Empirical West - Copper Mining Exploration
Arizona - Empirical BISBEE
Entrée entered into a second agreement with Empirical Discovery LLC to explore for porphyry copper-gold targets in a specified area near Bisbee, Arizona. The Bisbee Mine was one of Phelps Dodge’s (now Freeport McMoRan) earliest acquisitions in Arizona and is reported to have produced copper, gold and silver mineralization from 1877 to 1975. Production is estimated to have been over 8 billion pounds of copper and 3 million ounces of gold, with historic reserves (non 43-101 compliant) and value of production estimated at 152 million tonnes averaging 2.35% copper, 20.9 g/t silver, and 0.58 g/t gold. Mineralization was hosted within both porphyry and skarn environments.
Entrée’s ground position covers the area to the north and northeast of the former Bisbee Mine. North-northeast trending structures are reported to be an important control to mineralization in this area. These structures extend from Bisbee to the north under Cretaceous, post-mineral cover. Preliminary exploration will commence mid-2008 and will include geophysics, geochemistry and geology.
Under the terms of the Bisbee agreement, Entrée has the option to acquire an 80% interest in any target within the 10,800 acre (4,370 ha) parcel of land, by incurring exploration expenditures totaling a minimum of $1.9 million and issuing 150,000 shares within 5 years of the anniversary of the effective date. If Entrée exercises its option, Empirical may elect within 90 days to retain 20% participating interest or convert to a 2% NSR royalty, half of which may be purchased for $2 million.
