Edgewater Drills 1.93 g/t Gold over 38.7 m and 1.60 g/t Gold over 41 m at Corcoesto Gold Project

Vancouver, British Columbia: Edgewater Exploration Ltd. (“Edgewater” or the “Company”) is pleased to report additional drill results for the Company’s 100% owned Corcoesto Gold Project, Northwest, Spain.

Edgewater now has 4 diamond drill rigs conducting a program of in-fill drilling on the Corcoesto Gold Project, designed to upgrade inferred resources to a measured and indicated category as part of a Definitive Feasibility Study. Drilling continues to intersect excellent widths and grades of gold mineralization including DDH11W41 that returned 0.87g/t Au over 55.0 metres, and 1.93g/t Au over 38.7 metres and DDH11W47 returning 1.60g/t Au over 41.0 metres. (See Table 1 below).

George Salamis, President and CEO of Edgewater stated: “In late 2011 we completed the Preliminary Economic Assessment on the Corcoesto Gold Project with highlight results including an NPV 5% of US$206 Million, and a 3.4 year pay back using a $1300/oz gold price. Edgewater’s current market capitalization is approximately $30 Million, valuing the Company at $22/oz in all resource categories. We believe 2012 poises to be a significant year for Edgewater as we anticipate getting exploitation development permits and advancing a full feasibility study on the project. These latest drill results from Spain are part of a 20,000 metre infill program with a mandate to convert inferred resources to measured and indicated. As we proceed with this in-fill drilling and conduct further step-out holes, we would anticipate also adding additional inferred gold resources to this highly prospective project.”

Table 1 Corcoesto Highlight of Recent Drill Results

Drill Hole
   

From
To
Length
(meters)
Au
( g/t)
11W41
 
71.20
126.20
55.00
0.87
11W41
 
164.30
203.00
38.70
1.93
11W41
incl
164.30
168.30
4.00
4.20
11W41
and
201.80
203.00
1.20
21.20
11W47
 
221.50
246.80
25.30
0.84
11W47
 
265.80
307.00
41.20
1.60
11W47
incl
278.20
279.20
1.00
10.63
11W48
 
8.75
22.00
13.25
1.16
11W48
 
128.00
140.30
12.30
1.38
11W50
 
8.50
14.80
6.30
2.83
11W51
 
197.30
261.00
63.70
0.94
11W51
incl
198.60
202.10
3.50
3.79
11W52
 
13.55
18.40
4.85
3.73
11W52
 
55.20
66.55
11.35
1.11
11W54
 
240.70
264.20
23.50
0.74
11W54
 
317.35
348.80
31.45
0.68
11W57
 
327.80
337.50
9.70
2.46
11W58
 
221.00
230.40
9.40
3.33
11W58
incl
225.00
230.40
5.40
5.10
11W62
 
268.00
287.70
19.70
2.86
11W62
incl
278.00
287.70
9.70
5.20
11W62
incl
282.20
283.40
1.20
33.30

Notes:

  1. All reported intercepts are core lengths and true widths are estimated at 80 per cent of core lengths
  2. Weighted averages calculated using uncut assays.
  3. See Table attached for complete results.

Edgewater has now completed 70 drill holes totaling 17,450 metres. This news release is reporting results for an additional 20 holes (5292.8m).

Drill Hole
Length
Azi.
Dip
Zone
Location
Hole 11W40
290.15
180
-55
Pozo de Ingles
Sec 3835
Hole 11W41
250.00
155
-60
Peton de Lobo
Sec 4400
Hole 11W42
283.80
155
-50
Peton de Lobo
Sec 4300
Hole 11W43
210.15
182
-50
Pozo de Ingles
Sec 3885
Hole 11W47
376.10
155
-50
Peton de Lobo
Sec 4300
Hole 11W48
499.50
183
-50
Cova Crea
Sec 3660
Hole 11W49
245.05
183
-50
Pozo de Ingles
Sec 3860
Hole 11W50
96.80
179
-44
Picotos
Sec 3700
Hole 11W51
310.00
160
-60
Peton de Lobo
Sec 4350
Hole 11W52
90.45
179
-45
Picotos
Sec 3650
Hole 11W53
345.65
183
-50
Pozo de Ingles
Sec 3885
Hole 11W54
380.00
156
-65
Peton de Lobo
Sec 4350
Hole 11W55
96.80
180
-44
Picotos
Sec 3600
Hole 11W56
95.40
180
-45
Picotos
Sec 3675
Hole 11W57
446.00
181
-60
Pozo de Ingles
Sec 3660
Hole 11W58
265.20
182
-50
Pozo de Ingles
Sec 3835
Hole 11W59
102.00
180
-50
Fonterremula
Sec 3850
Hole 11W60
355.00
159
-60
Peton de Lobo
Sec 4400
Hole 11W61
101.55
180
-50
Fonterremula
Sec 3825
Hole 11W62
453.20
180
-50
Pozo de Ingles
Sec 3835
Total
5292.80
       

On November 17, 2011 Edgewater announced the results for the Preliminary Economic Assessment (“PEA”) on the Corcoesto Gold Project. The NI 43-101 technical report for the PEA was filed with the regulatory authorities and made available on SEDAR on December 30, 2011.

Sample preparation and analyses are conducted using industry standard practices. Samples are delivered to Chemex Lab in Seville, Spain and sample analyses completed at independent commercial facilities of ALS Romania for gold and ALS Canada (Vancouver) for As. Both labs have the certificate of ISO/IEC 17025:2005. Sampling and analyses include a rigorous Quality Assurance / Quality Control (QA/QC) program consisting of the insertion of blanks, duplicate samples, and check assays. A review of the QA/QC results shows no significant bias and all results are considered highly reliable.

Mr. Gregory Smith, P.Geo., 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.

 

About Edgewater Exploration Ltd.

Edgewater is a mineral exploration company focused principally on acquisitions, advancement and development of precious metal properties. Edgewater is currently developing the Enchi Gold Project in Ghana, West Africa and the Corcoesto Gold Project in Northwest Spain.

On behalf of the board of EDGEWATER EXPLORATION LTD.

“George Salamis”

George Salamis,
President and CEO

For further information, please contact:
Ryan King, Vice President
rking@edgewaterx.com
www.edgewaterx.com
Telephone: (604) 628-1012