Spain Corcoesto Gold Project
Galicia - Spain
Forward Looking Statement
Certain statements in this document constitute “forward looking statements” which may not
be bas...
Spain Corcoesto Gold Project

1. INTRODUCTION, LOCATION, HISTORY
2. GEOLOGY AND RESOURCES
3. FEASIBILITY AND MINE PLAN
Spain Corcoesto Gold Project

INTRODUCTION, LOCATION, HISTORY
Spain Corcoesto Gold Project
Claim Status

Project Office

Mineral Right

Type

Emilita
Exploitation Concession
Ciudad de ...
Spain Corcoesto Gold Project
Adjacent properties
 EDW applied for addtional

ground along the gold belt
(more than 15,000...
Spain Corcoesto Gold Project
Government and Community support

 Support for Project Development at Local






and Re...
Spain Corcoesto Gold Project
Communication and PR. (Guindeira Communication & Events)
Communication Strategy based on:

 ...
Spain Corcoesto Gold Project
Municipal Support to the Mining Project
Mayor’s winning campaign
included support of Corcoest...
Spain Corcoesto Gold Project
Key Project Personnel
 Country Manager:

Lluís Boixet, (Senior Geologist)

 Director Corpor...
Spain Corcoesto Gold Project
Management
George Salamis
President, Chief Executive Officer
+20 years experience in the mini...
Spain Corcoesto Gold Project
Project History

 Shallow pits from the Roman Times.
 Between 1895 and 1910: Shallow UG
exp...
Spain Corcoesto Gold Project
Au (ppb)

As (ppm)

0 - 228.8
228.8 - 378
378 - 609.45
609.45 - 1,021.4
1,021.4 - 1,316.9
1,3...
Spain Corcoesto Gold Project
Property Geology

Local Geology
 Corcoesto Map, Showing
lithologies and gold vein
systems:

...
Spain Corcoesto Gold Project

GEOLOGY AND RESOURCES
Spain Corcoesto Gold Project
Main Gold Deposits in the Iberian Peninsula
Corcoesto 1.5 M Oz

Salave 2 M Oz
El Valle-Boinás...
Spain Corcoesto Gold Project
Geological map
Salave
El Valle-Boinás-Carlés

1

Corcoesto

Iberian Hercynian Massif
1. Canta...
Spain Corcoesto Gold Project
Regional Geology

 Malpica–Tuy Gold Belt
(Over 150 Km long structural zone
with numerous gol...
Spain Corcoesto Gold Project
Property Geology

Introduction
 Gold Mineralization associated
with Quartz veins, silicifica...
Spain Corcoesto Gold Project
Lithologies

Property Geology

Biotitic Gneiss

Metasediments

Leucocratic Gneiss. Coarse gra...
Spain Corcoesto Gold Project
Mineralization

Property Geology

 Gold mineralization consists mainly of Arsenopyrite-beari...
Spain Corcoesto Gold Project
Mineralization
Styles

Property Geology

1.- Sheeted Quartz Veins (N70W/70NE):
 Tightly spac...
Spain Corcoesto Gold Project
Mineralization
Styles

Property Geology

2.- Descrete Quartz Veins (N70E/70NW):
 Grey-bluish...
Spain Corcoesto Gold Project
Mineralization
Styles

Property Geology

3.- Silicified Breccia:
 Grey-bluish silica with fi...
Spain Corcoesto Gold Project
Property Geology
DEFORMATION ELLIPSOID
ASSOCIATED WITH MAIN (N30E)
DEXTRAL SHEAR

Structural ...
Spain Corcoesto Gold Project
Drilling Summary
Number of Holes

Total Meters

278

52,940.45

45
12
57

6,465.10
2,245.15
8...
Spain Corcoesto Gold Project
Corcoesto ddh location map

Legend
EDW Drilling

Ended
RNGM

Old Drilling

KNB
RTM

Lithology...
Spain Corcoesto Gold Project
Deposit modeling: Petón de Lobo. Cross Section 4400 (Rotated)
LOCATION MAP

COR190
2.19g / 6....
Spain Corcoesto Gold Project
Deposit modeling: Petón de Lobo. Longitudinal Section (grade x thickness)
Spain Corcoesto Gold Project
Corcoesto S-N Project Cross Section (3660)

5401
2.28g / 8.00m
COR169
11.13g / 10.05m

12W217...
Spain Corcoesto Gold Project
Deposit modeling: Pozo del Inglés. Cross Section 3860

N

COR82
3.28g / 5.00m

LOCATION MAP

...
Spain Corcoesto Gold Project
Deposit modeling: Pozo del Inglés. Longitudinal Section (grade x thickness)
Spain Corcoesto Gold Project
Deposit modeling: Cova Crea. Cross Section 3660

