Mr. George Salamis, President and CEO of Edgewater Exploration Ltd. ("Edgewater"
or the "Company") (TSX VENTURE:EDW) (OTCQX:EDWZF) 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
============================================================================
Cut Off Tonnes Au Gold
Resource Category g/t Au (kt) (g/t) (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
============================================================================
Notes:
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
============================================================================
Tonnes Au Gold
Resource Category Cut-off (kt) (g/t) (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
============================================================================
Notes:
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 Contained
Cutoff Tonnes Au Gold
(g/t Au) (x1000) g/t (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
----------------------------------------------------------------------------
Note:
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 (greater than 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 degrees and 73
degrees, 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 Che 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
www.edgewaterx.com 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
"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
============================================================================
Tonnes Density Au Gold
Resource Category Area/Zone (kt) (t/m3) (g/t) (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
============================================================================
Notes:
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
FOR FURTHER INFORMATION PLEASE CONTACT:
Edgewater Exploration Ltd.
Ryan King
Vice President
(604) 628-1012
rking@edgewaterx.com
www.edgewaterx.com
Edgewater Exploration Ltd. (TSXV:EDW)
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