Entree defines inferred resource for Ann Mason, Nevada

Entrée Gold (ETG-T, EGI-X) has released a resource estimate for the Ann Mason copper-molybdenum deposit in the historic Yerington porphyry copper district of Nevada and confirmed it contains about 7.1 billion lbs. copper.

The inferred resource stands at 810.4 million tonnes grading 0.40% copper, using a 0.30% copper cut-off. Molybdenum is estimated at 165.9 million tonnes at a grade of 0.01% molybdenum.

The resource estimate — using the same pit shell that was used in an earlier JORC-compliant resource estimate in 2006 — represents a 10.6% increase in tonnes (up from 724.7million tonnes at 0.40% copper) with a negligible increase in grade at a 0.30% copper cut-off.

Entrée says the increase in tonnage is primarily due to the inclusion of more information generated by drilling after the 2006 calculation was made.

The latest resource calculation “validates the earlier work done by PacMag, and suggests there is significant scope to expand the deposit by further drilling,” Greg Crowe, Entrée’s president and chief executive said.

PacMag Metals (PMH-A) owns a 100% interest in Ann Mason but in November last year, Entrée signed a definitive agreement with PacMag to acquire all of its shares.

Once the merger is complete, Entrée plans to start an exploration program including   drilling to expand the resource and to test the southern and western portions of the Ann Mason deposit.

Five km to the southeast of Ann Mason, PacMag has confirmed through drilling its Shamrock prospect, the presence of high-grade, near-surface copper mineralization including 33.6 metres of 1.72% copper in altered limestone.

Entrée’s Nevada property is contiguous with the western boundary of PacMag’s Ann Mason copper project and increases substantially the area of prospective tenure within that district.

About 5 km to the west of Ann Mason, significant copper oxide and deeper sulphide mineralization has been intersected at Blue Hills. The oxide copper target covers an area of 1.5 km by 350 metres, and includes near-surface intercepts of 21.3 metres of 0.46% copper, 36.3 metres of 0.46% copper and 39.6 metres of 0.26 % copper.

The surface copper anomaly in soils appears to extend to the west onto adjoining ground held by HoneyBadger Exploration (TUF-V), which is under option to Entrée. Work is being planned for the contiguous Blackjack and Roulette properties under option agreements with HoneyBadge and Bronco Creek Exploration, a wholly owned subsidiary of Eurasian Minerals (EMX-V). Entrée will explore the Blackjack and Roulette properties for porphyry copper targets./

According to Entre, the grades at Ann Mason “compare favourably with a number of current producers and development projects in western North America where large open-pit porphyry deposits currently in production generally mine copper grades between 0.28 % to 0.56% copper.”

Entrée Gold is cashed up with $40 million in its treasury and its major shareholders include Ivanhoe Mines (IVN-T, IVN-N, INV-Q) holding 14% and Rio Tinto (RTP-N, RIO-L) with 15% of its shares respectively.

In Toronto at presstime, Entrée was trading at $2.89 per share with a 52-week trading range of 91¢-$3.59 per share, with 95.6 million shares outstanding.