Jan 31 2011
Mr. George Salamis, President and CEO of Edgewater Exploration Ltd. (TSX VENTURE:EDW)(OTCQX:EDWZF) has provided an update on the drilling program, results received to date and the on-going activities for the Company's 100% owned Corcoesto Gold Project in Galicia, Spain.
Notable results to date include Hole 10E10 from 164m to 181m which averaged 10.72 g/t Au over 17.0m. This intercept is the highest grade x width intercept intersected to date on the Corcoesto Gold Project. Drill hole 10E10 is a 100m step-out which intersected the Pozo de Ingles structure down dip from previous drilling. In the Cova Crea area drill holes 10E02 and 10E07 are each 100m step-outs from previous drilling intersected the down dip portion of the structure and returned respectively 1.91 g/t Au over 12.3m (200.9m to 213.2m) and 2.28 g/t Au over 17.1m (261.2m to 278.3m).
George Salamis, President and CEO, states, "With one third of the resource definition drilling completed, I believe the step-out drilling confirms significant potential to increase the current gold resource. This recent step-out drilling clearly demonstrates that the Pozo de Ingles and Cova Crea gold-bearing structures remain open at depth; we are now drilling the down dip extensions of these zones and are excited to see further potential. In addition, in-fill drilling continues to demonstrate good continuity between sections of previously drilled gold mineralization, with the goal of converting more inferred resources to a measured and indicated category."
The drilling is being directed at high priority targets, specifically strike and dip extensions of open ended gold mineralization within the Pozo de Ingles, Peton de Lobo, and Cova Crea structures as well as others. The main focus of the step-out drilling are areas with the potential for wider widths and higher gold grades which have been shown to be related to flexures in the mineralized structures and controlled by a distinct plunge to the mineralization evident from previous drilling.
The current multi-rig 12,000m drilling program is designed to expand the existing gold resource and provide sufficient data for the completion of an updated resource estimate and subsequently, the commencement of a Preliminary Assessment (Scoping Study) in H1 2011 at the Corcoesto Gold Project. Work to date is progressing on budget and ahead of schedule. The Company plans to drill a further 1800m as part of Phase I of this program and there will then be a brief pause in the drilling in order to allow the Company to assimilate the outstanding Phase 1 assays. Phase II, consisting of the remaining 6000m will then commence and it is expected that Phase II will be completed by the end of H1, 2011.
Previous work on the Project has consisted of geological mapping, geophysical surveying, and soil and rock geochemistry including trenching and 42,326.2m of diamond and RC drilling in 436 holes. This work has resulted in the estimation of a NI 43-101 compliant resource at Corcoesto consisting of a Measured and Indicated resource of 5,657,000 tonnes grading 1.73 g/t Au containing 315,000 ozs gold at a 0.65 g/t Au cut-off and an Inferred resource of 16,542,000 tonnes grading 1.66 g/t Au containing 885,000 ozs gold.
Drilling began in October 2010 and to date eleven holes totalling 4221.8m have been completed. Results have been received for nine holes, results for two holes are pending and three drill holes are in progress.
The Company is also progressing with all necessary reports and activities in support of the Corcoesto mine license and permitting in the three applicable administrations: Environmental Department of La Xunta de Galicia, Mines Department of La Xunta de Galicia and the Municipality of Cabana de Bergantiños.
Details of the Corcoesto Project are available in the technical report entitled "Technical Report on the Corcoesto Gold Project, Galicia, Spain" date August 4, 2010 authored by Alan C. Noble, PE. of Ore Reserves Engineering filed on SEDAR at www.sedar.com under Edgewater's profile.
Sample analyses have been conducted at independent commercial facilities. Sample preparation is completed by Chemex in Seville, Spain and sample analyses completed at Chemex Labs. All sample analyses was completed using industry standard geochemical and fire assay practices and included a rigorous Quality Assurance / Quality Control (QA/QC) program consisting of the insertion of standards, blanks and duplicate samples randomly into the sample stream. A review of the QA/QC results shows no significant bias and all results are considered highly reliable.
Mr. Gregory Smith, P.Geo., the Vice-President of Exploration of the Company, is the Qualified Person as defined by NI 43-101, and is responsible for the accuracy of the technical data and information contained in this news release.
Source: Edgewater Exploration Ltd.