After completing a restructure Entrée Resources has retained ownership of its joint venture interest in the construction stage Oyu Tolgoi underground mining project in Mongolia as its flagship asset, with other royalty assets in Peru and Australia.
The company formerly known as Entrée Gold recently enacted a restructuring plan, which involved re-branding to Entrée Resources and the spinout of its US development and exploration assets into a new TSX-listed vehicle, called Mason Resources.
Entrée’s president and CEO Stephen Scott said, “We are very happy to report that the restructuring was completed on schedule and effective May 12, Entrée and Mason began trading independently.
“Entrée’s immediate focus will be on protecting and enhancing the value of its Oyu Tolgoi joint venture interest. The Oyu Tolgoi underground project is one of the world’s most important new copper-gold mines, and under the stewardship of our partners, Oyu Tolgoi LLC and developer/operator Rio Tinto, construction remains substantially on schedule.
“I am very excited about the fast approaching commencement of first development work on the joint venture licences followed by first joint venture development production in approximately 2021.
“Entrée Resources launched with more than US$9 million in cash which, given our focus on rigorous fiscal management, is sufficient to meet all funding requirements for the foreseeable future.”
Turquoise Hill Resources reported on May 15 that the focus of underground development activities at OT in Q1 2017 continued to be lateral development, sinking of Shafts 2 and 5, support infrastructure and the convey-to-surface system.
Approximately the equivalent of 1km of lateral development was completed during the quarter and since the re-start of development in 2016, 2.6 equivalent kilometres of lateral development have been completed.
Sinking of Shaft 2 is expected to reach its final depth of 1284 metres later in 2017. Shaft 5 sinking has progressed more slowly than expected due to an extended construction re-start period and lower productivity with completion now likely in early 2018. While sinking progress was slower than expected during Q1, Turquoise Hill expects improved sinking rates for the balance of 2017.
Shaft 5 will be dedicated to ventilation thereby increasing the capacity for underground activities. Sinking of Shaft 4, which Entrée expects to commence in 2018 based on the anticipated completion date, will be the first physical development on the Entrée/Oyu Tolgoi joint venture property. Turquoise Hill has previously announced that Shaft 4 should be complete in 2021.
Supporting infrastructure progressed during Q1 with camp construction activities increasing. The new development crusher and dewatering system are on target to enable an additional development crew to be added in Q3 2017.
During Q1, development of the convey-to-surface decline continued to progress following completion of bulk excavation at the end of 2016. The convey-to-surface system is the eventual route of the full 95,000 tonne per day underground ore delivery system to the concentrator. Turquoise Hill continues to expect production from the first draw bell on the Oyu Tolgoi property in mid-2020.