Edgewater Exploration Ltd.
TSX VENTURE : EDW
OTCQX : EDWZF

Edgewater Exploration Ltd.

January 24, 2012 09:30 ET

Edgewater Drills 1.14 g/t Gold Over 68 Metres at a New Gold Zone on the Enchi Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 24, 2012) - Edgewater Exploration Ltd. (TSX VENTURE:EDW)(OTCQX:EDWZF) -

KOJINA HILL GOLD ZONE (New Gold Zone)
KJRC003, 1.14 g/t gold over 68 metres

Edgewater Exploration Ltd. ("Edgewater" or the "Company") is pleased to announce the latest results from the 2011 drilling program recently completed at the Company's, Enchi Gold Project ("Enchi or the Project") in Ghana. December 2011 drilling was conducted at two prospects previously untested by Edgewater known as Kojina Hill and Kwakyekrom. Highlights from this drilling include: 1.14 g/t gold over 68 metres (KJRC003), and 1.04 g/t gold over 10 metres (KJRC001) from the Konjina Hill prospect, and 0.71 g/t over 20 metres, including 2.18 g/t over 4 metres (KKRC006) from the Kwakyekrom target. The results of the initial drilling at Kojina Hill are significant and Edgewater is confident that further drilling has the potential to define a new gold resource.

George Salamis, President and CEO, stated, "Edgewater's first major drill intercepts reported from Kojina Hill are extremely encouraging. These latest results are from areas that were previously untested or only sparsely tested by shallow drilling, and demonstrate the excellent gold potential of the project. At Kojina Hill one of our first 3 holes, KJRC003 drilled on the northeast fringe of the zone, produced the best intercept to date at Kojina highlighting a gold mineralized zone with an apparent width of almost 80 metres. Our 2012 drill program will recommence shortly, following up on these prospects and other high priority targets. There are several opportunities for expansion on known gold zones and new gold discoveries on three different trends within the boundaries of the 568 square kilometre Enchi Project."

KOJINA HILL NEW GOLD ZONE

Kojina Hill is situated 15 kilometres north of Sewum and 5 kilometres southwest of Nyam (see plan map here). A new zone of gold mineralization has been identified through drilling at Kojina Hill. Three RC holes and one diamond hole totaling 422.5 metres were drilled to test a strong gold-in-soil anomaly and irregular gold intersections from sparse historical trenching and RC drilling. A steeply dipping, northeast striking zone 100 metres long and up to 30 metres wide was defined by Edgewater's drilling. The mineralized zone remains open in all directions. Significant intersections include: 1.14 g/t gold over 68 metres (KJRC003) and 1.04 g/t gold over 10 metres (KJRC001). Mineralization is related to variable quartz veining hosted in sheared carbonaceous sediment similar to the Boin Gold Zone located approximately 15 kilometres southwest of Kojina Hill. Following up on these excellent new results, further drilling is planned at Kojina Hill in the first quarter of 2012 once all assays have been received from the first phase of drilling. Assays for one drill hole at Kojina Hill are pending.

KWAKYEKROM GOLD ZONE

The Kwakyekrom Zone occurs along the same regional-scale structure as the Nyam Zone (Nyambekyere Shear Zone) that can be traced for >15 kilometres to the south of Nyam. Numerous gold prospects lie along this structure including the Kwakyekrom Zone (five kilometres south of Nyam) where RC drilling and trenching conducted by Leo Shields in 1996 outlined a continuous zone of gold mineralization >1500 metres long and included drill hole intersections of up to 1.51 g/t gold over 22 metres.

In November, sixteen RC holes totaling 1656 metres and one diamond hole (100.5m) were drilled at the Kwakyekrom prospect. The drilling was designed to test gold zones intersected in historical trenching and drilling. Mineralization at Kwakyekrom consists of irregular quartz veining developed within steeply dipping, sheared, carbonaceous sediment similar to Nyam, Boin and Eradi. Highlights from the drilling include: 1.08 g/t gold over 19 metres (KKDDH001), 0.71 g/t gold over 20 metres including 2.18 g/t gold over 4 metres (KKRC006). Follow-up drilling is expected to be completed once all assays from the 2011 drilling have been received.

ERADI GOLD PROSPECT

Ten shallow drill holes totaling 1063.5 metres were drilled at the Eradi Prospect. The Eradi Prospect lies at the convergence of two of the main regional scale structures, the Bibiani and Nyambekyere shear zones, situated at the northern end of the Enchi licenses. To date preliminary work has tested 1500 metres of a gold-in-soil anomaly in excess of five kilometres in length at Eradi. Work has included nine trenches that returned gold intervals of 1.47 g/t over 36.9 metres (ERTR001) and 0.86 g/t over 10 metres (ERTR007).

The ten holes tested a 1400 metres strike length of the Eradi mineralized zone. Mineralization consisted of variable concentrations of quartz veins hosted in sheared carbonaceous siltstone and sandstone. Significant gold values were intercepted in six holes (Table IV). Assays for ERDDH009 have not yet been received. Further drilling is warranted to close-up the drill spacing and confirm continuity between drill sections.

TABLE IV
ERADI GOLD PROSPECT SIGNIFICANT DRILL INTERCEPTS FROM 2011 DIAMOND DRILL PROGRAM

HOLE NO TYPE SECTION FROM (m) TO (m) INTERVAL (m) ASSAY (Au g/t)
ERDDH001 Diamond Drillhole 50400N 21 23 2 0.62
ERDDH001 Diamond Drillhole 50400N 28 30 2 3.51
ERDDH001 Diamond Drillhole 50400N 98 102 4 1.62
ERDDH002 Diamond Drillhole 50400N 0 9 9 0.29
ERDDH002 Diamond Drillhole 50400N 25 52 27 0.60
ERDDH002 Diamond Drillhole inc 42 52 10 1.30
ERDDH003 Diamond Drillhole 50230N 58 68 10 1.15
ERDDH004 Diamond Drillhole 50600N no sig results
ERDDH005 Diamond Drillhole 49720N no sig results
ERDDH006 Diamond Drillhole 49600N 5 22 17 0.60
ERDDH006 Diamond Drillhole inc 6 13 7 1.03
ERDDH007 Diamond Drillhole 49600N 39 48 9 1.01
ERDDH007 Diamond Drillhole inc 45 48 3 2.48
ERDDH007 Diamond Drillhole 49600N 60 64 4 2.93
ERDDH008 Diamond Drillhole 49480N no sig results
ERDDH009 Diamond Drillhole 49220N results pending
ERDDH010 Diamond Drillhole 49220N 50 51 1 0.35

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.

Sample analyses have been conducted at independent commercial facilities SGS and Intertek Labs in Tarkwa, Ghana. 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

"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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