Enchi Gold Project Ghana - Gold mining


The Enchi Gold Project hosts an Inferred Resource Estimate of 20.6 Mt grading 1.13 g/t Au Containing 749,000 Ounces of Gold in Southwest, Ghana.

Enchi Gold Project, Ghana
2012 Inferred Mineral Resource Summary

Cutoff
(Au g/t)
Zone Tonnes Grade
(Au g/t)
Contained Gold
(ounces)
0.70 Boin 9,551,000 1.20 369,600
0.70 Nyam 3,633,000 1.06 123,700
0.70 Sewum 7,443,000 1.07 255,750
  Total 20,627,000 1.13 749,000
  1. CIM definition standards were followed for the resource estimate.
  2. The 2012 resource models used ordinary kriging (OK) grade estimation within a three-dimensional block model with mineralized zones defined by wireframed solids.
  3. A base cutoff grade of 0.7 g/t Au was used for reporting resources with a capping of gold grades at 18 g/t.
  4. A density of 2.45 g/cm3 was applied.
  5. Numbers may not add exactly due to rounding.
  6. Mineral Resources that are not mineral reserves do not have economic viability
  7. The Resource Estimate also evaluated the Enchi Project at a range of cut off grades between 0.2 and 1.5 g/t Au. Results are as follows;

Cut Off
Gold g/t
Tonnes Grade
Gold g/t
Contained
Gold (ozs)
0.20 94,796,000 0.55 1,678,129
0.30 71,241,000 0.65 1,489,295
0.40 51,633,000 0.76 1,269,739
0.50 37,278,000 0.89 1,063,868
0.60 27,538,000 1.01 892,682
0.70 20,627,000 1.13 749,081
0.80 15,887,000 1.24 635,200
0.90 12,644,000 1.35 546,878
1.00 10,155,000 1.44 470,963
1.10 8,092,000 1.54 401,214
1.20 6,185,000 1.66 330,792
1.30 4,868,000 1.78 278,018
1.40 3,841,000 1.89 233,426
1.50 2,943,000 2.03 191,659


The Enchi resource estimate was prepared by Todd McCracken, P.Geo. of Tetra Tech., who is independent of Edgewater and a Qualified Person ("QP") as defined by National Instrument 43-101.

Mr. Gregory Smith, P. Geo., Vice President of Exploration for Edgewater Exploration Ltd., is the qualified Person as defined by NI 43-101 and has prepared and approved the technical data and information on this web page.

(Technical Report and resource Estimate on the Enchi Gold Project Ghana.)
Enchi Gold Project full Technical Report http://www.edgewaterx.com/Technical_Reports.asp

Edgewater Exploration Ltd. and Kinross Gold Corp. are Joint Venture Partners on the Enchi Gold Project Southwest Ghana.

The Enchi Gold Project is a 51% Edgewater and 49% Kinross Joint Venture (subject to a 10% carried interest held by the Government of Ghana) with the two companies sharing all future exploration and development expenditures pro-rata.

Enchi Gold Property Description and Location


The Enchi Project is located in south-western Ghana, in a region well known for prolific and low cost gold production, hosting numerous historical and currently operating open pit and underground gold mines located along strike to the northeast of the Project. In 2009, Ghana was the second largest gold producer in Africa, after South Africa, with annualized gold production of 2.9 million ounces.

The Enchi Project covers a 50 kilometre (km) strike length of the well known and prolific Bibiani Shear Zone, situated along the eastern margin of the Sefwi Belt stretching from the Cote d'Ivoire border in the southwest to the southern margin of the Suhuma Forest Reserve, to the northeast. The Project is located 290 km west of the capital of Accra and 70 km southwest of the Chirano Mine operated by Red Back Mining Inc. ("Red Back").

Red Back and previous operators discovered and identified 16 separate gold mineralized zones on the Enchi Project that have the characteristics of classic Pre-Cambrian Greenstone-hosted quartz vein style gold deposits. This style of gold mineralization is the most important type of gold occurrence in West Africa and is commonly referred to as the" Ashanti-type" in this region of West Africa.

The project area is comprised of eight contiguous licences currently held 90% by Red Back now Kinross Gold Corporation ("Kinross") and 10% by the Government of Ghana. Edgewater Exploration has signed an Option-Joint Venture agreement with Kinross, whereby Edgewater Exploration can earn 51% interest in Red Back's ownership interest in the Enchi Project.

Gold Property Location Maps


West Africa & Regional Geology
West Africa & Regional Geology
Enchi Location in Relation to Chirano
Enchi Location in Relation to Chirano
Enchi Gold Project
Enchi Gold Project




Geological Setting

Most signicant gold deposits in Ghana occur in major shear zones on or close to major geological belt and basin margins. The Enchi project area straddles the Bibiani Shear Zone which isknown to host significantly large lode-gold deposits, such as the Bibiani and Chirano

mines. This highly prospective, first order tectonic feature trendsnortheast southwest and juxtaposes Birimian mafics of the Sefwi Belt to the northwest against Birimian sediments and volcaniclastics of the Kumasi Basin to the southeast. The Bibiani Shear Zone hosts world-class gold mineralized systems including the Bibiani gold deposit (+5 Million oz) and Red Back Mining's Chirano gold mine (5 million oz) to the northeast, and the Anuri Afema deposit (1.5 Million oz) in Cote D'Ivoire to the southwest.

