Edgewater Exploration Ltd.
TSX VENTURE : EDW
OTCQX : EDWZF

Edgewater Exploration Ltd.

January 31, 2011 09:31 ET

Edgewater Drills 10.72 g/t Gold Over 17.0 m at Corcoesto Gold Project-Expands Mineralized Gold Zone

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 31, 2011) - Mr. George Salamis, President and CEO of Edgewater Exploration Ltd. (TSX VENTURE:EDW)(OTCQX:EDWZF) ("Edgewater" or the "Company") is pleased to provide an update on the drilling program, results received to date and the on-going activities for the Company's 100% owned Corcoesto Gold Project ("Corcoesto or the Project") in Galicia, Spain.

Notable results to date include Hole 10E10 from 164m to 181m which averaged 10.72 g/t Au over 17.0m. This intercept is the highest grade x width intercept intersected to date on the Corcoesto Gold Project. Drill hole 10E10 is a 100m step-out which intersected the Pozo de Ingles structure down dip from previous drilling. In the Cova Crea area drill holes 10E02 and 10E07 are each 100m step-outs from previous drilling intersected the down dip portion of the structure and returned respectively 1.91 g/t Au over 12.3m (200.9m to 213.2m) and 2.28 g/t Au over 17.1m (261.2m to 278.3m).

George Salamis, President and CEO, states, "With one third of the resource definition drilling completed, I believe the step-out drilling confirms significant potential to increase the current gold resource. This recent step-out drilling clearly demonstrates that the Pozo de Ingles and Cova Crea gold-bearing structures remain open at depth; we are now drilling the down dip extensions of these zones and are excited to see further potential. In addition, in-fill drilling continues to demonstrate good continuity between sections of previously drilled gold mineralization, with the goal of converting more inferred resources to a measured and indicated category."

The drilling is being directed at high priority targets, specifically strike and dip extensions of open ended gold mineralization within the Pozo de Ingles, Peton de Lobo, and Cova Crea structures as well as others. The main focus of the step-out drilling are areas with the potential for wider widths and higher gold grades which have been shown to be related to flexures in the mineralized structures and controlled by a distinct plunge to the mineralization evident from previous drilling. For a detailed drill location map please view a Corcoesto Plan map on the Company's website at www.edge-water.com.

The current multi-rig 12,000m drilling program is designed to expand the existing gold resource and provide sufficient data for the completion of an updated resource estimate and subsequently, the commencement of a Preliminary Assessment (Scoping Study) in H1 2011 at the Corcoesto Gold Project. Work to date is progressing on budget and ahead of schedule. The Company plans to drill a further 1800m as part of Phase I of this program and there will then be a brief pause in the drilling in order to allow the Company to assimilate the outstanding Phase 1 assays. Phase II, consisting of the remaining 6000m will then commence and it is expected that Phase II will be completed by the end of H1, 2011.

Previous work on the Project has consisted of geological mapping, geophysical surveying, and soil and rock geochemistry including trenching and 42,326.2m of diamond and RC drilling in 436 holes. This work has resulted in the estimation of a NI 43-101 compliant resource at Corcoesto consisting of 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 cut-off and an Inferred resource of 16,542,000 tonnes grading 1.66 g/t Au containing 885,000 ozs gold – see details in News Release dated September 21st 2010.

Highlights of Corcoesto Drilling Results include;

