VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jun 11, 2013) - Mr. George Salamis, President and CEO of Edgewater Exploration Ltd. (TSX VENTURE:EDW)(EDWZF) ("Edgewater" or the "Company") is pleased to provide an update on several positive initiatives recently undertaken aimed at benefitting all stakeholders and communities surrounding the Corcoesto Gold Project ("Corcoesto" or the "Project") in Galicia, Spain. In addition, the Company is pleased to provide an update on the on-going Bankable Feasibility Study which is on track for Q3/13 completion.
Mr. Salamis, President and CEO states: "The positive initiatives announced today reflect the Company's core values which emphasize clarity, accountability, honesty, transparency and a commitment to developing Corcoesto gold resources in the most environmentally friendly manner possible using best practice technology. The Corcoesto Bankable Feasibility Study being completed by Micon International Limited is on schedule for completion in Q3/13 with feasibility level operating and capital cost estimates to date being in-line with previous estimates tabled in the 2011 Preliminary Economic Assessment."
The Company has recently entered into an agreement with the Association of Excavators of Galicia ("AEXGA") giving top preference on future mine development and operational contracts to Galician earth-moving companies for the Corcoesto Gold Project. The focus of this agreement is to prioritize and guarantee the creation of quality employment opportunities for the local communities surrounding the Project and the whole Galician region. This underscores Edgewater's commitment to maximizing local employment through several different initiatives. The Company continues to take steps to ensure the surrounding communities and region derives the maximum socio-economic benefits from the Project.
Additionally over the past several months, the Galician firm, Northwest Consultants, in parallel with the University Santiago de Compostela, have been working closely with the local communities and governments to complete an extensive socio-economic report and plan for the Corcoesto Gold Project. This independent socio-economic report (see http://www.edgewaterx.com for the full report) has been tabled to the Government of Galicia and demonstrates several benefits including;
- Multi-level extensive community engagement during all phases of mine development and operation
- Numerous medium to long term social programs and training initiatives proposed, all designed to benefit local communities and stimulate growth
- +1,600 direct and indirect jobs in Galicia generated during the first year of development
- Halt and possibly reverse the decreasing population in the region through economic diversification and stimulus
- Sustainable development initiatives designed to benefit local communities and industries.
Mr. Salamis reports: "The successful development of Corcoesto, with the support of the surrounding communities and government, will provide the necessary skilled jobs to assist in supporting long term sustainable development in the region for generations to come, in addition to the added financial benefits that come from a project of this scope."
Resource Estimate Update
Edgewater recently engaged Micon International Limited ("Micon") to complete an updated Resource Estimate and a final Bankable Feasibility Study for the Corcoesto Gold Project. Edgewater is scheduled to announce an updated Resource Estimate during Q2/2013 which will include data from +50,000m of infill drilling completed during the 2011 and 2012 drilling seasons. Edgewater's previous Resource Estimate used as the basis for the 2011 Preliminary Economic Assessment ("PEA") included 325,000 ounces of gold in Measured and Indicated categories and 1,149 million ounces of gold Inferred. The focus of the infill drilling program and the new updated Resource Estimate was to upgrade Inferred resources to a Measured and Indicated categories so as to provide as basis for the Bankable Feasibility Study.
|Corcoesto Gold Deposit May 2011 Resource Estimate |
|Resource Class||Cutoff |
|g/t Au||Contained |
|Measured + Indicated||0.65||5,783||1.74||325|
- CIM definition standards were followed for the resource estimate
- The 2010 and 2011 resource models used an inverse-distance-power (IDP) grade estimation within a three-dimensional block model with mineralized zones defined by wireframed solids.
- A total of 19,075.7 m of surface trenching in 225 trenches, 443.1 m of adit sampling in 4 adits and 42,111.18 metres of diamond and RC drilling in 342 drill holes were used in the resource with sample spacing's that were less than 30 m for Measured resources, less than 40 metres for Indicated resources and less than 195 m for Inferred resources except for Inferred resources below 200 m from surface and for the northern two vein systems that used drill spacing's of 196 m
- A base cutoff grade of 0.65 g/t Au was used for reporting resources above a depth of 200 m from surface and a cutoff grade of 2.0 g/t Au was used for reporting resources below 200 m from surface
- Dilution is included for a minimum mining width of 2.0 m on a 4.0 m high mining bench
- 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.
Final Feasibility Study Update
Work on the Feasibility Study by Micon has been advancing well and is nearing completion. The resource estimate remains on track for Q2/13 with the final mine plan expected to be completed by the beginning of July, as part of the Feasibility Study. A cost-benefit analysis of owner operated fleet vs. contract mining has been carried out and at this time, management's recommendation will be to use a mining contractor, eliminating the need to purchase mining equipment. The plant design being prepared by SGS Metcon/KD Engineering Co. is well advanced with the flow sheet, design criteria, equipment list and plant layout all complete. Equipment quotations are awaited to complete the final capital cost estimate and this is expected to be complete before the end of June. Plant operating costs are nearing completion and remain in-line with previously stated estimates. Mining costs have been well defined and are in-line with previously reported mining cost estimates. The tailings dam design is being carried out by Golder Associates Ltd. (Spain) and is expected to be complete by mid-June. All other infrastructure costs are nearing completion and remain in-line with previously stated estimates announced in the Preliminary Economic Assessment (see press release November 17, 2011). The project already has an approved Environmental Impact Assessment and a more detailed analysis of the waste water management and quality, required as a condition in the approval, is near completion. This work is being carried out by Micon with a specialist from SRK Consulting Inc.(Cardiff, UK). The final Feasibility Study is expected during Q3/2013.
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 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. The PEA was published December 30, 2011 which demonstrated robust economics including 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 Bankable 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
On behalf of the board of EDGEWATER EXPLORATION LTD.
George Salamis, President and CEO