5401
2.28g / 8.00m
LOCATION MAP

N

12W217
4...
Spain Corcoesto Gold Project
Deposit modeling: Cova Crea. Longitudinal Section (grade x thickness)

N
Spain Corcoesto Gold Project
2013 Updated Resource Estimate (Micon International, Aug 6, 2013)
NI 43-101 Pit Constrained R...
Spain Corcoesto Gold Project
Geological Model
Spain Corcoesto Gold Project
QA / QC
EDW
LABORATORY

%

CHEMEX

KNB
EXTERNAL LAB
OMAC

SAMPLES

20311
1131

5

BLANKS

113...
Spain Corcoesto Gold Project

Exploration Upside
Exploration Upside Potential
Corcoesto Gold Project – Plan Map

Potential...
Spain Corcoesto Gold Project
Gold zone orientations and upside potential at depth

Potential Resource
below pits
Spain Corcoesto Gold Project

FEASIBILITY AND MINE PLAN
Spain Corcoesto Gold Project
Scoping Study – Preliminary Economic Assessment (Nov, 2011)
Alan Noble, Mining Engineer
Jaye ...
Spain Corcoesto Gold Project
Preliminary Economic Assessment (Nov 2011)
 Project Assumptions (US $)






Gold Price...
Spain Corcoesto Gold Project
Preliminary Economic Assessment Cost Breakdown
 (PEA) Initial Capital Cost Breakdown




...
Preliminary Economic Assessment Note Disclosure
•
•
•

•
•
•

•

•

CIM definition standards were followed for the resourc...
Spain Corcoesto Gold Project
Spanish Tax Advantages

1. The Spanish law has established tax advantages. The taxable
income...
Spain Corcoesto Gold Project
Preliminary Economic Assessment: Open Pits Location
Spain Corcoesto Gold Project
Project highlights and milestones for 2012/2013
 Drilling campaign. Completed 52,490.45m.

...
Spain Corcoesto Gold Project
Environmental Timelines and licences

ENVIRONMENTAL PERMIT ISSUED
Spain Corcoesto Gold Project
Land Acquisitions and Surface Rights

 Expedited purchases as part of







Strategic ...
Spain Corcoesto Gold Project
EIA Approved Final Project Layout

W

E
Spain Corcoesto Gold Project
Plant layout

W

E
Spain Corcoesto Gold Project
Plant layout

W

E
Spain Corcoesto Gold Project
METALLURGY

 Additional Metallurgical testing completed since












Nov, 20...
Spain Corcoesto Gold Project
6,000 tpd Overall Simplified Flow Sheet
100 ton TRUCK
SAG MILL
ORE
FEED

6000 tpd FEED

MAGNE...
Spain Corcoesto Gold Project
Plant flow sheet

ROM STOCKPILE
PRIMARY
CRUSHING

COARSE STOCKPILE
FLOTATION
REAGENTS
PEBBLES...
Spain Corcoesto Gold Project
Plant Process Description
The Corcoesto treatment plant has capacity to treat 6.000 t/day of ...
Spain Corcoesto Gold Project
Organization Chart

DIRECTOR OF OPERATIONS

MANAGING DIRECTOR
PRODUCTION MANAGER

FINANCIAL
D...
Spain Corcoesto Gold Project

W
E
PROJECT
LOCATION

PROJECT LOCATION
Overview

GOLD VEINS LOCATION
PREOPERATIONAL
TASKS
18 MONTHS

ROADS AND ACCESS
CONSTRUCTION

PLANT CONSTRUCTION

LOURIDO DEVIATION
CANAL
CONSTRUCTION
PHASE 1
1,4 YEARS
ROADS AND ACCESS
CONSTRUCTION TO THE
NEXT EXPLOITATION
AREAS.
DEVELOPMENT AND
OPERATION OF THE COVA
CREA...
PHASE 2
1,9 YEARS
ROADS AND ACCESS
CONSTRUCTION TO THE
NEXT EXPLOITATION
AREAS

DEVELOPMENT AN
OPERATION OF THE POZO
DEL I...
PHASE 3
0,6 YEARS

DEVELOPMENT AND
OPERATION OF THE
PICOTOS PIT

PARTIAL BACK FILL OF
THE POZO DEL INGLES PIT
PHASE 4
1 YEAR

PICOTOS WASTE DUMP
CONFIGURATION AND
REMODELING

PICOTOS WASTE DUMP
REVEGETATION

DEVELOPMENT AND
OPERATIO...
PHASE 5
3,3 YEARS

DEVELOPMENT AND
OPERATION OF THE
PETÓN DE LOBO PIT

SOUTH WASTE DUMP
FINAL CONFIGURATION
AND REMODELING...
FINAL RESTORATION
AND CLOSURE

PETON DE LOBO PIT
RESTORATION

SOUTH WASTE DUMP
REVEGETATION.

