VANCOUVER, BC, March 8, 2024 /PRNewswire/ – Entrée Resources Ltd. (TSX:ETG) (OTCQB:ERLFF) – the “Company” or “Entrée”) has today filed its annual operational and financial results for the year ended December 31, 2023. All numbers are in U.S. dollars unless otherwise noted.


Oyu Tolgoi Underground Development Update

The Oyu Tolgoi project in Mongolia includes two separate land holdings: the Oyu Tolgoi mining licence, which is held by Oyu Tolgoi LLC (“OTLLC”) and the Entrée/Oyu Tolgoi JV Property, which is a joint venture partnership between Entrée and OTLLC. Rio Tinto International Holdings Ltd. (“Rio Tinto”) owns 66% of OTLLC and is the manager of operations at Oyu Tolgoi.

Ramp up of the Oyu Tolgoi Lift 1 underground mine, which incorporates the development of three panels (Panels 0, 1, and 2), continued during 2023. Oyu Tolgoi is set to become the fourth largest copper mine in the world by 2030, with the operation expected to deliver average mined copper production of ~500 ktpa between 2028 and 2036. 

On March 13, 2023, Rio Tinto announced the commencement of underground production from Oyu Tolgoi Lift 1 Panel 0 on the Oyu Tolgoi mining licence. As at December 31, 2023, 86 Lift 1 Panel 0 draw bells had been opened, including 67 draw bells during 2023.

Construction of conveyor to surface works continued to plan and was approaching 88% completion at the end of the year. Commissioning is expected in the second half 2024. Construction works for the concentrator conversion also remains on schedule. Commissioning is expected to be progressively completed between the fourth quarter 2024 through to the second quarter 2025. Construction of Primary Crusher 2 commenced in December 2023 and is expected to be completed by the end of 2025.

Shaft sinking continued during 2023. At the end of December, Shaft 3 reached 923 metres below ground level (82% sunk) and Shaft 4 reached 1,013 metres below ground level (86% sunk). Final depths required for Shafts 3 and 4 are 1,130 metres and 1,176 metres below ground level, respectively. OTLLC expects both shafts to be commissioned in the second half 2024.

Technical studies for Panels 1 and 2 mine design and schedule optimization were completed by OTLLC during the second quarter 2023. The Hugo North Extension (“HNE”) deposit on the Entrée/Oyu Tolgoi JV Property is located at the northern portion of Panel 1. According to Rio Tinto:

The technical studies have resulted in substantially de-risked, resilient mine designs that provide a pathway to ramp-up, flexibility to pursue value creating opportunities and react to future risks, and improved stability, constructability, and operability. The studies also provide a pathway to bring the panels into production faster and maximize the use of the ventilation system.
Identified risks associated with the previous Panel 1 mine design have been resolved by increasing draw point and rim drive spacing, relocating the central material handling system and return raises outside of the active caving area, and optimally orienting the extraction drives and drill drives.

Panel 1 production on the Oyu Tolgoi mining licence is anticipated to commence in ~2027.

The technical studies have been incorporated into OTLLC’s 2023 Oyu Tolgoi Feasibility Study (“OTFS23”) which has been submitted to and is under review by applicable regulatory bodies in Mongolia. Entrée is currently reviewing OTFS23 but does not anticipate any material changes to underground development cost or schedule for the Entrée/Oyu Tolgoi JV Property.

Rio Tinto reported during its July 11, 2023 investor site visit that with the technical studies for Panels 1 and 2 completed, attention is shifting to the design of Lift 2. Drilling programs to support a Lift 2 Pre-Feasibility Study are in progress. An updated resource model for Hugo North (including Hugo North Extension) is expected to be completed in 2024 and will include mineralization from Lift 2.

Entrée/Oyu Tolgoi JV Property

First Lift 1 Panel 1 development work on the Shivee Tolgoi mining licence is expected to commence in 2024. Development work will start in the southwest corner of the HNE deposit and will establish the initial Panel 1 western ore handling truck chute, including extraction level tipple development, the truck chute chamber on the haulage level, and the supporting ventilation loop with the return air level. OTLLC has advised the Company all 2024 development will be in rock classified as waste which will be stockpiled separately and sampled in accordance with OTLLC’s standard sampling protocols and procedures.

In 2023, OTLLC completed an in-fill diamond drilling program at HNE comprising both underground holes (25 holes totaling ~6,577 metres drilled on the Shivee Tolgoi mining licence) and surface holes (7 holes totaling ~6,753 metres). Additional HNE underground and surface in-fill diamond drilling on the Shivee Tolgoi mining licence is planned for 2024 (~14,128 metres of underground drilling in 25 holes and ~6,840 metres of surface drilling in 4 holes). The principal purpose for the drilling is to support the Lift 2 Pre-Feasibility Study and the updated resource model for Hugo North (including Hugo North Extension).

OTLLC is also proposing ~8,785 metres of diamond drilling in 5 surface holes on the Heruga deposit (Javhlant mining licence) in 2024 to increase ore body knowledge and support an Order of Magnitude Study. No drilling has been conducted on the Heruga deposit since 2008.
In 2023, OTLLC completed an exploration program on the Shivee Tolgoi mining licence that included 2,880 metres of diamond drilling in 4 holes and a 40.4 line kilometre dipole-dipole induced polarization geophysical survey at Ulaan Khud South. OTLLC also completed integrated geological-geophysical 3D modelling at the Airstrip and Ductile Shear targets.

2023 exploration on the Javhlant mining licence included 2,263.4 metres of diamond drilling in 3 holes and a 39.6 line kilometre dipole-dipole induced polarization geophysical survey at the Railway target. Integrated geological-geophysical 3D modelling was completed at the SEIP, West Mag and East Bumbat Ulaan targets.

OTLLC is in the process of finalizing an exploration program and budget for 2024. On the Shivee Tolgoi mining licence, the program is expected to focus on the Airstrip and Ulaan Khud South targets, including ~2,500 metres of diamond drilling at Ulaan Khud South and geological and geophysical studies. On the Javhlant mining licence, work will be conducted on the Bumbat Ulaan, East Bumbat Ulaan, and West Heruga targets and will include ~1,800 metres of reverse circulation drilling at Bumbat Ulaan, diamond drilling at West Heruga, and geological studies.


For the 2023 fiscal year, the Company’s operating loss was $4.5 million compared to $3.6 million in 2022. The increase from 2023 was mainly due to legal costs for both commercial negotiations with OTLLC and Rio Tinto and the arbitration proceedings.

For the 2023 fiscal year, the operating cash outflow before changes in non-cash working capital items was $3.1 million compared to $2.4 million in 2022.

Share purchase warrants to purchase …

Full story available on Benzinga.com


Leave a Reply

Your email address will not be published. Required fields are marked *