Edgewater Exploration Ltd.
TSX VENTURE : EDW
OTCQX : EDWZF

Edgewater Exploration Ltd.

September 12, 2011 10:00 ET

Edgewater Engages CRN Engineering for an Underground Ramp Study on Its 100% Owned Corcoesto Gold Project, Spain

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 12, 2011) - Edgewater Exploration Ltd. (TSX VENTURE:EDW)(OTCQX:EDWZF) -

  • Drilling continues to expand and upgrade gold resource, 3rd drill rig added
  • Work on Scoping Study advancing on schedule
  • Engineering firm contracted to complete Underground Ramp study

Mr. George Salamis, President and CEO of Edgewater Exploration Ltd. ("Edgewater" or the "Company") is pleased to announce the engagement of the Spanish Engineering firm CRN SA who have been tasked with initiating an engineering study for the future construction of an underground ramp at the company's 100% owned Corcoesto, gold deposit situated in Galicia, Spain.

George Salamis, President and CEO, states, "Initiating the engineering for potential underground ramp construction to probe the deeper depths of the Corcoesto deposit signals a key transition of the project from mid-stage exploration to advanced exploration and near-term development. Subject to further studies by our various engineering consultants, future underground ramp development could significantly enhance the economic viability of the Corcoesto Project when viewed in parallel to open pit mining."

The proposed development of an underground ramp will provide access to complete underground infill drilling for the purposes of upgrading inferred gold resources to a measured and indicated category and also provide bulk samples for additional metallurgical testing. In addition, the ramp could also potentially serve as future access for underground mining and deeper drill exploration below the currently known depths of the deposit. Meetings with the local mining and environmental authorities and with the municipality have been held in order to accelerate the permitting for the start of the ramp construction. Edgewater has committed to make every effort to employ local workers from the surrounding municipality for its contractors and ramp construction.

On-going "Scoping Study" ("Preliminary Economic Assessment" or "PEA") lead by Mr. Alan Noble, P.Eng., from ORE Reserves Engineering, is progressing on schedule and is currently pending completion of metallurgical tests. Preliminary resource modeling analysis has been conducted, with pit shells generated at different gold prices in parallel with the various production throughput parameter options being considered. In addition, various plant site layouts, tailings and waste rock storage facilities, are being finalized as part of the study. The PEA will model the Project using a revised and updated resource model and will include the evaluation of both open pit and underground alternatives and synergies. The PEA is scheduled to be completed in Q4, 2011.

The on-going infill and step-out diamond drilling program is progressing as expected with the completion of 36 drill holes totaling 9,761.80m. Encouraging results for the first 31 drill holes were previously released (see News Releases dated January 31st 2011, March 17, 2011 and July 20, 2011).

The latest results from the in-fill and step-out drill programs continue to highlight excellent results from the Pozo del Ingles area with intercepts of:

Drill Length Au
Hole From To (metres ) g/t
11W32 121.40 128.70 7.30 2.1
11W32 and 168.00 189.00 21.00 0.7
11W33 151.50 156.10 4.60 5.7
11W33 incl 153.90 155.10 1.20 18.9
11W34 195.20 205.00 9.80 2.6
11W34 incl 195.20 196.30 1.10 11.4
11W35 176.30 186.00 9.70 1.3
11W35 197.00 222.00 25.00 0.8
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.

Assays are pending for DDH 11W36. DDH 11W37 is currently in progress in the Pozo del Ingles area. Both holes have intercepted quartz veining, silica flooding and related sulphide mineralization consistent with the projected resource model. A second rig has recently been engaged and is currently drilling DDH 11W38 in the Peton de Lobo area as part of the infill resource delineation drill program.

Edgewater expects to add a third rig shortly in order to accelerate the step-out and infill drilling to further define the total resource potential on the project. All exploration activities to date are progressing on budget and ahead of schedule.

For a detailed drill location map please view a Corcoesto Plan map on the Company's website at www.edgewaterx.com.

An updated 2011 NI 43-101 compliant resource at Corcoesto was announced on May 31, 2011 (see details in News Release dated May 31, 2011) and consists of a Measured and Indicated resource of 5,783,000 tonnes grading 1.74 g/t Au containing 325,000 ozs gold at a 0.65 g/t Au cut-off and an Inferred resource of 20,265,000 tonnes grading 1.76 g/t Au containing 1,149,000 ozs gold. Core recoveries continue to be excellent and in most cases 100%. The current 12,000m drilling program is designed to expand the existing gold resource and upgrade a portion of the resource from Inferred to Measured and Indicated. The NI 43-101 Technical report on the updated resource estimate was filed on July 15th, 2011.

