Entrée Gold Inc. June 2010 TSX:ETG NYSE AMEX:EGI FRANKFURT:EKA TSX:ETG NYSE AMEX:EGI FRANKFURT:EKA

Transcription

1 Entrée Gold Inc. June

2 Board of Directors & Senior Management Greg Crowe James Harris Michael Howard Lindsay Bottomer Peter Meredith Mark Bailey Hamish Malkin Robert Cann Mona Forster President & CEO, Director Chairman Deputy Chairman VP Business Development, Director Director Director CFO VP Exploration VP Corporate Affairs 2

3 Financial Information Treasury CAD$32 million *June 30, 2010 after close of deal Issued and Outstanding 113,400,000 *June 30, 2010 after close of deal Investment by partners +CAD$100 million Includes US$35,000,000 earn-in by Ivanhoe Mines 52 week High/Low CAD$3.59 / $1.02 3

4 Strategic Partners Rio Tinto 13.2% Leading Mining Company Ivanhoe Mines Ltd. Joint Venture Partner Oyu Tolgoi LLC Investments in Entrée total over $38,000,000 Investment in Ivanhoe Up to 46.65% Total commitment >$2.5 billion 12.2% Oyu Tolgoi Project, Mongolia Investments in Entrée total over $22,000,000 Spent US$35,000,000 as part of joint venture earn-in Entrée-Ivanhoe Joint Venture 20/80% or 30/70% Entrée carried to production 4

5 Entrée Gold PacMag Combined Group Assets 5

6 Mongolia Investment Agreement Finalized March 31, 2010 Partnership: OT LLC Government of Mongolia Ivanhoe Mines Rio Tinto Key Benefits: Entrée mining licences granted Long-term stability Development proceeding 6

7 7

8 Lookout Hill IVN/BHP Joint Venture 8

9 Properties 20% Hugo North Extension One of the world s richest porphyry Cu-Au deposits 5.6B lbs Copper Eq Indicated Resources* (117 million tonnes ** - 1.8% Cu, 0.61 g/t Au 4.6 billion lbs Cu / 2.3 million oz Au) 2.8B lbs Copper Eq Inferred Resources* (95,500,000 tonnes** % Cu, 0.31 g/t Au 2.4 billion lbs Cu / 0.95 million oz Au) Including 27Mt Mineral Reserves (1.85% Cu and 0.72 g/t Au 1 billion lbs Cu / 0.53 million oz Au) * Copper equivalent estimated using metal prices of $1.35/lb Cu and $650/oz Au - Figures are NI compliant. ** 0.6% CuEq cutoff 9

10 Properties 20% Heruga One of the world s largest porphyry Cu-Au-Mo deposits Updated Inferred Mineral Resource March Blbs Copper Eq Inferred* (910 million tonnes ** % Cu, 0.49 g/t Au, % Mo) (9.6 billion lbs Cu / 14 million oz Au) * Copper equivalent estimated using $1.35/lb Cu, $650/oz Au, $10/lb Mo Figures are NI compliant. ** 0.6% CuEq cutoff 10

11 One of the world s largest porphyry systems S N 11

12 Lookout Hill 12

13 Mongolia Integrated Development Plan Announced May 11, 2010 / June 15, 2010 First Mineral Reserve Hugo North Extension (HNE) 27 million 1.85% Cu and 0.72 g/t Au Highlights: 2 main mining scenarios Reserve Case Life of Mine Sensitivity Case 2 alternative mining scenarios HNE reserves highest NSR of all deposits (US$55.57/tonne) part of Lift 1 Production commencing Year 4 Main production in Year 11 Upgrading resources planned 13

14 Mongolia Integrated Development Plan Reserve Case (US$) Life of Mine Sensitivity Case (includes Inferred Resource) (US$) Alternative Scenario Small Heruga (US$) Alternative Scenario Large Heruga (US$) NPV(8%) after tax (long term prices)* *Based on US$2.00/lb Cu, US$850/oz Au, US$13.50/oz Ag, US$13.50/lb Mo NPV(8%) after tax (current prices)* *Based on US$3.00/lb Cu, US$1200/oz Au, US$13.50/oz Ag, US$13.50/lb Mo 79million 176million 71million 111million 129million 327million 148million 289million NPV (Dynamic DCF) 187million NPV (Real Option) 264million 14

15 Properties China Huaixi Zhejiang Province Agreement with Zhejiang No. 11 Geological Brigade Entrée to spend US$3,000,000 over 4 years to earn 78% Widespread surface alteration zone never tested to depth Past producing Cu and pyrite mines 15

16 Properties Canada Crystal Property British Columbia Option to acquire 100% by spending CAD $500,000 Cu-Mo porphyry prospect Strong geochemical anomaly Airborne geophysics and drilling in

