Entrée Gold Gets Licence for Tolgoi Resource

29 October 2009 (Last Updated October 29th, 2009 18:30)

Entrée Gold has received approval from the Mineral Resources Authority of Mongolia to convert Oyu Tolgoi’s Shivee Tolgoi and Javhlant exploration concessions into mining licences. The Javhlant licence and the eastern part of the Shivee Tolgoi licence are subject to a joint venture (JV)

Entrée Gold has received approval from the Mineral Resources Authority of Mongolia to convert Oyu Tolgoi’s Shivee Tolgoi and Javhlant exploration concessions into mining licences.

The Javhlant licence and the eastern part of the Shivee Tolgoi licence are subject to a joint venture (JV) with Ivanhoe Mines, through its subsidiary, Ivanhoe Mines Mongolia.

According to the Entrée-Ivanhoe Mines JV, Entrée can retain 20% or 30% carried interest on the licences, subject to the depth of mineralisation.

The term of the mining licences is 30 years with two renewals of 20 years each.

Entrée president and CEO Greg Crowe said the mining licences offer long-term security needed for the company and its JV partner, Ivanhoe Mines, to advance the identified deposits at Oyu Tolgoi through development to production.

"It also provides sufficient time for testing the potential along strike extensions to Entrée’s Hugo North Extension and Heruga deposits and for the diligent and systematic exploration of other copper, gold and molybdenum prospects," Crowe said.