Aug 06, 2013

Edgewater Increases Measured & Indicated Gold Resources by 203% to Over 1.0 Million ozs at the Corcoesto Gold Project, Spain

Vancouver, British Columbia, Mr. George Salamis, President and CEO of Edgewater Exploration Ltd. ("Edgewater" or the "Company") is pleased to announce a substantial increase in the NI 43-101 Measured and Indicated Resource at the Company's Corcoesto Gold Project, situated in Galicia, Spain. The inclusion of recent infill drilling completed by Edgewater in an updated geological model has increased the open pit-constrained gold ounces in the Corcoesto resource by 203% to 1,027,000 ounces for Measured and Indicated gold resources over the previous Measured and Indicated resource estimate, see press release Nov 17, 2011 for details and Table 3 below.

Table 1 - Corcoesto Gold Project - Open Pit-Constrained Mineral Resource
Resource Category Cut Off
g/t Au
Tonnes (kt) Au (g/t) Gold (koz)
Measured 0.5 14,910 1.34 644
Indicated 0.5 9,298 1.28 383
Measured + Indicated 0.5 24,208 1.32 1,027
Inferred 0.5 5,321 1.21 207

  1. See notes attached to Table #2

The Corcoesto Gold Project has been reviewed at various cut-off grades, as outlined in the table provided below. Using a 0.8g/t Au cut-off the pit constrained Measured and Indicated resource is 16.2 Mt grading 1.65 g/t Au, containing 863,000 ounces of gold.

President and CEO, George Salamis, adds; "Over the past two years, our infill drilling program at Corcoesto has confirmed and successfully converted a significant amount of Inferred resources to the Measured and Indicated categories, exceeding the resources targeted in our 2011 Preliminary Economic Assessment. This updated resource estimate demonstrates a few key highlights; 1) all Measured, Indicated and Inferred resources reported in this updated resource are open pit constrained 2) the resource contains more Measured and Indicated open pitable resources than were in previous studies such as the 2011 Preliminary Economic Assessment and 3) the gold resource remains open highlighting the potential to increase the overall size of the Corcoesto gold resource in all categories, with all three of the main zones remaining open for expansion below 250 m depth and on-strike. Pending the outcome of the final feasibility study we believe this updated resource will enhance the potential project life and increase long-term, sustainable benefits to our stakeholders in the region." Mr. Salamis summarizes, "Edgewater's shareholders and the Corcoesto stakeholders have a valuable gold asset with over 1 million M&I ounces hosted in a first world jurisdiction. In addition, all of us are benefitting from a demonstrated willingness shown by all levels of government and the local communities to help see Corcoesto through to development and gold production. We are encouraged by the fact that these new gold resource parameters will contribute to the overall project economics in the upcoming Feasibility Study which will be tabled in the coming months."

The Updated 2013 Resource Estimate also evaluated the Corcoesto Gold Project at various cut-off grades ranging from 0.5 g/t Au to 0.8 g/t Au. Results are as follows;

Table 2 - Corcoesto Gold Project Mineral Resource Estimate at various cut-off grades
Resource Category Cut-off Tonnes (kt) Au (g/t) Gold (koz)
Measured 0.5 14,910 1.34 644
0.6 13,160 1.45 613
0.7 11,586 1.56 580
0.8 10,170 1.67 546
Indicated 0.5 9,298 1.28 383
0.6 8,059 1.39 361
0.7 6,960 1.51 338
0.8 6,065 1.63 317
Measured + Indicated 0.5 24,208 1.32 1,027
0.6 21,219 1.43 974
0.7 18,546 1.54 918
0.8 16,235 1.65 863
Inferred 0.5 5,321 1.21 207
0.6 4,854 1.27 198
0.7 4,234 1.36 185
0.8 3,733 1.44 173

