ENTRÉE RESOURCES ANNOUNCES PARTIAL DRILL RESULTS FOR HUGO NORTH EXTENSION AND PROVIDES UPDATE ON UNDERGROUND DEVELOPMENT WORK
HIGHLIGHTS
- DDH UGD583A: 274 metres ("m") grading 2.79% copper equivalent* ("CuEq").
- DDH UGD586: 300 m grading 3.46% CuEq including, 144 m grading 4.12% CuEq.
- 22 underground holes and 4 surface holes drilled during 2022 targeting Lift 1 and/or Lift 2, with most holes still pending analytical results.
*Copper equivalent is defined in Table 1, where full details on the drill hole assay intervals are also found.
2022 DRILLING PROGRAM
The initial batches of underground diamond drill results have been received from the 2022 drilling program at the HNE deposit, with analytical results available for 6 of the 26 drill holes. It is the Company's understanding that OTLLC's primary objectives for the 2022 drilling was for structural and geotechnical studies, prior to initiating the core sampling and assaying process and that all core has been cut and submitted to the laboratory for analysis. The significant mineralized intervals received to date from the 2022 drilling are summarized in Table 1 and shown on Figure 1.
Table 1: Drill Results from 2022 Drilling at HNE Deposit 1
Drill Hole |
From (m) |
To (m) |
Length 2 (m) |
Au (ppm) |
Cu (%) |
Ag (ppm) |
CuEq 3 (%) |
UGD582A |
139 |
396 |
257 |
0.02 |
0.58 |
1.40 |
0.60 |
UGD583A |
184 |
458 |
274 |
0.73 |
2.36 |
5.33 |
2.79 |
UGD584A |
176 |
375 |
199 |
0.03 |
0.62 |
1.99 |
0.65 |
UGD586 |
122 |
300 |
178 |
0.96 |
2.90 |
6.20 |
3.46 |
including |
144 |
288 |
144 |
1.07 |
3.50 |
7.21 |
4.12 |
UGD5904 |
no significant results |
|
|
|
|
|
|
UGD6144 |
no significant results |
|
|
|
|
|
|
1. |
All of the analytical results shown above are only for the portions of the drill holes on the Entrée/Oyu Tolgoi JV Property. |
2. |
Approximate true widths are variable depending on the orientation of the drill hole and are estimated as the following percentages of the drilled widths: UGD 582A, 0%; UGD583A, 64%; UGD584A, 0%; UGD586, 67%. |
3. |
CuEq is calculated by the formula CuEq = Cu + ((Au * 35.7175) + (Ag * 0.5773)) / 67.9023, taking into account differentials between metallurgical performance and price for copper, gold and silver. Metal prices used are |
4. |
Drill holes UGD590 and 614 were drilled mostly on the Oyu Tolgoi mining licence and at the point when they crossed onto the Entrée/Oyu Tolgoi JV Property they were outside of the mineralized footprint. |
Drill holes UGD582A and UGD584A were both geotechnical holes, drilled towards the northeast, parallel to the eastern boundary of the HNE mineralized footprint and crossed an interbedded sequence of ignimbrite and augite basalt with varying amounts of advanced argillic and phyllic alteration. Mineralization consists of about 3% sulphides, comprised of a mix of pyrite and chalcopyrite.
Drill holes UGD583A and UGD586 were both drilled towards the north-northwest and crossed the majority of the mineralized footprint of HNE within proposed Lift 2. Each hole intersected predominantly phyllic altered quartz monzodiorite, cut by occasional intervals of unmineralized biotite-granodiorite dikes (ranging from <1 m to 9 m in drilled width). Mineralization averages approximately 5% sulphide content, comprised mostly of chalcopyrite, along with lesser amounts of pyrite and occasional intervals with covellite and minor molybdenite.
Drill holes UGD590 and UGD614 were drilled towards the north and northwest, respectively and both crossed the Hugo North mineralized footprint on the Oyu Tolgoi mining licence before crossing onto the Entrée/Oyu Tolgoi JV ground in unmineralized footwall (northwest side) lithologies comprised mainly of various andesitic tuff and hornblende-biotite granodiorite intrusive units.
