Ann Mason and the Revival of the Yerington District Nevada, USA. Robert Cann Robert Cinits Tom Watkins December 2014

Transcription

1 Ann Mason and the Revival of the Yerington District Nevada, USA Robert Cann Robert Cinits Tom Watkins December

2 Cautionary Statement This presentation contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements include, but are not limited to, statements with respect to completion of a pre-feasibility and feasibility study on Ann Mason; permitting timelines; the preparation and release of an updated resource estimate; the potential development of Ann Mason; the estimation of mineral reserves and resources; the realization of mineral reserve and resource estimates; anticipated future production, cash flows and mine life; the potential impact of future exploration results on Ann Mason mine design and economics; anticipated capital and operating costs; potential types of mining operations; potential metallurgical recoveries and grades; plans for future exploration and/or development programs and budgets; anticipated business activities; corporate strategies; uses of funds; and future financial performance. In certain cases, forward-looking statements and information can be identified by the use of 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 these forward-looking statements on its expectations about future events as at the date that such statements were prepared, the statements are not a guarantee of Entrée s future performance and are subject to risks, uncertainties, assumptions and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements and information. Such factors and assumptions include, amongst others, that the size, grade and continuity of deposits and resource and reserve estimates have been interpreted correctly from exploration results; that the results of preliminary test work are indicative of what the results of future test work will be; that the prices of copper, gold, molybdenum and silver will remain relatively stable; the effects of general economic conditions, changing foreign exchange rates and actions by government authorities; the availability of funding on reasonable terms; the impact of changes in interpretation to or changes in enforcement of, laws, regulation and government practices, including laws, regulation and government practices with respect to mining, foreign investment, royalties and taxation; the terms and timing of obtaining necessary environmental and other government approvals, consents and permits; the availability and cost of necessary items such as power, water, and appropriate smelting and refining arrangements; uncertainties associated with legal proceedings and negotiations; and misjudgements in the course of preparing forward-looking statements. In addition, there are also known and unknown risk factors which may cause the actual results, performances or achievements of Entrée to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements and information. Such factors include, among others, risks related to international operations; risks associated with changes in the attitudes of the governments to foreign investment; discrepancies between actual and anticipated production, mineral reserves and resources and metallurgical recoveries; global financial conditions; changes in project parameters as plans continue to be refined; inability to upgrade inferred mineral resources to indicated or measured mineral resources; inability to convert mineral resources to mineral reserves; conclusions of economic evaluations; future prices of copper, gold, silver and molybdenum; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; delays in obtaining government approvals, permits or licences or financing or in the completion of development or construction activities; environmental risks; title disputes; limitations on insurance coverage; as well as those factors discussed in the section entitled "Risk" in the Company s most recently filed Management s Discussion and Analysis and in the Company s Annual Information Form for the financial year ended December 31, 2013, dated March 27, 2014 filed with the Canadian Securities Administrators and available at Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements and information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements and information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements and information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forwardlooking statements. Entrée Gold's exploration activities are under the supervision of Robert Cann, P.Geo., Vice President, Exploration of Entrée. Mr. Cann is a qualified person as defined in National Instrument Standards of Disclosure for Mineral Projects ( NI ). Mr. Cann has approved the technical information in this presentation. All minerals reserves and mineral resources have been calculated in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and NI Cautionary Note to United States Investors: United States investors are advised that while the terms measured mineral resources, indicated mineral resources inferred mineral resources and probable mineral reserves are recognized and required by Canadian regulations, the United States Securities and Exchange Commission (SEC) does not recognize them. United States investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be upgraded to a higher category, or converted into mineral reserves. Inferred mineral resources have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally minable. Disclosure of contained ounces is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute reserves as in place tonnage and grade without reference to unit measures. Accordingly, information contained in this presentation containing descriptions of the Company s mineral properties may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder. The information in this presentation is for informational purposes only. Readers should not rely on the information for any purpose other than to gain general knowledge of Entrée Gold. This information is not intended to be, and should not be construed as, part of an offering or solicitation of securities. Unless otherwise noted, all dollar amounts in this presentation are expressed in United States dollars. For additional information regarding the Ann Mason Project, see the technical report titled Amended and Restated Preliminary Economic Assessment on the Ann Mason Project, Nevada, U.S.A. ( AMTR12 ) with an effective date of October 24, 2012, and amended on October 15, 2014, prepared by AGP Mining Consultants Inc., a copy of which is available on SEDAR at 2

