VANCOUVER, Feb. 28, 2018 /PRNewswire/ - Entrée Resources
Ltd. (TSX:ETG; NYSE American:EGI – the "Company" or
"Entrée") is pleased to announce that it has today filed a
National Instrument 43-101 – Standards of Disclosure for Mineral
Projects ("NI 43-101") technical report
("Report") titled "Entrée/Oyu Tolgoi Joint Venture Project,
Mongolia, NI 43-101 Technical
Report" on its interest in the Entrée/Oyu Tolgoi joint venture
property in Mongolia. The Report
has an effective date of January 15,
2018 and is available on SEDAR at www.sedar.com and on the
Company's website. The Report relates to the press release
announced by the Company on January 15,
2018.
The Report discusses two development scenarios, an updated
reserve case ("2018 Reserve Case") and a Life-of-Mine
Preliminary Economic Assessment ("2018 PEA"). The 2018
Reserve Case is based only on mineral reserves attributable to the
Entrée/Oyu Tolgoi joint venture from the first lift ("Lift
1") of the Hugo North Extension ("HNE") underground
block cave. The 2018 PEA is an alternative development scenario
completed at a conceptual level that assesses the inclusion of
mineral resources from the second lift ("Lift 2") at HNE and
the Heruga deposit into an overall mine plan with mineral resources
from HNE Lift 1.
Mr. Stephen Scott, President and
CEO of Entrée, comments, "I am very excited that Entrée's
stakeholders can now assess and appreciate the life-of-mine
potential of Entrée's joint venture interest. The 2018 PEA
demonstrates that Entrée's interest is multi-generational, with
potential to deliver over US$2.1 billion
dollars in undiscounted pre-tax cash flows just from Hugo
North Extension Lifts 1 and 2 over the first 33 years of
production. Post-tax, this equates to a net present value
("NPV8%") of US$277 million*.
The 2018 PEA also brings resources from Heruga into the mine
plan, but these are not scheduled to be mined until much later in
the life of the Oyu Tolgoi project. Although the Heruga
deposit provides considerable flexibility for future mine planning
and development options, additional technical work is needed to
establish the mineral resources and costs with greater certainty
and to enable investors to better understand the true value of the
Heruga deposit. Right now, the schedule outlined in the Report
shows the 2018 PEA has a duration of at least 77 years, from the
start of HNE Lift 1 in 2021 until the completion of Heruga in 2097,
even without further exploration success."
The 2018 Reserve Case is based only on mineral reserves
attributable to the Entrée/Oyu Tolgoi joint venture from Lift 1 of
the HNE underground block cave. The 2018 Reserve Case NPV8% for HNE
Lift 1 is US$111 million. The 2018
PEA includes Indicated and Inferred resources from HNE Lifts 1 and
2, and Inferred resources from Heruga. The 2018 PEA NPV8% is
$278 million.
*Long term metal prices used in the net present value
economic analysis are: copper US$3.00/lb, gold US$1,300.00/oz and silver US$19.00/oz.
The economic analysis in the 2018 PEA does not have as high a
level of certainty as the 2018 Reserve Case. The 2018 PEA is
preliminary in nature and 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
2018 PEA will be realized. Mineral resources are not mineral
reserves and do not have demonstrated economic viability.
The Report was completed independently by Amec Foster Wheeler
Americas Limited.
QUALIFIED PERSON
Robert Cinits, P.Geo., Entrée's Vice President, Corporate
Development, a Qualified Person as defined by NI 43-101, has
approved the technical information in this release.
ABOUT ENTRÉE RESOURCES LTD.
Entrée Resources Ltd. is a well-funded Canadian mining company
with a unique carried joint venture interest on a significant
portion of one of the world's largest copper-gold projects – the
Oyu Tolgoi project in Mongolia. Entrée has a 20% carried
participating interest in the Entrée/Oyu Tolgoi joint venture, with
a 30% interest in all mineralization identified above 560 metres
elevation on the Entrée/Oyu Tolgoi joint venture property.
Sandstorm Gold Ltd., Rio Tinto and Turquoise Hill Resources Ltd.
are major shareholders of Entrée, holding approximately 14%, 10%
and 8% of the shares of the Company, respectively. More
information about Entrée can be found at
www.EntreeResourcesLtd.com.
This News Release 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 with respect
to corporate strategies and plans; the value and potential value of
assets and the ability of Entrée to maximize returns to
shareholders; potential types of mining operations; construction
and continued development of the Oyu Tolgoi underground mine;
the expected timing of first development production from Lift 1
of the Entrée/Oyu Tolgoi joint venture property; anticipated
future production and mine life; the future prices of
copper, gold, molybdenum and silver; the estimation of mineral
reserves and resources; the realization of mineral reserve and
resource estimates; anticipated future production, capital and
operating costs, cash flows and mine life; anticipated business
activities; 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 based on numerous
assumptions regarding present and future business strategies, local
and global economic conditions, legal proceedings and negotiations
and the environment in which Entrée will operate in the future,
including the price of copper, gold, silver and molybdenum, and the
status of Entrée's relationship and interaction with the Government
of Mongolia, Oyu Tolgoi LLC
("OTLLC"), Rio Tinto and Turquoise Hill Resources. With respect to
the construction and continued development of the Oyu Tolgoi
underground mine, important risks, uncertainties and factors which
could cause actual results to differ materially from future results
expressed or implied by such forward-looking statements and
information include, amongst others, the timing and cost of the
construction and expansion of mining and processing facilities; the
timing and availability of a long term power source for the Oyu
Tolgoi underground mine; the ability of OTLLC to draw down on the
supplemental debt under the Oyu Tolgoi project finance facility and
the availability of additional financing on terms reasonably
acceptable to OTLLC, Turquoise Hill Resources and Rio Tinto to
further develop Oyu Tolgoi; delays, and the costs which would
result from delays, in the development of the underground mine;
projected copper, gold, silver and molybdenum prices and demand;
and production estimates and the anticipated yearly production of
copper, gold, silver and molybdenum at the Oyu Tolgoi underground
mine. The 2018 PEA is based on a conceptual mine plan that includes
Inferred resources. Numerous assumptions were made in the
preparation of the 2018 PEA, including with respect to mineability,
capital and operating costs, production schedules, the timing of
construction and expansion of mining and processing facilities, and
recoveries, that may change materially once production commences at
HNE Lift 1 and additional development and capital decisions are
required. Any changes to the assumptions underlying the 2018 PEA
could cause actual results to be materially different from any
future results, performance or achievements expressed or implied by
forward-looking statements and information relating to the 2018
PEA. Other uncertainties and factors which could cause actual
results to differ materially from future results expressed or
implied by forward-looking statements and information include,
amongst others, unanticipated costs, expenses or liabilities;
discrepancies between actual and estimated production, mineral
reserves and resources and metallurgical recoveries; the size,
grade and continuity of deposits not being interpreted correctly
from exploration results; the results of preliminary test work not
being indicative of the results of future test work; fluctuations
in commodity prices and demand; changing foreign exchange rates;
actions by Rio Tinto, Turquoise Hill Resources and/or OTLLC and by
government authorities including the Government of Mongolia; the availability of funding on
reasonable terms; the impact of changes in interpretation to or
changes in enforcement of laws, regulations and government
practices, including laws, regulations 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, skilled labour,
transportation and appropriate smelting and refining arrangements;
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, performance 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, including
legal and political risk in Mongolia; risks associated with changes in the
attitudes of governments to foreign investment; risks associated
with the conduct of joint ventures; 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 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, 2016, dated March 10, 2017 filed with the Canadian Securities
Administrators and available at www.sedar.com. 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, 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 will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements. The Company is
under no obligation to update or alter any forward-looking
statements except as required under applicable securities
laws.
SOURCE Entrée Resources