2022 DRILLING INFORMATION
Underground and surface drilling at HNE was carried out from
The underground holes were all collared from existing infrastructure on the Oyu Tolgoi mining licence and crossed onto the Entrée/OTLLC JV Property. Several of the holes were drilled as "daughter holes" (wedges) from a "parent hole" at varying distances along the hole. Underground holes were primarily drilled for geotechnical purposes and many targeted the base of Lift 1, or in the areas northeast and southwest of the current mineralized footprint, where key infrastructure for the development of the Lift 1 block cave will be excavated starting in 2024. Several of the holes also crossed the mineralized footprint of Lift 1. Additional underground holes were drilled deeper, targeting the current mineralized footprint of Lift 2, and for geotechnical purposes.
The four surface holes were all collared near the north end of HNE and drilled steeply towards the northwest, targeting Lift 2. Only two of the surface holes successfully reached their target depth of 1,750 m and 1,800 m, respectively, while two holes were aborted at shallow depths and were not assayed. Analytical results from the two surface holes are still pending.
Drill hole sample lengths generally averaged 2.0 m. Table 2 summarizes the drill hole details and Figure 1 shows the locations of the 2022 HNE drill holes and assay intervals discussed in this press release.
Table 2: Drill Hole Summary
Drill Hole |
UTM EAST |
UTM NORTH |
Elevation |
Length |
Azimuth |
Dip |
Assay |
Surface Holes |
|
|
|
|
|
|
|
EGD160 |
652658.7 |
4768421 |
1182 |
280.1 |
293 |
-74 |
Pending |
EGD161 |
652757 |
4768433 |
1156 |
1,750.0 |
287 |
-77 |
Pending |
EGD172 |
652719 |
4768391 |
1172 |
70.6 |
295 |
-78 |
Pending |
EGD173 |
652727 |
4768386 |
1173 |
1,800.0 |
284 |
-79 |
Pending |
Total Surface |
|
|
|
3,900.7 |
|
|
|
Underground Holes |
|
|
|
|
|
|
|
UGD456 |
651915.9 |
4767845 |
-85.7 |
409.4 |
34 |
-14 |
Pending |
UGD576 |
652148 |
4768020 |
-78.1 |
179.8 |
352 |
-45 |
Pending |
UGD576A* |
652148 |
4768020 |
-78.1 |
469.1 |
350 |
-44 |
Pending |
UGD578 |
652173.9 |
4768022 |
-76.1 |
392.3 |
360 |
0 |
Pending |
UGD579 |
652145.6 |
4768022 |
-76.4 |
634.5 |
334 |
0 |
Pending |
UGD582A* |
652175.9 |
4768020 |
-76.3 |
400 |
32 |
-27 |
Complete |
UGD583A* |
652170.4 |
4768021 |
-76.3 |
600 |
324 |
-47 |
Complete |
UGD584A* |
652176.5 |
4768019 |
-76.3 |
375 |
35 |
-43 |
Complete |
UGD585 |
652149.4 |
4768021 |
-76.2 |
147.9 |
21 |
1 |
Pending |
UGD586 |
652146.7 |
4768022 |
-76.9 |
683.7 |
347 |
-25 |
Complete |
UGD587 |
652147 |
4768021 |
-76.2 |
131.9 |
15 |
-21 |
Pending |
UGD587A* |
652148.1 |
4768022 |
-76.4 |
185 |
11 |
-23 |
Pending |
UGD587B* |
652148.1 |
4768022 |
-76.4 |
296.9 |
9 |
-23 |
Pending |
UGD590 |
651914.1 |
4767847 |
-84.1 |
750 |
360 |
9 |
Complete |
UGD614 |
652014.4 |
4767845 |
-146.2 |
553 |
327 |
-42 |
Complete |
UGD650 |
652174.5 |
4768021 |
-75.8 |
302.4 |
8 |
5 |
Pending |
UGD650B* |
652174.8 |
4768021 |
-76.3 |
311.5 |
5 |
5 |
Pending |
UGD713 |
652169.6 |
4768020 |
-76.1 |
270 |
316 |
-1 |
Pending |
UGD730 |
651637.3 |
4767962 |
-128.4 |
400 |
29 |
-2 |
Pending |
UGD731 |
651637.3 |
4767962 |
-128.4 |
250.5 |
42 |
-1 |
Pending |
UGD731A* |
651637.3 |
4767962 |
-128.4 |
592.5 |
42 |
-4 |
Pending |
UGD734* |
652234.7 |
4768067 |
-76.3 |
344.8 |
16 |
-55 |
Pending |
Total Underground |
|
|
|
4459.9 |
|
|
|
TOTAL ALL DRILLING |
|
|
|
8360.6 |
|
|
|
* Holes drilled as "daughter" holes (wedges) from a "parent" drill hole. |
The QP is not aware of any drilling, sampling, recovery, or other factors that could materially affect the accuracy or reliability of the data referred to in this disclosure.
