Entree Gold Announces Option Agreement With HoneyBadger Exploration
NYSE Amex:EGI; Frankfurt:EKA – “Entree” or the “Company”) announces that the
Company has entered into an agreement with HoneyBadger Exploration Inc.
(TSX.V:TUF – “HoneyBadger”) to explore for and develop porphyry copper
targets in the
HoneyBadger has assembled a substantial land package covering over 12,500
acres (5,080 hectares), known as the Yerington West Project.
Under the terms of the agreement, Entree may acquire up to an 80%
interest in a portion of the Yerington West Project, known as the Blackjack
Property. The agreement is subject to completion of due diligence and
regulatory approval.
Entree may exercise its first option to acquire 51% after incurring
minimum expenditures of
issuing 37,500 shares and reimbursing HoneyBadger for up to
expenditures previously incurred on the property. If results from the initial
exploration program are encouraging, the Company may increase its interest by
a further 29% (to 80% in total) by making payments of
375,000 shares within 3 years. Entree has committed to carry HoneyBadger
through the completion of 10,000 metres of drilling, including any done
within the first year.
The Blackjack Property consists of 484 claims covering almost 10,000
acres (4,000 hectares) of prospective ground centred about 8 miles (13
kilometres) west of the town of
infrastructure and a long history of mining. The
prominence after the discovery of copper in 1865. Anaconda Copper produced
almost 2 billion pounds of copper from the Yerington Mine, located 4 miles (6
kilometres) to the southeast of the Blackjack Property, between 1952 and
1978. Nevada is a highly regarded mining jurisdiction, having been rated
third out of 71 mining and exploration jurisdictions worldwide in the most
recent Fraser Institute survey.
The area around
activity. Numerous companies, such as Nevada Copper Corporation, Quaterra
Resources Inc., and PacMag Metals Limited, are active in the region and have
recently made or developed important discoveries. The Blackjack Property is
immediately adjacent to Quaterra’s MacArthur deposit and to PacMag’s
Mason
kilometres) to the southeast.
Entree and HoneyBadger are planning an aggressive drill program
commencing in the fourth quarter 2009. This program is expected to test
numerous targets generated from a recently completed high-definition airborne
AirMt magnetotelluric survey along with geological and geochemical targets.
This agreement with HoneyBadger is part of Entree’s strategy to explore
for large porphyry copper deposits, using the knowledge and experience gained
from working on our projects in
current agreements with Empirical Discovery LLC have resulted in the
discovery of porphyry copper mineralization near
mining district previously known only for vein-style copper-gold
mineralization.
ABOUT ENTREE GOLD INC.
Entree Gold Inc. is a Canadian mineral exploration company focused on the
worldwide exploration and development of gold and copper prospects. In
America
in Nevada through an option agreement with HoneyBadger Exploration Inc.
The Company is a large landholder in
exploration licenses comprising the 179,590 hectare Lookout Hill property.
Lookout Hill completely surrounds the 8,500-hectare Oyu Tolgoi project of
gold deposit and the Heruga copper-gold-molybdenum deposit.
The Company continues to explore its large landholdings in
including the coal discovery Nomkhon Bohr. Entree is also evaluating new
opportunities throughout the region and elsewhere in
exploring the Huaixi copper project in
terms of an agreement with the No. 11 Geological Brigade.
The Company is also seeking additional opportunities to utilize its
expertise in exploring for deep and/or concealed ore deposits. With a
treasury in excess of
activities.
approximately 15% and 16% of issued and outstanding shares respectively.
This News Release contains forward-looking statements. Forward-looking
statements are statements which relate to future events. In some cases, you
can identify forward-looking statements by terminology such as “may”,
“should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”,
“predicts”, “potential” or “continue” or the negative of these terms or other
comparable terminology. These statements are only predictions and involve
known and unknown risks, uncertainties and other factors that may cause our
or our industry’s actual results, levels of activity, performance or
achievements to be materially different from any future results, levels of
activity, performance or achievements expressed or implied by these forward-
looking statements.
While these forward-looking statements, and any assumptions upon which
they are based, are made in good faith and reflect our current judgment
regarding the direction of our business, actual results will almost always
vary, sometimes materially, from any estimates, predictions, projections,
assumptions or other future performance suggested herein. Except as required
by applicable law, including the securities laws of
Company does not intend to update any of the forward-looking statements to
conform these statements to actual results. Readers are referred to the
sections entitled “Risk Factors” in the Company’s periodic filings with the
British Columbia Securities Commission, which can be viewed at
http://www.SEDAR.com, and with the United States Securities and Exchange
Commission, which can be viewed at http://www.SEC.gov.
For further information:
Gold Inc., Tel: +1-604-687-4777, Toll Free: +1-866-368-7330, E-mail:
mhamm@entreegold.com;
+1-604-687-4777, Toll Free: +1-866-368-7330, E-mail: poates@entreegold.com
SOURCE Entree Gold Inc.