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Edgewater Exploration Ltd.
Edgewater Exploration Ltd.
MEG Luncheon Presentation
March 26, 2014
Corcoesto
Orogenic Gold Deposit
Galicia, Northwestern Spain
Edgewater Exploration Ltd.
MEG Luncheon Presentation
March 26, 2014
Corcoesto
Orogenic Gold Deposit
Galicia, Northwestern Spain
Mr. Gregory Smith, P. Geo., Vice President of Exploration for Edgewater Exploration
Ltd., is the qualified person as defined by NI 43-101 and has prepared and approved
the technical data and information in this presentation.
Edgewater Exploration Ltd.
People
Company
100% purchase from Lundin Mining Corp. (TSX:LUN)
Measured and Indicated 1,000,000 oz Gold
Inferred 885,000 oz Gold
Earned 51% interest from Red Back Mining now Kinross Gold Corp. (TSX:K) Mid-stage exploration. Inferred Resource of 750,000 oz Au (20Mt @ 1.13g/t Au)
Edgewater
Exploration Ltd.
TSX-V: EDW
Corcoesto Gold Project, Galicia, Spain
TSX-V: EDW
Corcoesto Gold Project
History and Acquisition
1996 - 2003 Rio Narcea conducted an intense exploration program including soil
geochemistry, geophysics, 17 kilometres of trenches, 10,500 rock samples, and more
than 200 drill holes (20,000 metres). In 2003 Kinbaury Gold Corp. optioned the project
and completed an additional 38 holes for 7,600 metres.
Edgewater Exploration Ltd. purchased the Corcoesto Project in 2010 and since then
has completed a series of drilling programs, and technical studies designed to advance
the project, upgrade and expand the mineral resources, and evaluate the economics
Possible limited work during Roman times
1885 - 1910 Sagasta Gold Mines Ltd.
Completed 3km of underground workings and
produced <50,000 ounces of gold
1918 - 1926 the company La Aurífera Gallega,
continued underground work
1972-1973 exploration by Rio Tinto Patiño
1975 Goldfields completed trenching program
1974-1976 work by the IGME included
surveying and rock and soil geochemistry
1983 – 1987 Exploraciones Mineras del
Cantábrico and Rio Tinto Minera (1990),
prospecting including 50 diamond drill holes
(10,000 metres)
Corcoesto Gold Project
Corcoesto
Complex Tectonic
And Structural History
Boiron, M.C., et al 2003.
Corcoesto Gold Project
Corcoesto
Galicia
Mokrsko
Czech Republic
Geologically, Corcoesto is located in the Schistose Domain of Galicia Tras Os
Montes (SDGTM) Zone, which forms the inner part of the Iberian Hercynian Massif
1. Cantabrian Zone
2. West-Asturian-Leonese Zone
3. Central Iberian Zone
4. Galicia-Tras-Os-Montes Zone
5. Ossa-Morena Zone
6. South-Portuguese Zone
Iberian Hercynian Massif
(Farias et al.,1987)
1
2
3
4
5
6
Carlés
El Valle-Boinás
Salave
Penedono
Corcoesto
Known gold deposits
Jales
Corcoesto Gold Project
Las Medulas
Corcoesto Gold Project
Las Medulas – Historic Roman Workings
Approximately 200km south of Corcoesto
Corcoesto Gold Project
Malpica-Tuy Belt
CorcoestoCorcoesto (EDW)
Santa Comba (EDW)
Boticas (Medgold)
Jales / Tres Minas
(Petaquilla)
Barca (Medgold)
Covas (Avrupa)
Valongo (Medgold)
Corcoesto - Property Geology
Geology and gold vein
systems: Cova Crea,
Pozo del Ingles,
Petón de Lobo,
Montefurado,
Fonterremula, Picotos
and Lampreira.
Lithology
Leucocratic gneiss
Schists
Alternating gneiss/
metasediments/migmatites
Felsic dyke
Gold vein sytems
Inferred contact
Corcoesto - Lithologies
Biotitic GneissMetasediments
Leucocratic Gneiss. Coarse grainedLeucocratic Gneiss. Fine grained
Migmatites Felsitic Dyke
Corcoesto - Project Mineralization
Gold mineralization consists mainly of Arsenopyrite-bearing Quartz Veins
included in larger zones of silicification, commonly with sericitic and
potassium feldspar alteration. There are three different styles of
mineralization:
1.- Sheeted Veins
2.- Discrete Quartz Veins
3.- Silicified Breccias
Corcoesto - Project Mineralization
1.- Sheeted Quartz Veins (N70W/70NE):
Tightly spaced mm-cm quartz veins, with weak arsenopyrite
dissemination (<1% As).
Thick mineralized zones at average grade, with intercepts like
1.95g Au/t over 41.10m
Hosted mainly in the fine grained leucocratic gneiss.
COR-29x
Mineralization Styles
2.- Discrete Quartz Veins (N70E/70NW):
Grey-bluish cm-dm quartz veins with fine grained
disseminated arsenopyrite (>1% As).
