01 05 2012_entree_gold_presentation animated_new
DESCRIPTION
May 2012 EntreeGold PresentationTRANSCRIPT
On the Path to Production
May 2012
Entrée Gold atOyu Tolgoi Headframe
Rio TintoBingham Canyon
Entrée JV Discovery Hole
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Cautionary Statement
This corporate update contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian securities laws.
Forward-looking statements include, but are not limited to, statements with respect to the future prices of copper, gold and molybdenum, the estimation of mineral reserves and resources, the realization of mineral reserve and resource estimates, the timing and amount of estimated future production, costs of production and capital expenditures, the costs and timing of the development of new deposits, the potential for the discovery of additional mineralized zones on properties in which Entrée has an interest, the potential for the expansion of existing deposits in which Entrée has an interest, plans to prepare and the timing for release of a Preliminary Economic Assessment on the Ann Mason Project, the timing of and potential for future resource estimates on properties in which Entrée has an interest, plans for future exploration and/or development programs and budgets, permitting time lines, anticipated business activities, corporate strategies, proposed acquisitions and dispositions of assets and future financial performance. While Entrée Gold Inc. (“Entrée” or the “Company”) has based these forward-looking statements on its expectations about future events as at the date that such statements were prepared, the statements are not a guarantee of the Company’s future performance and are subject to risks, uncertainties, assumptions and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Such factors and assumptions include, amongst others, that the size, grade and continuity of deposits and resource and reserve estimates have been interpreted correctly from exploration results, that the prices of copper, gold and molybdenum will remain relatively stable, the effects of general economic conditions, changing foreign exchange rates and actions by joint venture partners and by government authorities including the Government of Mongolia, uncertainties associated with legal proceedings and negotiations and misjudgements in the course of preparing forward-looking statements. In addition, there are also known and unknown risk factors which may cause the actual results, performances or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Known risk factors are described in the section entitled “Risk Factors” in the Company’s Annual Information Form dated March 29, 2012 and in the Company’s most recent management disclosure and anlysis filed with the Canadian Securities Administrators and available at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events, or otherwise. Accordingly, readers should not place undue reliance on forward-looking statements.
The Company's exploration activities are under the supervision of Robert Cann, P.Geo., Vice President, Exploration of Entrée. Mr. Cann is a “qualified person” as defined in National Instrument 43-101- Standards of Disclosure for Mineral Projects (“NI 43-101”). Mr. Cann has approved this corporate update.
All minerals reserves and mineral resources have been calculated in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and NI 43-101. Cautionary Note to United States Investors: United States investors are advised that while the terms “measured mineral resources”, “indicated mineral resources” “inferred mineral resources” and “probable mineral reserves” are recognized and required by Canadian regulations, the United States Securities and Exchange Commission (SEC) does not recognize them. United States investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be upgraded to a higher category, or converted into mineral reserves. Inferred mineral resources have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally minable. Disclosure of “contained ounces” is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute reserves as in place tonnage and grade without reference to unit measures. Accordingly, information contained in this corporate update containing descriptions of the Company’s mineral properties may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder.The information in this corporate update is for informational purposes only. Readers should not rely on the information for any purpose other than to gain general knowledge of Entrée. This information is not intended to be, and should not be construed as, part of an offering or solicitation of securities.
Note 1: See the technical report titled "Technical Report 2012 on the Lookout Hill Property" dated March 29, 2012 ("LHTR12") prepared by AMC Consultants Pty Ltd, a copy of which is available on SEDAR at www.sedar.com. Note 2: See the technical report titled "Technical Report and Updated Mineral Resource Estimate on the Ann Mason Project Nevada, USA" dated March 26, 2012, prepared by Robert Cinits, P. Geo., the Company’s Director, Technical Services, Scott Jackson, F.AusIMM, a principal of Quantitative Group Pty Ltd and Lyn Jones, P. Eng., a senior associate metallurgist for AGP Mining Consultants Inc., a copy of which is available on SEDAR at www.sedar.com.