TAILINGS DAM
RESTORATION
Spain Corcoesto Gold Project
Final site layout
PICOTOS WASTE DUMP

SOUTH WASTE DUMP
PETÓN DE LOBO LAKE

TAILING
Spain Corcoesto Gold Project
Final site layout
Spain Corcoesto Gold Project
Final site layout
Friday, January 11, 2013

Spain Corcoesto Gold Project
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August 28, 2013 - Corcoesto Technical Presentation

  1. 1. Spain Corcoesto Gold Project Galicia - Spain
  2. 2. Forward Looking Statement Certain statements in this document constitute “forward looking statements” which may not be based on historical fact. Such forward looking statements involve known and unknown risk, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results to be materially different from any future results, performance, or achievements expressed or implied by such forward looking statements. Such factors include, among others, the following: actual results of exploration and development activities; the estimation or realization of mineral reserves and resources; the timing and the amount of future production; the costs and timing of the development of new deposits; future prices of precious and base metals; accidents; risks inherent in mineral exploration; risks associated with development, construction and mining operations; restrictions on foreign ownership; the Company’s history of operating losses and uncertainty of future profitability; uncertainty of access to additional capital; environmental liability claims and insurance; and dependence on joint venture partners. 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 approved the technical data and information in this presentation
  3. 3. Spain Corcoesto Gold Project 1. INTRODUCTION, LOCATION, HISTORY 2. GEOLOGY AND RESOURCES 3. FEASIBILITY AND MINE PLAN
  4. 4. Spain Corcoesto Gold Project INTRODUCTION, LOCATION, HISTORY
  5. 5. Spain Corcoesto Gold Project Claim Status Project Office Mineral Right Type Emilita Exploitation Concession Ciudad de Masma Exploitation Concession Ciudad de Landró Exploitation Concession Number 1221 1455 1454 Granted Expiring May-18-1912 Ago-10-2064 June-16-1926 Ago-10-2064 June-16-1926 Ago-10-2064 Surface (Ha) 270,5 305,5 197,6
  6. 6. Spain Corcoesto Gold Project Adjacent properties  EDW applied for addtional ground along the gold belt (more than 15,000 Hectares)  Legend Corcoesto Exploitation Concessions. (Granted) Investigation Permits & Exploitation Concession pending of resolution. (Public Tender) Investigation Permits pending of granting. Corcoesto 1.5 Moz/Gold NI 43-101
  7. 7. Spain Corcoesto Gold Project Government and Community support  Support for Project Development at Local     and Regional Levels Regional Government promoting Mining Industry in Galicia (www.mineriadegalicia.com) Mining Title confirmed for period of 90 years since August, 1974 (up to August, 2064) EDW and drilling companies employing local people Company sponsoring local celebration at Corcoesto and other events.  Support for Project development from the local community RECENT POLL (August, 2012)  80% OF NEIGHBOURING MUNICIPALITIES IN FAVOUR OF MINING PROJECT
  8. 8. Spain Corcoesto Gold Project Communication and PR. (Guindeira Communication & Events) Communication Strategy based on:  Transparency  Engagement with Local Community ,  Highest level of environmental standards EDW has made presentations to:     Local and Galician Government Local Political Groups Main Environmental Galician Group Corcoesto Local Community W EDW has also contacted:     Local Social-Economic Associations Local Press and Journalists Galician University experts Environmental groups Conclusions:  Excellent reception from all groups to the  companies transparency Excellent Reception to the Mining Project E
  9. 9. Spain Corcoesto Gold Project Municipal Support to the Mining Project Mayor’s winning campaign included support of Corcoesto Mining Project:  Local Municipality will assist and support with advancing the project to construction and production.  > 250 new direct jobs estimated for Life-of-Mine (9.9 years) plus 500+ jobs during construction  Associated spin-off jobs projected to be 3-4x the number of direct jobs  Hundreds of people waited several hours in line to deliver their resumes to work at the Corcoesto Gold Project, which opened an office in Coristanco (March) W E
