Toronto, ON., - HoneyBadger Exploration Inc. (TSX.V:TUF - “HoneyBadger” or the “Company”) announces that the Company has entered into an agreement with Entrée Gold Inc. (TSX:ETG; NYSE Amex:EGI; Frankfurt:EKA – “Entrée”) to explore for and develop porphyry and skarn-associated copper targets in the Yerington district of western Nevada. HoneyBadger has assembled a substantial land package covering over 12,550 acres (5,080 hectares), known as the Yerington West Project.
Under the terms of the agreement, Entrée may acquire up to an 80% interest in a portion of the Yerington West Project, known as the Blackjack Property. The agreement is subject to completion of due diligence and regulatory approval, including any required approval of the TSX Venture Exchange.
Entrée may exercise its first option to acquire 51% after incurring minimum expenditures of US$900,000 in the first year of exploration and issuing 37,500 shares and reimbursing HoneyBadger for up to US$206,250 of expenditures previously incurred on the Property. If results from the initial exploration program are encouraging, Entrée may increase its interest by a further 29% (to 80% in total) by making payments of US$375,000 and issuing 375,000 shares within 3 years. Entrée has committed to carry HoneyBadger through the completion of 10,000 metres of drilling, including any done within the first year.
The Blackjack Property consists of 484 claims covering almost 10,000 acres (4,000 hectares) of prospective ground centred about 8 miles (13 kilometres) west of the town of Yerington, Nevada in an area with excellent infrastructure and a long history of mining. The Yerington district reached prominence after the discovery of copper in 1865. Anaconda Copper produced almost 2 billion pounds of copper from the Yerington Mine, located 4 miles (6 kilometres) to the southeast of the Blackjack Property, between 1952 and 1978. Nevada is a highly regarded mining jurisdiction, having been rated third out of 71 mining and exploration jurisdictions worldwide in the most recent Fraser Institute survey.
The area around Yerington is currently experiencing renewed exploration activity. Numerous companies, such as Nevada Copper Corporation, Quaterra Resources Inc., and PacMag Metals Limited, are active in the region and have recently made or developed important discoveries. The Blackjack Property is immediately adjacent to Quaterra’s MacArthur deposit and to PacMag’s Ann Mason deposit, both of which have substantial copper resources defined. Nevada Copper’s Pumpkin Hollow copper skarn deposit is about 8 miles (13 kilometres) to the southeast.
Aggressive Drill Program Planned for Q4 2009
HoneyBadger and Entrée are planning an aggressive drill program commencing in the fourth quarter 2009. This program is expected to test numerous targets generated from a recently completed high-definition airborne AirMt magnetotelluric survey along with geological and geochemical targets.
This partnership arrangement with Entrée is part of HoneyBadger’s strategy to explore for large porphyry copper deposits, using the knowledge and experience of a well-established porphyry copper expert.
About HoneyBadger Exploration Inc.
HoneyBadger Exploration is a gold and base-metals exploration company headquartered in Toronto, Ontario, Canada. The Company’s current exploration projects are focused in the mining-friendly State of Nevada. The “Yerington Project” consists of two copper porphyry and skarn properties near the town of Yerington – HoneyBadger’s original and expanded Blackjack Property along with the recently acquired Roulette Property, optioned from Bronco Creek Exploration (BCE) in April 2008. Management believes that these properties give HoneyBadger very promising exploration opportunities, and positions the Company for new exploration in prolific copper districts. The Company's common shares trade on the TSX Venture Exchange under the symbol “TUF”.
About Entrée Gold Inc.
Entrée Gold Inc. is a Canadian mineral exploration company focused on the worldwide exploration and development of gold and copper prospects. In North America, the Company is exploring for porphyry-related copper systems in Arizona and New Mexico under agreements with Empirical Discovery LLC and now in Nevada through an option agreement with HoneyBadger Exploration Inc.
The Company is a large landholder in Mongolia, where it holds three exploration licenses comprising the 179,590 hectare Lookout Hill property. Lookout Hill completely surrounds the 8,500-hectare Oyu Tolgoi project of Ivanhoe Mines, and hosts the Hugo North Extension of the Hugo Dummett copper-gold deposit and the Heruga copper-gold-molybdenum deposit.
The Company continues to explore its large landholdings in Mongolia, including the coal discovery Nomkhon Bohr. Entrée is also evaluating new opportunities throughout the region and elsewhere in Asia. Entrée is exploring the Huaixi copper project in Zhejiang Province in China, under the terms of an agreement with the No. 11 Geological Brigade.
The Company is also seeking additional opportunities to utilize its expertise in exploring for deep and/or concealed ore deposits. With a treasury in excess of C$50 million, the Company is well funded for future activities.
Ivanhoe Mines and Rio Tinto are major shareholders of Entrée, holding approximately 15% and 16% of issued and outstanding shares respectively.
For more information, please visit our website at http://www.honeybadgerexp.com
HoneyBadger Exploration Inc.
Vice President of Business Development
Tel.: (416) 364-4029
Fax: (416) 364-2753
Honey Corporation - Calgary Office
Michael Marchand, Ph.D., P.Geol.
Vice-President of Exploration
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