corporate presentation · tsx:etg | nyse amex:egi | frankfurt:eka 11 properties 2.8blbs copper eq...
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1TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA
Corporate PresentationApril 2010
Corporate PresentationApril 2010
TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKATSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA
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Forward Looking Statements
In this presentation we will make statements about historical fact and future events. Statements about future events are "forward-looking" and may prove inaccurate, as the future could differ materially from our current expectations. Forward looking statements in this presentation reflect our current judgment based on information currently available to us.
These statements are subject to many risks and uncertainties, including those described in our public filings with securities regulatory authorities in the United States and Canada, which weurge you to read. Except as required by law, we do not intend to update any of these forward looking statements.
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Poised for Growth
Strong FoundationStrong FoundationManagementManagement
TreasuryTreasury
PartnersPartners
Existing resources at Existing resources at Lookout HillLookout Hill
Heruga DepositHeruga Deposit
Hugo North ExtensionHugo North Extension
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Board of Directors & Senior Management
Greg Crowe President & CEO, Director
James Harris Chairman
Michael Howard Deputy Chairman
Lindsay Bottomer VP Business Development, Director
Peter Meredith Director
Mark Bailey Director
Greg Crowe President & CEO, Director
James Harris Chairman
Michael Howard Deputy Chairman
Lindsay Bottomer VP Business Development, Director
Peter Meredith Director
Mark Bailey Director
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Financial Information
Treasury | C$40 million
Investment by partners | +C$100 millionIncludes US$35,000,000 earn-in by Ivanhoe Mines
Issued and Outstanding | 97,768,114
Fully diluted | 107,997,146
52 week High/Low | $3.59 / $1.02
6TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA
Strategic Partners
Rio TintoRio Tinto 15.3%15.3%Premier Mining CompanyPremier Mining CompanyInvestments in EntrInvestments in Entréée total over $38,000,000e total over $38,000,000
Investment in IvanhoeInvestment in IvanhoeUp to 46.65%Up to 46.65%
Ivanhoe Mines Ltd.Ivanhoe Mines Ltd.
14.2%14.2%Oyu Tolgoi Project, MongoliaOyu Tolgoi Project, MongoliaInvestments in EntrInvestments in Entréée total over $22,000,000e total over $22,000,000Spent US$35,000,000 as part of joint venture earnSpent US$35,000,000 as part of joint venture earn‐‐inin
EntrEntrééee--Ivanhoe Joint VentureIvanhoe Joint Venture20/80% or 30/70%20/80% or 30/70%EntrEntréée carried to productione carried to production
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Assets
Arizona/New MexicoArizona/New MexicoLordsburgBisbee
NevadaNevadaYerington
ChinaChinaHuaixi
MongoliaMongoliaHugo North ExtensionHerugaNomkhon Bohr
British ColumbiaBritish ColumbiaCrystal
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Mongolia
Investment AgreementInvestment AgreementFinalized March 31, 2010 upon completion of Finalized March 31, 2010 upon completion of conditions precedentconditions precedentPartnership: Partnership:
OT LLCOT LLCGovernment of MongoliaGovernment of MongoliaIvanhoe MinesIvanhoe MinesRio TintoRio Tinto
3 Key Benefits:3 Key Benefits:EntrEntréée mining licences grantede mining licences grantedLongLong‐‐term stabilityterm stabilityDevelopment proceedingDevelopment proceeding
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Lookout Hill
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Properties
2.8B2.8B lbs Copper Eq Inferred*lbs Copper Eq Inferred*(95,500,000 million tonnes** (95,500,000 million tonnes** ‐‐ 1.15% Cu, 1.15% Cu, 0.31 g/t Au0.31 g/t Au2.4 billion lbs Cu / 0.95 million oz Au)2.4 billion lbs Cu / 0.95 million oz Au)
5.6B5.6Blbs Copper Eq Indicated*lbs Copper Eq Indicated*(117 million tonnes ** (117 million tonnes ** ‐‐ 1.8% Cu, 1.8% Cu, 0.61 g/t Au0.61 g/t Au4.6 billion lbs Cu / 2.3 million oz Au)4.6 billion lbs Cu / 2.3 million oz Au)
Hugo North ExtensionHugo North ExtensionOne of the worldOne of the world’’s richest porphyry Cus richest porphyry Cu‐‐Au depositsAu deposits
20%
* Copper equivalent estimated using metal prices of $1.35/lb Cu and $650/oz Au ‐Figures are NI 43‐101 compliant.