  10. 10. Spain Corcoesto Gold Project Key Project Personnel  Country Manager: Lluís Boixet, (Senior Geologist)  Director Corporate Affairs: Francisco Arechaga  Mining Engineers: Fernando Diaz & Francisco Bellón  Environment Department: Francisco Ruiz  Legal Counsel: Julio Cesar Valle  Project Geologist: Carmen Sorribas  Exploration Geologist: David Rodriguez  Senior Logistics assistant: Amancio López  Prep. Lab. Manager: Jesús Antonio López  GIS Department: Pedro Cuervo  Local Accountant: Ana Suárez
  11. 11. Spain Corcoesto Gold Project Management George Salamis President, Chief Executive Officer +20 years experience in the mining business directing exploration, development, and mining operations. Mr. Salamis has held senior management positions with Placer Dome and Cameco and has completed M&A transactions valued over $1B John Thomas Chief Operating Officer Over 40 years in mining industry world wide. Managed similar sized open pit gold projects including; Bolivar GoldFields and Bolivar Gold Corp. projects Lluís Boixet Greg Smith Vice President Exploration Over 25 years in exploration and development of gold projects in all stages of development. Previously involved develop and production assets Francisco Arechaga Director of Corporate Affairs Mining Engineering with over 30 years in the Galician Mining Industry. Previously Mr. Arechaga held the position of Chief Director of the Mina de Puentes, the largest open pit mine in Galicia Fernando Díaz Riopa Country Manager Over 25 years in exploration and development of gold and base metal projects in the Iberian Peninsula Corcoesto operation manager Over 20 years in development, operation and closure of gold and base metal projects in Spain, Africa and Central America Julio Cesar Valle Francisco Ruiz Lawyer, (Counsel) Over 20 years experience in mining Galicia and Spain Senior Environmental Manager Over 15 years experience in gold projects & operations in NW Spain.
  12. 12. Spain Corcoesto Gold Project Project History  Shallow pits from the Roman Times.  Between 1895 and 1910: Shallow UG exploitation by the British company “Sagasta Gold Mines Ltd”.  Several Companies did exploration between 1918 and 1987.  1997-2004 (RNGM): Soil Geochemistry, 18,000m of Trenching and 19,250m of Drilling. Feas. Study for Heap Leach Operation.  2005-2010 (KNB): Soil Geochemistry, Mag Survey, 1,100m of Trenching and 8,710m of drilling.  Oct, 2010 – Feb, 2013 (EDW): Step-out and in-fill drilling 52,940m Feasibility Study and remaining mine permitting in progress.
  13. 13. Spain Corcoesto Gold Project Au (ppb) As (ppm) 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 Soil Geochemistry (Au and As)  KNB Detailed Survey (Au + 35 elements). Lines spacing at 75m and samples at 25m.  Au and As anomalies oriented N70E, cross cutting regional geology (N30E).
  14. 14. Spain Corcoesto Gold Project Property Geology Local Geology  Corcoesto Map, Showing lithologies and gold vein systems:  Principal zones: Cova Crea, Pozo del Ingles, Petón de Lobo Office  Additional structures: Lithology Leucocratic gneiss Montefurado, Fonterremula, Picotos and Lampreira. Schists Alternating gneiss/ metasediments/migmatites Felsitic dyke Gold vein sytems Inferred contact
  15. 15. Spain Corcoesto Gold Project GEOLOGY AND RESOURCES
  16. 16. Spain Corcoesto Gold Project Main Gold Deposits in the Iberian Peninsula Corcoesto 1.5 M Oz Salave 2 M Oz El Valle-Boinás-Carlés 3 M Oz Las Médulas  Corcoesto Gold Deposit is 100% owned by Edgewater Exploration Ltd., since 2010. Jales/Gralheira 1.2 M Oz Penedono Castromil  Location: Galicia, NW Spain. Montemor Filon Sur Cerro Colorado 3 M Oz Rodalquilar Major Gold Deposits
  17. 17. Spain Corcoesto Gold Project Geological map Salave El Valle-Boinás-Carlés 1 Corcoesto Iberian Hercynian Massif 1. Cantabrian Zone Las Médulas 2 4 Jales/Gralheira 2. West-Asturian-Leonese Zone 3. Central Iberian Zone Penedono 3 Castromil 4. Galician-Tras-Os-Montes Zone 5. Ossa Morena Zone 6. South-Portuguese Zone Montemor 5 Filon Sur 6 Major Gold Deposits Cerro Colorado Rodalquilar
