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Entree Resources Ltd T.ETG

Alternate Symbol(s):  ERLFF

Entree Resources Ltd. is a Canadian mining company. The Company is focused on the development and exploration of mineral property interests. The Company is principally focused on its Entree/Oyu Tolgoi JV Property in Mongolia. The Entree/Oyu Tolgoi joint venture property includes Lift 1 and Lift 2 of the Hugo North Extension copper-gold deposit, the Heruga copper-gold-molybdenum deposit, and a large underexplored, highly prospective land package. The Oyu Tolgoi project comprises two separate land holdings: the Entree/Oyu Tolgoi JV Property, which is a partnership between Entree and OTLLC, and the Oyu Tolgoi mining license, which is held by OTLLC. The Entree/Oyu Tolgoi JV Property comprises the eastern portion of the Shivee Tolgoi mining license and all the Javhlant mining license. The Company has a 56.53% interest in the Blue Rose Joint Venture. The Company has an interest in acquiring a 0.5% net smelter return royalty on the Canariaco copper project in Northern Peru.


TSX:ETG - Post by User

Bullboard Posts
Post by Countrygenton Sep 23, 2010 1:35pm
479 Views
Post# 17484591

Remember

Remember

The main focus of the game is the pricing of the OT project to RioT or anybody else.

I suspect RF is holding control over ETG, and the rich 20% premium held by ETG in the JV ore at Hugo North, as an additional bargaining chip of his "sellers block" control, to favor not only IVN share vendors, but also, eventually, ETG, when we are brought into the ultimate deal.

One of the key aspects of the value of the JV at Hugo North is that the marginal additional value of the richer ore exceeds 20% - in other words, even mining the ore and having to give ETG 20% of the net smelter return is still more profitable than mining the ore south of the JV line - it is that rich.

The talk of delaying mining further north for a long time is IMHO all bluster aimed at pricing ETG into the deal.  RF has as much interest at the end of the day of raising that price as we do ... if he can't swipe it out from under our feet in the meantime.  Seems RioT and our management are well aware of that danger.

And maybe seeing the price run up a bit on better volumes, we're not the only ones who know.

As for the coal, the 100% ground, the expansion of Heruga and the JV north mineral resources, the 8km of "on trend" prospective ground under the supposed clear scrutiny of Zeus ... that is all gravy.

The last real nugget of indicated potential we had was the November 2006 drill results - the brokerage analysts, the IDP, the mining plan, the public discussion, all assumes only the resources to the 625m mark North, when we know that beautiful high grade must extend a whole lot more towards the drill intercept at 1300m N and at depth.  That is the jewel in the crown at OT and we have yet to see it in play honestly and publicly described and valued.

Hang in there, amigoes.  Can we be trumped by finangling?  You bet.  But at least we have the rock in the ground with amazing potential.  This is no greenfields play - except we get that thrown in on the Northern 8km, plus on the 100% ground, with virtually no price premium in today's market.  Which is why I like the upside of ETG very much.

CG
Bullboard Posts