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
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.
Edgewater Exploration Ltd.
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