Entrée Gold and the Oyu Tolgoi LLC joint venture has budgeted US$7 million for exploration and development work on the joint venture ground within the Lookout Hill Property, Mongolia.
The work program for 2011 includes a combination of exploration and geotechnical drilling on the Entree-Oyu Tolgoi LLC JV ground.
The exploration team is focusing on high priority targets that could further extend the known mineralized system with a budget of $5.5 million. The $2.1 million geotechnical drilling program is related to future development of underground operations on the Hugo North Extension ore body.
Proposed exploration work includes about 16,000 metres of drilling and is planned to focus on testing extensions to the Hugo North Extension and the Heruga deposits.
The Hugo North Extension deposit is open for 7km to the north along the OT Trend (to Ulaan Khud), and the Heruga deposit is open at depth, to the west, and to the south. Additional drilling will test other geophysical targets to the south of Heruga on the Javhlant licence.
Geotechnical drilling on the JV ground is planned from surface collars, to assist Oyu Tolgoi LLC in finalizing underground development plans on Hugo North. The work program is designed to investigate a potential location for a fourth shaft, including an area just north of the JV property boundary and adjacent to the Hugo North Extension.
Entrée's president and CEO Greg Crowe says, “Advancement of the Oyu Tolgoi mining complex is proceeding at a fast pace, and the Entree-Oyu Tolgoi LLC JV ground is an integral part of future planning. This is evidenced by the focus on Shaft 4, currently planned to be sunk on the joint venture ground to access the rich Hugo North Extension as well as exploration programs designed to test the extension of the Heruga deposit 10km to the south.”
Greg Crowe has also commented on the recent discovery of a new zone of shallow copper-molybdenum-gold mineralization just north of the JV ground. “This discovery, while not on the joint venture property, is 3km north of the joint venture’s Ulaan Khud zone. The discovery of Ulaan Khud North is one more example of the magnitude and scale of the trend and the excellent potential for the discovery of additional mineralized zones.”