** 0.6% CuEq cutoff
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Properties
17.4Blbs Copper Eq Inferred* 17.4Blbs Copper Eq Inferred* lbs Copper Eq Inferred* (910 million tonnes ** (910 million tonnes ** ‐‐ 0.48% Cu, 0.49 g/t Au, 0.014 % Mo)0.48% Cu, 0.49 g/t Au, 0.014 % Mo)(9.6 billion lbs Cu / 14 million oz Au)(9.6 billion lbs Cu / 14 million oz Au)
HerugaHerugaOne of the worldOne of the world’’s largest porphyry Cus largest porphyry Cu‐‐AuAu‐‐Mo depositsMo depositsUpdated Inferred Mineral Resource Updated Inferred Mineral Resource –– March 2010March 2010
20%
* Copper equivalent estimated using $1.35/lb Cu, $650/oz Au, $10/lb Mo –Figures are NI 43‐101 compliant.
** 0.6% CuEq cutoff
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Heruga – Developing Ore Body
HerugaHeruga(30% of OT)(30% of OT)
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One of the world’s largest porphyry systems
Courtesy Ivanhoe Mines
NS
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Lookout Hill
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Naidan Tuvshinbayar –Olympic Gold Medalist Beijing 2008 (Judo)
Donation to 2010 Mongolian Olympic Team
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Yerington Yerington NevadaNevada••Underdeveloped copper mining districtUnderdeveloped copper mining district••Yerington Mine Yerington Mine
••Mined early 1900Mined early 1900’’s s –– 19801980’’ss••Produced 1.8 billion lbs CuProduced 1.8 billion lbs Cu
••Pumpkin Hollow Pumpkin Hollow •• Discovered by U.S. Steel Discovered by U.S. Steel ‐‐ 19601960••Nevada Copper Nevada Copper –– 2.4 billion lbs Cu 2.4 billion lbs Cu
(Measured and Indicated)(Measured and Indicated)
••Updated 43Updated 43‐‐101 PEA 101 PEA –– December 2009December 2009••PrePre‐‐Feasibility study Feasibility study ‐‐ December 2009December 2009
••Ann MasonAnn Mason••Discovered by AnacondaDiscovered by Anaconda••7.1 billion lbs Cu inferred 7.1 billion lbs Cu inferred –– NI 43NI 43‐‐101101
••Area prospects: Blue Hills, Minnesota, Shamrock Area prospects: Blue Hills, Minnesota, Shamrock and MacArthurand MacArthur
Properties
USAUSA
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Partners: Partners: Empirical Discovery LLCEmpirical Discovery LLC••Agreement to explore region of New Agreement to explore region of New Mexico and ArizonaMexico and Arizona
•• covers 3.6 million acrescovers 3.6 million acres••GOAL: rapidly identify new porphyry GOAL: rapidly identify new porphyry coppercopper‐‐moly targetsmoly targets
•• using proprietary geophysical using proprietary geophysical techniquestechniques
••3 active targets3 active targets•• exploration in progress exploration in progress ‐‐geophysics, prospecting, drillinggeophysics, prospecting, drilling
Properties
USAUSA
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LordsburgLordsburgNew MexicoNew Mexico••New copperNew copper‐‐gold porphyry discovery near gold porphyry discovery near historic mining districthistoric mining district••Mineralization intersectedMineralization intersected
•• 310 m averaging 0.14% Cu and 310 m averaging 0.14% Cu and 0.08 g/t Au (Discovery Hole)0.08 g/t Au (Discovery Hole)
•• 118 m averaging 0.2% Cu and 118 m averaging 0.2% Cu and 0.2 g/t Au (300 m stepout)0.2 g/t Au (300 m stepout)
•• 60 m averaging 0.31% Cu and 60 m averaging 0.31% Cu and 0.21 g/t Au with 0.44% CuEq*0.21 g/t Au with 0.44% CuEq*
••Excellent location and infrastructureExcellent location and infrastructure
Properties
USAUSA
* Copper equivalent estimated using $1.35/lb Cu and $650/oz Au
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Copper Deposits – Western North America
Ann Mason, Nevada810 mt @ 0.4% Cu
Safford, Arizona 450 mt @ 0.38% Cu
Morenci, Arizona2.8 Bt @ 0.28% Cu
Copper Mountain, B.C. 360 mt @ 0.37% Cu
Valley Copper, B.C. 45 mt/a @ 0.32% Cu
Carlota, Arizona77 mt @ 0.45% Cu
PacMag
Freeport
Freeport
Princeton
Teck
Quadra
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Crystal PropertyCrystal PropertyBritish ColumbiaBritish Columbia••Agreement with Taiga Consultants Ltd.Agreement with Taiga Consultants Ltd.