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Oyu Tolgoi Development
Phase I Construction 82% Complete
HNE Development Production in 2015
On the Path to ProductionHugo North Extension and Heruga, Mongolia
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On the Path to ProductionAnn Mason, Nevada
Indicated · 8.0 Billion lbs Copper (0.2% Cu cut-
off) 5.3 Billion lbs Copper (0.3% Cu cut-off)
Inferred · 7.3 Billion lbs Copper (0.2% Cu cut-
off) 3.5 Billion lbs Copper (0.3% Cu cut-off)
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Mongolia
Entrée-OTLLC JVHugo North Extension
Heruga
100% EntréeShivee West
Cu-Au-Mo
Grass Roots ExplorationUnited States ● Australia ● Peru
United States
100% Entrée
Ann Mason Deposit
Blue Hill
Cu-Mo
Corporate Strategy Striking the balance between opportunity and risk
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Resources
*CuEq estimated using US$1.35/lb Cu, US$650/oz Au, US$10/lb Mo. Figures are NI 43-101 compliant.
Mongolia
Nevada
Inferred Resource7.3B lbs Cu
0.2% Cut-offor
3.5B lbs Cu0.3% Cut-off
Indicated Resource1.1B lbs CuEq* (with 0.5M oz Au)
0.6% Cut-offHNE
Inferred Resource4.1B lbs CuEq*(with 3M oz Au)
0.6% Cut-offHNE and Heruga
Ann Mason
HNE Heruga
Indicated Resource8.0B lbs Cu
0.2% Cut-offor
5.4B lbs Cu0.3% Cut-off
HNE = Hugo North Extension
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Strategic Partners
Entrée-OTLLC JVUS$35,000,000 JV earn-in
>US$54 million to date
Entrée 20% - Ivanhoe 80% (deep)
Entrée 30% - Ivanhoe 70% (shallow)
Carried to production
Rio Tinto (13%)*
51% of IvanhoeStandstill expired January 2012
Commitment >US$3.7 billion
Ivanhoe Mines (11%)*
66% of Oyu Tolgoi
*Issued & Outstanding
Joint VentureEntrée – OTLLCHugo North Extension
& Heruga
Entrée
Oyu Tolgoi LLC
IvanhoeMongolian
Government
Rio Tinto
20/30%
80/70%
34% 66%
~11%
51%
~13%
Rio Tinto beneficial ownership is now 23.6% due to majority ownership of Ivanhoe Mines
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Shareholder Base Fully Diluted
57%Held by top 15 Shareholders
* Rio Tinto beneficial ownership is now 23.6% due to majority ownership of Ivanhoe Mines
Rio Tinto Plc
Ivanhoe Mines Lim
ited
Caisse de depot et placement du Q
uebec
Directors & Managem
ent
Front Street Capital, Inc.
TD Canadian Equity
US Global Investors
Royal Bank of Canada
Royce & Associates, LLC
RBC Dominion Securities Inc.
Atlas Iron
TD Asset Managem
ent Inc.
CIBC Asset Managem
ent Inc.
Dimensional Advisor Fund
CPP Investment Board
11.96%
9.96%
8.87%8.17%
4.15%3.51%
2.12% 2.04% 2.00%1.23% 1.10% 0.80% 0.63% 0.43% 0.42%
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Board of Directors
President & CEO, Director
Chairman, Director
Deputy Chairman, Director
VP Business Development, Director
Director
Director
Director
Greg Crowe
James Harris
Michael Howard
Lindsay Bottomer
Peter Meredith
Mark Bailey
Alan Edwards
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Financial Information
Treasury (As of March 31, 2012)
Issued and OutstandingOptions - 10,190,000 (Average price ~Cdn$1.98)
Fully Diluted
52 week High / Low
Analyst Coverage
~Cdn$15.3 million
128,400,000
138,600,000
Cdn$2.49 / $0.91
TD Newcrest
Hallgarten & Co. LLC
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Growth Through Exploration
• Mongolia Further exploration on Zone III and Argo gold zones, Shivee WestDrilling on JV property
• USA Preliminary Economic Assessment preparation, Ann Mason deposit
Upcoming Blue Hill resource estimate, NV
& Acquisitions
USA
MongoliaNevada
Blue HillRouletteBlackjack
LordsburgOak Grove
New Mexico
Shivee West
AustraliaBlue RoseMystique
PeruLukkacha
Ann Mason DepositHugo North Extension
Heruga
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Entree Gold - USA
USA
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Properties
• Nevada: No. 1 mining jurisdiction in USA• Underdeveloped camp with significant Cu• Positioned for major company investment
• Nearby deposits include:
