Vancouver – Eagerly anticipated initial drill results from Entre Gold’s (ETG-V) wholly owned Lookout Hill project, in southern Mongolia, have shown zones of gold and copper mineralization.
The first round of shallow drilling on Lookout Hill tested the depth extent of previously observed surface showings, geophysical targets and large alteration zones.
Entre Gold’s extensive Lookout Hill, or Shivee Tolgoi, property completely surrounds Ivanhoe Mines’ (IVN-T) world class Oyu Tolgoi (Turquoise Hill) copper-gold project in the southern Gobi Desert.
A half-dozen drill holes on Zone III area, located about 5 km. northeast of Oyu Tolgoi, tested a section of a two-plus kilometre IP chargeability anomaly, where surface trenching returned high-grades of gold.
Drill hole EG04-002 intersected 4 metres (from 109 metres) grading 1.63 grams gold per tonne, including a couple of one metre long, higher grade sections grading 3.29 grams gold and 2.49 grams.
Mineralization is hosted in gold-bearing quartz veins apparently associated to steeply dipping, north-trending structures.
On the X-Grid zone, situated about 3 km. east of the Oyu Tolgoi property, drilling tested more quartz veins with associated geophysical and soil geochemical anomalies. The mineralized veins show an association with the prevalent north-northeasterly structure common thought the region. X-Grid drill results include:
- Hole EG04-013 A 3.5 metre intercept (from 18 metres) averaged 4.55 grams gold, including higher grade sections of 0.6 metres 8.06 grams and 0.7 metres of 12.2 grams;
- Hole EG04-015 An intercept of 12.4 metres (from 6 metres downhole) returned 0.6 grams gold, with higher grade portions of 4.1 metres of 1.25 grams and 0.9 metres of 5.16 grams.
Drilling at Zone I, about 4 km. north-northwest of Oyu Tolgoi, tested a large area of quartz-alunite alteration that has three kilometres of surface exposure and is coincident with IP anomalies. Results returned intervals of low-grade copper mineralization over narrow widths and areas of extensive pyrite alteration (5-20% pyrite over 30 metres at the base of a hole drilled to 395 metres). Further testing of the zone is anticipated by the company.
Entre’s drill results have provided the company with some data to assist in geological understanding of the project and for planning of the next phase of programs, but failed to impress shareholders and investors. The issue has slid back below the 60 per share level after having seen a high of over $3.00 last Fall.
As of the latest figures, the company reports 46.3 million shares outstanding.
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