Entree Gold Inc. (TSX:ETG)(NYSE MKT:EGI)(NYSE
Amex:EGI)(FRANKFURT:EKA) ("Entree" or the "Company") has completed
soil and rock geochemical sampling and geological mapping on its
Ann Mason Project, Nevada ("Ann Mason" or the "Project"). This
program extends previous surface work done in close proximity to
the Ann Mason and Blue Hill deposits and tightens the spacing
between historical sample locations. More importantly, additional
copper targets for possible future drill testing have been
identified. Several oxide copper targets to the northwest of Blue
Hill and one identified midway between Blue Hill and Ann Mason
could provide feed for a potential early heap leach and solvent
extraction/electrowinning ("SX/EW") operation while the Ann Mason
sulphide deposit is undergoing pre-stripping.
Greg Crowe, President and CEO commented, "Our work to date at
Ann Mason and Blue Hill has greatly enhanced these two large
copper-bearing sulphide and oxide systems. In the immediate area of
Ann Mason, mineralization remains open in several directions and to
depth. In particular, drilling to the north, west and southwest
could result in a significant increase in mineralized material.
This could have the added benefits of potentially decreasing the
strip, increasing the mine life and improving the already robust,
PEA defined economics of the deposit. Additionally, the property
covers over eight thousand hectares and there are several excellent
untested exploration targets. The results of both drilling proximal
to the Ann Mason deposit and property-wide exploration may impact
site layout and infrastructure and provide a positive boost to the
economics as we advance Ann Mason to pre-feasibility."
Exploration Targets
The recent work by Entree includes soil and rock geochemical
sampling and geological mapping over areas to the north of Blue
Hill and to the south of Ann Mason, covering approximately 750
hectares. The soil geochemistry (619 samples) extends and in-fills
sampling done by previous operators between 2006 and 2010. A total
of 186 selected rock samples were collected to characterize
alteration and mineralization. The work resulted in the definition
of three areas for future exploration: Ann Mason South, Blackjack
Oxide, and the area between the Ann Mason and Blue Hill
deposits.
The Ann Mason South targets are located to the south and
southwest of the Ann Mason deposit. Soil sampling results outline
four greater than 200 parts per million ("ppm") copper anomalies in
an area that is 1.2 kilometres by 2.3 kilometres. Of the 74 rock
samples collected here, 35 returned assays greater than 1% copper.
Copper in these samples occurs as both oxide and sulphide
mineralization in quartz veins, fractures and faults that cut
quartz monzonite porphyry ("QMP") dykes and adjacent granodiorite,
which is a geological environment similar to the Ann Mason deposit.
Wide-spaced and mainly shallow drilling by previous operators has
not adequately tested any of the soil anomalies.
The soil sampling also identified a north-trending, 300- by
900-metre copper anomaly that is in part coincident with a low
conductivity, induced polarization ("IP") feature underlying the
western portion of the Ann Mason deposit. The combination of the
two features defines a north-trending, 300-metre-wide zone that
hosts copper mineralization encountered in drill holes
EG-AM-12-015, 020, 021, 026, 027, 029 and 030. The conductive zone
extends approximately 500 metres north of drill hole EG-AM-12-029
and represents a possible northward extension of part of the Ann
Mason deposit that has not been tested by drilling.
Sampling at the Blackjack Oxide Area, 2 to 3 kilometres north of
the Blue Hill deposit, returned a number of copper soil anomalies.
These correspond with areas of historic mine workings, pits and
trenches over several areas of copper-oxide mineralization and
alteration within Jurassic quartz monzonite, the main host for
mineralization at both Ann Mason and Blue Hill. Mineralization on
surface consists of copper oxides, sulphates and silicates in
veins, breccias, and altered quartz monzonite, at the eastern end
of the untested, 1.2 by 3 kilometre Blackjack induced polarization
IP chargeability anomaly. Entree collected 112 grab samples and 39
of these returned copper values in excess of 1% copper. The
Blackjack IP anomaly and the areas of surface oxide mineralization
require further surface evaluation and drill testing.
The third exploration target is located between Ann Mason and
Blue Hill. This area is underlain by a moderate to strong,
northwest-trending IP response and has seen only wide-spaced,
mostly shallow drilling by previous operators. Mineralization at
the Ann Mason and Blue Hill deposits occurs in distinct fault
blocks separated by the low angle Blue Hill Fault. Hole
EG-BH-11-031 is the only deep hole located in this area - it
averaged 0.28% oxide copper over 13.8 metres, starting at 22.2
metres depth. A deeper sulphide zone (406 to 448 metres) returned
0.31% copper within a broader zone (406 to 566 metres) averaging
0.16% copper (refer to the Material Change Report dated November 2,
2012).
The target areas are rated as a high priority for drilling to
determine if additional near-surface oxide and/or sulphide
mineralization is present. Adding to the Ann Mason mineral resource
could reduce the current strip ratio in the Ann Mason Preliminary
Economic Assessment mine design (news release October 24, 2012) and
help to enhance project economics. Positive evaluation of the oxide
copper targets might provide additional material for a potential
heap leach and SX/EW operation at Blue Hill.
ANALYTICAL
Rock samples were submitted to Skyline Assayers &
Laboratories ("Skyline"), Sparks, Nevada for 24 element, multi-acid
digestion, TE-4 ICP/OES multi-element analysis. Samples returning
greater than 10,000 ppm copper were rerun using ICP/OES copper
assay.
