Edgewater Completes Acquisition of 100% Interest in the Corcoesto Gold Project, Spain: Preliminary Economic Assessment Nearin...
28 October 2011 - 12:30AM
Marketwired
Edgewater Exploration Ltd. (TSX VENTURE:EDW)(OTCQX:EDWZF)
("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 Results
---------------------------------------------------------------------------
Drill Length Au
Hole From To (meters) g/t
===========================================================================
11W36 292.50 300.50 8.00 2.39
11W36 incl 292.50 296.50 4.00 4.55
11W37 116.00 124.00 8.00 2.26
11W37 incl 116.00 117.00 1.00 15.55
11W37 136.70 140.00 3.30 5.55
11W37 incl 136.70 139.00 2.30 7.60
11W37 153.50 159.00 5.50 2.03
11W37 incl 153.50 154.60 1.10 8.49
11W38 229.05 245.50 16.45 2.08
11W38 incl 229.05 230.30 1.25 12.35
11W39 226.30 230.00 3.70 1.37
---------------------------------------------------------------------------
Notes: 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.
George Salamis, President and CEO
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.
Contacts: Edgewater Exploration Ltd. Ryan King Vice President
(604) 628-1012rking@edgewaterx.comwww.edgewaterx.com
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