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MEG Luncheon Presentation Presentation Transcript

  • 1. 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.
  • 2. 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
  • 3. Corcoesto Gold Project, Galicia, Spain TSX-V: EDW
  • 4. 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)
  • 5. Corcoesto Gold Project Corcoesto Complex Tectonic And Structural History Boiron, M.C., et al 2003.
  • 6. Corcoesto Gold Project Corcoesto Galicia Mokrsko Czech Republic
  • 7.  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
  • 8. Corcoesto Gold Project Las Medulas – Historic Roman Workings Approximately 200km south of Corcoesto
  • 9. Corcoesto Gold Project Malpica-Tuy Belt Corcoesto Corcoesto (EDW) Santa Comba (EDW) Boticas (Medgold) Jales / Tres Minas (Petaquilla) Barca (Medgold) Covas (Avrupa) Valongo (Medgold)
  • 10. 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
  • 11. Corcoesto - Lithologies Biotitic Gneiss Metasediments Leucocratic Gneiss. Coarse grained Leucocratic Gneiss. Fine grained Migmatites Felsitic Dyke
  • 12. 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
  • 13. 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
  • 14. 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
  • 15. 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
  • 16. Corcoesto - Project Mineralization
  • 17. 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 Nieto And Lluis Boixet
  • 18. Corcoesto - Structural Setting Structural control for gold mineralization
  • 19. Corcoesto – Gold/Arsenic Association
  • 20. Corcoesto Exploration Exploration Program - Geochemistry - Mapping - Trenching - Drilling
  • 21. 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)
  • 22. Corcoesto – Soil Geochemistry Soil Geochemistry (Th and W)
  • 23. Corcoesto - Trenching
  • 24. Corcoesto - Drilling Picotos Pozo de Ingles Peton de Lobo Cova Crea
  • 25. Corcoesto - Drilling Drilling Summary Number 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
  • 26. Corcoesto – Longitudinal Sections Deposit Modeling: Longitudinal Sections (grade x thickness)
  • 27. 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 / 10.05m 11W52 1.11g / 11.35m COR221 1.23g / 13.00m 06K33 1.72g / 11.30m N S LOCATION MAP Cova Crea Pozo de Ingles Picotos
  • 28. 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
  • 29. 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 Class 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
  • 30. 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)
  • 31. Corcoesto – Resource Model Picotos Pozo de Ingles Peton de Lobo Cova Crea
  • 32. Corcoesto - Exploration Potential Targets
  • 33. 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
  • 34. 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%.
  • 35. Site Layout Approved Open Pit Tailings Waste Dump Plant Site
  • 36. 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
  • 37. 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
  • 38. 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.
  • 39. Thank You Edgewater Exploration Ltd. MEG Luncheon Presentation March 26, 2014 Corcoesto Orogenic Gold Deposit Galicia, Northwestern Spain