Sep 12, 2011
Edgewater engages CRN Engineering for an Underground Ramp Study on its 100% Owned Corcoesto Gold Project, Spain
George Salamis, President and CEO, states, "Initiating the engineering for potential underground ramp construction to probe the deeper depths of the Corcoesto deposit signals a key transition of the project from mid-stage exploration to advanced exploration and near-term development. Subject to further studies by our various engineering consultants, future underground ramp development could significantly enhance the economic viability of the Corcoesto Project when viewed in parallel to open pit mining."
The proposed development of an underground ramp will provide access to complete underground infill drilling for the purposes of upgrading inferred gold resources to a measured and indicated category and also provide bulk samples for additional metallurgical testing. In addition, the ramp could also potentially serve as future access for underground mining and deeper drill exploration below the currently known depths of the deposit. Meetings with the local mining and environmental authorities and with the municipality have been held in order to accelerate the permitting for the start of the ramp construction. Edgewater has committed to make every effort to employ local workers from the surrounding municipality for its contractors and ramp construction.
On-going "Scoping Study" ("Preliminary Economic Assessment" or "PEA") lead by Mr. Alan Noble, P.Eng., from ORE Reserves Engineering, is progressing on schedule and is currently pending completion of metallurgical tests. Preliminary resource modeling analysis has been conducted, with pit shells generated at different gold prices in parallel with the various production throughput parameter options being considered. In addition, various plant site layouts, tailings and waste rock storage facilities, are being finalized as part of the study. The PEA will model the Project using a revised and updated resource model and will include the evaluation of both open pit and underground alternatives and synergies. The PEA is scheduled to be completed in Q4, 2011.
The on-going infill and step-out diamond drilling program is progressing as expected with the completion of 36 drill holes totaling 9,761.80m. Encouraging results for the first 31 drill holes were previously released (see News Releases dated January 31st 2011, March 17, 2011 and July 20, 2011).
The latest results from the in-fill and step-out drill programs continue to highlight excellent results from the Pozo del Ingles area with intercepts of:
Edgewater expects to add a third rig shortly in order to accelerate the step-out and infill drilling to further define the total resource potential on the project. All exploration activities to date are progressing on budget and ahead of schedule.
For a detailed drill location map please view a Corcoesto Plan map on the Company's website at www.edgewaterx.com
An updated 2011 NI 43-101 compliant resource at Corcoesto was announced on May 31, 2011 (see details in News Release dated May 31, 2011) and consists of a Measured and Indicated resource of 5,783,000 tonnes grading 1.74 g/t Au containing 325,000 ozs gold at a 0.65 g/t Au cut-off and an Inferred resource of 20,265,000 tonnes grading 1.76 g/t Au containing 1,149,000 ozs gold. Core recoveries continue to be excellent and in most cases 100%. The current 12,000m drilling program is designed to expand the existing gold resource and upgrade a portion of the resource from Inferred to Measured and Indicated. The NI 43-101 Technical report on the updated resource estimate was filed on July 15th, 2011.
Sample preparation and analyses are conducted using industry standard practices. Samples are delivered to Chemex Lab in Seville, Spain and sample analyses completed at independent commercial facilities of ALS Romania for gold and ALS Canada (Vancouver) for As. Both labs have the certificate of ISO/IEC 17025:2005. Sampling and analyses include a rigorous Quality Assurance / Quality Control (QA/QC) program consisting of the insertion of blanks, duplicate samples, and check assays. A review of the QA/QC results shows no significant bias and all results are considered highly reliable.
Mr. Gregory Smith, P.Geo., 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.
President and CEO
For further information, please contact:
Ryan King, Vice President
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.
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