  18. 18. Spain Corcoesto Gold Project Regional Geology  Malpica–Tuy Gold Belt (Over 150 Km long structural zone with numerous gold occurrences) Cabo Ortegal Complex Corcoesto Malpica-Tuy Belt ordenes Complex GTMZ ALLOCTHONOUS COMPLEXES SCHISTOSE DOMAIN OF GALICIA - TRAS - OS - MONTES (SDGTM) (Malpica-Tuy Gold Belt) CENTRAL IBERIAN ZONE (CIZ) WEST ASTURIAN - LEONESE ZONE (WALZ) Bragança Complex THRUST FAULT GOLD OCCURRENCES Morais Complex
  19. 19. Spain Corcoesto Gold Project Property Geology Introduction  Gold Mineralization associated with Quartz veins, silicification and disseminated Apy.  Related to N70E Extensional Zones (Second Order Shear) into N30E Dextral Shear Zone (First Order Shear).
  20. 20. Spain Corcoesto Gold Project Lithologies Property Geology Biotitic Gneiss Metasediments Leucocratic Gneiss. Coarse grained Leucocratic Gneiss. Fine grained Migmatites Felsitic Dyke
  21. 21. Spain Corcoesto Gold Project Mineralization Property Geology  Gold mineralization consists mainly of Arsenopyrite-bearing Quartz Veins  included in larger zones of silicification, commonly with sericitic and potassic alteration. Three different styles of mineralization:  1.- Sheeted Quartz Veins  2.- Descrete Quartz Veins  3.- Silicified Breccia
  22. 22. Spain Corcoesto Gold Project Mineralization Styles Property Geology 1.- Sheeted Quartz Veins (N70W/70NE):  Tightly spaced mm-cm Q veins,with weak Apy dissemination (<1% As).  Thick mineralized zones at low grade, up to 1.95g Au/t over 41.10m, including 3.67g Au/t over 14.05m.  Hosted mainly in the fine grained leucocratic gneiss. COR-29x
  23. 23. Spain Corcoesto Gold Project Mineralization Styles Property Geology 2.- Descrete Quartz Veins (N70E/70NW):  Grey-bluish cm-dm Q Veins with fine grained disseminated Apy (>1% As).  High grade in narrow zones, up to 148.50g Au/t over 1.10m (ddh 10W10)  Normally, high grade veins are included in lower grade zones of weak silicification with small veins.  There may be large zones including few sets of High grade Q 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 West). 10W10
  24. 24. Spain Corcoesto Gold Project Mineralization Styles Property Geology 3.- Silicified Breccia:  Grey-bluish silica with fine grained disseminated Apy (>1% As) flooding breccia zones.  High grade in narrow zones, up to 46g Au/t over 1.0m.  Hosted in biotitic gneiss (Pozo del Ingles West)
  25. 25. Spain Corcoesto Gold Project Property Geology DEFORMATION ELLIPSOID ASSOCIATED WITH MAIN (N30E) DEXTRAL SHEAR Structural control for gold mineralization N70E TREND Au - As SOIL ANOMALIES ANTITHETIC RIEDEL FRACTURES (N80-70W) (TRANSTENSIVE REGIME) S-C Fabric EXTENSION (N50W-30W) SYNTHETIC RIEDEL FRACTURES (N40-50E) (TRANSPRESSIVE REGIME) NW TREND FOR Au-As SOIL ANOMALIES ? LEGEND: DEFORMATION ELLIPSOID MINERALIZED VEINS DEFORMATION ELLIPSOID FRACTURES
  26. 26. Spain Corcoesto Gold Project Drilling Summary Number of Holes Total Meters 278 52,940.45 45 12 57 6,465.10 2,245.15 8,710.25 RNGM Drilling Core Reverse Circulation RNGM Total 192 31 223 16,794.65 2,366.30 19,160.95 Rio Tinto Drilling* Core 38 7,582.98 596 88,394.63 EDW Diamond Drilling (Oct-2010 up to Dec-2012) KNB Diamond Drilling 2006-2007 2005 KNB Total Project Total
  27. 27. Spain Corcoesto Gold Project Corcoesto ddh location map Legend EDW Drilling Ended RNGM Old Drilling KNB RTM Lithology Leucocratic gneiss Schists Alternating gneiss/ metasediments/migmatites Felsitic dyke Inferred contact 0 500m
  28. 28. Spain Corcoesto Gold Project Deposit modeling: Petón de Lobo. Cross Section 4400 (Rotated) LOCATION MAP COR190 2.19g / 6.00m COR202 3.45g / 11.00m 11W41 1.93g / 38.70m 06K13 7.25g / 6.25m 11W41 0.87g / 55.00m 06K13 1.80g / 20.85m
  29. 29. Spain Corcoesto Gold Project Deposit modeling: Petón de Lobo. Longitudinal Section (grade x thickness)
  30. 30. Spain Corcoesto Gold Project Corcoesto S-N Project Cross Section (3660) 5401 2.28g / 8.00m COR169 11.13g / 10.05m 12W217 4.20g / 5.70m 11W52 1.11g / 11.35m COR209 4.39g / 11.50m 12W219 5.66g / 3.50m 10W02 4.27g / 6.00m 12W222 2.87g / 9.80m 11W48 5.43g / 2.10m 06K33 1.72g / 11.30m 5401 2,28g / 8.00m 11W57 3.15g / 6.70m 12W226 1.80g / 14.90m COR221 1.23g / 13.00m LOCATION MAP N 10W07 2.28g / 17.10m 12W231 2.92g / 4.50m S
