The Company's updated technical report, titled "Technical Report 2013 on the Lookout Hill Property" ("LHTR13"), is available on SEDAR and www.sedar.com. LHTR13 is dated March 28, 2012 and was prepared by AMC Consultants Pty Ltd in Adelaide, Australia.
During 2012, Entree continued to explore its adjacent 35,173 hectare, 100% owned Shivee West property. The 2012 trenching program on Shivee West expanded the new gold zone ("Argo Zone") for an additional 140 metres further north from the mineralized area defined by 2011 reverse circulation drilling and the Argo Zone now measures approximately 400 metres long by 130 metres wide. The property remains prospective for additional discoveries.
Of significance on the Argo Zone:
-- Trench sampling returned 81.4 g/t gold over 3 metres, confirming and expanding 2011 high-grade surface values.-- The combined Zone III and Argo Zones now extend over 600 metres north- south and over widths from 50 to 150 metres.-- Mineralization is hosted in quartz-veined felsic volcanic rocks associated with a 2.5 kilometre long magnetic low.
Other Mongolia Matters
Following the signing of the binding Power Purchase Agreement with China in early November 2012, electrical transmission lines for power to the Oyu Tolgoi mine became operational.
On February 14, 2013, Turquoise Hill announced that the feasibility study for the expansion of operations of Oyu Tolgoi (including Lift 1 of the Entree-OTLLC Joint Venture's Hugo North Extension deposit) is expected to be completed in the first half of 2014, as Turquoise Hill continues to pursue value engineering and optimization.
On February 27, 2013, notice (the "Notice") was delivered to Entree by MRAM regarding Entree's mining licences in Mongolia. The Notice, which is not explicitly concerned with the issuance of the mining licences, further advises that any transfer, sale or lease of the Shivee Tolgoi and Javhlant mining licences is temporarily suspended. The mining licences have not been revoked or cancelled. Entree is currently working to determine the full implications of the Notice and to resolve the temporary suspension of the transfer, sale or lease of the licences.
On March 25, 2013, Turquoise Hill announced that project financing for the Oyu Tolgoi mining complex continues to progress with the boards of the European Bank of Reconstruction and Development and the International Finance Corporation approving their respective participation in late February. Bids have been received from a number of banks that would allow Turquoise Hill to achieve its project financing target of $3 billion to $4 billion and discussions are ongoing with the lenders to finalize the terms of those offers. Turquoise Hill anticipates the closing of final binding documentation and project financing funding to occur in the first half of 2013.
Ann Mason, Nevada
Entree's second major project is the Ann Mason Project in the Yerington district of Nevada. On October 24, 2012, the Company announced the results of a positive Preliminary Economic Assessment ("PEA") for its 100%-owned Ann Mason copper-molybdenum porphyry deposit in Nevada. Ann Mason is expected to yield a base case, pre-tax, 7.5% net present value ("NPV7.5") of $1.11 billion and an internal rate of return ("IRR") of 14.8%, using assumed copper, molybdenum, gold and silver prices of $3.00/lb, $13.50/lb, $1,200/oz and $22/oz, respectively. Using October 15, 2012 spot commodity prices of $3.71/lb copper, $10.43/lb molybdenum, $1,736/oz gold and $33.22/oz silver, the pre-tax NPV7.5 and IRR increase to $2.54 billion and 22.9%, respectively. Preliminary metallurgical test results from Ann Mason are very encouraging and indicate potential for a high quality copper concentrate with no deleterious elements.