Entree Gold (TSX:ETG) reported that the Government of Mongolia has signed the Oyu Tolgoi Underground Mine Development and Financing Plan. The Government of Mongolia is Entree Gold’s joint venture partner, together with Turquoise Hill Resources Ltd. (TSX:TRQ,NYSE:TRQ) and Rio Tinto (NYSE:RTP).
As quoted in the press release:
The Mine Plan addresses outstanding OTLLC shareholder matters and provides a pathway forward to the eventual restart of Phase 2 underground development, including Lift 1 of the Entrée-OTLLC joint venture’s Hugo North Extension deposit. Next steps for Oyu Tolgoi stakeholders will include approval of the underground feasibility study and project financing as well as obtaining all required permits. The Mine Plan also confirms the project cost for Oyu Tolgoi’s initial construction and development and reinforces the principles set out in the Oyu Tolgoi Investment Agreement and the Amended and Restated Shareholders Agreement, which governs the relationship among OTLLC shareholders.
… Entrée has a 20% carried interest in mineralization extracted from the Hugo North Extension and Heruga deposits, which are located along the Oyu Tolgoi trend of copper-gold-molybdenum mineralization. Oyu Tolgoi is the world’s largest and richest, undeveloped porphyry copper-gold±molybdenum project. Some of the highest grade copper-gold mineralization lies within the Hugo North Extension deposit and the highest molybdenum grades occur within the Heruga deposit.
Entree Gold CEO, Greg Crowe, said:
Achievement of this major milestone signals that the parties involved are firmly committed to moving the underground development forward. Oyu Tolgoi’s immense size and exceptionally high grades are seldom seen in our industry and this project is poised to benefit the country of Mongolia for decades to come. Successful development of the underground operations is critical to realizing the full potential of Oyu Tolgoi.