17 Properties USA Yerington Nevada Underdeveloped copper mining district Yerington Mine Mined early 1900s 1980s Produced 1.8 billion lbs Cu Pumpkin Hollow Nevada Copper 2.4 billion lbs Cu (Measured and Indicated) Pre-Feasibility study - December 2009 Ann Mason (100% PacMag) 7.1 billion lbs Cu inferred NI Mineralization remains open Area prospects: Blue Hills, Minnesota, Shamrock 17

18 Ann Mason Blue Hills 18 18

19 Properties USA * Copper equivalent estimated using $1.35/lb Cu and $650/oz Au Partners: Empirical Discovery LLC Agreement to explore prospective region of New Mexico and Arizona for buried porphyry Cu-Mo targets Proprietary geophysical techniques successfully tested in Mongolia Three properties drilled to date, one new discovery at Lordsburg Lordsburg Intercepts to 0.44% CuEq* (over 60 m) Further exploration planned Active targets: Bisbee and Oak Grove 19

20 Copper Deposits Western North America Ann Mason, Nevada Safford, Arizona Morenci, Arizona Copper Mountain, B.C. Valley Copper, B.C. Carlota, Arizona Mount Milligan, BC Gibraltar, BC % Cu % Cu % Cu % Cu % Cu % Cu 707 mt@ 0.28% Cu Eq 472 Cu PacMag Freeport Freeport Princeton Teck Quadra Terrane Taseko 20

21 Copper Resources Billions (lbs.) Nevada Ann Mason Deposit 7.1B Cu B CuEq* 4.1B CuEq* Indicated Mongolia Including 27 Mt Mineral Reserves at Hugo North Extension 1 B lb Cu / 0.53 M oz Au *CuEq estimated using $1.35/lb/Cu, $650/oz Au, $10/lb Mo Figures are Compliant Inferred 21

22 Shares & Cash Issued & Outstanding Options (avg. price = ~C$1.86) Fully Diluted Cash on hand (approx.) Market Cap (approx.) ~113,400,000 ~8,450,000 ~121,850,000 CAD$32 million CAD$220 million 22

23 Shareholder Base Issued & Outstanding 13.23% 13.15% 12.17% 8.27% 63.72% By top 11 shareholders 4.31% 4.12% 2.29% 2.27% 1.75% 0.84% 0.66% 0.66% PacMag Shares Rio Tinto Plc Ivanhoe Mines Caisse de Limited depot et placement du Quebec Front Street Capital, Inc. TD Asset Management Inc. Directors, management Royce & Associates, LLC RBC Asset Management, Inc. CPP Investment Board Evergreen U.S. Global Investment Investors, Inc. Management Company, LLC 23

24 Shareholder Base Fully Diluted 12.31% 12.24% 11.33% 9.04% 66.23% By top 11 shareholders 7.70% 4.01% 3.83% 2.11% 1.63% 0.78% 0.62% 0.62% PacMag Shares Rio Tinto Plc Ivanhoe Mines Limited Directors, management Caisse de depot et placement du Quebec Front Street Capital, Inc. TD Asset Management Inc. Royce & Associates, LLC RBC Asset Management, Inc. CPP Investment Board Evergreen U.S. Global Investment Investors, Inc. Management Company, LLC 24

25 Stock Price and Market Cap Share Price $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 IVN Deal $1.00 Hugo North Extension Share price Market capitalization Rio-IVN PP Windfall Tax/ Falling Metal Prices BMO Financing Heruga Deposit Discovery Rio-IVN Warrants Mongolian Election June 2008 IA/Updated Heruga Resource PacMag Deal Investment Agreement Signed Oct 6, 2009 Windfall Tax Abolished Effective Jan 2011 IDP PacMag Acquisition $350 $300 $250 $200 $150 $100 Market capitalization ($ Millions) $0.50 Rio invests in IVN $50 Volume (Thousands) $0.00 2,500 2,000 1,500 1, $

26 Going Forward with Continued Growth Share Price $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 Share price Market capitalization Advance to Production Continued Exploration including Acquisitions development of PacMag assets $350 $300 $250 $200 $150 Market capitalization ($ Millions) $1.00 $100 $0.50 $50 Volume (Thousands) $0.00 2,500 2,000 1,500 1, $

27 Future Activities Mongolia USA Other Resource expansion Heruga Southwest HNE Shivee West Searching for OT#2 Drill program Ann Mason Deposit Expand resource Trace higher grade intercepts Deep probing geophysics Blue Hills Shallow copper oxide Drill programs Bisbee Yerington Enhance remaining PacMag assets Australia North Dakota China - Huaixi Drill Program Canada - Crystal Mapping Geochemistry 27

28 Managing risk in a volatile market Global demand for commodities Diminishing supply People Strong board Experienced technical team CAD$32 million Substantial treasury Exploration Acquisitions Production GROWTH Market volatility Partners Rio Tinto Ivanhoe Mines Inflationary pressure Assets Resources Future production pipeline 28

29 29