Hallgarten & Company
Entrée Gold (EGI) is, in our view, strongly undervalued in light of the potential for the likely sale of its Mongolian assets to its deep-pocketed partner Ivanhoe Mines (or “partner-in-law,” Rio Tinto). Our recent trip to visit the Nevada assets was eye opening for the sheer size of the district and “prospectivity” to uncover massive copper deposits. The company seriously views the potential to get one or more of its deposits in Nevada into production.
The very name Entrée Gold is somewhat of a misnomer as the company’s focus is mainly copper and becoming more so. The company is a Canadian mineral exploration company focused on the exploration and development of copper and gold prospects.
Its flagship Lookout Hill property in Mongolia completely surrounds the 8,500-hectare Oyu Tolgoi project of Ivanhoe Mines. A portion of the Lookout Hill property is subject to a joint venture with Ivanhoe Mines, through its subsidiary Oyu Tolgoi LLC. The joint venture property hosts the Hugo North Extension copper-gold deposit and the Heruga copper-goldmolybdenum deposit.
Meanwhile, in North America, Entree is exploring for porphyry-related copper systems in Nevada, Arizona and New Mexico. The primary asset in Nevada is the Ann Mason property, which contains an inferred mineral resource and considerable potential for additional targets.