Edgewater Exploration Ltd. Corcoesto Gold Project, Galicia Spain
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
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)
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
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
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)
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%.
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