•• 100% interest subject to 1% NSR 100% interest subject to 1% NSR royaltyroyalty
•• CDN $500,000 exploration costsCDN $500,000 exploration costs••Early stage molybdenumEarly stage molybdenum‐‐copper prospectcopper prospect
•• Covers strong geochemical anomalyCovers strong geochemical anomaly••Drilling in 2010Drilling in 2010
Properties
CanadaCanada
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HuaixiHuaixiZhejiang ProvinceZhejiang Province
•• Agreement with Zhejiang No. 11 Agreement with Zhejiang No. 11 Geological Brigade to explore for Geological Brigade to explore for porphyry copper at Huaixiporphyry copper at Huaixi•• EntrEntréée to spend US$3,000,000 over e to spend US$3,000,000 over 4 years to earn 78%4 years to earn 78%
•• Alteration zone never tested to depthAlteration zone never tested to depth•• Past producing Cu and FeS2 minesPast producing Cu and FeS2 mines
Properties
ChinaChina
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Shares & Cash
Issued & Outstanding
Options (avg. price = C$1.86)
Fully Diluted
Cash on hand (approx.)
Market Cap (approx.)
97,768,114
10,229,032
107,997,146
C$40 million
C$300 million
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Shareholder Base Issued & Outstanding
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Shareholder Base Fully Dilluted
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$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$0
$50
$100
$150
$200
$250
$300
$350
0
500
1,0001,500
2,000
2,500
Stock Price and Market Cap
2004 2005 2006 2007 2008 2009 2010
Volu
me
(Tho
usan
ds)
Rio invests in IVN
Windfall Tax/Falling Metal Prices
BMO Financing
Mongolian Election June 2008
Heruga Deposit Discovery
Rio-IVN Warrants
IVN Deal
Hugo North Extension
Rio-IVN PPHugo North
Resource
Shar
e Pr
ice
Share priceMarket capitalization
Windfall Tax Abolished
Effective Jan 2011
Investment Agreement Signed Oct 6, 2009
PacMag Deal Market capitalization ($ M
illions)
IA/Updated Heruga Resource
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Going Forward with Continued Growth
Share priceMarket capitalization
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$0
$50
$100
$150
$200
$250
$300
$350
Updated Mine Plan
Advance to Production
Continued Exploration
Updated Mine Plan
Advance to Production
Continued Exploration
Acquisitions
0
500
1,0001,500
2,000
2,500
Volu
me
(Tho
usan
ds)
2010
Market capitalization ($ M
illions)Sh
are
Pric
e
2004 2005 2006 2007 2008 2009
28TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA
““Domestic copper consumption to grow Domestic copper consumption to grow 14% this year, says CRU14% this year, says CRU””
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By Glenys Sin (China Daily)By Glenys Sin (China Daily)Updated 2010Updated 2010--0404--1414
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Managing risk in a volatile marketManaging risk in a volatile market
Global demand for
commodities
Inflationarypressure
Diminishingsupply
Market volatility
Strong boardExperienced
technical team
Strong boardExperienced
technical teamPeoplePeople
Substantial treasury
Substantial treasury
43-101 ResourcesFuture production
Pipeline
43-101 ResourcesFuture production
Pipeline
$$$$$$
Rio TintoIvanhoe Mines
Rio TintoIvanhoe Mines
AssetsAssets
PartnersPartners
C$40 millionC$40 million
ExplorationAcquisitionsProduction
GROWTHGROWTH
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www.entreegold.com