VANCOUVER, BC, July 21, 2021 /CNW/ - Entrée Resources Ltd. (TSX:
ETG) (OTCQB: ERLFF) – (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
("Entrée/Oyu Tolgoi JV Property"). The Report has an
effective date of May 17, 2021 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
June 15, 2021.
The Report discusses an updated Feasibility Study ("2021
Reserve Case") based on mineral reserves attributable to the
Entrée/Oyu Tolgoi joint venture ("Entrée/Oyu Tolgoi JV")
from the first lift ("Lift 1") of the Hugo North Extension
copper-gold deposit. Lift 1 of Hugo
North (including Hugo North Extension) is currently in
development by project operator Rio Tinto as an underground block
cave with first development production from Hugo North Extension
expected in 2022. Entrée has a 20% or 30% participating interest
(depending on the depth of mineralization) in the Entrée/Oyu Tolgoi
JV with Oyu Tolgoi LLC ("OTLLC") holding the remaining 80%
or 70% interest. The 2021 Reserve Case after-tax NPV(8%) for
Hugo North Extension Lift 1 attributable to Entrée is US$114 million*.
The Report also includes a Preliminary Economic Assessment
("2021 PEA") on a conceptual second lift ("Lift 2")
of the Hugo North Extension deposit. The 2021 PEA after-tax
NPV(8%) for Hugo North Extension Lift 2 attributable to Entrée
is US$306 million*. The 2021 PEA is
based on Indicated and Inferred mineral resources from Lift 2 as
the second potential phase of development and mining on the Hugo
North Extension deposit. Production and cash flows from the
2021 Reserve Case and the 2021 PEA are from separate parts of the
Hugo North Extension deposit and there is no overlap in the mineral
reserves from the 2021 Reserve Case and the mineral resources from
the 2021 PEA.
The Entrée/Oyu Tolgoi JV Property comprises a significant
portion of the long-life, high-grade Oyu Tolgoi copper-gold mining
project, as well as hosting several strong exploration prospects
with the potential for near-surface porphyry and epithermal-style
copper and/or gold mineralization. By 2030, Oyu Tolgoi is expected
to be the fourth largest copper mine in the world.
*Long term metal prices used in the net present value
economic analysis are: copper US$3.25/lb, gold US$1,591.00/oz and silver US$21.08/oz.
The economic analysis in the 2021 PEA is based on a conceptual
mine plan and does not have as high a level of certainty as the
2021 Reserve Case. The 2021 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 2021 PEA will be
realized. Mineral resources are not mineral reserves and do not
have demonstrated economic viability.
Both the 2021 Reserve Case and the 2021 PEA are based on
information supplied by OTLLC or reported within OTLLC's 2020 Oyu
Tolgoi Feasibility Study ("OTFS20"). Neither OTFS20 nor the
results of the 2021 Reserve Case and 2021 PEA reflect the impacts
of the COVID-19 pandemic, which are ongoing and continue to be
assessed by OTLLC. Reference should be made to the full body of the
Report for the assumptions, qualifications and procedures
underlying the reported results, which are not fully described
herein.
The Report was completed independently by Wood Canada
Limited.
QUALIFIED PERSON
Robert Cinits, P.Geo., formerly Entrée's Vice President,
Corporate Development and now a consultant to the Company, is a
Qualified Person as defined by NI 43-101 and 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% or 30%
carried participating interest in the Entrée/Oyu Tolgoi JV,
depending on the depth of mineralization. Sandstorm Gold Ltd., Rio
Tinto and Turquoise Hill Resources Ltd. are major shareholders of
Entrée, holding approximately 24%, 9% 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; timing and status of Oyu Tolgoi underground
development; the expected timing of first development
production from Lift 1 of the Entrée/Oyu Tolgoi JV Property; the
future prices of copper, gold and silver; the estimation of mineral
reserves and resources; the realization of mineral reserve and
resource estimates; projected mining and process recovery rates;
estimates of capital and operating costs, mill throughput, 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; the
correct interpretation of agreements, laws and regulations; local
and global economic conditions and negotiations and the environment
in which Entrée will operate in the future, including commodity
prices, projected grades, projected dilution, anticipated capital
and operating costs, anticipated future production and cash flows,
and the anticipated location of certain infrastructure and sequence
of mining within and across panel boundaries; the construction and
continued development of the Oyu Tolgoi underground mine; and the
status of Entrée's relationship and interaction with the Government
of Mongolia, OTLLC, Rio Tinto and
Turquoise Hill Resources Ltd.
