Edgewater Exploration Ltd.

Edgewater Exploration Ltd.

May 31, 2011 09:02 ET

Edgewater Increases Inferred Resources by 30% at the Corcoesto Gold Project, Spain

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 31, 2011) - Mr. George Salamis, President and CEO of Edgewater Exploration Ltd.(TSX VENTURE:EDW)(OTCQX:EDWZF) ("Edgewater" or the "Company") is pleased to announce an increase in the Resource at the Company's Corcoesto Gold Project, Galicia, Spain. The inclusion of recent drilling completed by Edgewater in an updated geological model has increased the contained gold ounces in the Corcoesto resource by 3% to 325,000 ounces for measured and indicated gold resources and by 30% to 1,149,000 ounces of inferred gold resources.

President and CEO, George Salamis, adds; "In 2010 Edgewater acquired the Corcoesto Gold Project which, at that time, contained 324,000 oz of gold measured and indicated and 38,400 ounces in the inferred category. Since then we have successfully increased the gold resource by 400%. With the 2011 increased resource we now feel that Corcoesto has the potential to demonstrate economic viability and therefore this resource will form the basis of a scoping study to be completed in 2011. Based on this increased resource I am confident the scoping study will demonstrate positive economics and therefore will result in an increased value for our shareholders. In addition, the local support demonstrated for the project at all levels of government supports our view that Corcoesto will one day become a viable gold producer."

Significant features of the Increased (2011) Resources include;

  1. initial deeper resource at Cova Creo of 45,000 oz grading 4.09 g/t Au which is currently the highest grade for any individual resource area
  2. increase in grade for near surface resource at Cova Crea from 1.50 g/t Au to 1.67 g/t Au and the zones remains open
  3. resources for both the near surface and deeper portions of the main Pozo de Ingles Zone increased in size and grade; the inferred resources above 200m below surface have increased from 208,000 oz at 1.40 g/t Au (0.65 g/t Au cut off) to 246,000 oz at 1.41 g/t Au. At depth (> 200m below surface, 2.0 g/t Au cut off) it increased from 93,000 oz grading 3.14 g/t Au to 176,000 oz at 3.42 g/t Au
  4. the near surface portion of the Peton de Lobo Zone was extended approximately 150 metres to the east by recent drilling and remains open (additional drilling is planned). The deeper portion of the Peton de Lobo resource decreased in grade due to lower than expected grades in drill hole 10W01.

Details of the Updated Resource (2011) compared to the previous (2010) resource are as follows;

Table 1  
Corcoesto Gold Deposit  
2010 and 2011 Mineral Resource Summary  
Resource Year   Resource Class Cutoff
(g/t Au
) Tonnes
) g/t Au Contained Gold
(x1000 oz
Previous Estimate (2010)   Measured 0.65   3,834   1.76 217  
    Indicated 0.65   1,823   1.67 98  
    Measured + Indicated 0.65   5,657   1.73 315  
    Inferred 0.65/2.0   16,542   1.66 885  
Current Estimate (2011)   Measured 0.65   3,899   1.77 222  
    Indicated 0.65   1,823   1.69 103  
    Measured + Indicated 0.65   5,783   1.74 325  
    Inferred 0.65/2.0   20,265   1.76 1,149  
Change (2011 vs 2010)   Measured + Indicated 0.65   +2%   +0.5% +3%  
    Inferred 0.65/2.0   +22.5%   +6% +30%  
  1. CIM definition standards were followed for the resource estimate
  2. The 2010 and 2011 resource models used an inverse-distance-power (IDP) grade estimation within a three-dimensional block model with mineralized zones defined by wireframed solids.
  3. A total of 19,075.7 m of surface trenching in 225 trenches, 443.1 m of adit sampling in 4 adits and 42,111.18 metres of diamond and RC drilling in 342 drill holes were used in the resource with sample spacing's that were less than 30 m for Measured resources, less than 40 metres for Indicated resources and less than 195 m for Inferred resources except for Inferred resources below 200 m from surface and for the northern two vein systems that used drill spacing's of 196 m
  4. A base cutoff grade of 0.65 g/t Au was used for reporting resources above a depth of 200 m from surface and a cutoff grade of 2.0 g/t Au was used for reporting resources below 200 m from surface
  5. Dilution is included for a minimum mining width of 2.0 m on a 4.0 m high mining bench
  6. Mineral Resources that are not mineral reserves do not have economic viability

The Updated (2011) Resource Estimate also evaluated the Corcoesto deposit at lower cut off grades of 0.5 g/t Au (above -200m) and 1.0 g/t Au (below -200m). Results are as follows;

Table 2  
Corcoesto Gold Deposit  
Resource Year   Resource Class Cutoff
(g/t Au
) Tonnes
) g/t Au Contained Gold
(x1000 oz
Current Estimate (2011)   Measured 0.50   4,832   1.54 240  
(alternative cut-offs)   Indicated 0.50   2,348   1.49 112  
    Measured + Indicated 0.50   7,180   1.53 352  
    Inferred 0.50/1.0   31,554   1.50 1,517  

The Updated (2011) Mineral Resource estimate was based on 42,111.18 m of diamond and RC drilling in 342 holes as well as surface trenching and adit sampling data. The Mineral Resource includes drilling results that were not included in prior resource estimates including deep drilling.

Work has also begun on the Scoping Study ("Preliminary Assessment" or "PA") on the Corcoesto Gold Project which will model the Project using the expanded resource and including the evaluation of both open pit and underground alternative and synergies. The PA is scheduled to be completed in 2011. One diamond drill rig is currently active on the Corcoesto Gold Project conducting a program of step-out and infill drilling to further define the total resource potential on the project.

The Corcoesto resource estimate data in this news release was read and approved by Alan Noble, P.E., of Ore Reserves Engineering Inc., a professional mining engineer registered in the State of Colorado, USA and a Qualified Person ("QP") as defined by National Instrument 43-101. A technical report is being prepared and will be filed in the next 45 days.

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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