Aug 05, 2010
Edgewater Announces Updated Resource Estimate For The Corcoesto Gold Deposit, Spain Including 315,000 Ozs Measured And Indicated And 885,000 Ozs Inferred
Vancouver, British Columbia. Mr. George Salamis, President and CEO of Edgewater Exploration Ltd. ("Edgewater" or the "Company") is pleased to announce an updated National Instrument 43-101 compliant resource estimate for the Company's Corcoesto gold deposit, north-west Spain. As announced on July 28, 2010 the Company has entered into a definitive share purchase agreement to purchase all of the outstanding shares of Rio Narcea Gold Mines S.L ("Rio Narcea") a wholly-owned subsidiary of Lundin Mining Corporation ("Lundin", TSX:LUN, OMX:LUMI) that owns an undivided 100% interest in the Corcoesto gold deposit. Lundin will retain a 1.5% Net Smelter Return ("NSR") Royalty upon the commencement of commercial production from the Corcoesto gold deposit subject to Edgewater having the right to re-purchase 1.0% of the royalty at any time after Closing for US$1,500,000. The share purchase agreement is subject to Regulatory Approval.
The Corcoesto gold deposit is an advanced-stage exploration gold project located in northwest Spain approximately 36 km west-southwest of the port city of La Coruña in the Galician Autonomous Community. The deposit is composed of seven major quartz vein and quartz breccias systems and has excellent infrastructure including paved road access and power is available from a 22 Kv power-line that crosses the property.
The Company has received an NI 43-101 technical report entitled; "Technical Report for the Corcoesto Gold Deposit" (the "Report") dated August 04, 2010 by Alan Noble, P.E. of Ore Reserves Engineering. The Report estimates a Measured and Indicated resource of 5,657,000 tonnes grading 1.73 g/t Au containing 315,000 ozs gold at a 0.65 g/t Au cutoff and an Inferred resource of 16,542,000 tonnes grading 1.66 g/t Au containing 885,000 ozs gold at a cutoff of 0.65 g/t Au for resources from surface to 200 m depth and a cutoff of 2.0 g/t Au for resources below 200 m. Cutoff grades were selected as reasonable cutoff grades for reporting resources likely to be mined by open pit methods for the upper portions of the deposit and by underground development for the lower portions of the deposit. The Inferred resource includes a higher grade resource below a depth of 200 m from surface of 1,857,000 tonnes grading 3.27 g/t Au at a 2.0g/t cutoff containing 196,000 ozs gold. Table 1 summarizes the Mineral Resources from the Report.
George Salamis, President and CEO of Edgewater stated: "We are very pleased to see the substantial increase in resources for the Corcoesto gold deposit. The deposit remains open along strike and to depth and the Company is planning a program of step out, infill and deep drilling on the deposit in order to establish the ultimate size and grade of the gold resource on the project. Having just finalized our deal on the Enchi gold project with Red Back Mining this second gold acquisition with increased resources further demonstrates our ability to deliver value and increase shareholder wealth."
Corcoesto Gold Deposit
2010 Mineral Resource Summary
The technical content in this news release pertaining to the Corcoesto Gold Deposit was read and approved by Alan Noble, P.E., of Ore Reserves Engineering Inc., a professional mining engineer registered in the State of Colorado, USA and a Qualified Person ("QP") as defined by National Instrument 43-101.
On behalf of the board of
EDGEWATER EXPLORATION LTD.
President and CEO
For further information, please contact:
Ryan King, Vice President
Telephone: (604) 628-1012
THE TSX VENTURE EXCHANGE INC. HAS IN NO WAY PASSED UPON THE MERITS OF THE PROPOSED TRANSACTION AND HAS NEITHER APPROVED NOR DISAPPROVED THE CONTENTS OF THIS PRESS RELEASE.
You can view the Next News Releases item: Mon Aug 9, 2010, Edgewater Exploration Ltd. Announces $10,000,000 Offering
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