• Yerington Mine Produced 1.9 Billion lbs Cu (1918-1982)
• Pumpkin Hollow - Nevada Copper 5.9 Billion lbs Cu @ 0.55% (M&I; 0.2% Cu cut-off)
• Entrée:
Ann Mason Deposit
Blue Hill Roulette · Blackjack
Yerington, Nevada
USAUSA
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8.0 Billion lbs Cu Indicated 1,115 Mt @ 0.33% Cu (0.2% Cu cut-off)
5.4 Billion lbs Cu Indicated 640 Mt @ 0.38% Cu (0.3% Cu cut-off)
7.3 Billion lbs Cu Inferred 1,131 Mt @ 0.29% Cu (0.2% Cu cut-off) 3.5 Billion lbs Cu Inferred 444 Mt @ 0.36% Cu (0.3% Cu cut-off)
Drill Highlights0.33% Cu over 650 m (AM-11-010)
0.31% Cu over 988 m (AM-10-001)
0.45% Cu over 759 m (AM-10-020)
0.35% Cu over 783 m (AM-10-024)
Ann Mason Project, Nevada
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Ann Mason DepositYerington, Nevada
2.3 km
1.3
km
• 100% Entrée
• Premier locationExcellent infrastructure
• No royalties
• Drilled ~30,000 m
• Major Cu-Mo porphyry deposit2.3 x 1.3 km x >1 km depth
• Early stage metallurgyCopper recoveries > 93%
• PEA est. completion; H2 – 2012
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Ann Mason DepositOn the Path to Production
8.0 Billion lbs Cu Indicated
7.3 Billion lbs Cu Inferred
(0.2% Cut-off)
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Porphyry Copper Deposits Western North America
Morenci3200 Mt
Ann Mason* 0.2%1115 Mt
Mt Milligan707 Mt
Red Chris619 Mt
Rosemont543 Mt
Gibraltar460 Mt
Highland Valley440 Mt
Safford243 Mt
Copper Mtn233 Mt
Tyrone180 Mt
Carlota64 Mt
Chart based on indicated resources. Ann Mason inferred resources: 0.2% Cu cut-off – 1,131 million tonnes averaging 0.31% Cu Eq (0.29% Cu, 0.004% Mo)
0.5
0.4
0.3
0.2
0.1
% C
op
per
0.6
Ann Mason* 0.2%1115 Mt
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Partners: Empirical Discovery Explore for buried porphyry Cu-Mo targets
• Proprietary geophysical techniques
• Four properties drilled
Entrée discovery at Lordsburg• Intercepts to 0.44% CuEq* over 60 m
• Further exploration planned
Other targets• Oak Grove
USAUSA
Properties
* Copper equivalent estimated using US$1.35/lb Cu and US$650/oz Au. Intercept contains 0.31% Cu and 0.21 g/t Au.
ArizonaNew Mexico
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Mongolia
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10 k
m a
long
str
ike
7 km
stri
ke
Shivee Tolgoi - Oyu Tolgoi Trends
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Oyu Tolgoi Trend
0.9% CuEq**
2.2% CuEq*
Modified from Lookout Hill Technical Report 2012The mineral reserves are not additive to the mineral resources.Copper equivalent estimated using US$1.35/lb Cu, US$650/oz Au, US$10/lb Mo. A 0.6% CuEq cutoff was used.Phase 2 does not include mine plan for Lift 2 extraction
*Indicated resource grade; inferred resource grade = 1.4% CuEq**Inferred resource grade
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Oyu Tolgoi Trend
HUGO NORTH EXTENSION(Schematic from profile)
Lift 1 Extraction Level
Lift 2 Extraction Level
Entrée-OTLLC JV
NPV Lift 1 (Entrée)
$129 million
Oyu Tolgoi Mining Licence
27 Mt ore (JV reserves)5.6 B lbs CuEq (JV indicated resources)2.8 B lbs CuEq (JV inferred resources)
HERUGA(Schematic from profile)
Moly Zone
Gold Zone
Entrée - OTLLC JV
Possible Extraction Level
Oyu Tolgoi Mining Licence
17.4 B lbs CuEq (JV inferred resources)
Modified from Lookout Hill Technical Report 2012The mineral reserves are not additive to the mineral resources.Copper equivalent estimated using US$1.35/lb Cu, US$650/oz Au, US$10/lb Mo. A 0.6% CuEq cutoff was used.Phase 2 does not include mine plan for Lift 2 extractionEntrée carries a 20% interest in the mineralization of the Hugo North Extension and Heruga deposits
OPEN
OPEN
OPEN
OPEN
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Entrée-OTLLC JV Deposit ResourcesEntrée ownership - 20% Carried Interest
See Lookout Hill Technical Report 2012.* The mineral reserves are not additive to the mineral resources.** Copper equivalent estimated using US$1.35/lb Cu, US$650/oz Au, US$10/lb Mo.*** 0.6% CuEq cutoff.