The Obuasi-Enchi lineament, a major east-west crustal scale deformation zone, deflects the Bibiani Shear Zone between the Chirano and Enchi project areas. This lineament is associated with the world renowned Obuasi Mine (+40 Million oz) and Akyem (+10 Million oz) deposits in the Ashanti Belt, 100-200 kilometers to the east. In the Chirano area, the Bibiani Shear Zone underwent a change in strike direction to the north-northeast, and hosts an enclave of Tarkwaian sediments. In the Enchi project area the Bibiani Shear Zone underwent this same localized change in strike direction to the northeast,bifurcating the local geology in a similar fashion and includes structurally similar geological and tectonic enclaves. In both the Chirano and Enchi areas, these enclaves are bounded by second order fault and shear structures evident in regional airborne geophysics and digital terrain models. Typically in this region, gold occurrences are located close to third order structures in the form of splays off the second order structures and are generally sub parallel to the overall trend of the Bibiani shear zone.

Exploration History

The extensive work completed by the previous land holders in the region of Enchi has resulted in the identification of at least 16 gold bearing prospects.

Both Alluvial and bed-rock vein-hosted gold occurrences were prospected and exploited by several generations of galamsey workings to the present day. European companies explored, developed, and mined gold in several phases since 1900. In the Enchi region, this resulted in the discovery of gold-bearing vein quartz mineralization ,"opened up" in a large number of pits, shafts, and underground workings, notably at the Sewum, Tokosea, Alatakrom, Achimfu, Nkwanta, and Kojina Hill prospects. Only the colonial-era Sewum and Tokosea mines appear to have experienced any significant development and past gold production history

More detailed exploration records date from 1987 onwards, highlighting renewed interest in gold exploration including the rehabilitation of accessible workings, extensive additional trenching, soil sampling and drilling.

Since 1995, regional soil geochemistry, in additional to redefining existing prospects, delineated some new areas of interest. Reconnaissance trenching, RAB, and RC drilling programs tested the gold-in-soil targets. Low grade, more consistently mineralized, oxide zone prospects were defined at Nyamebekyere and Kwakyekrom. The Nyamebekyere prospect was subsequently tested by further close spaced drilling and an unconfirmed resource was calculated by Leo Shield.

Deposit Types

Several vein gold colonial-era and galamsey prospects have been located within the project area. Principal amongst these are the Tokosea and more significant Sewum Mines.

At Nyamebekyere, previous field explorers completed a large exploration program delineating an unconfirmed and unreported inferred gold resource. The Nyamebekyere lode strikes over a distance of 1.6 kilometers, hosted by altered phyllite, 200-300 meters west of the interpreted position of the second order Nyamebekyere Shear.

Initial soil anomalies were tested with 100 meter spaced trenches revealing generally weak lode intersections (best trench intersection was 4 meters grading 4.44g/t gold). Subsequent RAB and RC drilling tested mineralization up to a maximum depth of 80 meters over a strike length of 1.6 kilometers. Shallow oxide and deeper sulphide associated gold mineralization was intersected on 28 separate sections spaced at 40 meter intervals within an altered (carbonate-feldspar-pyrite) shear zone. An extensive envelope of low grade gold mineralization dips sub-vertically and strikes 30 degrees. Mineralized intersections of between 10 meters and 40 meters in width

Nyamebekyere Zone

The Nyamebekyere gold zone strikes over a distance of 1,600 m and is located 200 to 300 m west of the Nyamebekyere Shear Zone. Nyamebekyere mineralization is part of a continuous 15 km strike length of gold prospects on the Enchi Project, stretching from from Nyamebekyere in the southwest through Kojina Hill to Sewum Hill in the south. RC drilling has been conducted to a depth of approximately 80 m along the entire strike length of the zone. RC drilling results greater than 1.0 g/t Au from the Nyamebekyere Gold Zone are summarized in Table 1.
                      Table 1
               Nyamebekyere Gold Zone
                RC Drilling Results

