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First Mineral Reserves for Entrée's Hugo North Extension Included in Initial Underground Mining at Oyu Tolgoi, Mongolia
First Mineral Reserves for Entrée's Hugo North Extension Included in Initial Underground Mining a...
About this update from Entree Resources Ltd
[{"type":"text","content":"\n\n\n\n May 11, 2010 (Canada NewsWire Group) -- Entrée Gold Inc. (TSX:ETG; NYSE AMEX:EGI; Frankfurt:EKA - "Entrée" or the "Company") is pleased to report the first ore reserves defined under NI 43-101 criteria on the Hugo North Extension deposit in Mongolia.\nThe release of the 2010 Integrated Development Plan ("IDP10") for the Oyu Tolgoi mining complex was announced by Ivanhoe Mines Ltd. (TSX:IVN; NYSE:IVN; NASDAQ:IVN - "Ivanhoe Mines") on May 11, 2010. IDP10 declares the first underground mineral reserves for the Hugo North deposit, including Entrée's Hugo North Extension deposit. The Probable Reserve for Hugo North Extension totals 27 million tonnes grading 1.85% copper and 0.72 g/t gold. Entrée holds a 20% carried interest to production in this reserve through a joint venture with Oyu Tolgoi LLC, a subsidiary of Ivanhoe Mines.\nIDP10 has presented two main mining scenarios: the Reserve Case ("Reserve Case") and the Life of Mine Sensitivity Case ("LOM Sensitivity Case"). The Reserve Case is the most likely scenario for reserves exploited in the initial ("Lift 1") underground block cave mining operation, including the reserve for Hugo North Extension. Probable Reserves and Inferred and Indicated Resources at Hugo North Extension and at the Heruga deposit are part of the LOM Sensitivity Case development and mining scenario. See the discussion below and attached figures for additional details regarding the two main mining scenarios.\nGreg Crowe, Entrée's president and CEO commented, "The release of IDP10 is a crucial milestone in the history of Entrée. It confirms the near-term production and long-term importance of the Entrée-Ivanhoe Mines joint venture deposits to the overall development of the Oyu Tolgoi porphyry system. Few junior resource companies have the opportunity to participate in the development of a mine complex the size and caliber of Oyu Tolgoi."\nIn addition to the two main mining scenarios, IDP10 presents two alternative mine production plans for the development and mining of the deposits along the Oyu Tolgoi mineralized trend including the Southern Oyu, Hugo South and Hugo North, Hugo North Extension and Heruga deposits. Due to the nature of the deposits associated with Oyu Tolgoi, the project ope...