  1. Mineral resources were classified following the guidelines of the JORC Code (2012) an accepted reporting code in terms of Canadian National Instrument 43-101.
  2. Mineral resources are constrained within a Whittle pit shell based on a gold price of US$1,400/oz.
  3. Numbers may not compute due to rounding.
  4. All grades have been quoted in grams per tonne (g/t) for the resource inventory.
  5. Density values were assigned in relation to an oxide surface; no further distinction between fresh and oxide material has been made within this resource estimate.
  6. There are no known legal, political, environmental or other risks that could materially affect the potential development of these mineral resources
Highlights of the Updated Measured and Indicated 2013 Resources include;
  1. Measured and Indicated resources have increased to over one million ounces providing a significantly greater confidence in the deposit
  2. The Corcoesto Resource holds together well at higher cut off grades providing an opportunity to potentially mine higher grades during the initial years of operation
  3. All zones remain open for expansion through further exploration.
Details of the Updated Resource (2013) compared to the previous (2011) resource are as follows;

Table 3 - Corcoesto Gold Project 2011 vs 2013 Measured and Indicated Mineral Resource Estimate (at 0.5g/t Au cut-off)
Resource Year Resource Class Cutoff
(g/t Au)
Contained Gold
(x1000 oz)
2011 Measured 0.5 4,641 1.56 233
  Indicated 0.5 2,176 1.52 106
  Measured + Indicated 0.5 6,817 1.55 339
Current (2013) Measured 0.5 14,910 1.34 644
  Indicated 0.5 9,298 1.28 383
  Measured + Indicated 0.5 24,208 1.32 1,027

  1. 2011 Measured and Indicated pit constrained resources were estimated using a $US1100/oz gold price compared to the 2013 Measured and Indicated pit constrained resources estimated using a $US1400/oz gold price.
Work is well advanced and nearing completion on the final feasibility study which will model the Project using the 2013 Updated Resource Estimate. The feasibility study is scheduled to be completed during Q3 2013.

Resource Estimation Methodology: the updated 2013 Mineral Resource Statement was prepared for the Corcoesto Gold Project by Micon International Limited of Toronto, Canada ("Micon") in conjunction with Edgewater. Previous mineral resource statements have been produced by Ore Reserve Engineering of Denver, USA in 2011. In the opinion of Micon, the 2013 mineral resource estimate is a reasonable representation of the tonnage and grade of gold bearing rock present at the Corcoesto Project given the current level of sampling. Micon considers there to be sufficient data and information for the estimation of a Mineral Resource for the Corcoesto Project prepared under the guidelines of The Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore reserves, The JORC Code, 2012 Edition ("JORC Code"). Total mineral resource estimates for the Corcoesto Project are based on resource models from six mineral deposits, namely Cova Crea, Pozo del Ingles, Peton de Lobos, Montefurado, Fonterremula, and Picotos.

The exploration history of the project is protracted with initial (modern) exploration being conducted from the 1970's, and the first drilling by Rio Tinto in 1987. Since 2010 Edgewater has completed almost 300 drill holes for over 50,000 metres, adding to the previous 332 drill holes (>35,000 metres) undertaken between 1987 and 2008 by three different operators. The most up-to-date version of the database for Corcoesto has been supplied to Micon for use in the current Mineral Resource Estimate. The database used by Micon in the current estimate contains 50,207 samples and 112,877.27 m including drill holes (diamond drill holes, RC holes, geotechnical, and hydrogeological drill holes), 176 trenches for 18,469.293 m, and 10 adits (channels) for 1,322.90 m.

Micon is of the opinion that the current information is sufficiently reliable to interpret the boundaries for the gold mineralization and that the assay data are sufficiently reliable to support mineral resource estimation. Micon is not aware of any known environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant factors which would affect the mineral resource estimate reported here.

The database for the Corcoseto project was developed by Edgewater in Microsoft Access. The database was imported into Gem's Surpac software for analysis and review. The import process identified no errors within the database, no overlapping samples were evident.

Interpretation of the mineralised zones was undertaken by Edgewater and six zones have been defined: Picotos, Fonterremula, Montefurado, Pozo del Ingles, Peton de Lobo and Cova Crea. The general strike of the mineralised bodies is North East - South West, they dip to the north between 54° and 73°, and are thus concordant with the main lithological trend and extensional shear zones. The wireframes have been reviewed by Micon and adjusted in areas to minimise the inclusion of material below cut off, this has led to the generation of additional wireframe structures in many of the zones. Micon believes that the mineralized envelopes defined in this process represent the limits of gold mineralization based on the development of a grade shell, and therefore provide a reasonable control of the gold estimation. High grade intervals occur within some of the mineralised envelopes but could not be delineated as high grade zones within the mineralized envelopes. A contiguous sample length analysis was completed to investigate the effect of the cut-off grade on intercepts and the cut-off grade of 300 ppb Au (0.3 g/t Au) is acceptable for the dataset.

