Entree Gold Discovers Coal in Mongoliaadmin
Tuesday, August 26th 2008
Entree Gold Inc. announces a new coal discovery on its 100% owned Togoot license, which forms the western portion of its Lookout Hill Property in Mongolia. Exploration in 2008 is focused on a number of geological targets on the Togoot license including the new coal discovery, Nomkhon Bohr.
Entree is evaluating a coal target known as Nomkhon Bohr, located in the northwest corner of the license, approximately 60 kilometres northwest of Ivanhoe Mines Ltd. Oyu Tolgoi copper-gold deposits and 70 kilometres southeast of the Tavan Tolgoi coal deposit. A haul road, currently used to transport coal from Tavan Tolgoi to China, passes within five kilometres of Nomkhon Bohr.
Greg Crowe, President and CEO of Entree, stated, “The discovery of coal on our 100%-owned Togoot license greatly enhances the exploration potential of our Lookout Hill project. The location of the discovery is particularly important as it occurs close to the haulage road currently used to ship coal from the rich Tavan Tolgoi deposit to China. Should this coal discovery proceed to development, it is well situated with respect to both the Chinese market and to the developing Oyu Tolgoi copper-gold project. Entree is proceeding with a full evaluation of Nomkhon Bohr.”
Entree has been evaluating the Nomkhon Bohr area with geological mapping, magnetic and induced polarization (“IP”) geophysical surveys, excavator-assisted trenching, and core drilling. The work to date has traced the target over a strike length of 1,000 metres, and it remains open along strike to the east and to the west and downdip.
Seven trenches totalling 620 metres and five core holes totalling 467 metres have been completed; however, only two of the five holes completely tested the target and the remaining three holes were abandoned due to drilling problems. Hole EG-08-068 intersected three multi-metre-thick coal-bearing horizons of 13.50 metres, 25.65 metres, and 7.57 metres apparent thickness – within these horizons are coal seams of variable apparent thickness. Hole EG-08-071 encountered two coal-bearing horizons with interbedded mudstones and coal over apparent thicknesses of 21.40 metres and 57.40 metres. Hole EG-08-072 intersected the coal-bearing horizon at 42.05 metres but the hole was abandoned at 66.60 metres. The quality of coal within the target is as yet undetermined. Drill core samples have been submitted for analysis to SGS Tianjin China; however, results are not expected for several weeks.
The coal target continuity appears to be predictable from hole to hole, and from trench to trench. Further drilling to test the downdip continuity of the coal-bearing horizons is planned, as well as further trenching along strike.
Entree has contracted with Norwest Corporation, an international natural resource consulting group, to evaluate the geology of the Nomkhon Bohr discovery and intends to have Norwest assist with ongoing exploration.
Entree Gold Inc. is a Canadian mineral exploration company focused on the worldwide exploration and development of gold and copper prospects. Most notably, the Company is a large landholder in Mongolia, where it holds three exploration licenses that comprise the 179,590-hectare Lookout Hill property. Lookout Hill completely surrounds the 8,500-hectare Oyu Tolgoi project of Ivanhoe Mines, and hosts the Hugo North Extension of the Hugo Dummett deposit and the newly discovered Heruga deposit.
In July 2008, Entree formed a joint venture with Ivanhoe Mines’ wholly-owned Mongolian subsidiary on approximately 40,000 hectares of the Lookout Hill property. Pursuant to an “Earn-in Agreement” announced in October 2004, Ivanhoe Mines’ subsidiary earned a 70% interest in mineralization above a depth of 560 metres and an 80% interest in mineralization below a depth of 560 metres by spending US$35 million on the joint venture property. Details of the Earn-In Agreement are available on Entree’s website at www.entreegold.com and on SEDAR at www.sedar.com.