VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jul 10, 2013) - Mr. George Salamis, President and CEO of Edgewater Exploration Ltd. (TSX VENTURE:EDW)(EDWZF) ("Edgewater" or the "Company") announces the Ministry of Economy and Industry ("the Ministry") in Galicia have requested final requirements for the Corcoesto Gold Project to proceed. During the review process the Galician Government reviews the environmental, technical and economic aspects of each project. On December 17, 2012, Edgewater announced the approval of the Environmental Impact Statement (EIS) by the Ministry of Environment, Territory and infrastructure of La Xunta de Galicia.
President and CEO, George Salamis, stated, "Following receipt of the EIS approval in December 2012, the Government has provided detailed technical and economic requirements relating to the final project approvals. The Company is nearing the completion of the final Feasibility Study which will provide all the necessary information regarding the technical requirements requested by the Government."
Edgewater representatives recently met with the Ministry of Economy and Industry and were given final requirements in order to fully proceed on the Corcoesto Gold Project. The Company has been requested to;
- present a thorough breakdown of all the technical staff and expertise the Company has on hand and/or will be hiring for the efficient and safe, construction and operation of the Corcoesto Gold Project,
- provide the details regarding the economic and financial analysis of the project which will be part of the final feasibility study being completed by Micon International during Q3, 2013,
- have a minimum of 25% of the estimated capital cost of the project and demonstrate commitments for the remaining capital cost.
The Company has a number of financing options currently being reviewed including a $120 Million debt financing mandate described in press release dated June 18, 2012 and a strategic path will be finalized pending the details of the Corcoesto Gold Project final Feasibility Study. These final remaining conditions are required by the Ministry to approve and allow Edgewater to proceed with the Corcoesto Gold Project. Edgewater remains fully committed to the advancement of the Corcoesto Gold Project and will continue to complete these final requirements and finalize the Feasibility Study with Micon International.
About Edgewater Exploration Ltd.
Edgewater is a mineral development and exploration company focused on advancement and development of precious metal properties. Edgewater has an experienced mine building and operating team with a track record of success. The Company is currently developing the Corcoesto Gold Project in northwest Spain, and exploring the Enchi Gold Project in Ghana, West Africa.
In Spain, Edgewater has completed a Preliminary Economic Assessment (PEA) based on a Measured and Indicated Resource of 325,000 ounces of gold (5,783 million tonnes at an average grade of 1.74 g/t gold) and an Inferred Resource of 1,149 million ounces of gold (20,265 million tonnes at a grade of 1.76 g/t gold). A base cut-off grade of 0.65 g/t gold was used in the estimation of these resources, above an average depth of 200 m and a cut-off of 2.0 g/t below 200 m depth. Mineral Resources that are not mineral reserves do not have economic viability. The Resource Estimate was completed by A. Noble of Ore Reserves Engineering and detailed in the Technical Report titled Technical Report for the Corcoesto Gold Deposit, Galicia Spain with an effective date of May 27, 2011. The PEA was published December 30, 2011 which demonstrated a pre-tax Net Present Value (NPV) at 5% discount of $206 Million an Internal Rate of Return (IRR) of 24% and a Payback of 3.4 years using a gold price of $US1, 300 per ounce in the financial models. Over the last 16 months Edgewater has completed +50,000 metres of infill drilling, an ongoing final Feasibility Study with Micon International Limited signed a debt mandate agreement with Credit Suisse AG and Barclays Bank PLC for up to $120 Million for project financing and received the full Environmental Impact Statement for the Corcoesto Gold Project. (Please visit www.edgewaterx.com for further details). The Corcoesto Gold Project PEA Technical Report was prepared by Alan Noble, P.E., of Ore Reserves Engineering Inc., a professional independent mining engineer registered in the State of Colorado, USA and a Qualified Person ("QP") as defined by National Instrument 43-101. The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the assessment contained in the PEA will be realized. Readers should consult the full PEA to review all the qualifications and assumptions made by the authors in preparing the PEA.
In Ghana, the Company's Enchi Gold Project (51/49 JV with Kinross) is host to an Inferred Resource of 749,000 ounces of gold (20,627 million tonnes at an average grade of 1.13 g/t gold), using a cut-off of 0.7 g/t gold. The Enchi Resource Estimate dated July 12, 2012 was prepared by Todd McCracken, P.Geo., of Tetra Tech., who is independent of Edgewater and a Qualified Person ("QP") as defined by National Instrument 43-101. CIM definition standards were followed for the resource estimate. The 2012 resource models used ordinary kriging (OK) grade estimation within a three-dimensional block model with mineralized zones defined by wireframed solids. A capping of gold grades at 18 g/t and a density of 2.45 g/cm3 was applied. Mineral Resources that are not mineral reserves do not have economic viability.
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.
On behalf of the board of EDGEWATER EXPLORATION LTD.
George Salamis, President and CEO
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