Edgewater Exploration Ltd.
TSX VENTURE : EDW
OTCQX : EDWZF

Edgewater Exploration Ltd.

January 20, 2012 09:30 ET

Edgewater Drills 2.65 g/t Gold Over 35.0 Metres; Boin Gold Zone on the Enchi Project Extended for Over 900 Metres

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 20, 2012) - Edgewater Exploration Ltd. (TSX VENTURE:EDW)(OTCQX:EDWZF) -

BOIN GOLD ZONE
KBDDH035, 1.44 g/t gold over 17 metres
KBDDH045, 2.65 g/t gold over 35 metres
KBDDH055, 2.04 g/t gold over 12 metres

Edgewater Exploration Ltd. ("Edgewater" or the "Company") is pleased to announce the latest results from the 2011 drilling programme recently completed at the Company's, Enchi Gold Project ("Enchi or the Project") in Ghana. In 2011 three rigs completed 223 drill holes totaling 26,911m. Drilling was focused on three main zones of gold mineralization, Boin, Nyam and Sewum, located along the Bibiani Fault or associated regional scale fault splays (Nyambekyere Shear and Sewum Shear). The Bibiani Fault is host to the mineralization at Kinross Gold Corporations Chirano gold mine located 70kms northeast of Enchi.

Recently completed Phase II drilling at Boin and Nyam successfully increased the size of the known gold zones by testing the mineralized zones at depth and along strike. Significant intersections include: 2.65 g/t gold over 35 metres (KBDDH045), 1.44 g/t gold over 17 metres (KBDDH035), 2.04 g/t gold over 12 metres (KBDDH055) from Boin and 0.63 g/t gold over 33 metres, including 1.58 g/t gold over 7 metres (NBDDH44) from Nyam. Assay results for five drill holes from Boin and four drill holes from Nyam are pending.

George Salamis, President and CEO of Edgewater, stated, "We are very pleased to confirm the mineralized extension of the Boin Gold Zone. These latest drilling results are from areas that were previously untested or only sparsely tested, and continue to demonstrate the excellent upside gold potential of the Project. At the Boin Zone, drill hole KBDDH035 (1.44 g/t Au over 17 metres) has extended the known gold mineralization by at least 900 metres along strike leaving the entire northern extension of Boin open for further resource potential. Diamond drilling has now traced the Boin gold mineralization over a strike length of more than 1,200 metres but only to an average depth of 75 metres, further highlighting the tremendous potential at Boin. Our 2012 drill program will recommence shortly, following up on these targets and other areas as we move Enchi forward towards a maiden resource estimate during the first half of 2012."

BOIN GOLD ZONE PHASE II DRILLING RESULTS

Historical lines of RC and RAB holes drilled across the Boin Gold Zone have intersected anomalous gold mineralization over a strike length in excess of 10 kilometres. Gold mineralization at Boin is hosted in sheared volcaniclastic and carbonaceous sedimentary rocks cut by quartz veins localized in the hanging wall of the Boin Fault.

Edgewater's first phase of diamond drilling at Boin confirmed a near surface, moderately dipping (~40º) zone of continuous gold mineralization over a distance of more than 1000 metres long up to 35 metres thick was and is open along strike and down dip. The average depth of this drilling was shallow, ranging between 50 to 75 metres from surface. In the last quarter of 2011 Phase II drilling targeting down dip and strike extensions to mineralization at Boin was completed. The programme consisted of 36 holes totaling 5148 metres, intersecting mineralization to a depth of 200 metres below surface and successfully extended the main zone of continuous gold mineralization to >1200m in length (Table I). Assays for five holes drilled at Boin are pending.

Hole KBDDH035 drilled across the Boin Fault, 900 metres north of the main zone of mineralization intersected 1.44 g/t gold over 17 metres and is interpreted to be related to a new zone that warrants further drilling. Based on the results of these drill programs a maiden NI 43-101 resource statement for Boin is expected to be prepared in the first half of 2012.

