Blue Rose Joint Venture

Exploration License 6006 (EL6006), totalling 257 square kilometres, is located in the Olary Region of South Australia, 300 kilometres northeast of Adelaide and 130 kilometres west-southwest of Broken Hill. Entrée has a 56.53% interest in a joint venture to explore for minerals other than iron ore on EL6006, with Giralia Resources Pty Ltd, now a subsidiary of Atlas Iron Limited, retaining a 43.47% interest (Blue Rose JV). 

The rights to explore for and develop iron ore on EL6006 are held by Fe Mines Limited (FML), a subsidiary of Lodestone Equities Limited (Lodestone). In exchange for the iron ore rights, title to EL6006 and the assignment of certain native title agreements, FML granted to the Blue Rose JV partners (a) the right to receive an additional payment(s) upon completion of an initial or subsequent iron ore resource estimate on EL6006, to a maximum of A$2 million in aggregate; and (b) a royalty equal to 0.65% of the free-on-board value of iron ore product extracted and recovered from EL6006. An additional A$285,000 must also be paid to the Blue Rose JV partners upon the commencement of commercial production from EL6006.

EL6006 is included in the Mawson Iron Project area, a venture that includes the assets of both Magnetite Mines Limited (MGT) and Lodestone. The Braemar Iron Formation is the host rock to magnetite mineralisation on the Mawson Iron Project, with a strike length of approximately 250 kilometres within the area controlled by both MGT and Lodestone. In addition to having numerous prospective magnetite-iron ore targets, the project is surrounded by an infrastructure rich area with access to nearby existing open user rail, port, power, gas, heavy engineering and dormitory towns.

The Braemar Iron Formation is a meta-sedimentary iron siltstone, which is inherently soft. The mineralization within the Braemar Iron Formation forms a simple dipping tabular body with only minor faulting, folding and intrusives. Grades, thickness, dip, and outcropping geometry remain very consistent over kilometres of strike.

Cañariaco Project Royalty

In July 2015, Entrée entered into an agreement with Candente Copper Corp. (TSX:DNT) (Candente) to acquire a 0.5% net smelter returns royalty (Royalty) on Candente's 100% owned Cañariaco Copper Project in Northern Peru.

In June 2018, Entrée sold the subsidiaries that directly or indirectly hold the Royalty to Anglo Pacific Group PLC (LSE: APF; TSX: APY) (Anglo Pacific) in consideration of 478,951 Anglo Pacific shares.

In addition, Entrée retained the right to a portion of any future royalty income received by Anglo Pacific in relation to the Royalty as follows:

The Cañariaco Copper Project covers an extensive porphyry complex, which includes the Cañariaco Norte porphyry copper deposit and the Cañariaco Sur and Quebrada Verde porphyry copper prospects. Cañariaco Sur and Quebrada Verde are located in close proximity to Cañariaco Norte, and potentially allow for a larger integrated operation with shared facilities and infrastructure. The Royalty area covers the Cañariaco Project in its entirety.

Updated:  July 2018