Edgewater Exploration Ltd.

Edgewater Exploration Ltd.

May 29, 2012 09:30 ET

Edgewater Announces Inferred Resource Estimate of 20.6 Mt grading 1.13 g/t Au Containing 749,000 Ounces of Gold at the Enchi Project, Ghana

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 29, 2012) - Mr. George Salamis, President and CEO of Edgewater Exploration Ltd. (TSX VENTURE:EDW)(OTCQX:EDWZF) ("Edgewater" or the "Company") is pleased to announce a National Instrument 43-101 Inferred Resource Estimate at the Company's Enchi Gold Project, Ghana. The Inferred Resource Estimated at a cut off grade of 0.7 g/t Au is as follows:

Enchi Gold Project, Ghana
2012 Inferred Mineral Resource Summary
(Au g/t)
Zone Tonnes Grade
(Au g/t)
Contained Gold (ounces)
0.70 Boin 9,551,000 1.20 369,600
0.70 Nyam 3,633,000 1.06 123,700
0.70 Sewum 7,443,000 1.07 255,750
Total 20,627,000 1.13 749,000
  1. CIM definition standards were followed for the resource estimate.
  2. The 2012 resource models used ordinary kriging (OK) grade estimation within a three-dimensional block model with mineralized zones defined by wireframed solids.
  3. A base cutoff grade of 0.7 g/t Au was used for reporting resources with a capping of gold grades at 18 g/t.
  4. A density of 2.45 g/cm3 was applied.
  5. Numbers may not add exactly due to rounding.
  6. Mineral Resources that are not mineral reserves do not have economic viability.

President and CEO, George Salamis, states; "The initial Inferred Resource Estimate exceeded our expectations and is a significant step in the advancement of the Enchi Project. The current resource is hosted at or near surface, generally to an average vertical depth of only 75 meters and is open in all directions both along strike and to depth. We are extremely encouraged with the potential to expand the resource with further drilling. The resource, which is largely hosted within oxidized saprolitic host rock, trends toward key targets where significant surface gold anomalies and anomalous trench results highlight potential strike extensions of several kilometers in length. As such, we look forward to the potential of significantly expanding these resources in the near future." Mr. Salamis adds, "At a cut-off of 0.3 to 0.5 g/t, which is the norm for near surface oxide resources being reported in other parts of West Africa the resource at Enchi contains over 1 M ounces of near surface gold. That said, our future drilling campaigns will be targeting zones of higher grade mineralization, above our highlighted 0.7 g/t cut-off, both at surface and to depth where we believe better grade material exists."

The Resource Estimate was prepared by independent qualified person Todd McCracken, P. Geo. of Tetra Tech. The mineral resources were estimated using a block model with parent blocks of 10 X 10 X 10 and using ordinary Kriging methods for grade estimation. The quantity and grade of reported inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category. The mineral resource estimate is based on the combination of geological modeling, geostatistics and conventional block modeling using the ordinary kriging method of grade interpolation. The geological model and corresponding sections and plans were generated by Edgewater personnel and then audited by Tetra Tech. The QAQC protocols and corresponding sample preparation and shipment procedures for the Enchi Project have been reviewed by Tetra Tech.

A technical report is being prepared and will be filed in the next 45 days.

The Resource Estimate also evaluated the Enchi Project at a range of cut off grades between 0.2 and 1.5 g/t Au. Results are as follows;

Cut Off
Au g/t
Tonnes Grade Au g/t Contained
Gold (ozs)
0.20 94,796,000 0.55 1,678,129
0.30 71,241,000 0.65 1,489,295
0.40 51,633,000 0.76 1,269,739
0.50 37,278,000 0.89 1,063,868
0.60 27,538,000 1.01 892,682
0.70 20,627,000 1.13 749,081
0.80 15,887,000 1.24 635,200
0.90 12,644,000 1.35 546,878
1.00 10,155,000 1.44 470,963
1.10 8,092,000 1.54 401,214
1.20 6,185,000 1.66 330,792
1.30 4,868,000 1.78 278,018
1.40 3,841,000 1.89 233,426
1.50 2,943,000 2.03 191,659

The 2012 Mineral Resource estimate was based on 16,402 metres of diamond and RC drilling in 359 holes as well as data from 3000 metres in 77 surface trenches. The drilling is generally spaced at 25 to 50 metre intervals.

Exploration and drilling are on-going on the Project. The current work program includes line cutting, geological mapping, geochemical sampling and trenching as well as a 10,000 metre drilling program currently underway with one RC drill rig. Drilling is focused on delineating extensions to three known gold targets (Boin, Nyam, and Sewum) and includes drilling along strike and down dip of the currently outlined gold zones. Additional exploration on the Project includes target definition and follow-up on priority areas generated from the airborne geophysical survey completed in 2011.

The Enchi Project is a 51% Edgewater and 49% Kinross Joint Venture (subject to a 10% carried interest held by the Government of Ghana) with the two companies sharing all future exploration and development expenditures pro-rata. Kinross and Edgewater have approved a $3.0 million exploration budget for the first six months of 2012.

The Enchi resource estimate data in this news release was read and approved 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.

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 the 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.

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."

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