Entrée Gold says share price drop tied to political uncertainty in Mongolia
A recent drop in the share price for Entrée Gold, Inc., has been labeled “disappointing,” but the Canadian mining exploration company working in Mason Valley says it does not feel that decline reflects the underlying value of either of its two main projects, including the Ann Mason Project.
Commenting on the recent market activity, Greg Crowe, President and CEO of Entrée Gold, said, “We are very disappointed in the recent decline in Entrée’s share price, and feel this does not reflect the underlying value of either of our two main projects. We are not aware of any material disclosed information that may be contributing to the market activity, and are attributing it largely to the current political uncertainty in Mongolia.”
Entrée Gold’s two main projects include one in Mongolia and the Ann Mason site in Mason Valley.
Despite recent assurances from the Mongolian Foreign Minister that the government would not seek to re-open the Tolgoi Investment Agreement, on October 15, Turquoise Hill Resources Ltd advised that the Mongolian Minister of Mines had requested the parties renegotiate the agreement, according to an Entrée Gold press release. Turquoise Hill and Oyu Tolgoi LLC have rejected the request, stating the investment agreement provides a stable legal framework and is a legally-binding document, reads a recent press release.
On October 9, Turquoise Hill provided an update which confirmed the Phase 1 construction at Oyu Tolgoi is essentially complete, and negotiations on a power purchase agreement with Chinese authorities are actively progressing. First ore is expected to be processed through the concentrator within six weeks of conclusion of the power agreement, the press release says.
Crowe added, “Rio Tinto and Turquoise Hill Resources have committed over $6-billion in developing the Oyu Tolgoi project, which is transforming the Mongolian economy along with creating thousands of skilled jobs for Mongolians. Turquoise Hill still anticipates underground production of Oyu Tolgoi to commence in 2016.”
Ann Mason site
Entrée’s second major asset is the Ann Mason Project, which includes the Ann Mason copper-molybdenum deposit, the Blue Hill copper oxide target and several exploration state targets, including Blackjack, Roulette and Minnesota. The project is located close to major infrastructure and in a low-risk, mining-friendly jurisdiction.
Ann Mason hosts a major porphyry copper-molybdenum resource as outlined in a news release dated March 27. The company is currently preparing a PEA, including updated, pit-constrained resources for both Ann Mason and Blue Hill, which will provide a guide to prioritize further work to advance the project development. Preliminary Ann Mason metallurgy is encouraging and indicates potential for a high quality copper concentrate with no deleterious elements, according to Entrée Gold.