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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 Apr 18, 2011 4:27pm
257 Views
Post# 18448867

Much Depends on Mine Plans

Much Depends on Mine Plans
Hugo North Lift 1 at present doesn't extract JV ore for several years after block-caving commences (a proposed scheme of extraction is in IDP-10).

However, the location of the block-caving has flexibility and one can wonder whether the timing and location of the drawbells will migrate further north onto the JV, in particular if the ore from 625m N continues to be very high grade. 

Or somebody is willing to step up and offer OTLLC some serious cash either for a separate mine (Heruga?), or for a share in the project.  Or ETG or the JV make a further major discovery.

The ore is there, it is valuable, it will be mined, the valuation question is when - and it doesn't take a conspiracy theorist to wonder if OTLLC may change the mining plan for Lift 1 earlier into the JV if it turns out there is a large amount of higher grade ore - especially from the 625m to 1300m N mark and beyond.  It only makes economic sense, particularly if the net smelter returns are in excess of 20% better for that ore than for Hugo North ore.

Everybody seems to be aware that the window of elevated copper prices is going to be open for a few years, but will eventually regress back as new capacity comes on line around the world.  Will the HNE JV high-grade ore be deferred or mined while prices are most favorable?  My guess is ... it will be mined sooner than published plans indicate, but that is only speculation ...

CG
Bullboard Posts