RE:Entree - Geopolitical Risk - Not a big enough Pie for all What has been entirely lost (some might guess purposely?) through the years of negotiation of the ownership structure, is the JV ground that ETG holds a 20% interest in below 560m, and 30% above, remains an open exploration play.
The most recent technical report suggests two exploration programs - shallow RC drilling on several priority targets to the South near Heruga, and HNE drilling to clarify the strike length and depth of HNE which remains open.
A shallow deposit on the JV could be a game changer for the mine plan, as could a substantial increase in the size of HNE.
February 2006 ETG NR:
Continuing Resource Expansion Drilling
The initial inferred resource estimate includes the results of drilling up to and including holes EGD053, 053A, 053B, approximately 625 metres onto Entre’s Copper Flats project area. Drilling northward from these holes (and daughter hole 053C), is continuing to test for possible extensions to the mineralized system.
Significantly, Hole EGD081B, located approximately 750 metres north of the 053 series of holes, has intersected 48 metres averaging 0.45% copper and 0.02 g/t gold, commencing at a downhole depth of 1,724 metres. The hole is believed to have located the top of the mineralized system, thereby extending the potential strike length of the Copper Flats mineralization to a total of approximately 1,300 metres. Hole EGD081, the original hole collared at this location, penetrated the hangingwall stratigraphy, but passed over the top of the target. Daughter-hole EGD081A was lost due to technical difficulties.
Hole EGD082A (previously reported on January 16, 2006) was collared approximately 150 metres north of the 053 series of holes and drilled to a depth of 1,429 metres. This hole was abandoned in a fault zone interpreted to be in the hangingwall of the deposit. It is believed that this fault may offset the mineralized zone to the west.
Greg Crowe further comments, “The step-out drilling not included in this initial resource estimate indicates that the system could extend for at least another 700 metres. The ongoing drill program should continue to increase value for Entre shareholders by both upgrading this initial resource and testing for the northward extension of the mineralized system.”
TRQ has later proposed that HNE is truncated by a down thrust fault at approx 700m N, but to what extent no theory is given. No explanation of the intersection of mineralizationat 1300m N, no follow-up. It could make huge difference to the size and value of Lift 2, more than doubling HNE's strike length. At depth, HNE remains open.
You wouldn't know there was upside in the exploration and camp,play from the market's reaction to TRQ today - blown down almost 20%! And this while copper is supposedly poised for a strong bull run.
cg