Hugo North Extension Cu-Au
Probable Mineral Reserves*
27Mt ore1.85% Cu and 0.72 g/t Au1B lbs Cu / 0.53M oz Au
Indicated Resources**
5.6B lbs CuEq117 million tonnes*** - 1.80% Cu, 0.61 g/t Au
4.6B lbs Cu / 2.3M oz Au
Inferred Resources**
2.8B lbs CuEq 95.5 million tonnes***- 1.15% Cu, 0.31 g/t Au
2.4B lbs Cu / 0.95M oz Au
Hugo North Extension Cu-Au
Heruga Cu-Au-Mo
Probable Mineral Reserves*
27Mt ore1.85% Cu and 0.72 g/t Au1B lbs Cu / 0.53M oz Au
Indicated Resources**
5.6B lbs CuEq117 million tonnes*** - 1.80% Cu, 0.61 g/t Au
4.6B lbs Cu / 2.3M oz Au
Inferred Resources**
2.8B lbs CuEq 95.5 million tonnes***- 1.15% Cu, 0.31 g/t Au
2.4B lbs Cu / 0.95M oz Au
17.4B lbs CuEq 910 million tonnes***
0.48% Cu, 0.49 g/t Au, 0.014 % Mo9.6B lbs Cu / 14M oz Au
HUGO NORTH EXTENSION
HERUGA
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Hugo North Extension & HerugaMoving Forward
Current
• Premier Asset
• High Grade – Long life
• OT Phase I Construction 82% Complete
• Entrée Carried to Production
Timeline for Entrée’s Assets
• First Ore from HNE1 2015
• 48 Year Potential Mine Life in LOM Case: HNE1 + HNE2 + Heruga
• HNE & Heruga Deposits Remain Open
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Exploration Potential
10 k
m a
long
str
ike
7 km
stri
ke
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Argo and Zone III Gold TargetsShivee West (100% Entrée)
• 2.5 km Magnetic Low Parallel to OT Trend
• Low Sulphidation Epithermal Signature
• Limited Drilling
• High Grade Surface Samples42.4 g/t Au over 4 m
19.3 g/t Au over 3 m
• 2011 Drill Results1.82 g/t Au over 14 m (hole 112) including 9.32 g/t Au over 2 m
2.21 g/t Au over 3 m (hole 111)
2.08 g/t Au over 8 m (hole 123)including 5.60 g/t over 2 m
Hole 112
Hole 111
Hole 123
Argo Zone
Zone III
X Surface Sampling
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Current Copper Assets
*CuEq estimated using US$1.35/lb Cu, US$650/oz Au, US$10/lb Mo. Figures are NI 43-101 Compliant.
Indicated Inferred0
2
4
6
8
10
12
Bill
ion
s lb
s
7.3B lbs Cu
8.0B lbs Cu
HNE & Heruga0.6% CuEq cut-off
Ann Mason0.2 % Cu cut-off
HNEHNE& Heruga
4.1B lbs CuEq*(with 3M oz Au)
1.1B lbs CuEq*(with 0.5M oz Au)
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100% EntréeAnn Mason, Nevada
Drilling 2012
PEA in late 2012
Shivee West, MongoliaExploration Argo Zone 2012
Joint Venture
Hugo North Extension & Heruga, Mongolia
On-going Development to 2015 HNE 1
First Development Production in 2015 · HNE 1
48 Year Potential Mine Life in LOM Case
Exploration Drilling in 2012
Advancing our Assets
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$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
0
4
8
12
16
20
2004 2005 2006 2007 2008 2009 2010 2011 2012Indicated (Billion lbs) Inferred (Billion lbs)
Ann Mason Updated Mineral
Resources
Copper Resources vs. Share PriceS
har
e P
rice
Share price
*0.2% Cu Cut-off
Billio
n P
ou
nd
s Co
pp
er
IVN Deal
Rio Investment
HNE Discovery
Mongolian Windfall
Tax
IVN-Rio Deal
Rio-IVN Exercise
2005 Warrants
Heruga DiscoveryBMO Financing
IA & Withdrawal of
Windfall Tax
PacMag Acquisition
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Mona Forster – Executive Vice [email protected]
604-687-4777 www.entreegold.com