Drill Mineralized Intercept   Length Au
Hole Zone From To (Meters) (Au g/t)
Hole 10E01 Peton de Lobo 25.10 30.05 4.95 1.60
and   169.90 190.35 20.45 0.48
and   200.00 229.15 29.15 0.36
and   246.20 269.60 23.40 0.60
Hole 10E02 Cova Crea 159.00 165.00 6.00 4.27
and   200.90 214.20 13.30 1.81
incl.   212.10 213.20 1.10 14.85
Hole 10E03 Cova Crea 155.00 167.50 12.50 0.75
Hole 10E04 Pozo De Ingles 345.00 371.00 26.00 0.79
incl.   362.00 371.00 9.00 1.24
Hole 10E05 Cova Crea 174.70 182.80 8.10 1.71
Hole 10E07 Cova Crea 261.20 304.60 43.40 1.51
incl.   277.30 278.30 1.00 14.95
and incl.   298.00 304.60 6.60 3.20
and incl.   302.60 303.60 1.00 14.10
Hole 10E09 Pozo De Ingles 0.00 8.60 8.60 1.29
Hole 10E10 Pozo De Ingles 164.00 181.00 17.00 10.72
incl.   171.20 172.30 1.10 148.50
and   237.30 254.80 17.50 0.79
Hole 10E11 Cova Crea 19.50 29.00 9.50 0.91
 
Notes: 1) All reported intercepts are core lengths and true widths are estimated at 80 per cent of core lengths.
  2) Weighted averages calculated using uncut assays.
  3) See attached table for complete set of results.

Drilling began in October 2010 (see News Release dated October 20th 2010) and to date eleven holes totalling 4221.8m have been completed. Results have been received for nine holes, results for two holes are pending and three drill holes are in progress.

The Company is also progressing with all necessary reports and activities in support of the Corcoesto mine license and permitting in the three applicable administrations: Environmental Department of La Xunta de Galicia, Mines Department of La Xunta de Galicia and the Municipality of Cabana de Bergantiños.

Details of the Corcoesto Project are available in the technical report entitled "Technical Report on the Corcoesto Gold Project, Galicia, Spain" date August 4, 2010 authored by Alan C. Noble, PE. of Ore Reserves Engineering filed on SEDAR at www.sedar.com under Edgewater's profile.

Sample analyses have been conducted at independent commercial facilities. Sample preparation is completed by Chemex in Seville, Spain and sample analyses completed at Chemex Labs. All sample analyses was completed using industry standard geochemical and fire assay practices and included a rigorous Quality Assurance / Quality Control (QA/QC) program consisting of the insertion of standards, blanks and duplicate samples randomly into the sample stream. A review of the QA/QC results shows no significant bias and all results are considered highly reliable.

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 exploration company focused principally on acquisitions, advancement and development of precious metal properties. Edgewater is currently developing the Enchi Gold Project in Ghana, West Africa and the Corcoesto Gold Project in northwest Spain.

On behalf of the board of EDGEWATER EXPLORATION LTD.

George Salamis, President and CEO

        Length Au As Au GxT
    From To (Meters) (Au g/t) % (g-m/t)
Hole 10E01   25.10 30.05 4.95 1.60 0.44 7.9
Hole 10E01 Incl. 28.45 30.05 1.60 2.63 0.75 4.2
Hole 10E01   169.90 190.35 20.45 0.48 0.51 9.8
Hole 10E01 Incl. 175.85 177.35 1.50 2.02 0.65 3.0
Hole 10E01   200.00 229.15 29.15 0.36 0.21 10.5
Hole 10E01 Incl. 206.90 207.90 1.00 2.05 0.73 2.1
Hole 10E01 Incl. 227.80 229.15 1.35 1.79 0.38 2.4
Hole 10E01   246.20 269.60 23.40 0.60 0.35 14.0
Hole 10E01 Incl. 251.15 252.45 1.30 1.38 0.28 1.8
Hole 10E01 Incl. 257.80 260.30 2.50 2.26 0.98 5.7
Hole 10E01 Incl. 259.30 260.30 1.00 4.15 1.23 4.2
Hole 10E01 Incl. 266.60 267.60 1.00 1.16 0.6 1.2
Hole 10E01   281.50 286.00 4.50 0.58 0.193 2.6
Hole 10E01   294.75 300.25 5.50 0.45 0.38 2.5
Hole 10E01   325.80 331.40 5.60 0.58 0.258 3.2
Hole 10E01 Incl. 329.80 331.40 1.60 1.05 0.18 1.7
Hole 10E01   361.70 364.30 2.60 0.77 1.26 2.0
Hole 10E01   384.00 387.15 3.15 0.60 0.255 1.9
               