  31. 31. Spain Corcoesto Gold Project Deposit modeling: Pozo del Inglés. Cross Section 3860 N COR82 3.28g / 5.00m LOCATION MAP 10W10 10.72g / 17.00m COR71 6.69g / 4.00m 11W69 2.64g / 8.05m COR74 2.03g / 3.00m 11W62 2.89g / 19.70m 11W13 2.86g / 12.30m
  32. 32. Spain Corcoesto Gold Project Deposit modeling: Pozo del Inglés. Longitudinal Section (grade x thickness)
  33. 33. Spain Corcoesto Gold Project Deposit modeling: Cova Crea. Cross Section 3660 5401 2.28g / 8.00m LOCATION MAP N 12W217 4.20g / 5.70m 12W219 5.66g / 3.50m 10W02 4.27g / 6,00m 11W48 5.43g / 2.10m 12W222 2.87g / 9.80m 12W226 1.80g / 14.90m 10W07 2.28g / 17.10m 12W231 3.92g / 4.50m
  34. 34. Spain Corcoesto Gold Project Deposit modeling: Cova Crea. Longitudinal Section (grade x thickness) N
  35. 35. Spain Corcoesto Gold Project 2013 Updated Resource Estimate (Micon International, Aug 6, 2013) NI 43-101 Pit Constrained Resource Summary (0.5 & 0.8 g/t Gold Cut-off) Cutoff (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 + Indicated 0.5 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 + Indicated 0.8 16,235 1.65 863 Inferred 0.8 3,733 1.44 173 Resource Class 1. 2. 3. 4. 5. 6. Mineral resources were classified following the guidelines of the JORC Code (2012) an accepted reporting code in terms of Canadian National Instrument 43-101. Mineral resources are constrained within a Whittle pit shell based on a gold price of US$1,400/oz. Numbers may not compute due to rounding. All grades have been quoted in grams per tonne (g/t) for the resource inventory. 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. There are no known legal, political, environmental or other risks that could materially affect the potential development of these mineral resources The September 2013 Corcoesto NI 34-101 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
  36. 36. Spain Corcoesto Gold Project Geological Model
  37. 37. Spain Corcoesto Gold Project QA / QC EDW LABORATORY % CHEMEX KNB EXTERNAL LAB OMAC SAMPLES 20311 1131 5 BLANKS 1136 22578 100 % ITMA 5 TOTAL LAB AGQ 90 DUPLICATES % 1072 5 5 2954 90 DUPLICATES 207 6 BLANKS 120 % CHEMEX SAMPLES 952 EXTERNAL LAB 117 4 TOTAL 3278 100 198 6 6 N
  38. 38. Spain Corcoesto Gold Project Exploration Upside Exploration Upside Potential Corcoesto Gold Project – Plan Map Potential extensions to structures on strike Pozo Del Ingles Gold Zone Grade thickness long section Open at Depth Peton de Lobo Gold Zone Grade thickness long section Current Open pit shell 38 All Gold Zones Open at Depth Open at Depth
  39. 39. Spain Corcoesto Gold Project Gold zone orientations and upside potential at depth Potential Resource below pits
  40. 40. Spain Corcoesto Gold Project FEASIBILITY AND MINE PLAN
  41. 41. Spain Corcoesto Gold Project Scoping Study – Preliminary Economic Assessment (Nov, 2011) Alan Noble, Mining Engineer Jaye Pickarts, Metallurigical Engineer Dermot M Claffey, Geotechnical Engineer          Site Visit. Resource Model Update. Open Pit Design. Plant Design – Preliminary Review. Preliminary Metallurgical Test Program. W Develop Conceptual Plant Capital and Operating Costs. Conceptual siting study for Tailings Storage Facility. Environmental and Permitting. Economic Analysis.  Report. E
  42. 42. Spain Corcoesto Gold Project Preliminary Economic Assessment (Nov 2011)  Project Assumptions (US $)      Gold Price Dollar/Euro Royalty Capital Contingency Discount Rate $ 1,300 $ 1.38/ Euro 0.5% 17.5% 5.0%  Base Case Highlights         Average Annual Gold Production Average Annual Net Revenue NPV Pre-Tax IRR Pre-Tax Payback OP and UG Capital Costs Operating Cost Life of Mine 102,000 Oz $ 60.0 Million $ 206 Million W 24% 3.4 years $ 135 Million $713/oz 9.9 years  Life-of-Mine Parameters      Mill Feed Grade Stripping Ratio Annual Throughput Milling Rate Gold Recovery 1.70 g/t Au 8.0 / 1 2.1 M tonnes 6,000 t/day 89.1% E 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
