Aug 05, 2010

Edgewater Announces Updated Resource Estimate For The Corcoesto Gold Deposit, Spain Including 315,000 Ozs Measured And Indicated And 885,000 Ozs Inferred

Vancouver, British Columbia. Mr. George Salamis, President and CEO of Edgewater Exploration Ltd. ("Edgewater" or the "Company") is pleased to announce an updated National Instrument 43-101 compliant resource estimate for the Company's Corcoesto gold deposit, north-west Spain. As announced on July 28, 2010 the Company has entered into a definitive share purchase agreement to purchase all of the outstanding shares of Rio Narcea Gold Mines S.L ("Rio Narcea") a wholly-owned subsidiary of Lundin Mining Corporation ("Lundin", TSX:LUN, OMX:LUMI) that owns an undivided 100% interest in the Corcoesto gold deposit. Lundin will retain a 1.5% Net Smelter Return ("NSR") Royalty upon the commencement of commercial production from the Corcoesto gold deposit subject to Edgewater having the right to re-purchase 1.0% of the royalty at any time after Closing for US$1,500,000. The share purchase agreement is subject to Regulatory Approval.

The Corcoesto gold deposit is an advanced-stage exploration gold project located in northwest Spain approximately 36 km west-southwest of the port city of La Coruña in the Galician Autonomous Community. The deposit is composed of seven major quartz vein and quartz breccias systems and has excellent infrastructure including paved road access and power is available from a 22 Kv power-line that crosses the property.

The Company has received an NI 43-101 technical report entitled; "Technical Report for the Corcoesto Gold Deposit" (the "Report") dated August 04, 2010 by Alan Noble, P.E. of Ore Reserves Engineering. The Report estimates a Measured and Indicated resource of 5,657,000 tonnes grading 1.73 g/t Au containing 315,000 ozs gold at a 0.65 g/t Au cutoff and an Inferred resource of 16,542,000 tonnes grading 1.66 g/t Au containing 885,000 ozs gold at a cutoff of 0.65 g/t Au for resources from surface to 200 m depth and a cutoff of 2.0 g/t Au for resources below 200 m. Cutoff grades were selected as reasonable cutoff grades for reporting resources likely to be mined by open pit methods for the upper portions of the deposit and by underground development for the lower portions of the deposit. The Inferred resource includes a higher grade resource below a depth of 200 m from surface of 1,857,000 tonnes grading 3.27 g/t Au at a 2.0g/t cutoff containing 196,000 ozs gold. Table 1 summarizes the Mineral Resources from the Report.

George Salamis, President and CEO of Edgewater stated: "We are very pleased to see the substantial increase in resources for the Corcoesto gold deposit. The deposit remains open along strike and to depth and the Company is planning a program of step out, infill and deep drilling on the deposit in order to establish the ultimate size and grade of the gold resource on the project. Having just finalized our deal on the Enchi gold project with Red Back Mining this second gold acquisition with increased resources further demonstrates our ability to deliver value and increase shareholder wealth."

Table 1
Corcoesto Gold Deposit
2010 Mineral Resource Summary

Resource Class
(g/t Au)
g/t Au
Contained Gold
(x1000 oz)
Measured 0.65
Indicated 0.65
Measured + Indicated 0.65
Inferred 0.65/2.0
  1. CIM definition standards were followed for the resource estimate
  2. The 2010 resource model used an inverse-distance-power (IDP) grade estimation within a three-dimensional block model with mineralized zones defined by wireframed solids. 
  3. A total of 1,101.9 m of surface trenching in 55 trenches, 443.1 m of adit sampling in 4 adits and 42,326.2 m of diamond and RC drilling in 436 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
  4. 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
  5. Dilution is included for a minimum mining width of 2.0 m on a 4.0 m high mining bench
  6. Mineral Resources that are not mineral reserves do not have economic viability
The Mineral Resource estimate was based on 42,326.2 m of diamond and RC drilling in 436 holes as well as surface trenching and adit sampling data. The Mineral Resource includes drilling results that were not included in prior resource estimates including deep drilling and Inferred resources were not included in prior estimates in areas with widely spaced drilling.

The technical content in this news release pertaining to the Corcoesto Gold Deposit was read and approved by Alan Noble, P.E., of Ore Reserves Engineering Inc., a professional mining engineer registered in the State of Colorado, USA and a Qualified Person ("QP") as defined by National Instrument 43-101.

On behalf of the board of

"George Salamis"

George Salamis,
President and CEO

For further information, please contact:
Ryan King, Vice President
Telephone: (604) 628-1012


You can view the Next News Releases item: Mon Aug 9, 2010, Edgewater Exploration Ltd. Announces $10,000,000 Offering

You can view the Previous News Releases item: Wed Jul 28, 2010, Edgewater Finalizes Acquistion Of The Corcoesto Gold Deposit, Spain

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