2023 DRILLING UPDATE
OTLLC continued to drill at HNE throughout 2023 and has reported the completion of 7 surface holes totaling 6,752.6 m and 25 underground holes (including several daughter holes) totaling 6,576.58 m. The Company has only received a partial supporting database from OTLLC with the majority of the drill holes still pending analytical results. Once the full database is received and reviewed by the Company the 2023 drill results will be released. It is the Company's understanding that similar to the 2022 drilling program, all of the 2023 drill holes are drilled within the current mineralized footprint or within the hanging and/or footwall rocks. The objective of the 2023 drilling is to update the HNE mineral resource estimate, to conduct geological and geotechnical characterization and to identify long-term infrastructure targets within the footprint (related to geology and geotechnical aspects).
UNDERGROUND DEVELOPMENT UPDATE
OTLLC has advised the Company that Lift 1 Panel 1 underground infrastructure development work on the Entrée/Oyu Tolgoi JV Property is scheduled to commence in H2 2024. Development work will start in the southwest corner of the HNE deposit on the Shivee Tolgoi mining licence. The work will establish the initial Panel 1 western ore handling truck chute, including extraction level tipple development, the truck chute chamber on the haulage level, and the supporting ventilation loop with the return air level. OTLLC has advised the Company all 2024 development materials will be waste which will be stockpiled separately and sampled in accordance with OTLLC's standard sampling protocols and procedures.
Shafts 3 and 4, which are required to provide ventilation to support production from Panels 1 and 2 during ramp up to full Lift 1 production, are expected to be commissioned in the second half 2024. Panel 1 production on the Oyu Tolgoi mining licence is anticipated to commence in ~2027.
QAQC AND QUALIFIED PERSON
All drill core from the 2022 HNE drilling program was geologically and geotechnically logged at site by or under the supervision of OTLLC. Core was saw-cut on site before being bagged and shipped to
The scientific and technical information that forms the basis for parts of this press release was reviewed and approved by Robert Cinits (
ABOUT ENTRÉE RESOURCES LTD.
Entrée
This News Release contains forward-looking information within the meaning of applicable Canadian securities laws
with respect to
corporate strategies and plans; requirements for additional capital; uses of funds and projected expenditures; timing and status of
Lift 1 Panel 1 development work on the Entrée/Oyu Tolgoi JV Property;
timing and status of Oyu Tolgoi underground development; the expected timing of first Panel 1 production from the Oyu Tolgoi mining licence; the technical studies for Lift 1 Panel 1, OTFS23, the Lift 2 Pre-Feasibility Study, and the updated resource model for
In certain cases, forward-looking information can be identified by words such as "plans", "expects" or "does not expect", "is expected", "budgeted", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate" or "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", "will be taken", "occur" or "be achieved". While the Company has based forward-looking information on its expectations about future events as at the date that such information was prepared, the information is not a guarantee of Entrée's future performance and is based on numerous assumptions regarding present and future business strategies; the correct interpretation of agreements, laws and regulations; the commencement and conclusion of arbitration proceedings, including the potential benefits, timing and outcome of arbitration proceedings; the potential benefits, timing and outcome of discussions with
With respect to the construction and continued development of the Oyu Tolgoi underground mine, important risks, uncertainties and factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking information include, amongst others, the nature of the ongoing relationship and interaction between OTLLC, Rio Tinto,
Other risks, uncertainties and factors which could cause actual results, performance or achievements of Entrée to differ materially from future results, performance or achievements expressed or implied by forward-looking information include, amongst others, unanticipated costs, expenses or liabilities; discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries; development plans for processing resources; matters relating to proposed exploration or expansion; mining operational and development risks, including geotechnical risks and ground conditions; regulatory restrictions (including environmental regulatory restrictions and liability); risks related to international operations, including legal and political risk in
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