        Hole   From (m)  To (m)  Intercept (m)  Au (g/t)
---------------------------------------------------------
        KRC021   29        43          14        1.57
---------------------------------------------------------
        KRC024   10        16           6        3.90
---------------------------------------------------------
        KRC027    3        14          11        3.60
---------------------------------------------------------
        KRC032   69        85          16        1.83
---------------------------------------------------------
        KRC033   54        62           8        2.94
---------------------------------------------------------
        KRC043   42        51           9        3.07
---------------------------------------------------------
        KRC061   76        83           7        2.08
---------------------------------------------------------
        KRC064    7        13           6        2.18
---------------------------------------------------------
        KRC064   22        30           8        1.51
---------------------------------------------------------
        KRC065   15        24           9        1.92
---------------------------------------------------------
        KRC065   29        39          10        1.75
---------------------------------------------------------
        KRC075   12        28          16        1.66
---------------------------------------------------------
        KRC087   24        34          10        1.49
---------------------------------------------------------
        KRC095   21        25           4        5.19
---------------------------------------------------------
        KRC096   21        30           9        1.90
---------------------------------------------------------
        KRC097    7        16           9        2.77
---------------------------------------------------------

Nyam Cross Section
Nyam Cross Section
Nyamebekyere Zone 1
Nyamebekyere Zone 1

2005 Exploration Program

Soil sampling at Boin Valley West in late 2004 identified a 4.5 kilometers +20ppb contour, north east trending gold-in-soil anomaly with +100 ppb values over a 2.5 kilometer strike length and up to 300 meters in width. A Rotary Air Blast (RAB) drilling program (2,164m in 58 holes) was completed in June 2005 over a 1.4 kilometer section of the anomaly. The RAB program intersected two sub-parallel zone of mineralization, the Main and North Zones, with intercepts up to 15m at 3.00g/t gold and 12m at 1.60 g/t gold. Red Back completed 10,203m of reverse circulation drilling in 2005 and intersected mineralization over a strike length of 3.6 kilometers. Mineralization is hosted by shallow, westerly dipping mafic volcaniclastics in the hanging wall of a sheared, graphitic contact with phyllitic sediments to the east and is associated with quartz veining, fine grained disseminated pyrite and silicification. Selected RC drilling results greater than 1.0 g/t Au from the Boin Zone are summarized in Table 2.
                       Table 2.
                   Boin Gold Zone
              Selected RC Drilling Results

       Hole     From (m)  To (m)  Intercept (m)  Au (g/t)
---------------------------------------------------------
       KBRC001       29       49       20         1.57
---------------------------------------------------------
       KBRC005       94       99        5         1.41
---------------------------------------------------------
       KBRC007       84       96       12         1.75
---------------------------------------------------------
       KBRC011      105      126       21         2.56
---------------------------------------------------------
       KBRC023       41       51       10         1.08
---------------------------------------------------------
       KBRC035       12       24       12         1.61
---------------------------------------------------------
       KBRC041       26       38       12         1.39
---------------------------------------------------------
       KBRC062       98      104        6         2.13
---------------------------------------------------------
       KBRC074       24       32        8         2.53
---------------------------------------------------------
       KBRC079       44       48        4         1.55
---------------------------------------------------------
       KBRC081      139      147        8         4.61
---------------------------------------------------------
       KBRC083       41       45        4         2.99
---------------------------------------------------------
       KBRC088        4       11        7         1.06
---------------------------------------------------------
       KBRC100       19       32       13         4.11
---------------------------------------------------------
       KBRC108       34       39        5         2.85
---------------------------------------------------------
       KBRC110       70       73        3         1.51
---------------------------------------------------------

  • Click here for all RC drill intercepts greater than 1.0 g/t goldPDF

    Boin Plan & Cross Section
    Boin Plan & Cross Section


    Boin and Nyamebekyere Resource Delineation

    Extensive RC drilling has been conducted at both the Boin (13,033 m in 112 holes) and Nyamebekyere (4,658 m in 71 drill holes) prospects in the past. In order to upgrade the Boin and Nyamebekyere gold zones to allow for the generation of a NI 43-101 compliant resource statement,, a delineation diamond drilling and RC program is proposed. At present, gold mineralization of greater than 1.0 g/t Au is open along strike and down dip of the current drilling at both the Boin and Nyamebekyere prospects. The recommended RC drilling programs are designed to extend the potential resource of both zones along strike while the diamond drill programs are used to validate the existing RC drilling results and to provide geological and structural data. The proposed program includes a total of 6,850 m of RC drilling in 55 drill holes and 5,400 m of diamond drilling in 30 holes on the two zones. The proposed budget for the drilling program is US$1.74 million.

    Maps

    March 10, 2011 Enchi Drill Plan map
    March 10, 2011 Enchi Drill Plan map
    March 10, 2011 Enchi Drill Plan map
    March 10, 2011 Enchi Drill Plan map
    March 10, 2011 Enchi Drill Plan map
    March 10, 2011 Enchi Drill Plan map







    April 12, 2011 Enchi Gold Project - Drill Results - Plan Map for Boin Gold Zone and Nyam Gold Zone





    Enchi Gold Project - News Release May 04, 2011

    Boin Gold Zone plan map
    Boin Gold Zone plan map
    Nyam Gold Zone plan map
    Nyam Gold Zone plan map

    Enchi Gold Project - News Release Jan 24, 2012

    Airborne EM Survey Map
    Airborne EM Survey Map
    Significant Drill Hole Intercepts
    Significant Drill Hole Intercepts