  43. 43. Spain Corcoesto Gold Project Preliminary Economic Assessment Cost Breakdown  (PEA) Initial Capital Cost Breakdown      Engineering and Preproduction $28.5 Power $4.0 Process Plant $92.0 Tailings & Reclamation $10.9 Initial Capital  Resource Drilling  Royalty Purchase  Contingency -- 17.5% $135M W $9.0 $1.5 $25.3  (PEA) Operating Cost Breakdown      Open Pit ($/tonne milled) Mining (including waste and staff) $15.74 Milling $14.63 Tailings $1.00 G&A $1.15 Total $32.52      Underground ($/tonne milled) Mining(including waste and staff) $40.00 Milling $14.63 Tailings $1.00 G&A $1.15 Total $56.78 E
  44. 44. Preliminary Economic Assessment 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 threedimensional 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 196 m 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. The Spanish corporate tax rate is 30%, but the impact of taxes on the project would be much less after allowances for depreciation, amortization and structure of the local and international corporations. The Corcoesto Gold Project PEA Technical Report dated Dec 30, 2011 was prepared by Alan Noble, P.E., of Ore Reserves Engineering Inc., a professional independent mining engineer registered in the State of Colorado, USA and a QP as defined by National Instrument 43-101.
  45. 45. Spain Corcoesto Gold Project Spanish Tax Advantages 1. The Spanish law has established tax advantages. The taxable income maybe reduced by up to 30% by deducting the following list of expenditures: • • • • • 2. Exploration and development to increase mineral resources and reserves Operating costs, investment and studies of reclamation plans (land rehabilitation, detoxification and water treatment) Research to improve the recoveries W Laboratories and research equipment Exploration Depreciation of capital assets may be applied at any chosen rate and when applied in the first years of operation may reduce the taxable income to zero E
  46. 46. Spain Corcoesto Gold Project Preliminary Economic Assessment: Open Pits Location
  47. 47. Spain Corcoesto Gold Project Project highlights and milestones for 2012/2013  Drilling campaign. Completed 52,490.45m.  INFILL: All drilling focused on converting inferred to Measured + Indicated  STEP-OUT/DOWN DIP: Testing high grade ore shoot extensions for additional UG resources  EXPLORATION: Drilling additional targets  Exploitation Project and Environmental Study completed and submitted by December, 2011.  Ministry of Environment approves Corcoesto W Gold Project´s Environmental Impact Statement. December 2012  Mining license’s and Final Strategic Project status expected by Q4, 2013.  Feasibility Study (Micon International) In Progress. Expected by Q3, 2013  Start of Mining plant and Tailing construction. Expected by Q1, 2014 E
  48. 48. Spain Corcoesto Gold Project Environmental Timelines and licences ENVIRONMENTAL PERMIT ISSUED
  49. 49. Spain Corcoesto Gold Project Land Acquisitions and Surface Rights  Expedited purchases as part of      Strategic Industrial Status Land valuations and purchases completed by 3rd party Edgewater voluntarily offering a premium over market price Total estimated cost ~$6M Euros for life of project (500 W hectares) Negotiating options to purchase with 10% down payment APPlus(+) consultants hired to complete purchases E
  50. 50. Spain Corcoesto Gold Project EIA Approved Final Project Layout W E
  51. 51. Spain Corcoesto Gold Project Plant layout W E
  52. 52. Spain Corcoesto Gold Project Plant layout W E
  53. 53. Spain Corcoesto Gold Project METALLURGY  Additional Metallurgical testing completed since            Nov, 2011 PEA Final process design includes Crushing Grinding Gravity Floatation W Regrinding Cyanidation and Carbon adsorbtion Elution Electrowinning Production of Gold Dore Overall recoveries projected to be 88% E
  54. 54. Spain Corcoesto Gold Project 6,000 tpd Overall Simplified Flow Sheet 100 ton TRUCK SAG MILL ORE FEED 6000 tpd FEED MAGNET FEEDER ORE FEED STOCKPILE OPTIONAL INDERECT FEEDING O/F CRUSHED ORE STOCKPILE Diam.44.0m 180 m3 BIN HYDRO CYCLONE Water JAW CRUSHER O/S O/S +5mmm FEED BELT CONVEYOR U/S VIBRATING SCREEN P80 150mm U/F U/S -5mm OVERSIZE CONVEYOR FEED BELT CONVEYOR TRASH TRASH SCREEN CENTRIFUGAL CONCENTRATOR TAILS PROCESS WATER LOOP SUMP RETURN WATER TO PROCESS O/F TAILINGS THICKENER RECLAIM WATER POND CYCLONE FEED PUMP CONC. FLOTATION TAILINGS U/F W FLOTATION CELLS 2 BALL MILLS E FLOTATION TAILINGS DAM FLOTATION CONCENTRATE CONCENTRATE THICKENER SMELTING FURNACE CONCENTRATE REGRINDING MILL (ISA) 8 CIL AGITATED TANKS LEGEND: CARBON ELUTION REGENERATED CARBON Dry Feed Stream Slurry Stream Process Water Stream Au Conc. Slurry Stream Au Conc. Solids Stream Process Equipment CARBON REGENERATION CYANIDE DESTRUCTION LEACH RESIDUE TAILINGS DAM GOLD DORE GOLD ELECTROWINNING PREGNANT CARBON Design by : JAT Date28/01//2013
