Drilling Commences on Hugo Northern Extension Copper Flats, Mongolia
February 15, 2005
Vancouver, B.C., Tuesday, February 15, 2005 - Entrée Gold Inc. (TSX-V: ETG – “Entrée” or the “Company”) announces that Ivanhoe Mines Ltd. (NYSE: IVN; TSX: IVN; ASX: IVN – “Ivanhoe”) has initiated drill testing of the 4+ kilometer long Induced Polarization (“IP”) chargeability anomaly, which delineates the potential northward extension to the Oyu Tolgoi Hugo North copper-gold deposit. The initial drill hole is collared approximately 300 meters north of the joint Entrée – Ivanhoe boundary and is designed to test this strong IP geophysical anomaly between depths of 1,000 to 1,500 meters. Two additional “daughter” holes may be drilled from the same site, dependent upon success in the initial hole.
“This drill hole is the first test on Entrée’s ground of what is potentially the northern extension to ‘the world’s highest-grade copper porphyry discovery’ (Ivanhoe Mines News Release – November 18, 2004),” said Greg Crowe, Entrée’s President and CEO. “The IP anomaly being drilled can be directly correlated with the geophysical response associated with high-grade copper-gold mineralization in drill hole OTD963, less than 250 meters south of the border. Drill results for this hole included 216 meters averaging 3.90% copper and 1.27 g/t gold, between depths of 1,018 and 1,320 meters (November 18, 2004).”
This program is part of Ivanhoe’s initial US$3 million exploration commitment as outlined in the Entrée – Ivanhoe Earn-in and Equity Participation Agreement (“Agreement”). Under the terms of the Agreement, Ivanhoe has the right to earn an interest in approximately 22% (40,000 hectares) of Entrée’s Lookout Hill property, Mongolia. Ivanhoe must spend a minimum of US$3 million in drilling and geophysics to secure surface-rights to the “Project Property” as defined in the Agreement and must spend a minimum of US$20 million in order to earn any interest in the mineral rights to the “Project Property”. Ivanhoe can acquire up to an 80% interest in mineralization below a depth of 560 meters by spending a total US$35 million. Thereafter, Entrée has the right to require Ivanhoe to fund its share of subsequent joint venture costs through to production, to be recovered from production cash flow.
Robert Cann, Entrée’s Exploration Manager, a qualified person as defined by National Instrument 43-101, supervised the preparation of the information in this release.
ABOUT ENTRÉE GOLD INC.
Entrée Gold Inc. (www.entreegold.com) is an exploration stage junior resource company engaged in the exploration of gold and copper prospects. The Company is a large landholder in Mongolia’s south Gobi Desert, near the Chinese border. Entrée maintains 100% royalty-free ownership in the 179,590 hectare Lookout Hill (Shivee Tolgoi) property which completely surrounds Ivanhoe Mines’ 8,500 hectare Turquoise Hill (Oyu Tolgoi) holdings. Entrée has an earn-in agreement with Ivanhoe Mines covering approximately 22% (approximately 40,000 hectares) of Lookout Hill. The Company trades on the TSX Venture Exchange under the symbol “ETG”.
The TSX Venture Exchange 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. Forward-looking statements in this news release include those concerning the Company’s belief that the drilling program of Ivanhoe on the Company’s property may discover an extension of Oyu Tolgoi porphyry related mineralization.
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.