Oct 27, 2011
Edgewater Completes Acquisition of 100% Interest in the Corcoesto Gold Project, Spain Preliminary Economic Assessment Nearing Completion
Vancouver, British Columbia: Edgewater Exploration Ltd. ("Edgewater" or the "Company") is pleased to provide an update on corporate, exploration and development work on the Corcoesto Gold Project, in Galicia, Spain. Pursuant to an agreement dated July 27, 2010 Edgewater has completed the acquisition of a 100% interest in the Corcoesto Gold Project from a wholly-owned subsidiary of Lundin Mining Corporation ("Lundin Mining") by making a final cash payment of US$3.0 million. To acquire a 100% interest in the Corcoesto Project, Edgewater paid a total of US$8.0 million over a 12 month period. Lundin Mining will retain a 1.5% Net Smelter Return ("NSR") Royalty upon the commencement of commercial production from the Corcoesto Gold Project subject to Edgewater having the right to purchase 1.0% of the NSR royalty at any time for US$1.5 million.
On May 31, 2011 Edgewater announced the updated NI 43-101 compliant resource at Corcoesto (see details in (News Release dated May 31, 2011.) which 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. This resource will form the basis for a Preliminary Economic Assessment ("PEA") on the Corcoesto Gold Project. The Company is now nearing completion of the PEA and the results from this study will be announced in the next several weeks. Alan Noble, P.E. of Ore Reserves Engineering, of Denver, Colorado is overseeing the PEA and has been involved in several previous mining economic studies in Spain. The PEA will also form the basis for all documentation required by the Autonomous Government of Galicia to initiate the exploitation permitting process, a key step in granting the company the right to construct and operate a gold mine at Corcoesto. Two highly reputable firms based in Galicia, Spain, CRN Engineering and Applus+, have been tasked with aiding Edgewater in preparing these exploitation permit applications which are expected to be submitted by the end of 2011. Information on Applus+ and their experience in environmental permitting can be found here.
George Salamis, President and CEO of Edgewater stated: "Since acquiring the Corcoesto Gold Project in July, 2010 Edgewater has completed 12,400 metres of infill and step-out diamond drilling and has successfully increased the gold resource by over 400%. Over the past year Edgewater has made great progress at Corcoesto and has assembled a world-class team of gold project builders, environmental managers and engineering consultants, all of whom have a proven track-record to advance Corcoesto into its next phase of growth. With the PEA nearing completion and after recently spending some time at Corcoesto I am very encouraged on how the project is advancing both from an economic and mine permitting stand point."
Edgewater now has 4 diamond drill rigs conducting a program of infill and step-out drilling on the Corcoesto Gold Project. Drilling continues to intersect excellent widths and grades of gold mineralization including DDH11W38 that returned 16.45 metres grading 2.08 g/t Au (See Table 1 below).
Table 1 Corcoesto Drill ResultsNotes: 1) All reported intercepts are core lengths and true widths are estimated at 80 per cent of core lengths
2) Weighted averages calculated using uncut assays.
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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