A new high-grade gold zone has been discovered at Entrée Gold’s Shivee West, 250 metres beyond the previously known area of mineralization. Results from the Argo Zone include two separate high-grade chip samples averaging 42.4 grams/tonne gold over 4 metres and 19.3 grams/tonne gold over 3 metres.
The company’s president Greg Crowe says, “This program yielded some very high grades in a new area of mineralization. The Argo Zone lies within a well-defined northerly-trending magnetic-low which extends for at least 2.5km along strike. Potential for additional gold targets is excellent and we are planning for further exploration.”
There were 23 reverse circulation drill holes completed in 2011 along with 1120 metres of trenching and sampling across a 200 x 600 metre area. The company says this area appears to host two distinct zones of mineralization (Zone 3 and Argo) and 6 new holes have returned gold grades of 1.82 grams/tonne over 14 metres and 2.21 grams/tonne over 3 metres.
Planning is under way for additional drilling and surface work to commence in the next quarter to better define gold mineralization in both Zone 3 and the Argo Zone.
In other news, the company has closed its sale of 1.32 million shares to a syndicate of underwriters and Rio Tinto Exploration Canada in an over-allotment option. A public offering of 10 million shares in November 2011 has brought in $16 million, which will be used to fund ongoing exploration at the Shivee West project and the company’s Ann Mason prospect in Nevada, North America.
Late last year, Entree also sold its 14,031 hectare Togoot coal mining licence to a private Mongolian company for Can$1.6 million, which will go towards focusing its Mongolian resources on exploration at Shivee West.