Entree Gold Inc.

Entree Gold Inc.

March 07, 2005 09:01 ET

Entree Surveys Outline Geophyscial Anomalies at Bayan Ovoo


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ENTREE GOLD INC.

TSX VENTURE SYMBOL: ETG

MARCH 7, 2005 - 09:01 ET

Entree Surveys Outline Geophyscial Anomalies at Bayan
Ovoo

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 7, 2005) - Entree Gold
Inc. (TSX VENTURE:ETG) ("Entree" or the "Company") announces that
Induced Polarization ("IP"), gravity and magnetometer surveys over the
Bayan Ovoo prospect have outlined geophysical anomalies coincidental
with the previously identified copper-silver-gold system (November 11,
2004). The Bayan Ovoo prospect is situated on 100% owned Entree ground,
outside the Project Property as defined in the Entree-Ivanhoe Earn-In
and Equity Participation Agreement announced in October 2004.

These surveys were completed over a six kilometer by three kilometer
grid that includes a one square kilometer area hosting previously
reported rock samples highly anomalous in copper, silver and gold.
Twenty out of 111 selected rock samples returned copper values in excess
of 1% with an additional 22 returning values between 0.1% and 1% copper.
In addition, one sample yielded 360 g/t (10.5 oz/t) silver and 1.47 g/t
(0.043 oz/t) gold and 14 samples yielded in excess of 10 g/t (0.30 oz/t)
silver.

The results of the IP survey have identified a broad, 4+ kilometer long
easterly trending chargeability anomaly within a valley immediately
north of the area of anomalous copper-silver-gold samples. Two
chargeability highs within this belt are directly coincidental with
areas of altered felsic volcanics. Magnetic lows occur adjacent to the
two prominent chargeability anomalies, which suggest
magnetite-destructive hydrothermal alteration. A gravity high is
sub-parallel to and occurs along the northern margin of the broad IP
chargeability high.

This valley hosts two large satellite image anomalies which are largely
coincident with felsic volcanics and intrusives that occur within a
larger area of basalts and andesites. Spectral analysis of these color
anomalies suggests the presence of silica and advanced argillic
alteration. Petrographic and PIMA analyses have confirmed the presence
of silica, allunite and clays.

"The Bayan Ovoo showing is rapidly advancing towards the drill stage,"
said Greg Crowe, Entree's President and CEO. "These geophysical surveys,
in conjunction with the presence of altered felsic volcanics and
intrusives, confirm the valley as a prime area for potentially hosting
buried copper-silver-gold mineralized systems."

Soil samples were collected over a portion of the grid in 2004 and the
remaining portion of the grid is currently being sampled. In addition, a
deep probing IP and magnetotelluric ("MT") survey will be completed to
examine and define these systems to depth. The results from the soil, IP
and MT surveys will aid in the better definition of drill targets.

"The recent identification of a significant mineralized system at Bayan
Ovoo highlights the potential of the approximately 140,000 hectares of
100% owned Entree ground that is outside the Project Property,"
explained Mr. Crowe. "Only a small percentage of the 140,000 hectares
has been examined and we propose to target this vast area with
reconnaissance exploration in 2005."

Entree's Bayan Ovoo showing lies in the far western portion of Lookout
Hill, approximately 60 kilometers west of the Copper Flats area, as
illustrated in the "Tenure and Showings Map"
(www.entreegold.com/properties_g.html) on the corporate website.

Exploration in Mongolia is under the supervision of Robert Cann, P.Geo.,
Entree's Exploration Manager and a qualified person as defined by
National Instrument 43-101. Mr. Cann is responsible for the preparation
of technical information in the Company's news releases. All rock
samples are prepared and analyzed by SGS Mongolia LLC (formerly SGS
Analabs) of Ulaanbaatar, Mongolia. Randomly selected pulps and all soil
samples are submitted to Acme Analytical Laboratories of Vancouver,
British Columbia for check assaying and analytical work.

ABOUT ENTREE GOLD INC.

Entree Gold Inc. (www.entreegold.com) is an exploration stage junior
resource company engaged in the exploration of gold and copper
prospects. The Company is a large landholder in Mongolia's south Gobi
Desert, near the Chinese border. Entree maintains 100% royalty-free
interest in the 179,590 hectare Lookout Hill (Shivee Tolgoi) property
which completely surrounds Ivanhoe Mines Ltd.'s (Ivanhoe's) 8,500
hectare Turquoise Hill (Oyu Tolgoi) holdings. Ivanhoe has an earn-in
agreement with Entree whereby Ivanhoe can earn an interest in an area
covering approximately 22% (approximately 40,000 hectares) of Entree's
Lookout Hill property. Ivanhoe commenced drilling on the potential
northerly extension of the Hugo Dummett Deposit onto Lookout Hill in
February 2005. The Company is a Tier 1 listed company with its shares
trading on the TSX Venture Exchange under the symbol "ETG".

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.
Forward-looking statements in this news release include those concerning
the Company's belief that the results indicate the presence of a
copper-gold-silver system exists and that the soil and IP surveys may
aid in the better definition of more precise drill exploration targets.

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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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Primoris Group
    Investor Relations
    (866) 368-7330
    ETG@primorisgroup.com
    www.entreegold.com
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.