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1TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
On the Path to Production
November 2012
Entrée Gold at
Oyu Tolgoi Headframe
Copper Oxide
Ann Mason Project Ann Mason
Drilling
2TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
Cautionary Statement
This corporate update contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning
of applicable Canadian securities laws.
Forward-looking statements include, but are not limited to, statements with respect to the future prices of copper, gold, molybdenum and silver; the estimation of mineral reserves and resources; the
realization of mineral reserve and resource estimates; future mineral production; costs of production and capital expenditures; the availability of project financing; potential size of a mineralized zone;
potential expansion of mineralization; potential discovery of new mineralized zones; the timing and results of future resource and reserve estimates; potential types of mining operations; amount and
timing of proposed production figures; government regulation of exploration and mining operations; potential metallurgical recoveries and grades; plans for future exploration and/or development
programs and budgets; permitting time lines; anticipated business activities; corporate strategies; uses of funds; proposed acquisitions and dispositions of assets; and future financial performance.
While Entrée Gold Inc. (“Entrée” or the “Company”) has based these forward-looking statements on its expectations about future events as at the date that such statements were prepared, the
statements are not a guarantee of the Company’s future performance and are subject to risks, uncertainties, assumptions and other factors which could cause actual results to differ materially from
future results expressed or implied by such forward-looking statements. Such factors and assumptions include, amongst others, that the size, grade and continuity of deposits and resource and
reserve estimates have been interpreted correctly from exploration results; that the results of preliminary test work are indicative of what the results of future test work will be; that the prices of
copper, gold, molybdenum and silver will remain relatively stable; the effects of general economic conditions, changing foreign exchange rates and actions by Rio Tinto, joint venture partners and by
government authorities including the Government of Mongolia; the availability of capital; that applicable legislation, including legislation with respect to royalties and taxation, will not materially change;
uncertainties associated with legal proceedings and negotiations; and misjudgements in the course of preparing forward-looking statements. In addition, there are also known and unknown risk
factors which may cause the actual results, performances or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by
the forward-looking statements. Such risk factors include, among others, risks related to international operations, including legal and political risk in Mongolia; recent global financial conditions; actual
results of current exploration activities; changes in project parameters as plans continue to be refined; inability to upgrade inferred mineral resources to indicated or measured mineral resources;
inability to convert mineral resources to mineral reserves; conclusions of economic evaluations; future prices of copper, gold, silver and molybdenum; possible variations in ore reserves, grade
recovery and rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; delays in obtaining government approvals,
permits or licences or financing or in the completion of development or construction activities; environmental risks; title disputes; limitations on insurance coverage; as well as those risk factors
described in the section entitled “Risk Factors” in the Company’s Annual Information Form dated March 29, 2012 filed with the Canadian Securities Administrators and in the Company’s most recently
filed Management’s Discussion and Analysis, both available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such statements. Except as required under applicable securities legislation, the Company undertakes no obligation to update or revise forward-
looking statements.
The Company's exploration activities are under the supervision of Robert Cann, P.Geo., Vice President, Exploration of Entrée. Mr. Cann is a “qualified person” as defined in National Instrument 43-
101- Standards of Disclosure for Mineral Projects (“NI 43-101”). Mr. Cann has approved this corporate update.
All minerals reserves and mineral resources have been calculated in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and NI 43-101. Cautionary Note to
United States Investors: United States investors are advised that while the terms “measured mineral resources”, “indicated mineral resources” “inferred mineral resources” and “probable mineral
reserves” are recognized and required by Canadian regulations, the United States Securities and Exchange Commission (SEC) does not recognize them. United States investors are cautioned not to
assume that any part or all of the mineral deposits in these categories will ever be upgraded to a higher category, or converted into mineral reserves. Inferred mineral resources have a great amount
of uncertainty as to their existence, and as to their economic and legal feasibility. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or other
economic studies. United States investors are cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally minable. Disclosure of “contained
ounces” is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute reserves as in place tonnage and grade
without reference to unit measures. Accordingly, information contained in this corporate update containing descriptions of the Company’s mineral properties may not be comparable to similar
information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder.
The information in this corporate update is for informational purposes only. Readers should not rely on the information for any purpose other than to gain general knowledge of Entrée. This
information is not intended to be, and should not be construed as, part of an offering or solicitation of securities.
For additional information regarding Lookout Hill, see the technical report titled "Technical Report 2012 on the Lookout Hill Property" dated March 29, 2012 ("LHTR12") prepared by AMC Consultants
Pty Ltd, a copy of which is available on SEDAR at www.sedar.com. For additional information regarding the Ann Mason Project, see the News Release dated October 24, 2012. The documents are
available on SEDAR at www.sedar.com and on the Company’s website. All references to “$” are to U.S. dollars.
3TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
On the Path to Production
Ann Mason, Nevada
N 3
5.6 billion lbs Cu
873 Mt @ 0.29% Cu
0.2% Cu cut-off
Inferred Indicated
8.2 billion lbs Cu
1,137 Mt @ 0.33% Cu
0.2% Cu cut-off
Pit outline
City of Yerington
4TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
Oyu Tolgoi Open Pit Development Nearing Completion
Phase I Construction 97% Complete
HNE Development Production as early as 2015
On the Path to Production
Hugo North Extension and Heruga, Mongolia
4
5TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
Resources
Note: 5.4B lbs Cu 0.3% Cut-off Indicated Resource and 2.6B lbs Cu Inferred Resource at 0.3% Cut-off at Ann Mason
*CuEq estimated using US$1.35/lb Cu, US$650/oz Au, US$10/lb Mo. Figures are NI 43-101 compliant.
Inferred Resource
5.6B lbs Cu0.2% Cut-off
Indicated Resource1.1B lbs CuEq*
(with 0.5M oz Au)0.6% Cut-off
HNE
Inferred Resource4.1B lbs CuEq*
(with 3M oz Au)0.6% Cut-off
HNE and HerugaIndicated Resource
8.2B lbs Cu0.2% Cut-off
HNE = Hugo North Extension
6TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
Shareholder Base Fully Diluted
57%
Held by top 12
Shareholders
* Rio Tinto holds beneficial ownership over shares held by Turquoise Hill 6
12.0%
10.0%
9.1%
7.7%
4.8%
4.1%
2.6%2.1% 2.1%
1.4%1.1%
0.2%
7TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
Board of Directors
Greg Crowe President & CEO, Director
James Harris Chairman, Director
Michael Howard Deputy Chairman, Director
Lindsay Bottomer VP Business Development, Director
Peter Meredith Director
Mark Bailey Director
Alan Edwards Director
Gorden Glenn Director
7
8TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
Financial Information
Treasury (As of September 30, 2012)
Issued and OutstandingOptions - 9,223,000 (Average price ~Cdn$1.98)
Fully Diluted
52 week High / Low
Analyst Coverage
~Cdn$6.6 million
128,877,243
138,100,243
Cdn$1.77 / $0.39
TD Newcrest
Hallgarten & Co. LLC
CIBC
8
9TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
Growth Through Exploration & Acquisitions
USA
MongoliaNevada
Lordsburg
Oak Grove
New Mexico
Shivee West
AustraliaBlue Rose
MystiquePeruLukkacha
Ann Mason Deposit
Blue Hill DepositHugo North Extension
Heruga
10TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
USA
10
11TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
The Nevada Advantage
Top global mining jurisdiction
Limited political risk
Long history of mining
Yerington, MacArthur and Minnesota Mines
Local community support
Clear permitting guidelines
Excellent infrastructure
Power, road, water and rail near project
Year round accessibility
11
12TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
Underdeveloped camp
Significant copper discoveries
Camp contains >20 billion pounds Cu
No major company investment
Nearby deposits include:
· Yerington Mine - Quaterra
Produced 1.9 Billion lbs Cu (1918-1982)
· MacArthur - Quaterra
0.68 Billion lbs Cu @ 0.21%
· Pumpkin Hollow - Nevada Copper
5.8 Billion lbs Cu @ 0.48% (M&I; OP & U/G)
Yerington, Nevada
USA
13TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
Ann Mason Project
PEA Highlights
Proposed 100,000 tpd
Open pit mine
Sulphide flotation mill
24 year initial mine life
NPV7.5 Base Case
$1.11 billion
IRR 14.8%
5.6 years payback
(Cu$3.00 / Mo$13.50 / Au$1200 / Ag$22)
NPV7.5 Spot Case (Oct 15, 2012 prices)
$2.54 billion
IRR 22.9%
3.8 years payback
(Cu$3.71 / Mo$10.43 / Au$1736 / Ag$33.22)
Note: The PEA is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them
that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. Mineralized resources that are not mineral reserves do not have
demonstrated economic viability.
14TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
Ann Mason Project
PEA Highlights
Unit Base Case* Spot Case**
Copper $/lb $3.00 $3.71
NPV (5%) $ Million $1,918 $3,846
NPV (7.5%) $ Million $1,106 $2,538
NPV (10%) $ Million $576 $1,669
IRR % 14.8% 22.9%
Payback Period Years 5.6 3.8
Metal Revenue (after smelting, refining, roasting, payable)
$ Million $15,600 $19,500
*Cu$3.00 / Mo$13.50 / Au$1200 / Ag$22
**Cu$3.71 / Mo$10.43 / Au$1736 / Ag$33.22 (Oct 15/2012)
15TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
Ann Mason Project
PEA Highlights
Item Amount
Development capital costs $1.28 billion
Average cash costs (net of by-product sales) $1.46/lb copper
LOM – Net annual undiscounted cash flow $227 million
LOM – Strip ratio 2.16:1
LOM – Average copper recovery 93.5%
Copper concentrate grade 30%
LOM – Copper production 5.14 billion pounds
16TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
Cu-Mo porphyry
2.3 km by 1.3 km
>1 km depth
Open
Cu recovery >93%
High quality Cu concentrate
Ann Mason Deposit
16
17TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
Ann Mason Deposit
Section 304,300 E
Not 43-101 compliant
See Appendix A for grade of each mineral used to establish the copper equivalent grades.
18TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
Ann Mason Deposit
Section 4,317,700 N
Not 43-101 compliant
See Appendix A for grade of each mineral used to establish the copper equivalent grades.
19TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
8.2 Billion lbs Cu
Indicated
5.6 Billion lbs Cu
Inferred
(0.2% Cu cut-off)
19
873 Mt @ 0.29% CuInferred
(0.2% Cu cut-off)
1,137 Mt @ 0.33% CuIndicated
Ann Mason Deposit
Advancing to PEA
20TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
Ann Mason - Blue Hill
Schematic Long Section
OPENOPEN
21TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
Shallow oxide mineralization
Sulphide mineralizationBelow oxides & continuing SE
Column leaching testworkAverage 85% Cu recovery
(91 day column leach test)
Fast extraction (60% recovery in 10 days)
Blue Hill Deposit
Near surface oxide Cu and underlying Cu-Mo porphyry
ZoneCut-off(Cu%)
Tonnes(Million)
Cu(%)
Cu(Million lb)
Oxide/Mixed 0.10 72.13 0.17 277.49
Sulphide 0.15 49.86 0.23 253.46
Inferred Mineral Resources
Mineral resources that are not mineral reserves do not have demonstrated economic viability.
22TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
Ann Mason Project
Exploration potential
Untested IP targets
Between Ann Mason and
Blue Hill
Blackjack targets
Untested Magnetic target
Roulette
Exploration potential
Majority of project untested
Limited outcrop
23TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
Sierrita
Bagdad
GibraltarHighland
Valley
Red Chris*
Schaft Creek
Mt Milligan*
Rosemont
Pumpkin Hollow
Copper Mountain
Ajax
Excelsior
Copper Creek
Mineral Park *
Chino
Poplar
MacArthur
Tyrone
Yerington
Porphyry Related Copper Deposits
Western North America
0.5
0.4
0.3
0.2
% C
op
per
Ann Mason
1.1 Bt
*CuEq
Inferred resources not included. Additional Ann Mason inferred resources: 873 million tonnes averaging 0.29% Cu at 0.2% Cu cut-off.
Sourced from publically available documents.
1.5
1.0
0.5
Billion Tonnes
24TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
Other Properties
* Copper equivalent estimated using $1.35/lb Cu and $650/oz Au. Intercept contains 0.31% Cu and 0.21 g/t Au.
Lordsburg
Porphyry discovery
District known for
vein style deposits
Intercepts to 0.44%
CuEq* over 60 m
Further exploration
planned
Oak Grove
New target
Magnetic anomaly
similar to Chino Mine
Near producing
Tyrone Mine
24
25TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
Mongolia
25
26TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
Strategic Partners
Entrée-OTLLC JV
US$35,000,000 JV earn-in
>US$54 million to date
Entrée 20% - OTLLC 80% (deep)
Entrée 30% - OTLLC 70% (shallow)
Carried Interest
Rio Tinto (13%)*
51% of Turquoise Hill
Commitment to funding development at Oyu Tolgoi
Turquoise Hill (11%)*
66% of Oyu Tolgoi
*Issued & Outstanding
Joint Venture
Entrée – OTLLCHugo North Extension
& Heruga
Entrée
Oyu Tolgoi LLC
Turquoise HillMongolian
Government
Rio
Tinto
20/30%
80/70%
34% 66%
~11%
51%
~13%
Rio Tinto beneficial ownership is now 23.6% due to majority ownership of Turquoise Hill
27TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
Shivee Tolgoi - Oyu Tolgoi Trends
27
28TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
Oyu Tolgoi Trend
*Indicated resource grade; HNE inferred resource grade = 1.4% CuEq **Inferred resource grade
Modified from LHTR12
Mineral reserves are not additive to the mineral resources
Copper equivalent estimated using $1.35/lb Cu, $650/oz Au, $10/lb Mo. A 0.6% CuEq cut-off was used
Phase 2 does not include mine plan for Lift 2 extraction
29TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
Hugo North Extension Development
Modified from LHTR12
Entrée has a 20% interest in the mineralization of the Hugo North Extension deposit
650 m
30TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
Entrée-OTLLC JV Deposit Resources
Entrée ownership - 20% Carried Interest
*The mineral reserves are not additive to the mineral resources.