- 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 domestic
power source for Oyu Tolgoi (or the availability of financing for
OTLLC or the Government of Mongolia to construct such a source); the
willingness of third parties to extend existing power arrangements;
the potential impact of COVID-19, including any restrictions
imposed by health and governmental authorities relating thereto;
the implementation and successful execution of the funding plan
that is the subject of a Heads of Agreement between Rio Tinto and
Turquoise Hill Resources and the amount of any additional future
funding gap to complete the Oyu Tolgoi underground project as well
as the amount and potential sources of additional funding required
therefor, all as contemplated by the Heads of Agreement; the impact
of changes in, changes in interpretation to or changes in
enforcement of, laws, regulations and government practices in
Mongolia; delays, and the costs
which would result from delays, in the development of the
underground mine; the status of the relationship and interactions
and discussions between OTLLC, Rio Tinto and Turquoise Hill
Resources Ltd. with the Government of Mongolia on the continued operation and
development of Oyu Tolgoi and OTLLC internal governance (including
the outcome of any such interactions or discussions); the
willingness and ability of the parties to the Oyu Tolgoi Investment
Agreement and the 2015 Oyu Tolgoi Underground Mine Development and
Financing Plan to amend or replace either such agreement; the
nature and quantum of the current and projected economic benefits
to Mongolia resulting from the
continued operation of Oyu Tolgoi; the anticipated location of
certain infrastructure and sequence of mining within and across
panel boundaries; projected commodity prices and their market
demand; and production estimates and the anticipated yearly
production of copper, gold and silver at the Oyu Tolgoi underground
mine.
- The 2021 PEA is based on a conceptual mine plan that
includes Inferred resources. Numerous assumptions were made in the
preparation of the 2021 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
Hugo North Extension Lift 1 and additional development and capital
decisions are required. Any changes to the assumptions underlying
the 2021 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 2021 PEA.
Other risks, uncertainties and factors which could cause
actual results, performance or achievements of Entrée to differ
materially from future results, performance or achievements
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;
development plans for processing resources; matters relating to
proposed exploration or expansion; mining operational and
development risks, including geotechnical risks and ground
conditions; regulatory restrictions (including environmental
regulatory restrictions and liability); risks related to
international operations, including legal and political risk in
Mongolia; risks related to the
potential impact of global or national health concerns, including
the COVID-19 (coronavirus) pandemic; risks associated with changes
in the attitudes of governments to foreign investment; risks
associated with the conduct of joint ventures; inability to upgrade
Inferred mineral resources to Indicated or Measured mineral
resources; inability to convert mineral resources to mineral
reserves; conclusions of economic evaluations; fluctuations in
commodity prices and demand; changing foreign exchange rates; the
speculative nature of mineral exploration; the global economic
climate; dilution; share price volatility; activities, actions or
assessments by Rio Tinto, Turquoise Hill Resources Ltd. 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 water, skilled
labor, transportation and appropriate smelting and refining
arrangements; unanticipated reclamation expenses; changes to
assumptions as to the availability of electrical power, and the
power rates used in operating cost estimates and financial
analyses; changes to assumptions as to salvage values; ability to
maintain the social license to operate; accidents, labor disputes
and other risks of the mining industry; global climate change;
title disputes; limitations on insurance coverage; competition;
loss of key employees; cyber security incidents; misjudgments in
the course of preparing forward-looking statements; and those
factors discussed in the section entitled "Critical Accounting
Estimates, Risks and Uncertainties" in the Company's most recently
filed Management's Discussion & Analysis and in the section
entitled "Risk Factors" in the Company's Annual Information Form
for the year ended December 31,
2020 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. Except as required under applicable
securities legislation, the Company undertakes no obligation to
publicly update or revise forward-looking statements, whether as a
result of new information, future events, or otherwise.
Accordingly, readers should not place undue reliance on
forward-looking statements.
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SOURCE Entrée Resources