Entree soil samples were also submitted to Skyline for 49
element, Aqua Regia digestion, TE-3 ICP/MS analysis.
QUALIFIED PERSON
James R. Foster, P. Geo., Senior Geologist with Entree, a
Qualified Person as defined by NI 43-101, approved this news
release.
ABOUT ENTREE GOLD INC.
Entree Gold Inc. is a Canadian mineral exploration company
balancing opportunity and risk with key assets in Mongolia and
Nevada. As a joint venture partner with a carried interest on a
portion of the Oyu Tolgoi mining complex in Mongolia, Entree Gold
has a unique opportunity to participate in one of the world's
largest copper-gold projects managed by one of the premier mining
companies - Rio Tinto. Oyu Tolgoi, with its series of deposits
containing copper, gold and molybdenum, has been under exploration
and development since the late 1990s. Phase 1 is on the verge of
production, and Entree Gold could see first development production
from the joint venture ground as early as 2015.
In addition to being on the path to production in Mongolia,
Entree Gold has been advancing its Ann Mason Project in one of the
world's most favourable mining jurisdictions, Nevada. The Ann Mason
Project hosts a sizeable copper and molybdenum porphyry deposit
within the rejuvenated Yerington copper camp. Based on the PEA(i)
announced in October, 2012, the Ann Mason Project is expected to
yield a base case pre-tax, 7.5% net present value of US$1.11
billion and an internal rate of return of 14.8%, using assumed
copper, molybdenum, gold and silver prices of US$3.00/lb,
US$13.50/lb, US$1,200/oz and US$22/oz.
Rio Tinto and Turquoise Hill Resources (formerly Ivanhoe Mines)
are major shareholders of Entree, holding approximately 13% and 11%
of issued and outstanding shares, respectively. Rio Tinto, through
its majority ownership of Turquoise Hill Resources, beneficially
owns 23.6% of Entree's issued and outstanding shares.
(i) Readers are cautioned that the PEA on the Ann Mason deposit
is preliminary in nature and includes inferred mineral resources
that are considered too speculative geologically to have the
economic considerations applied to them that would enable them to
be categorized as mineral reserves, and there is no certainty that
the PEA will be realized. Mineral resources that are not mineral
reserves do not have demonstrated economic viability.
This News Release contains forward-looking statements and
forward-looking information (together, "forward-looking
statements") within the meaning of applicable securities laws and
the United States Private Securities Litigation Reform Act of 1995,
with respect to the potential impact of future exploration results
on the Ann Mason mine design and economics, potential size of a
mineralized zone, potential expansion of mineralization, potential
type(s) of mining operation, amount or timing of proposed
production figures, plans for future exploration and/or development
programs and budgets, anticipated business activities, corporate
strategies, uses of funds and future financial performance. In
certain cases, forward-looking statements can be identified by the
use of words such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates", or "does not anticipate" or "believes" or
variations of such words and phrases or statements that certain
actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved". While Entree has based
these forward-looking statements on its expectations about future
events as at the date that such statements were prepared, the
statements are not a guarantee of Entree's future performance and
are subject to risks, uncertainties, assumptions and other factors
which could cause actual results to differ materially from future
results expressed or implied by such forward-looking statements.
Such factors and assumptions include, amongst others, that the
size, grade and continuity of deposits and resource and reserve
estimates have been interpreted correctly from exploration results;
that the results of preliminary test work are indicative of what
the results of future test work will be; that the prices of copper,
gold, silver and molybdenum and foreign exchange rates will remain
relatively stable; the effects of general economic conditions,
including inflation; future actions by Rio Tinto, Turquoise Hill
Resources, joint venture partners and government authorities
including the Government of Mongolia; the availability of capital;
that applicable legislation, including legislation with respect to
taxation, will not materially change; uncertainties associated with
legal proceedings and negotiations; and misjudgements in the course
of preparing forward-looking statements.
In addition, there are also known and unknown risk factors which
may cause the actual results, performances or achievements of
Entree to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements. Such factors include, among others,
risks related to international operations, including legal and
political risk in Mongolia; recent global financial conditions;
actual results of current exploration activities; changes in
project parametres as plans continue to be refined; inability to
upgrade inferred mineral resources to indicated or measured mineral
resources; inability to convert mineral resources to mineral
reserves; conclusions of economic evaluations; future prices of
copper, gold, silver and molybdenum; possible variations in ore
reserves, grade recovery and rates; failure of plant, equipment or
processes to operate as anticipated; accidents, labour disputes and
other risks of the mining industry; delays in obtaining government
approvals, permits or licences or financing or in the completion of
development or construction activities; environmental risks; title
disputes; limitations on insurance coverage; as well as those
factors described in the Company's Annual Information Form for the
financial year ended December 31, 2011, dated March 29, 2012 and
the Company's most recent Management's Discussion and Analysis
filed with the Canadian Securities Administrators and available at
www.sedar.com. Although the Company has attempted to identify
important factors that could cause actual actions, events or
results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking statements. The Company is under no obligation to
update or alter any forward-looking statements except as required
under applicable securities laws.
Contacts: Entree Gold Inc. Mona Forster Executive Vice President
604-687-4777 or Toll Free: 866-368-7330 604-687-4770
(FAX)mforster@entreegold.com www.entreegold.com