The mineralised envelope wireframes were developed through the digitising of strings on cross sections which were linked to form solid objects enclosing the mineralised zones. Wireframe solids were developed for each zone by Micon, this process included the re-digitising of the sections using Edgewater's initial interpretations. The wireframe solids generated by Micon were verified to ensure that no overlapping or open edges were present. Wireframes for five dykes present within the zones of mineralisation have also been developed and these verified solids were used to limit the mineralised envelope wireframes in the areas they represent.

Statistical analysis and compositing of the sample database was undertaken in Surpac software. Samples were selected within each mineralised zone for analysis. Each vein structure within the zones was assigned a vein code. The frequency distributions of Au within the sample populations were examined to identify the possible presence of high-grade outlier populations. The log probability plots clearly show that the sample populations from each area have different distributions. High grade sample populations are present within the sub datasets. The areas with larger sample populations, such as Cova Crea and Peton de Lobo, have smoother grade distributions which are expected due to the higher density of sample data. Capping factors ranging from 5.0 to 13.4 g/t Au were applied to raw assays prior to compositing.

Compositing of the data was undertaken in Surpac, and the composite sample files imported into Datamine for use in estimations. The compositing length has been chosen according to the length distribution of the sample populations. A comparison was undertaken on the Length Weighted Average grades for each vein structure within the zones using the raw data set, top cut data set and composite dataset.

A block model prototype was developed which enveloped all the mineralized zones. Block models were generated for each mineralised zone and dyke structure within this prototype. The block model has a parent block size of 8 m x 8 m x 4 m with variable sub-blockings to a minimum of 2 m x 2 m x 1 m. The blocks were generated primary along the X axis and then along the Z axis. In order to account for the changes in orientation, dynamic anisotropy has been undertaken for each mineralised zone and dyke, which allows for the orientation of the search ellipsoid to be defined for each block within the models, through the estimation of true dip and dip direction angles. The changes in orientation in the wireframes volumes are established through the development of digitised strings in both plan and section through the wireframe volumes. Strings were digitised at intervals of 25 m in section and 20 m in plan section through the wireframe volumes. The digitised strings were used to generate the dip direction and dip for each block within the model. These values were then estimated into the block model using Inverse Distance Weighting (IDW) for angular data.

Composite samples for each zone were used for the development of variograms. Anisotropic variograms were developed in three directions, along the strike of the wireframes represented by the X axis, down the general dip direction of the wireframes as represented by the Y axis, and across the width of the wireframes represented by the Z axis. Variographic analyses were made for all mineralised zones. Continuity could not be established within Picotos, Fonterremula Montefurado and Cova Crea; therefore the estimation for these zones was undertaken using IDW3. Pairwise relative variograms were generated along the three principle axes for each of the two larger zones; Peton de Lobo and Pozo Del Ingels.

The basic statistical analysis, combined with the variography and assay composites analysis indicated the appropriate method and parameters for block grade estimation. Three concentric search radii were selected for the estimation of each zone. The search ellipses were aligned so that the X axis aligned along the strike of the wireframes, the Y axis aligned with the dip of the wireframes and the Z axis was aligned across the width of the wireframes. All estimations were undertaken into the sub cells of the block model in order to minimise smearing effects. Search ellipses representing the general strike and dip of the lenses within each zones were established and used where dynamic anisotropy angles were absent.

In order to validate the block model estimates and check for conditional bias, plots were created which compare block model grade estimates and composite sample average grades. Composite samples were declustered into blocks of the parent cell dimensions of 8m x 8m x 4m. It is apparent from the plots that there is no significant bias between block grades and composite grades. Visual Validation of the blocks against composite grades was also undertaken for both the mineralised block models and the dyke models. These validations supported the findings of the declustering in that the block grades and composite grades compared well. Global validation of the block models was undertaken though the generation of swath plots in a northing (Y) and easting (X) direction though the block models. It is clear that the block model grades follow the trend of the composite grades, albeit that in certain areas a slight underestimation of block grades in comparison to composite grades is observed.

