Entrée Gold Posts Corporate and Financial Results from Fiscal Year 2014

Entrée Gold Inc. (TSX:ETG) reported corporate and financial results from fiscal year 2014. As of December 31, 2014, Entree has a working capital of $32,603,711, including cash of $33,517,096. Started in August 2014 and completed in January 2015, the Company conducted an infill drilling at the Ann Mason project in Nevada, aimed to upgrade the current NI 43-101 Inferred and Indicated resource to Measured and Indicated categories. At the Oyu Tolgoi project in Mongolia, Turquoise Hill recently announced that it continues to work with Rio Tinto and the Government of Mongolia to resolve OTLLC shareholder matters.

As quoted in the press release:

Highlights for the year ended December 31, 2014 and subsequent developments through March 30, 2015 include:

USA

Ann Mason, Nevada

The Ann Mason project is a large, porphyry copper deposit with very consistent grades, located in one of the best mining jurisdictions in the world. The 2012 Preliminary Economic Assessment (“2012 PEA”) on the Ann Mason deposit envisions a 24 year conventional open pit mine and sulphide flotation mill operating at a throughput rate of 100,000 tonnes per day and is based on mineralization contained within the Phase 5 pit. Over the life of mine, the 2012 PEA estimates average copper recovery of approximately 93%, producing a clean, 30% copper concentrate with average annual production of 214 million pounds of copper. There is potential to increase the mine life of Ann Mason through additional drilling and engineering studies.

Entrée commenced an infill drill program in August 2014 which was completed in January 2015. The program comprised 40 holes and a total of approximately 19,200 metres combined reverse circulation (“RC”) pre-collars and core. The work was designed to upgrade the mineral resources contained in the 2012 Phase 5 pit from Indicated and Inferred to a mix of Measured and Indicated categories.

Mongolia

Oyu Tolgoi Project Update

Entrée has a carried joint venture interest in two of the Oyu Tolgoi copper-gold deposits in Mongolia – the Hugo North Extension and the Heruga deposits. Phase 1 (Southern Oyu Tolgoi open pits), which is owned 100% by Oyu Tolgoi LLC (“OTLLC”), is in commercial production. Development of Phase 2 (Lift 1 of the underground block cave mining operation, which includes a portion of the Hugo North Extension deposit) is currently on hold pending resolution of outstanding issues between OTLLC, the Government of Mongolia, Turquoise Hill Resources Ltd. (“Turquoise Hill”) and Rio Tinto.

On March 24, 2015, Turquoise Hill announced that it continues to work with Rio Tinto and the Government of Mongolia to resolve OTLLC shareholder matters and finalize project finance to restart the underground mine development at Oyu Tolgoi. Commencement of underground development remains subject to: (1) successful resolution of the mine’s remaining shareholder issues, including the tax situation; (2) agreement of a comprehensive funding plan including project finance; (3) approval of the 2014 Oyu Tolgoi Feasibility Study (“OTFS14″) by the OTLLC shareholders and acceptance by the Mongolian Minerals Council; and (4) obtaining all necessary permits for the mine’s operations and development.

On September 22, 2014, Turquoise Hill announced that the OTFS14 had been finalized and presented to the board of directors of OTLLC. Turquoise Hill filed a technical report under NI 43-101 titled “Oyu Tolgoi 2014 Technical Report” (“2014 OTTR”) relating to the Oyu Tolgoi project on October 28, 2014. 2014 OTTR reports on the most likely mining scenario for reserves exploited from Phase 1 and Phase 2 of the Oyu Tolgoi project.

The OTFS14 updates the Reserve Case for Lift 1 of the Entrée-OTLLC joint venture’s Hugo North Extension deposit. On November 3, 2014, the Company reported on changes and impacts specific to the Company’s Reserve Case reported in its March 28, 2013 technical report titled “Technical Report 2013 on the Lookout Hill Property” (“LHTR13″). The Company does not consider the changes and impacts to be material.

The OTFS14 also discusses several Life of Mine (“LOM”) alternative production cases for the entire Oyu Tolgoi project. The alternative production cases, if implemented, allow for continuous improvement in plant throughput and potential plant expansions up to 350 thousand tonnes per day (“ktpd”). Entrée is currently examining the alternative production cases and associated expansion options identified in OTFS14, to evaluate whether Entrée believes there is a more likely development scenario for the Joint Venture Property than the Reserve Case.
Other Corporate Highlights

For the year ended December 31, 2014, the Company incurred a net loss of $8,669,188 ($0.06 per share) compared to a net loss of $11,422,025 ($0.08 per share) for the year ended December 31, 2013. The decrease in net loss is due to lower operating expenditures primarily due to a combination of lower general and administrative expense and higher foreign exchange gains. These lower operating expenditures were partially offset by increased exploration expenses on the Ann Mason Project as a result of an increase in drilling activities. As at December 31, 2014, the Company had working capital of $32,603,711, including cash of $33,517,096.

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