Entrée Gold Inc. (TSX:ETG,NYSEMKT:EGI) welcomes the May 5, 2016 announcements that formal notice to proceed approval has been given for the next stage in the development of the world-class Oyu Tolgoi mine in Mongoliaby the boards of Turquoise Hill Resources Ltd., Rio Tinto and Entrée’s joint venture partner, Oyu Tolgoi.
This was the final requirement for the re-start of underground development at the Hugo North Lift 1 block cave, including Lift 1 of the Entrée/Oyu Tolgoi joint venture’s Hugo North Extension deposit. The announcements also noted that an updated Oyu Tolgoi Feasibility Study has been completed including a re-estimate of capital, and all necessary permits have been granted. Underground construction is expected to re-commence in mid-2016.
As quoted in the press release:

Turquoise Hill further reported that pre-start activities for the underground started in August 2015 and have included ramp-up of the owners and engineering procurement and construction management teams, re-estimation activities, detailed engineering and early procurement for equipment and materials required for necessary critical works that are key enablers for recommencement of underground lateral development mining activity. Appointments to key roles in the underground team are well underway, with key staff starting in Q1 2016.
Entrée has a carried interest in two of the Oyu Tolgoi project deposits – the Hugo North Extension copper-gold deposit and the Heruga copper-gold-molybdenum deposit (the “Entrée/Oyu Tolgoi JV Property”). These deposits are the northern-most and southern-most, respectively, in the 12 kilometre-long Oyu Tolgoi series of deposits. The resources at Hugo North Extension include a Probable reserve, which is included in the first phase (“Lift 1”) of underground mine development. The Probable reserve (September 20, 2014) for Hugo North Extension totals 35 million tonnes grading 1.59% copper, 0.55 grams per tonne (“g/t”) gold, and 3.72 g/t silver. Entrée holds a 20% carried interest in this mineral reserve through the Entrée/Oyu Tolgoi joint venture.

Entrée Gold President and CEO, Stephen Scott, stated:

We are very pleased and excited by these announcements which represent very significant milestones for the project and all stakeholders, including the people of Mongolia and Entrée shareholders. This historic decision is another step towards realizing the significant value from this world class project and is a clear signal of improved investor confidence in Mongolia as an attractive place to do business.

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