Entree Gold Inc.

Entree Gold Inc.

January 16, 2008 08:01 ET

Drilling Expands Entree Gold's Heruga Mineralization, Mongolia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 16, 2008) - Entree Gold Inc. (TSX:ETG)(AMEX:EGI)(FRANKFURT:EKA) ("Entree" or the "Company") announces additional significant results on the Heruga Deposit located within its Javhlant license, Mongolia, from partner and project operator, Ivanhoe Mines Ltd. (TSX:IVN)(NYSE:IVN)(NASDAQ:IVN) ("Ivanhoe Mines"). The Javhlant license, located to the south of the Oyu Tolgoi deposit, is included in the joint Entree-Ivanhoe Mines agreement area.

Thirty-two drill holes (including daughter holes) on nine sections spaced at 150 to 300 metre intervals along a 1,600 metre strike length of the Heruga discovery have now been completed. Significant copper, gold and molybdenum mineralization has been intersected in new drill holes on six of these sections. Five drills are currently active on the Heruga Deposit.

Greg Crowe, President and CEO of Entree, commented, "This latest round of drilling has increased the size of the copper-gold-molybdenum system at Heruga and confirmed similarities to Oyu Tolgoi-style mineralization. We now have much greater confidence in the continuity of the Heruga discovery from section to section. Our partner, Ivanhoe Mines, has undertaken an ambitious program to continue exploring this system, which remains open to the east and north. Combined with the mineralization discovered on Entree's ground to the north of Oyu Tolgoi, this mineralized structural trend has now been traced for over twenty kilometres, with the greatest upside potential for additional discoveries on Entree's ground."

Discussion and Highlights of Recent Drilling

Over 34,000 metres have been drilled to date on Heruga. The results of this work have provided Entree and Ivanhoe with substantial information about the structure and controls of the mineralization. Recent drilling has outlined a coherent block of copper-gold-molybdenum mineralization extending for approximately 1,600 metres north-south, with a vertical thickness typically varying between 400 to 800 metres, and a width of 200 to 300 metres. The mineralization is deep, with the shallowest portion on most sections starting at between 500 and 600 metres vertical depth.

The most recent results support the working theory that gold-rich copper mineralization is capped by a molybdenum-rich shell. The similarities in structural setting, host rock lithologies and styles of alteration suggest that the mineralization at Heruga was formed at the same time as that of the Oyu Tolgoi deposits located 5 to 15 kilometres to the north.

Current drilling is focused on adding to mineralization along the east side, with five holes in progress. To the west, mineralization is present on the down-dropped side of the Bor Tolgoi Fault, but has not been sufficiently defined. At the south end of the deposit, the zone is apparently cut-off by an east-west trending fault to the south of the EJD0022 section. In the north, hole EJD001A deepened the earlier hole, EJD001, which had been terminated at a depth of 1138 metres. Hole EJD001A intersected over 400 metres of gold-rich mineralization, supporting the theory that the mineralized zone deepens and plunges to the north below the depth of previous drilling.

The Oyu Tolgoi structural trend, as currently defined, now has a total strike length in excess of 20 kilometres, encompassing Oyu Tolgoi in the centre and extensions onto the joint Entree/Ivanhoe agreement area to both the south and north. From the Heruga Deposit in the south, the trend now extends through the Oyu Tolgoi deposits to the lower grade Ulaan Khud Zone (Airport North Zone), located approximately 10 kilometres north-northeast of the Hugo Dummett Deposit.

Significant results from eight additional holes are summarized in Table 1. Hole collar locations are shown on a map posted on the Entree website at www.entreegold.com. Earlier drill results from Heruga were reported in news releases dated October 3 and October 9, 2007.

Table 1. Selected mineralized intervals from the Heruga Deposit

Down-hole depth Interval Cu Au Mo Cu Eq(i)
from-to m m % g/t ppm %
Hole EJD0001A
1174 - 1602 430 0.42 0.75 117 1.00
Incl. 1442 -1604 162 0.42 1.42 7 1.32

Hole EJD0013B
602 - 608 6 0.93 0.05 420 1.32
716 - 790 74 0.70 0.28 281 1.12
966 - 1254 288 0.43 0.89 120 1.10

Hole EJD0015A
726 - 1444 718 0.32 0.28 85 0.58
Incl. 1310 - 1436 126 0.42 0.50 98 0.83

Hole EJD0017A
740 - 1338 598 0.62 0.60 173 1.15

Hole EJD0020A
1422 - 1460 38 0.43 1.45 19 1.37

Hole EJD0021
1000 - 1294 294 0.36 0.68 41 0.83
1534 - 1670 136 0.57 1.00 69 1.26

Hole EJD0022
1200 - 1294 94 0.78 0.61 125 1.28

Hole EJD0023
1110 - 1216 106 0.35 0.97 22 0.98
1302 - 1328 26 0.24 1.92 28 1.48
1500 - 1646 pending

(i)Copper Equivalent estimated using $1.15/lb copper, $500/oz gold and
$10/lb molybdenum, without regard to recoveries.

Additional drill results and sections from the Heruga Deposit will be posted to Entree's website at www.entreegold.com and to Ivanhoe Mines' website at www.ivanhoemines.com.

Corporate Update

Entree Gold has promoted Mona M. Forster to the position of Vice President and Corporate Secretary. Ms. Forster has been with the Company for over four years, during which time she has served as Business Manager and Corporate Secretary.

Quality Assurance and Quality Control

Robert Cann, P.Geo., Entree's Vice-President, Exploration, a qualified person as defined by NI 43-101, supervised the preparation of the information in this news release.

SGS Mongolia LLC prepares the split core at the project site and assays all samples at its facility in Ulaanbaatar, Mongolia. Ivanhoe's QA/QC program is monitored by independent consultant Dr. Barry Smee, P.Geo., and managed on site by Dale Sketchley, M.Sc., P.Geo. In-house, matrix-matched copper-gold-molybdenum standards and blanks are inserted at the sample preparation lab on the project site to monitor the quality control of the assay data.


Entree Gold Inc. (www.entreegold.com) is a Canadian mineral exploration company focused on the worldwide exploration and development of gold and copper prospects. Most notably, the Company is a large landholder in Mongolia, where it holds a 100% interest in mineral concessions that comprise the 179,590-hectare Lookout Hill (Shivee Tolgoi) property, which completely surrounds the 8,500-hectare Turquoise Hill (Oyu Tolgoi) project of Ivanhoe Mines Ltd. ("Ivanhoe Mines"), and hosts the Hugo North Extension of the Hugo Dummett Deposit and the newly discovered Heruga Deposit.

This News Release contains forward-looking statements. Forward-looking statements are statements which relate to future events. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. Except as required by applicable law, including the securities laws of the United States, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results. Readers are referred to the sections entitled "Risk Factors" in the Company's periodic filings with the British Columbia Securities Commission, which can be viewed at www.SEDAR.com, and with the United States Securities and Exchange Commission, which can be viewed at www.SEC.gov.

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