Entree Gold Receives Mongolian Mining Licencesadmin
Entree Gold Inc. announces that its application for conversion of the Shivee Tolgoi and Javhlant exploration concessions to mining licences has been approved by the Mineral Resources Authority of Mongolia and the licences have been received. The eastern portion of the Shivee Tolgoi licence and the entire Javhlant licence are subject to a joint venture with Ivanhoe Mines Ltd., through its subsidiary, Ivanhoe Mines Mongolia Inc. LLC. Mining licences have a 30 year term with two renewals of 20 years each possible.
Greg Crowe, President and CEO of Entree stated: “The granting of the mining licences provides the long term security necessary for Entree and its joint venture partner, Ivanhoe Mines, to advance the known deposits at Oyu Tolgoi through development to production. It also provides sufficient time for testing the potential along strike extensions to Entree’s Hugo North Extension and Heruga deposits and for the diligent and systematic exploration of other copper, gold and molybdenum prospects. The granting of these mining licenses represents a pivotal moment in the advancement of our Mongolian assets.”
Shivee Tolgoi (54,760 hectares) and Javhlant (20,346 hectares) completely surround Ivanhoe Mines’ Oyu Tolgoi mining licence. Conversion of these licences has now consolidated a sizeable land position upon which the Oyu Tolgoi mining complex will be established.
Title to the portion of the Shivee Tolgoi licence outside of the joint venture (“Shivee Tolgoi West”) is 100% owned by Entree LLC, the Company’s Mongolian subsidiary. The Company believes that further exploration is warranted on Shivee Tolgoi West, which covers over 35,000 hectares, to identify additional mineralization which could be processed through the Oyu Tolgoi facilities.
Successful conversion of these exploration licences to mining licences was a condition precedent to the Investment Agreement signed between Ivanhoe Mines, our largest shareholder Rio Tinto and the Mongolian government on October 06, 2009. These mining licences are contained within the Contract Area covered by the Investment Agreement. Under the terms of the Entree-Ivanhoe Mines joint venture, Entree retains either a 20% or 30% carried interest on these licences, dependent on the depth of mineralization.