** Copper equivalent estimated using $1.35/lb Cu, $650/oz Au, $10/lb Mo.
*** 0.6% CuEq cutoff.
Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Hugo North Extension
Cu-Au
Probable
Mineral
Reserves*
27Mt ore1.85% Cu and 0.72 g/t Au1B lbs Cu / 0.53M oz Au
Indicated
Resources**
5.6B lbs CuEq
117 million tonnes*** - 1.80% Cu, 0.61 g/t Au
4.6B lbs Cu / 2.3M oz Au
Inferred
Resources**
2.8B lbs CuEq
95.5 million tonnes***- 1.15% Cu, 0.31 g/t Au2.4B lbs Cu / 0.95M oz Au
Hugo North Extension
Cu-Au
Heruga
Cu-Au-Mo
Probable
Mineral
Reserves*
27Mt ore1.85% Cu and 0.72 g/t Au1B lbs Cu / 0.53M oz Au
Indicated
Resources**
5.6B lbs CuEq
117 million tonnes*** - 1.80% Cu, 0.61 g/t Au
4.6B lbs Cu / 2.3M oz Au
Inferred
Resources**
2.8B lbs CuEq
95.5 million tonnes***- 1.15% Cu, 0.31 g/t Au2.4B lbs Cu / 0.95M oz Au
17.4B lbs CuEq
910 million tonnes***
0.48% Cu, 0.49 g/t Au, 0.014% Mo9.6B lbs Cu / 14M oz Au
HUGO
NORTH
EXTENSION
HERUGA
31TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
Hugo North Extension & Heruga
On the Path to Production
Current
Premier asset
High grade – long life
OT Phase I construction 97% complete
Entrée carried by debt financing at
prime +2%
Timeline for Entrée’s Assets
Development Production from HNE as
early as 2015
50+ year potential mine life
LOM Case: HNE1+HNE2+Heruga
HNE & Heruga Deposits remain open
32TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
Heruga
Hugo NorthExtension
Lookout Hill Ann Mason
Building Value
Resources inventory and relative NPV
NPV = $1.1 Billion
NPV = $129 Million
Indicated
Inferred
Underground reserve
Mongolia Nevada
Open pit mine resources
Mineral resources that are not mineral reserves do not have demonstrated economic viability.
33TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
Advancing Ann Mason
2012 2013 2014 2015 2016+
Pre-feasibility?
Feasibility?
Blue Hill resource
estimate
Ann Mason updated
resource estimate
PEA
Permitting
Drilling
Baseline studies
Exploration
Metallurgy
Geotechnical
33
34TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
HNE Lift 1 production to 2030
Advancing Joint Venture
Hugo North Extension and Heruga
2012 2013 2014 2015
Lift 1 development
2070+
Drilling Javhlant
Hugo North Extension development and production
50+ year potential production in LOM case
Drilling Shivee Tolgoi
HNE Lift 2 production to 2044
34
35TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
Current Copper Assets
*CuEq estimated using $1.35/lb Cu, $650/oz Au, $10/lb Mo. Figures are NI 43-101 Compliant.
0
2
4
6
8
10
12
Indicated Inferred
Bil
lio
n lb
s
5.6B lbs Cu
8.2B lbs Cu
HNE & Heruga
0.6% CuEq cut-off
Ann Mason
0.2 % Cu cut-off
4.1B lbs CuEq*
(with 3M oz Au)
1.1B lbs CuEq*
(with 0.5M oz Au)
36TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
0
4
8
12
16
20
2004 2005 2006 2007 2008 2009 2010 2011 2012Indicated (Billion lbs) Inferred (Billion lbs)
Ann
Mason
Updated
Mineral
Resources
Copper Resources vs. Share Price
Sh
are
Pri
ce
Share price
*0.2% Cu Cut-off
Billio
n P
ou
nd
s C
op
per
IVN Deal
Rio
Investment
HNE
Discovery
Mongolian Windfall Tax
Falling Metal Prices
IVN-Rio
Deal
Rio-IVN
Exercise
2005
Warrants
Heruga
Discovery
Withdrawal of
Windfall Tax
PacMag
Acquisition
BMO
Financing
Investment
Agreement
Ann Mason
PEA
37TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
Appendix A
38TSX:ETG | NYSE MKT:EGI | FRANKFURT:EKA
Mona Forster – Executive Vice President
604-687-4777
www.entreegold.com 38