  55. 55. Spain Corcoesto Gold Project Plant flow sheet ROM STOCKPILE PRIMARY CRUSHING COARSE STOCKPILE FLOTATION REAGENTS PEBBLES MILL SAG MILL BALL MILL CYCLONE FLOTATION REGRINDING THICKENING PROCESS WATER CLASSIFYING CN LEACHING CIL ELUTION ELECTROWINNING TAILINGS GRAVITY FLOTATION TAILS THICKENING FLOTATION TAILINGS DAM TAILINGS CIL TAILS THICKENING DETOX LEACHING TAILINGS DAM BULLION SO2
  56. 56. Spain Corcoesto Gold Project Plant Process Description The Corcoesto treatment plant has capacity to treat 6.000 t/day of the orebody from Corcoesto. The plant consists of the following areas: crushing, grinding, gravimetric circuit, flotation, CIL (carbon in leach), gold recovery (carbon elution, electrolysis and bullion smelting) and detoxification. The mined ore is classified according to gold grade in the Rom Pad. In the crushing stage the size is reduced from 800 mm to 150 mm. The crushed ore is sent to the grinding circuit to be reduced down to a P80 55 microns. The grinding circuit consists of a SAG mill and two ball mills arranged in a close-circuit configuration, with hydrocyclones as size classifiers. The cyclone overflow is sent to flotation and part of the underflow to a centrifugal concetrator. All the tailings from the gravimetric circuit are returned as the feed to the ball mill. Following flotation the concentrate passes to a thickener together with the gravity concentrate. The combined concentrates are reground in an ISA mill to a P80 15 microns prior to cyanidation. The CIL (Carbon in Leach) circuit consists of two pre leach tanks and seven leach/adsorbtion tanks where the dissolved gold is adsorbed onto carbon. The gold-loaded carbon is then subjected to elution and gold is recovered from the solution by electrolysis. The gold sludge from electrowinning is then smelted to Dore bullion (gold bars).
  57. 57. Spain Corcoesto Gold Project Organization Chart DIRECTOR OF OPERATIONS MANAGING DIRECTOR PRODUCTION MANAGER FINANCIAL DIRECTOR DIR. LEGAL ENVIRONMENTAL MANAGER DIRECTOR OF GEOLOGICAL EXP. PLANT MANGER DIR. H&S MINING MANAGER
  58. 58. Spain Corcoesto Gold Project W E
  59. 59. PROJECT LOCATION PROJECT LOCATION
  60. 60. Overview GOLD VEINS LOCATION
  61. 61. PREOPERATIONAL TASKS 18 MONTHS ROADS AND ACCESS CONSTRUCTION PLANT CONSTRUCTION LOURIDO DEVIATION CANAL CONSTRUCTION
  62. 62. PHASE 1 1,4 YEARS ROADS AND ACCESS CONSTRUCTION TO THE NEXT EXPLOITATION AREAS. DEVELOPMENT AND OPERATION OF THE COVA CREA PIT. OPENING OF POZO DEL INGLES PIT. SOUTH WASTE DUMP CONFIGURATION FLOTATION TAILS DAM LIXIVIATION TAILS DAM TAILINGS DAM DYKES CONSTRUCTION AND WATERPROOFING TAILINGS DAM AREA
  63. 63. PHASE 2 1,9 YEARS ROADS AND ACCESS CONSTRUCTION TO THE NEXT EXPLOITATION AREAS DEVELOPMENT AN OPERATION OF THE POZO DEL INGLEÑS PIT. COVA CREA PIT BACK FILL AND WASTE DUMP CONFIGURATION IN COVA CREA AREA
  64. 64. PHASE 3 0,6 YEARS DEVELOPMENT AND OPERATION OF THE PICOTOS PIT PARTIAL BACK FILL OF THE POZO DEL INGLES PIT
  65. 65. PHASE 4 1 YEAR PICOTOS WASTE DUMP CONFIGURATION AND REMODELING PICOTOS WASTE DUMP REVEGETATION DEVELOPMENT AND OPERATION OF THE PETON DE LOBO PIT
  66. 66. PHASE 5 3,3 YEARS DEVELOPMENT AND OPERATION OF THE PETÓN DE LOBO PIT SOUTH WASTE DUMP FINAL CONFIGURATION AND REMODELING.
  67. 67. FINAL RESTORATION AND CLOSURE PETON DE LOBO PIT RESTORATION SOUTH WASTE DUMP REVEGETATION. TAILINGS DAM RESTORATION
  68. 68. Spain Corcoesto Gold Project Final site layout PICOTOS WASTE DUMP SOUTH WASTE DUMP PETÓN DE LOBO LAKE TAILING
  69. 69. Spain Corcoesto Gold Project Final site layout
  70. 70. Spain Corcoesto Gold Project Final site layout
  71. 71. Friday, January 11, 2013 Spain Corcoesto Gold Project
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