High grade in narrow zones,
up to 148.50g Au/t over 1.10m
Normally, high grade veins are included in lower
grade zones of weak silicification with small veins.
High grade quartz veins up to 10.72g Au/t over 17.0m
(ddh 10W10)
Hosted mainly in biotitic gneiss and migmatites
(Pozo del Ingles and Cova Crea)
10W10
Mineralization Styles
Corcoesto - Project Mineralization
3.- Silicified Breccia:
Grey-bluish silica with fine grained disseminated
arsenopyrite (>1% As) flooding breccia zones.
High grade in narrow zones, up to 46g Au/t over 1.0m.
Distributed at various sites
Mineralization Styles
Corcoesto - Project Mineralization
Corcoesto - Project Mineralization
Corcoesto - Structural Setting
S-C Fabric SYNTHETIC RIEDEL
FRACTURES (N40-50E)
(TRANSPRESSIVE REGIME)
DEFORMATION ELLIPSOID
ASSOCIATED WITH MAIN (N30E)
DEXTRAL SHEAR
ANTITHETIC RIEDEL
FRACTURES (N80-70W)
(TRANSITIVE REGIME)
DEFORMATION ELLIPSOID MINERALIZED VEINS
DEFORMATION ELLIPSOID
FRACTURES
LEGEND:
EXTENSION
(N50W-30W)
NW TREND FOR
Au-As SOIL ANOMALIES ?
N70E TREND
Au - As SOIL
ANOMALIES
Structural control for
gold mineralization
Jesus Garcia NietoAnd
Lluis Boixet
Corcoesto - Structural Setting
Structural control for
gold mineralization
Corcoesto – Gold/Arsenic Association
Corcoesto Exploration
Exploration Program
- Geochemistry
- Mapping
- Trenching
- Drilling
Corcoesto – Soil Geochemistry
Au (ppb)
0 - 228.8
228.8 - 378
378 - 609.45
609.45 - 1,021.4
1,021.4 - 1,316.9
1,316.9 - 2,659.69
2,659.69 - 5,360
0 - 643.6
643.6 - 851
851 - 1,190
1,190 - 1,627.6
1,627.6 - 2,276.9
2,276.9 - 3,724.19
3,724.19 - 4,090
As (ppm)
Soil Geochemistry (Au and As)
Corcoesto – Soil Geochemistry
Soil Geochemistry (Th and W)
Corcoesto - Trenching
Corcoesto - Drilling
Picotos
Pozo de
Ingles
Peton de
Lobo
Cova Crea
Corcoesto - Drilling
Drilling SummaryNumber of Holes Total Meters
EDW Diamond Drilling
(Oct-2010 up to Feb-2013)
286 53,942.45
KNB Diamond Drilling
2006-2007 45 6,465.10
2005 12 2,245.15
KNB Total 57 8,710.25
RNGM Drilling
Core 192 16,794.65
Reverse Circulation 31 2,366.30
RNGM Total 223 19,160.95
Rio Tinto Drilling
Core 38 7,582.98
Project Total 596 89,396.63
Corcoesto – Longitudinal Sections
Deposit Modeling: Longitudinal Sections (grade x thickness)
Corcoesto – Cross Section
Corcoesto S-N Project Cross Section (3660)
5401
2.28g / 8.00m
12W217
4.20g / 5.70m
12W219
5.66g / 3.50m
10W02
4.27g / 6.00m
12W222
2.87g / 9.80m
12W226
1.80g / 14.90m
10W07
2.28g / 17.10m
12W231
2.92g / 4.50m
11W48
5.43g / 2.10m
11W57
3.15g / 6.70m
5401
2,28g / 8.00m
COR209
4.39g / 11.50m
COR169
11.13g / 10.05m11W52
1.11g / 11.35m
COR221
1.23g / 13.00m
06K33
1.72g / 11.30m
N
S
LOCATION MAP
Cova Crea Pozo de Ingles
Picotos
Corcoesto – Cross Section
N
Deposit Modeling: Cova Crea. Cross Section 3660
5401
2.28g / 8.00m
12W217
4.20g / 5.70m
12W219
5.66g / 3.50m
10W02
4.27g / 6,00m
12W222
2.87g / 9.80m
12W226
1.80g / 14.90m
10W07
2.28g / 17.10m
12W231
3.92g / 4.50m
11W48
5.43g / 2.10m
LOCATION MAP
Cova Crea
Corcoesto - Mineral Resource
2013 Updated Resource Estimate (Micon International, August 2013)
NI 43-101 Pit Constrained Resource Summary (0.5 & 0.8 g/t Gold Cut-off)
Resource ClassCutoff
(g/t Au)
Tonnes
(x1000)
Gold
g/t
Contained Gold
(x1000 oz)
Measured 0.5 14,910 1.34 644
Indicated 0.5 9,298 1.28 383
Measured +
Indicated0.5 24,208 1.32 1,027
Inferred 0.5 5,321 1.21 207
Measured 0.8 10,170 1.67 546
Indicated 0.8 6,065 1.63 317
Measured +
Indicated0.8 16,235 1.65 863
Inferred 0.8 3,733 1.44 173
Corcoesto - Mineral Resource
2013 Updated Resource Estimate (Micon International, August 2013)
1. Mineral resources were classified following the guidelines of the JORC Code
(2012) an accepted reporting code in terms of Canadian National Instrument 43-101.