Hole 10E02   76.40 79.00 2.60 1.37 0.362 3.6
Hole 10E02 Incl. 76.40 77.70 1.30 2.14 0.45 2.8
Hole 10E02   106.00 107.00 1.00 1.05 0.15 1.1
Hole 10E02   159.00 165.00 6.00 4.27 0.88 25.6
Hole 10E02 Incl. 159.00 164.00 5.00 4.85 0.9 24.3
Hole 10E02 Incl. 162.60 164.00 1.40 13.40 1.67 18.8
Hole 10E02   191.20 192.20 1.00 1.25 0.26 1.3
Hole 10E02   200.90 214.20 13.30 1.81 0.25 24.1
Hole 10E02 Incl. 200.90 213.20 12.30 1.90 0.25 23.4
Hole 10E02 Incl. 200.90 201.90 1.00 6.00 0.51 6.0
Hole 10E02 Incl. 212.10 213.20 1.10 14.85 1.28 16.3
               
Hole 10E03   21.00 22.00 1.00 3.10 0.271 3.1
Hole 10E03   85.20 86.40 1.20 1.11 0.203 1.3
Hole 10E03   105.20 106.25 1.05 1.61 0.64 1.7
Hole 10E03   111.00 114.50 3.50 1.39 0.06 4.9
Hole 10E03 Incl. 112.50 114.50 2.00 2.07 0.02 4.1
Hole 10E03   125.30 126.30 1.00 4.09 3.35 4.1
Hole 10E03   155.00 167.50 12.50 0.75 0.03 9.4
Hole 10E03 Incl. 157.50 158.80 1.30 4.81 0.01 6.3
Hole 10E03   196.40 197.40 1.00 0.51 0.38 0.5
Hole 10E03   235.00 236.00 1.00 1.10 0.45 1.1
               
Hole 10E04   16.75 17.90 1.15 0.62 0.09 0.7
Hole 10E04   220.50 222.00 1.50 0.61 0.19 0.9
Hole 10E04   223.50 224.50 1.00 0.72 2.33 0.7
Hole 10E04   228.75 230.00 1.25 0.52 0.53 0.7
Hole 10E04   258.00 259.00 1.00 2.66 0.72 2.7
Hole 10E04   286.40 287.40 1.00 3.32 0.832 3.3
Hole 10E04   296.00 297.00 1.00 2.27 0.959 2.3
Hole 10E04   345.00 371.00 26.00 0.79 0.32 20.5
Hole 10E04 Incl. 362.00 371.00 9.00 1.24 0.47 11.2
Hole 10E04 Incl. 346.00 347.40 1.40 4.47 0.71 6.3
Hole 10E04 Incl. 363.00 364.00 1.00 3.69 0.517 3.7
Hole 10E04   386.40 387.90 1.50 1.42 0.957 2.1
Hole 10E04   425.40 426.40 1.00 2.03 0.519 2.0
Hole 10E04   443.20 444.20 1.00 1.48 0.352 1.5
Hole 10E04   457.00 461.30 4.30 1.44 0.44 6.2
Hole 10E04 Incl. 457.00 458.50 1.50 3.31 1.01 5.0
               
Hole 10E05   65.80 67.20 1.40 2.73 0.962 3.8
Hole 10E05   145.50 146.50 1.00 0.66 0.345 0.7
Hole 10E05   174.70 182.80 8.10 1.71 0.75 13.9
Hole 10E05 Incl. 174.70 181.80 7.10 1.88 0.86 13.3
Hole 10E05 Incl. 174.70 175.70 1.00 4.31 0.826 4.3
Hole 10E05 Incl. 180.20 181.20 1.00 4.21 2.01 4.2
               
