is a Canadian mineral exploration company focused on gold and copper prospects. The Company is a large landholder in Mongolia and has recently acquired an early-stage copper porphyry project in Arizona, USA.
Entrée holds a 100% interest in mineral concessions comprising the 179,590 hectare Lookout Hill (Shivee Tolgoi) property, which completely surrounds the 8,500 hectare, Turquoise Hill (Oyu Tolgoi) project of Ivanhoe Mines Inc.
Under an “Earn-In Agreement” announced in October 2004, Ivanhoe has the right to earn an interest in approximately 40,000 hectares of Entrée’s Lookout Hill property. Details of the Earn-In Agreement are available on Entrée’s website, at www.entreegold.com, and on SEDAR, at www.sedar.com. Drilling conducted by Ivanhoe as part of the Earn-In Agreement has confirmed the extension of the Hugo North Deposit onto the Copper Flats area of Lookout Hill. Initial estimates indicate that Copper Flats hosts an inferred resource of 190,160,000 tonnes (calculated using a 0.6% copper equivalent cut-off), averaging 1.91% copper equivalent, containing over 6.5 billion pounds of copper and 3.2 million ounces of gold (see Entrée’s news release of February 1, 2006).
Significant investments by Rio Tinto plc and Ivanhoe have contributed to Entrée’s treasury, which currently exceeds CDN$21 million. Entrée plans to use these funds to explore its wholly-owned projects in Mongolia and Arizona, and acquire and explore new projects globally.
Entrée is listed for trading on the TSX under the symbol “ETG”, on the AMEX under the symbol “EGI” and on the Frankfurt Stock Exchange under the symbol “EKA”.
Monica Hamm, Investor Relations
Entrée Gold Inc.
The TSX does not accept responsibility for the adequacy or accuracy of this release.
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.