TABLE I
BOIN GOLD ZONE DRILL INTERCEPTS FROM PHASE II DRILL PROGRAMME

HOLE NO TYPE SECTION FROM(m) TO(m) INTERVAL Au Grade(g/t)
KBDDH035 Diamond Drill Hole 6100N 97 114 17 1.44
KBDDH037 Diamond Drill Hole 4200N 125 137 12 0.76
KBDDH038 Diamond Drill Hole 6100N 117 127 10 0.61
KBDDH038 Diamond Drill Hole 6100N 134 135 1 1.50
KBDDH038 Diamond Drill Hole 6100N 145 146 1 1.21
KBDDH041A Diamond Drill Hole 6000N 107 108 1 1.11
KBDDH042 Diamond Drill Hole 3900N 92 96 4 1.40
KBDDH043 Diamond Drill Hole 6000N 0 38 38 0.44
KBDDH043 Diamond Drill Hole inc 17 27 10 1.03
KBDDH044 Diamond Drill Hole 4400N 157 177 20 0.42
KBDDH045 Diamond Drill Hole 4350N 6 41 35 2.65
KBDDH046 Diamond Drill Hole 5900N 126 127 1 1.84
KBDDH047 Diamond Drill Hole 4350N 91 92 1 2.48
KBDDH049 Diamond Drill Hole 4450N 9 16 7 1.22
KBDDH050A Diamond Drill Hole 4500N 18 49 31 0.54
KBDDH050A Diamond Drill Hole inc 29 38 9 1.15
KBDDH050A Diamond Drill Hole 4500N 56 63 7 1.20
KBDDH050A Diamond Drill Hole 4500N 72 73 1 1.32
KBDDH055 Diamond Drill Hole 4700N 83 95 12 2.04
KBDDH057 Diamond Drill Hole 4900N 8 17 9 0.50
KBDDH057 Diamond Drill Hole 4900N 32 36 4 1.08
KBDDH058 Diamond Drill Hole 4900N 99 101 2 1.50

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.

NYAM GOLD ZONE RESULTS

In December 2011 Phase II drilling at the Nyam Zone was completed. Five deep diamond holes totaling 1164 metres targeted the down plunge extensions of gold mineralization identified in Phase I drilling and six RC holes totaling 662 metres were drilled to test the southern extension of the mineralized zone. All five diamond holes intersected broad zones of veined and brecciated carbonaceous siltstone that typically hosts the gold mineralization from between 80 and 175m depth below surface. Hole NBDDH044 intersected 0.67 g/t gold over 33 metres from 116m depth, including 1.58 g/t gold over 7 metres. Results for the other four deep diamond holes are still pending.

Six RC drill holes tested the Nyam mineralized structure between 400m and 1000m south of the Phase I diamond drilling. All RC holes intersected veining and alteration typical of the Nyam mineralization. NBRC001 and NBRC006 returned anomalous gold intercepts (see Table II). Further drilling of the Nyam structure along strike north and south of the main mineralized zone is warranted, and preparations are being made to re-enter the area with two drill rigs in 2012. It is anticipated that the results of these drill programs will allow the preparation of a NI 43-101 resource statement for Nyam in the first half of 2012.

TABLE II
NYAM PROSPECT RESULTS FROM THE PHASE II DRILL PROGRAMME

HOLE NO TYPE SECTION FROM(m) TO(m) INTERVAL Au Grade(g/t)
NBDDH043 Diamond Drill Hole 15200N Pending
NBDDH044 Diamond Drill Hole 15280N 116 149 33 0.63
NBDDH044 Diamond Drill Hole inc 132 149 17 0.94
NBDDH044 Diamond Drill Hole inc 132 139 7 1.58
NBDDH045 Diamond Drill Hole 15360N Pending
NBDDH046 Diamond Drill Hole 15805N Pending
NBDDH047 Diamond Drill Hole 15950N Pending
NBRC001 Diamond Drill Hole 14370N 42 43 1 16.58
NBRC001 Diamond Drill Hole 14370N 111 112 1 0.70
NBRC002 Diamond Drill Hole 14140N no sig. intercepts
NBRC003 Diamond Drill Hole 14140N no sig. intercepts
NBRC004 Diamond Drill Hole 13950N no sig. intercepts
NBRC005 Diamond Drill Hole 13860N no sig. intercepts
NBRC006 Diamond Drill Hole 13680N 72 82 10 0.59

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.

SEWUM GOLD ZONE

All assays for the 70 diamond holes drilled at the Sewum Prospect have now been received (Table III). Latest results continue to show that gold mineralization has been localized along steep to moderately dipping shear zones hosted in carbonaceous sedimentary and intrusive rocks and also in silicified and brecciated contact zones of a dolerite intrusive. The dolerite intrusive is steeply dipping, 500 metres wide and 3000 metres long. The mineralization is hosted within and around the intrusive remains open ended in all directions.

Follow-up drilling to expand the gold resources at Sewum is planned to commence in February 2012.

TABLE III
SEWUM PROSPECT PREVIOUSLY UNREPORTED DRILL INTERCEPTS FROM FIRST PHASE OF DIAMOND DRILL PROGRAMME

HOLE NO TYPE SECTION FROM(m) TO(m) INTERVAL Au Grade(g/t)
SWDDH059 Diamond Drill Hole 21000N 18 62 44 0.65
SWDDH059 Diamond Drill Hole inc 39 53 14 1.14
SWDDH069 Diamond Drill Hole 20900N 37 72 35 0.31
SWDDH069 Diamond Drill Hole inc 58 62 4 0.93

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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