Main Gold Deposits in the Iberian Peninsula Salave 2 M Oz El Valle-Boinás-Carlés 3 M Oz Corcoesto 1.2 M Oz Las Médulas Corcoesto Gold Deposit is 100% Jales/Gralheira 1.2 M Oz owned by Edgewater Penedono Exploration Ltd., since 2010. Castromil Location: Galicia, in NW Spain. Montemor Filon Sur Cerro Colorado 3 M Oz Rodalquilar Major Gold Deposits
Geological Map Salave El Valle-Boinás-Carlés Corcoesto 1 Las Médulas 4 2Iberian Herzinian Massif Jales/Gralheira Penedono1. Cantabrian Zone Castromil 32. West-Asturian-Leonese Zone3. Central Iberian Zone Montemor4. Galician-Tras-Os-Montes Zone 5 Filon Sur Cerro Colorado5. Ossa Morena Zone 6 Rodalquilar6. South-Portuguese Zone Major Gold Deposits
Claim Status Surface Mineral Right Type Number Granted Expiring (Ha) Emilita Exploitation Concession 1221 May-18-1912 Ago-10-2064 270,5 Ciudad de Masma Exploitation Concession 1455 June-16-1926 Ago-10-2064 305,5 Ciudad de Landró Exploitation Concession 1454 June-16-1926 Ago-10-2064 197,6
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.
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) Positive meetings with mining and environmental ministries. Support for Project development from the local community EDW and drilling companies employing local people (currently 17 locals directly employed at Corcoesto) Excellent relationship with local authorities Company sponsoring local celebration at Corcoesto
Key Project Personnel Country Manager: Lluís Boixet, (Senior Geologist) Mining Engeneers: Francisco Bellón & Fernando Diaz 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 Communication Department: Navia Franco & Celeste Suarez
Regional Geology Cabo Ortegal Complex Malpica–Tuy Gold Belt (Over 150 Km structural zone with numerous gold ocurrences) Corcoesto Malpica-Tuy Belt ordenes Complex ALLOCTHONOUS COMPLEXES GTMZ SCHISTOSE DOMAIN OF Bragança GALICIA - TRAS - OS - MONTES (SDGTM) (Malpica-Tuy Gold Belt) Complex CENTRAL IBERIAN ZONE (CIZ) WEST ASTURIAN - LEONESE ZONE (WALZ) THRUST FAULT Morais Complex GOLD OCCURRENCES
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).
Property GeologyLocal Geology Corcoesto Map, Showing lithologies and gold vein systems: Principal zones:Cova Crea, Pozo del Ingles,Petón de Lobo Additional structures: Lithology Leucocratic gneissMontefurado, Fonterremula, Schists Alternating gneiss/Picotos and Lampreira. metasediments/migmatites Felsitic dyke Gold vein sytems Inferred contact
Property Geology Mineralization Gold mineralization consists mainly of Arsenopyrite-bearing Q Veins included in larger zones of silicification, commonly with sericitic and K alteration. There are three different styles of mineralization: 1.- Sheeted Quartz Veins 2.- Descrete Quartz Veins 3.- Silicified Breccia
Property GeologyMineralization Styles1.- 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
Property GeologyMineralization Styles2.- 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). 10E10
Property Geology Mineralization Styles3.- 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)
Property Geology Structural control for gold mineralization DEFORMATION ELLIPSOID ASSOCIATED WITH MAIN (N30E) DEXTRAL SHEAR N70E TREND Au - As SOIL ANOMALIES ANTITHETIC RIEDEL FRACTURES (N80-70W) (TRANSTENSIVE REGIME) S-C Fabric SYNTHETIC RIEDEL FRACTURES (N40-50E) (TRANSPRESSIVE REGIME) LEGEND:EXTENSION NW TREND FOR DEFORMATION ELLIPSOID MINERALIZED VEINS(N50W-30W) Au-As SOIL ANOMALIES ? DEFORMATION ELLIPSOID FRACTURES
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 - Nov,2011 (EDW): Step-out and in-fill drilling 15,000m. Scoping study and mine permitting in progress.