Densities were coded into the block model based on each block's location with respect to a surface representing the base of the oxidised zone in the drill hole database. Where drill hole information was limited, a depth of 25 m below surface was taken as the oxide limit.

Mineral Resources were categorised in accordance with the JORC Code (2012) which is a recognized reporting code under the CIM Standards. The following definitions were adopted for the classifications of the mineral resources:
  • Measured mineral resources were defined by those portions of the mineralised zone outlined by a sample spacing of 25 m x 25 m and having three or more composite samples within the first search ellipse with two or more of these samples from different drillholes/trenches/adits;
  • Indicated mineral resources were defined by those portions of the mineralised zone outlined by having two or more samples from different drillholes/trenches/adits, and falling within the second search ellipse for each zone; and,
  • Inferred mineral resources were defined as those portions of the mineralised zone which were outlined by widely spaced composite samples, or lenses containing multiple composite samples but only from one drill hole, trench or adit.
The Corcoesto resource estimate data in this news release was read and approved by Jason Ché Osmond, M.Sc., EurGeol., C.Geol., FGS, Senior Geologist, Micon International Co. Limited, and a Qualified Person ("QP") as defined by National Instrument 43-101. A technical report is being prepared and will be filed in the next 45 days.

Mr. Gregory Smith, P.Geo, the 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.

Over the last 18 months Edgewater; completed +50,000 metres of infill drilling, is nearing the completion of a 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 for further details).

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
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.

Table - Corcoesto Mineral Resources (0.5 g/t Au Cut-off) as at 1st March 2013

Resource Category Area/Zone Tonnes (kt) Density (t/m3) Au (g/t) Gold (koz)
Measured Cova Crea 3,898 2.62 1.58 198
Fonterremula - - - -
Montefurado - - - -
Picotos - - - -
Peton De Lobo 6,173 2.63 1.16 229
Pozo Del Ingles 4,839 2.62 1.39 217
Total 14,910 2.62 1.34 644
Indicated Cova Crea 921 2.63 1.78 53
Fonterremula 30 2.51 1.65 2
Montefurado - - - -
Picotos 1,119 2.60 1.46 53
Peton De Lobo 4,095 2.63 1.05 138
Pozo Del Ingles 3,133 2.63 1.37 138
Total 9,298 2.60 1.28 383
Measured + Indicated Cova Crea 4,819 2.62 1.62 250
Fonterremula 30 2.51 1.65 2
Montefurado - - - -
Picotos 1,119 2.60 1.46 53
Peton De Lobo 10,268 2.63 1.11 367
Pozo Del Ingles 7,973 2.62 1.39 355
Total 24,208 2.60 1.32 1,027
Inferred Cova Crea 687 2.61 1.98 44
Fonterremula 281 2.57 1.38 13
Montefurado 282 2.58 1.24 11
Picotos 151 2.57 1.24 6
Peton De Lobo 3,029 2.62 1.01 99
Pozo Del Ingles 890 2.61 1.20 34
Total 5,321 2.59 1.21 207

  1. Mineral resources were classified following the guidelines of the JORC Code (2012) an accepted reporting code in terms of Canadian National Instrument 43-101.
  2. A cut-off grade of 0.5 g/t Au was applied.
  3. Mineral resources are constrained within a Whittle pit shell based on a gold price of US$1,400/oz.
  4. Numbers may not compute due to rounding.
  5. All grades have been quoted in grams per tonne (g/t) for the resource inventory.
  6. Density values were assigned in relation to an oxide surface; no further distinction between fresh and oxide material has been made within this resource estimate.
  7. There are no known legal, political, environmental or other risks that could materially affect the potential development of these mineral resources

You can view the Next News Releases item: Wed Sep 25, 2013, Edgewater Files NI 43-101 Resource Estimate Technical Report on the Corcoesto Gold Project, Spain which outlines a Measured & Indicated Gold Resource of Over 1.0 Million ozs

You can view the Previous News Releases item: Wed Jul 10, 2013, Ministry of Economy and Industry in Galicia, Spain Request Final Requirements for the Corcoesto Gold Project

You can return to the main News Releases page, or press the Back button on your browser.