Entrée Gold Announces Option Agreement with HoneyBadger Exploration
July 23, 2009
Vancouver, B.C., July 23, 2009 - Entrée Gold Inc. (TSX:ETG; NYSE Amex:EGI; Frankfurt:EKA – “Entrée” or the “Company”) announces that the Company has entered into an agreement with HoneyBadger Exploration Inc. (TSX.V:TUF - “HoneyBadger”) to explore for and develop porphyry copper targets in the Yerington porphyry copper district of western
Under the terms of the agreement, Entrée may acquire up to an 80% interest in a portion of the Yerington West Project, known as the Blackjack Property. The agreement is subject to completion of due diligence and regulatory approval.
Entrée may exercise its first option to acquire 51% after incurring minimum expenditures of US$900,000 in the first year of exploration and issuing 37,500 shares and reimbursing HoneyBadger for up to $206,250 of expenditures previously incurred on the property. If results from the initial exploration program are encouraging, the Company may increase its interest by a further 29% (to 80% in total) by making payments of US$375,000 and issuing 375,000 shares within 3 years. Entrée has committed to carry HoneyBadger through the completion of 10,000 metres of drilling, including any done within the first year.
The Blackjack Property consists of 484 claims covering almost 10,000 acres (4,000 hectares) of prospective ground centred about 8 miles (13 kilometres) west of the town of Yerington, Nevada in an area with excellent infrastructure and a long history of mining. The Yerington district reached prominence after the discovery of copper in 1865. Anaconda Copper produced almost 2 billion pounds of copper from the Yerington Mine, located 4 miles (6 kilometres) to the southeast of the Blackjack Property, between 1952 and 1978.
The area around Yerington is currently experiencing renewed exploration activity. Numerous companies, such as Nevada Copper Corporation, Quaterra Resources Inc., and PacMag Metals Limited, are active in the region and have recently made or developed important discoveries. The Blackjack Property is immediately adjacent to Quaterra’s MacArthur deposit and to PacMag’s Ann Mason deposit, both of which have substantial copper resources defined. Nevada Copper’s Pumpkin Hollow copper skarn deposit is about 8 miles (13 kilometres) to the southeast.
Entrée and HoneyBadger are planning an aggressive drill program commencing in the fourth quarter 2009. This program is expected to test numerous targets generated from a recently completed high-definition airborne AirMt magnetotelluric survey along with geological and geochemical targets.
This agreement with HoneyBadger is part of Entrée’s strategy to explore for large porphyry copper deposits, using the knowledge and experience gained from working on our projects in
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. In North America, the Company is exploring for porphyry-related copper systems in
The Company is a large landholder in
The Company continues to explore its large landholdings in
The Company is also seeking additional opportunities to utilize its expertise in exploring for deep and/or concealed ore deposits. With a treasury in excess of C$50 million, the Company is well funded for future activities.
Ivanhoe Mines and Rio Tinto are major shareholders of Entrée, holding approximately 15% and 16% of issued and outstanding shares respectively.
Monica Hamm - Manager, Investor Relations
Peter Oates - Investor Relations
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