Sample preparation and analyses are conducted using industry standard practices. Samples are delivered to Chemex Lab in Seville, Spain and sample analyses completed at independent commercial facilities of ALS Romania for gold and ALS Canada (Vancouver) for As. Both labs have the certificate of ISO/IEC 17025:2005. Sampling and analyses include a rigorous Quality Assurance / Quality Control (QA/QC) program consisting of the insertion of blanks, duplicate samples, and check assays. A review of the QA/QC results shows no significant bias and all results are considered highly reliable.

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 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

Drill Hole From To Length Au As Rec G*T
(Metres ) g/t % % (g-m/t )
11W32 80.80 81.80 1.00 0.7 1.01 100.0 0.7
11W32 114.00 115.15 1.15 2.5 1.45 100.0 2.8
11W32 121.40 128.70 7.30 2.1 0.82 100.0 15.5
11W32 incl 124.00 128.70 4.70 3.0 1.03 100.0 14.1
11W32 incl 125.00 126.30 1.30 4.6 0.86 100.0 6.0
11W32 incl 127.60 128.70 1.10 3.4 1.61 100.0 3.7
11W32 168.00 189.00 21.00 0.7 0.45 100.0 14.5
11W32 incl 170.00 171.00 1.00 1.1 0.17 100.0 1.1
11W32 incl 172.00 173.00 1.00 2.3 1.08 100.0 2.3
11W32 incl 177.40 178.40 1.00 4.8 1.98 100.0 4.8
11W32 incl 182.40 183.50 1.10 1.9 1.85 100.0 2.1
11W32 195.00 197.00 2.00 0.7 0.36 100.0 1.4
11W33 74.60 75.60 1.00 3.3 1.23 100.0 3.3
11W33 144.50 146.60 2.10 0.6 0.16 100.0 1.3
11W33 151.50 156.10 4.60 5.7 0.78 100.0 26.2
11W33 incl 153.90 155.10 1.20 18.9 1.65 100.0 22.7
11W33 172.50 173.50 1.00 0.7 0.15 100.0 0.7
11W33 185.50 186.50 1.00 0.7 0.12 100.0 0.7
11W33 194.90 196.90 2.00 3.0 0.56 100.0 6.1
11W33 incl 194.90 195.90 1.00 4.4 0.60 100.0 4.4
11W33 209.80 215.80 6.00 1.0 0.54 100.0 6.1
11W33 incl 211.80 215.80 4.00 1.1 0.60 100.0 4.5
11W33 222.20 225.20 3.00 1.0 0.25 100.0 3.0
11W33 incl 222.20 223.20 1.00 1.8 0.26 100.0 1.8
11W33 incl 224.20 225.20 1.00 1.2 0.46 100.0 1.2
11W33 235.70 236.70 1.00 2.3 1.40 100.0 2.3
11W34 11.00 12.00 1.00 2.6 0.03 100.0 2.6
11W34 83.80 85.25 1.45 1.0 0.30 100.0 1.4
11W34 163.80 164.80 1.00 0.7 0.02 100.0 0.7
11W34 195.20 205.00 9.80 2.6 0.75 100.0 25.2
11W34 incl 195.20 202.80 7.60 3.2 0.90 100.0 24.5
11W34 incl 195.20 196.30 1.10 11.4 2.50 100.0 12.5
11W34 incl 200.70 201.80 1.10 6.9 1.14 100.0 7.6
11W34 222.00 223.00 1.00 0.5 0.06 100.0 0.5
11W34 235.10 236.10 1.00 1.3 0.13 100.0 1.3
11W35 61.70 62.70 1.00 1.0 0.47 100.0 1.0
11W35 161.45 162.70 1.25 0.6 0.15 100.0 0.8
11W35 166.85 169.30 2.45 0.9 1.52 100.0 2.1
11W35 incl 167.85 169.30 1.45 1.1 2.09 100.0 1.6
11W35 176.30 186.00 9.70 1.3 0.46 100.0 12.1
11W35 incl 176.30 177.30 1.00 3.7 0.50 100.0 3.7
11W35 incl 181.00 182.00 1.00 3.6 0.69 100.0 3.6
11W35 197.00 222.00 25.00 0.8 0.17 100.0 19.8
11W35 incl 197.00 198.00 1.00 8.4 0.38 100.0 8.4
11W35 incl 220.00 222.00 2.00 1.8 0.26 100.0 3.5
11W35 239.15 240.15 1.00 2.0 0.43 100.0 2.0
11W35 251.00 263.90 12.90 0.6 0.32 100.0 7.5
11W35 incl 251.00 252.00 1.00 3.8 0.77 100.0 3.8
11W35 incl 254.00 255.00 1.00 1.1 0.43 100.0 1.1

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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