2. Mineral resources are constrained within a Whittle pit shell based on a gold price
of US$1,400/oz.
3. Numbers may not compute due to rounding.
4. All grades have been quoted in grams per tonne (g/t) for the resource inventory.
5. Density values were assigned in relation to an oxide surface; no further distinction
between fresh and oxide material has been made within this resource estimate.
6. There are no known legal, political, environmental or other risks that could
materially affect the potential development of these mineral resources
7. The 2013 Corcoesto NI 43-101 Resource Estimate Technical Report was
prepared by Jason Che Osmond, M.Sc., EurGeol., C. Geol., FGS, Senior Geologist,
Micon International Co. Limited and a Qualified Person (“QP”) as defined by National
Instrument 43-101 (SEDAR)
Corcoesto – Resource Model
Picotos
Pozo de
Ingles
Peton de
Lobo
Cova Crea
Corcoesto - Exploration Potential
Targets
Preliminary Economic Assessment 2011
W
E
Project Assumptions (US $) Gold Price $ 1,300
Dollar/Euro $ 1.38/ Euro
Royalty 0.5%
Capital Contingency 17.5%
Discount Rate 5.0%
Base Case Highlights Average Annual Gold Production 102,000 Oz
Average Annual Net Revenue $ 60.0 Million
NPV $ 206 Million
Pre-Tax IRR 24%
Pre-Tax Payback 3.4 years
OP and UG Capital Costs $ 135 Million
Operating Cost $713/oz
Life of Mine 9.9 years
Life-of-Mine Parameters Mill Feed Grade 1.70 g/t Au
Stripping Ratio 8.0 / 1
Annual Throughput 2.1 M tonnes
Milling Rate 6,000 t/day
Gold Recovery 89.1%
PRE-TAX FINANCIAL MODEL
Gold Price Scenarios
Units
Base
Case
Gold US $ /Oz 1100 1300 1500
NPV 5% discount 71 206 340
Payback Years 5.6 3.4 2.5
IRR % 12 24 34
Working capital in the amount of $12.5 million, sustaining capital
$33 million and reclamation and closure costs of $10.5 million are also included in the above economic evaluation. Pit shells
calculated at $1100/oz
Preliminary Economic Assessment 2011
W
E
PEA Note Disclosure• CIM definition standards were followed for the resource estimate
• 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.
• 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 196m
• 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
• Dilution is included for a minimum mining width of 2.0 m on a 4.0 m high mining bench
• Mineral Resources that are not mineral reserves do not have economic viability. Preliminary Economic Assessment NI43‐101 Compliant includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized.
• Spanish corporate tax rate is 30%.
Site Layout Approved
Open Pit
Tailings
Waste
Dump
Plant Site
Milestones and Current Status
2011; Preliminary Economic Assessment completed
2011- 2013; >50,000 metres of drilling performed designed to convert resources
January 2013 – Environmental Impact Statement (EIS) Approval
Updated Mineral Resource completed August 2013 (>1M oz Au M&I)
H2 2013 Mining Permit Review process suspended
Financing stipulations imposed by the Galician government
Discussions On-going with Potential Partner
Ministry of Environment Approves EIS
EIS Approval January 2013
Corcoesto Project deemed to be a viable project
and in the public interest for Galicia
- Use of Cyanide approved
- Open pit extraction approved
- Additional data and studies requested
- All requested materials submitted Q3 2013
Edgewater's approved EIS at Corcoesto Gold
Project remains in good standing for 5 years
Corcoesto - Current Status of Permitting
1) The Galician Government stipulated on July 2013 (official notice March 2014) that Edgewater is obliged to show funding sources of 30 M Euros or be in a position to be able to point to a partner’s balance sheet that would satisfy this amount. The amount is approximately 25% of the estimated capital costs.
2) Edgewater's approved EIS for the Corcoesto Gold Project remains in good standing for 5 years; and
3) Edgewater can re-apply for final Corcoesto mining permits at any time once the financial and technical (operational) requirements are met.
Edgewater continues to work to obtain all of the remaining permits
to advance the Corcoesto Project to construction and production.
Advanced discussions with potential partners contemplate a
strategic partnership aimed at benefitting the local communities
surrounding the Corcoesto Gold Project and the development of
the project in the most environmentally sustainable manner.
Thank You
Edgewater Exploration Ltd.
MEG Luncheon Presentation
March 26, 2014
Corcoesto
Orogenic Gold Deposit
Galicia, Northwestern Spain