3 Yerington has The Nevada Advantage Top global mining jurisdiction Low political risk Historical Mining District Yerington, MacArthur and Minnesota Mines on adjacent properties Advanced Pumpkin Hollow Project (15 km SE of AM) Clear permitting process Local community support Excellent infrastructure Power, road, water and rail near project Year round accessibility Nevada has the workforce to build and operate mines Reno NEVADA Yerington Ann Mason Project Elko Las Vegas 3

4 The Yerington Copper District Underdeveloped District Significant historical production and resources in the district Entrée holds large land position Many untested targets Consolidation Potential Excellent Infrastructure Highway Access Railway nearby Airport Power 4

5 Yerington District Mines Late 1800s Copper production < 1 million lbs Mainly from Bluestone Mine 5

6 Yerington District Mines Late 1800s Bluestone Mine Mill courtesy, Lyon County Museum 6

7 Yerington District Mines Copper production ~83 million lbs Rail line completed Thompson smelter completed Mainly oxide copper from high-grade skarns 7

8 Yerington District Mines Mason Valley Mines 1912 Thompson Smelter 1910 NCBR Wilson Canyon courtesy, Lyon County Museum 8

9 Yerington District Mines Copper production 1.7 billion lbs Anaconda s Yerington Mine

10 Yerington District Mines Yerington Pit

11 Yerington District to present Six copper deposits being explored and developed Additional potential in the Yerington district 11

12 Regional Resources 12

13 Yerington Revival Nevada Copper Pumpkin Hollow Quaterra - Yerington, MacArthur Entrée Ann Mason Others GRG, Almaden Head frame, Pumpkin Hollow nevadacopper.com 13

14 Yerington Revival Nevada Copper Pumpkin Hollow Quaterra - Yerington, MacArthur Entrée Ann Mason Others GRG, Almaden Yerington Pit 14

15 Yerington Revival Nevada Copper Pumpkin Hollow Quaterra - Yerington, MacArthur Entrée Ann Mason Others GRG, Almaden 2014 Pre-feasibility drilling at Ann Mason 15

16 Ann Mason: A District Sized Deposit 8.2 Billion lbs Cu Indicated 5.6 Billion lbs Cu Inferred (0.2% Cu cut-off) 1, % Cu Indicated % Cu Inferred 16

17 Ann Mason Deposit 2012 PEA Highlights Open Pit 836 Mt LOM mill feed LOM Strip Ratio 2.16:1 Milling Rate Initial Mine Life 100,000 tpd (36 Mt/a) 24 years LOM Average Cu Recovery 93.5% Copper concentrate grade 30% Average Annual Payable Copper LOM Copper production By-Products in LOM Production 214 million pounds 5.14 billion pounds Mo, Au, Ag Note: The PEA is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. Mineralized resources that are not mineral reserves do not have demonstrated economic viability. 17

18 Ann Mason Drilling

19 Ann Mason Drilling

20 Ann Mason Drilling

21 Ann Mason Drilling

22 Project Exploration Ann Mason Drilling Historical (1967 to 2008): 121 holes (48,635 m) Entrée (2010 to 2013): 39 holes (36,480 m) Pre-feasibility Infill Drilling - in progress (Approximately 40 holes 18,500 m) Blue Hill Drilling Historical (1968 to 2008): 26 holes (6,990 m) Entrée (2010 to 2013): 45 holes (10,947 m) Regional Exploration Soil surveys Geological mapping Geophysics: Ground: IP, magnetic and NSAMT Airborne: Magnetic, TEM, AirMT 22

23 Ann Mason: A District Sized Deposit City of Yerington Indicated 8.2 billion lbs Cu 1, % Cu 0.2% Cu cut-off Inferred 5.6 Billion lbs Cu % Cu 0.2% Cu cut-off Looking southeast Deposit is approx. 2.3 X 1.3 km 23

24 Tom Watkins President Entrée US Rob Cinits VP Corporate Development Entrée Gold Phone: