Entree Gold Interests Included in Oyu Tolgoi Inves[CNW] Entree Gold Interests Included in Oyu Tolgoi Investment Agreement
VANCOUVER, Oct. 16 /CNW/ - Entr Dee Gold Inc. (TSX:ETG; NYSE Amex:EGI;Frankfurt:EKA - "Entr Dee" or the "Company") has reviewed the InvestmentAgreement that was signed between Ivanhoe Mines Ltd. (TSX: IVN; NYSE: IVN;NASDAQ: IVN - "Ivanhoe Mines"), its subsidiary, Ivanhoe Mines Mongolia Inc.LLC ("IMMI"), our largest shareholder Rio Tinto (NYSE: RTP; LSE: RIO.L; ASX:RIO.AX) and the Mongolian government on October 06, 2009 and filed October 14,2009 on SEDAR (www.sedar.com). Several key issues pertaining to the Investment Agreement have specificand beneficial impacts for Entr Dee and its shareholders: << - This Investment Agreement provides long term stability for the Oyu Tolgoi project and enables the companies involved to operate within parameters that have been approved by the government of Mongolia - This agreement paves the way for finalizing feasibility, development and mining studies of the many Oyu Tolgoi deposits, including Entr Dee's Hugo North Extension and Heruga deposits - Greater certainty is afforded to all stakeholders, with the agreement providing fiscal stability and reliable access to water, power, transportation and labour throughout the term - The Entr Dee-Ivanhoe Mines exploration licences (Shivee Tolgoi and Javhlant) which are subject to the joint venture are contained within the Contract Area covered by the Investment Agreement - The conversion of the joint venture licences from mineral exploration licences to mining licences is a condition precedent to the Investment Agreement >> The Investment Agreement has an initial term of 30 years with the optionto renew for an additional 20 years. Ivanhoe Mines is currently working on anupdated Integrated Development Plan which will expand upon the original planissued in 2005 and further clarify the next phases of development and eventualmining that is anticipated to begin in 2013. Current resources are expected tosupport open-pit and underground mining for at least 60 years and potentialexists to expand the available resources, particularly on the Lookout Hillproperty which includes the joint venture ground. With the inclusion of the Mongolian Government as a partner and RioTinto's recent endorsement of the project through the advanced settlement ofthe Tranche 2 private placement financing, strong support in the continuedlong term success of the project is conveyed. These parties have acknowledgedthe projected mine life could be as much as 100 years and have a strongcommitment to the ongoing success of this project and all have a vestedinterest in the future benefits of this outstanding opportunity. By successfully converting Entr Dee's exploration licences to mininglicences, exploration on this ground will no longer be controlled by the dateof exploration licence expiration and the risk of licence forfeiture isremoved. Mining licences have a 30 year term with two renewals of 20 yearseach possible. This allows the diligent and systematic exploration on theselicences for new deposits to continue. Under the Entr Dee-Ivanhoe Mines jointventure, Entr Dee retains either a 20% or 30% carried interest, dependent on thedepth of mineralization. The Investment Agreement has laid the foundation for the advancement ofthese rich deposits and has given assurance to the continued success of thisproject for its stakeholders: the people of Mongolia and the investors thathave supported Ivanhoe Mines, Rio Tinto and Entr Dee Gold. Entr Dee will continue to review and evaluate the implications of theInvestment Agreement with respect to its Lookout Hill property and provideupdates whenever possible. ABOUT ENTREE GOLD INC. Entr Dee Gold Inc. is a Canadian mineral exploration company focused on theworldwide exploration and development of gold and copper prospects. TheCompany flagship property is in Mongolia, where it holds three explorationlicenses comprising the 179,590 hectare Lookout Hill property. Lookout Hillcompletely surrounds the 8,500-hectare Oyu Tolgoi project of Ivanhoe Mines,and hosts the Hugo North Extension of the Hugo Dummett copper-gold deposit andthe Heruga copper-gold-molybdenum deposit. The Company continues to explore its large landholdings in Mongolia,including the coal discovery Nomkhon Bohr. Entr Dee is also evaluating newopportunities throughout the region and elsewhere in Asia. Entr Dee is exploringthe Huaixi copper project in Zhejiang Province in China, under the terms of anagreement with the No. 11 Geological Brigade. In North America, the Company is exploring for porphyry-related coppersystems in Arizona and New Mexico under agreements with Empirical DiscoveryLLC, in Nevada through option agreements with HoneyBadger Exploration Inc. andBronco Creek Exploration Inc. and in British Columbia through an agreementwith Taiga Consultants Ltd. The Company is also seeking additional opportunities to utilize itsexpertise in exploring for deep and/or concealed ore deposits. With a treasuryin excess of C$40 million, the Company is well funded for future activities. Ivanhoe Mines and Rio Tinto are major shareholders of Entr Dee, holdingapproximately 15% and 16% of issued and outstanding shares respectively.