Hole 10E06     pending        
               
Hole 10E07   69.60 70.60 1.00 3.57 0.54 3.6
Hole 10E07   122.00 123.00 1.00 0.55 0.19 0.6
Hole 10E07   168.70 169.70 1.00 1.33 0.61 1.3
Hole 10E07   261.20 304.60 43.40 1.51 0.33 65.5
Hole 10E07 Incl. 261.20 278.30 17.10 2.28 0.39 39.0
Hole 10E07 Incl. 262.30 268.10 5.80 3.28 0.54 19.0
Hole 10E07 Incl. 262.30 265.30 3.00 4.99 0.68 15.0
Hole 10E07 Incl. 277.30 278.30 1.00 14.95 1.46 15.0
Hole 10E07 Incl. 285.00 286.10 1.10 1.18 0.34 1.3
Hole 10E07 Incl. 298.00 304.60 6.60 3.20 0.58 21.1
Hole 10E07 Incl. 299.00 303.60 4.60 4.20 0.66 19.3
Hole 10E07 Incl. 302.60 303.60 1.00 14.10 1.3 14.1
               
Hole 10E09   0.00 8.60 8.60 1.29 0.83 11.1
Hole 10E09 Incl. 0.00 2.60 2.60 2.68 0.36 7.0
Hole 10E09 Incl. 7.10 8.60 1.50 2.07 1.58 3.1
Hole 10E09   39.50 41.50 2.00 0.49 0.03 1.0
Hole 10E09   57.00 58.00 1.00 2.05 0.84 2.1
Hole 10E09   78.20 79.40 1.20 3.47 0.44 4.2
Hole 10E09   102.50 106.00 3.50 0.79 0.48 2.8
Hole 10E09 Incl. 104.50 106.00 1.50 1.25 0.54 1.9
Hole 10E09   118.00 119.00 1.00 0.64 0.14 0.6
Hole 10E09   120.20 121.20 1.00 0.60 0.4 0.6
Hole 10E09   124.40 127.70 3.30 0.63 0.63 2.1
               
Hole 10E10   126.00 127.00 1.00 0.81 0.17 0.8
Hole 10E10   128.00 129.00 1.00 0.51 0.34 0.5
Hole 10E10   149.00 152.00 3.00 0.79 0.11 2.4
Hole 10E10 Incl. 149.00 150.00 1.00 1.51 0.11 1.5
Hole 10E10   157.00 158.00 1.00 0.53 0.37 0.5
Hole 10E10   164.00 181.00 17.00 10.72 0.71 182.2
Hole 10E10 Incl. 164.00 173.65 9.65 18.64 1.02 179.9
Hole 10E10 Incl. 169.00 172.30 3.30 52.03 1.45 171.7
Hole 10E10 Incl. 171.20 172.30 1.10 148.50 3.92 163.4
Hole 10E10   190.35 191.35 1.00 1.15 0.49 1.2
Hole 10E10   237.30 254.80 17.50 0.79 0.3 13.8
Hole 10E10 Incl. 237.30 243.80 6.50 1.19 0.43 7.7
Hole 10E10 Incl. 242.80 243.80 1.00 3.25 0.89 3.3
Hole 10E10 Incl. 250.00 254.80 4.80 1.23 0.44 5.9
Hole 10E10 Incl. 253.65 254.80 1.15 2.64 0.427 3.0
Hole 10E10   260.00 261.00 1.00 0.68 0.29 0.7
               
Hole 10E11   19.50 29.00 9.50 0.91 0.31 8.6
Hole 10E11 Incl. 19.50 20.50 1.00 5.63 1.085 5.6
Hole 10E11 Incl. 24.80 25.80 1.00 1.41 0.308 1.4
Hole 10E11   46.50 47.50 1.00 0.54 0.642 0.5
Hole 10E11   68.00 73.20 5.20 0.60 0.22 3.1
Hole 10E11 Incl. 68.00 69.00 1.00 1.80 0.468 1.8

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