Project History 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, crosscutting regional geology (N30E).Au (ppb) As (ppm) 0 - 228.8 0 - 643.6 228.8 - 378 643.6 - 851 378 - 609.45 851 - 1,190 609.45 - 1,021.4 1,190 - 1,627.6 1,021.4 - 1,316.9 1,627.6 - 2,276.9 1,316.9 - 2,659.69 2,276.9 - 3,724.19 2,659.69 - 5,360 3,724.19 - 4,090
Project History Number of Holes Total Meters Drilling Summary EDW Diamond Drilling 59 15,102.45 (Oct-2010 up to Nov-2011 … in Progress) 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 *RNGM made a selection from the Rio Tinto drill hole database, finallydetermining that 38 of the available 50 Project Total 377 50,556.63 holes were reliable.
Scoping Study - Preliminary Economic Assessment Alan Noble, Mining Engineer Jaye Pitarks, Metalluric Engineer Dermot M Claffey, Geotechnical Engineer Site Visit. OK Resource Model Update. OK Open Pit Design. OK Plant Design – Preliminary Review. OK Preliminary Metallurgical Test Program.OK Develop Conceptual Plant Capital and W E Operating Costs. OK Conceptual siting study for Tailings Storage Facility. OK Environmental and Permitting. OK Economic Analysis. OK Report. In Progress.
Preliminary Economic Assessment 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 W E OP and UG Capital Costs $ 135 Million Life of Mine 9.9 years Life-of-Mine Parameters Mill Feed Grade 1.70 g/t Au PRE-TAX FINANCIAL MODEL Stripping Ratio 8.0 / 1 Gold Price Scenarios Units Base Case Current Annual Troughput 2.1 M tonnes Gold US $ /Oz 1300 1500 1700 Milling Rate 6,000 t/day NPV 5% discount 206 340 475 Gold Recovery 89.1% Payback Years 3.4 2.5 1.9 IRR % 24 34 43
Preliminary Economic Assessment: Open Pits Location
Preliminary Economic Assessment: Alternatives Batán Valley Alternative Lourido Valley Alternative
Underground Design• Resource expansion at Corocesto highly likely, due to “open ended” resource boundaries at depth below the currently planned pits• Underground Ramp Engineering Study to explore ramp sighting options• Ramp to be used for deeper exploration and, subject to future studies, for future underground mining * The Information above includes preliminary designs * The actual designs to be determined
Communication and PR (Guindeira Communication & Events) Communication Strategy based on: Transparency Engagement with Local Community and with the EnvironmentEDW has made presentations to: Local and Authonomic Government Local Politic Groups Main Environment Galician Group Corcoesto Local CommunityEDW has also contacted with: Local Social-Economic Associations W Local Press and Journalists E Galician University experts Environmental groupsConclusions: Excellent Receptivity of all groups to the company transparency Excellent Receptivity to the Mining Project
Municipality Suport to the Mining Project Mayor’s winning campaign platform coming out in support of Corcoesto Mining Project: Local Municipality will assist and support with advancing the project to Exploitation. > 250 new direct jobs estimated for Life-of-Mine (9.9 years) plus construction W E
Highlights and milestones for 2011 and 2012 Drilling campaign (total of 42,000 m since Oct, 2010 to Dec, 2012). Currently drilled 15,000 m. INFILL: Upgrade 90-95% Inferred to Measured + Indicated STEP-OUT/DOWN DIP: Testing high grade ore shoot extensions for additional UG resources EXPLORATION: Drilling additional targets Updated Resource Estimate (May 2011), resulting in a 5 fold increase in W respect the former reported by Kinbauri in 43-101, August E 2006. Preliminary Economic Assessment (November, 2011) Exploitation Project and Environmental Study in Progress (December, 2011) Prefeasibility/Feasibility Study (Dec, 2012)