Jun 01, 2011


New Gold Discovery At Edgewater's Enchi Gold Project

Sewum South Gold Zone Intersects 2.01g/t of Gold over 29 Metres
  • SWDDH001, 2.01 g/t gold over 29 metres
  • SWDDH003, 1.59 g/t gold over 17 metres
  • SWDDH004, 1.15 g/t gold over 26 metres
  • Assays results from 21 additional diamond drill holes are pending
Vancouver, British Columbia. Edgewater Exploration Ltd. ("Edgewater" or the "Company") is pleased to announce results from the first four diamond holes drilled on the Company's Sewum South gold prospect , Enchi Gold Project ("Enchi" or "the Project") in Ghana. These first drill holes represent the start of a major (10,000m) drill programme designed to test a 7km long gold geochemical anomaly outlined by soil and trench sampling that straddles the largely untested Sewum Shear Zone. The area containing this new gold discovery hosts one of the highest intensity gold-in-soil geochemical anomalies on the Project. The Sewum Shear Zone represents a major splay off the regional scale Bibiani Fault which is similar to Kinross Gold's Chirano Gold mine (5 million oz) located on the Chirano Shear Zone another splay off the Bibiani Fault located 70kms northeast of the Project.

George Salamis, CEO, comments: "These are very exciting results obtained from an underexplored region of the Project, situated almost two kilometres away from the closest known drill hole. The significance of this new gold discovery at Sewum South cannot be underestimated, given the intensity of shearing, brecciation and related gold mineralization intersected at shallow depths in the first 4 holes in this new gold prospect. A further 21 holes have been drilled but remain unassayed each of which intersected the same style of intense brecciation and disseminated sulphide mineralization. These recent drill results confirm our strong belief that Enchi is host to several zones of significant gold mineralization with high potential for further discoveries, within one of the largest single exploration concessions covering favorable geology in Western Ghana."

The Sewum Shear Zone consists of a series of stacked thrusts up to three kilometres wide and hosts numerous gold prospects along its length with the Sewum South and Sewum Central and Sewum North gold prospects marked by the largest (7km x 2km) and highest grade (up to 13,610ppb) gold-in-soil anomaly on the Enchi Project.

On April 10th drilling by Edgewater commenced at the Sewum South gold prospect situated two kilometres south of the Sewum Gold Zone. To date 25 holes totalling 3,426m have been completed by Edgewater. All drill holes have intersected a broad zone of intense shearing and brecciation often between 50 and 100m true width interpreted to be the main Sewum Shear Zone. This zone of intense shearing has been intersected by drilling in a shallow (50m vertical) and consistent manner over a strike length almost one kilometre. The gold mineralization in the first four diamond holes was continued within this shear zone (Table 1). Host rocks to the shear are composed of carbonaceous interbedded siltstone and sandstone and phyllite. The shear breccia is composed of intensely deformed lenticular clasts of the host sedimentary rocks and quartz vein material (30-50%). The breccia matrix is composed of varying amounts of quartz, carbonaceous material, pyrite and minor arsenopyrite. Multiple episodes of pre, syn and post shearing quartz veins and alteration events are evident from the drill core from all 25 drill holes.

Geological interpretation of the drill core recovered to date suggests the mineralized shear zone can be correlated to anomalous historical drill results at the Sewum Central Gold Zone located two kilometres north. Drilling is continuing and the assay results of several other drill holes are pending.

TABLE 1 SIGNIFICANT DRILL INTERCEPTS FROM CURRENT DRILL PROGRAMME AT THE SEWUM SOUTH GOLD DISCOVERY

Hole No Type Section From To Interval Au g/t
SWDDH001 Diamond Drill Hole 17800N 57 86 29 2.01
SWDDH002 Diamond Drill Hole 17800N 110 127 17 0.53
SWDDH002 Diamond Drill Hole inc 120 125 5 1.27
SWDDH003 Diamond Drill Hole 17900N 101 118 17 1.59
SWDDH004 Diamond Drill Hole 17900N 47 73 26 1.15

Notes: 1) All reported intercepts are core lengths and true widths are estimated at 80-85 per cent of core lengths
2) Weighted averages calculated using uncut assays.


Contracts for over 30,000 metres of drilling at Enchi have been signed for 2011. To date, a total of 121 holes have been drilled for 8,762m. A third rig has arrived in Enchi to complement the two rigs currently drilling at Boin and Sewum.

Drill rig access into the Eradi Prospect is currently under construction. The Eradi Prospect is located at the convergence of two of the main regional scale structures, the Bibiani and Nyambekyere shear zones, located at the northern end of the Enchi licenses. A gold-in-soil anomaly in excess of five kilometres in length at Eradi has been previously tested by two trenches that returned gold intervals of 1.47 g/t over 36.9m and 0.63 g/t over 5m, but like Sewum South until recently, has never been drilled.

Sample analyses have been conducted at independent commercial facilities SGS Labs in Tarkwa Ghana. All sample analyses was completed using industry standard geochemical and fire assay practices and included a rigorous Quality Assurance / Quality Control (QA/QC) program consisting of the insertion of standards, blanks and duplicate samples randomly into the sample stream. A review of the QA/QC results shows no significant bias and all results are considered highly reliable.

Mr. Gregory Smith, P.Geo, the Vice-President of Exploration of the Company, is the Qualified Person as defined by NI 43-101, and is responsible for the accuracy of the technical data and information contained in this news release.

About Edgewater Exploration Ltd.

Edgewater is a mineral exploration company focused principally on acquisitions, advancement and development of precious metal properties. Edgewater is currently developing the Enchi Gold Project in Ghana, West Africa and the Corcoesto Gold Project in northwest Spain.

On behalf of the board of EDGEWATER EXPLORATION LTD.

"George Salamis"

George Salamis,
President and CEO

For further information, please contact:
Ryan King, Vice President rking@edge-water.com
Telephone: (604) 628-1012

"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
 
 

You can view the Next News Releases item: Thu Jun 2, 2011, Edgewater Announces Non-Brokered Private Placement

You can view the Previous News Releases item: Tue May 31, 2011, Edgewater Increases Inferred Resources by 30% at the Corcoesto Gold Project, Spain

You can return to the main News Releases page, or press the Back button on your browser.