MARCH 2011
Forward Looking Statement
Certain statements in this document constitute “forward looking statements” t t t ” which hi h may nott be b based b d on historical hi t i l fact. f t Such S h forward f d looking statements involve known and unknown risk, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results to be materially diff different t from f any future f t results, lt performance, f or achievements hi t expressed or implied by such forward looking statements. Such factors include, among others, the following: actual results of exploration and development activities; the estimation or realization of mineral reserves and d resources; the th timing ti i and d the th amountt off future f t production; d ti th costs the t and timing of the development of new deposits; future prices of precious and base metals; accidents; risks inherent in mineral exploration; risks associated with development, construction and mining operations; restrictions t i ti on foreign f i ownership; hi th Company’s the C ’ history hi t off operating ti losses and uncertainty of future profitability; uncertainty of access to additional capital; environmental liability claims and insurance; and dependence on joint venture partners.
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Management and Advisory Team
George Salamis
Ed Farrauto
President & CEO
CFO Director CFO, Di t
•+20 years experience directing exploration, development, and mining operations of a number of gold, base metal and coal projects
•+20 years experience as CFO and Director of public companies
•Senior Management positions with Placer Dome and Cameco Corporation •Completed M & A transactions valued over $1B
•Directly involved in raising over $500 million of equity and debt •Completed M & A transactions valued over $750 million
Greg Smith, P.Geo
Doug Forster, M.Sc. P.Geo
Vice President Exploration
Advisor
•+23 years exploration experience working for b h junior & senior mining operations both
•30+ years resource project development, M&A, & equity finance f and d public bl company management
•Involved in outlining +10Moz gold discovery
•President & CEO of Featherstone Capital •Founder and director of several public companies
3
Capital Structure | March 2011 Share Structure
Equity Ownership Kinross Gold Corp 4%
Issued & Outstanding Mgmt & Insiders 34%
Retail 34%
49,790,500
Warrants 2,765,000 @ $0.76 (June 2011) 624,780 @ $1.10 (2012)
’11,196,280
7,806,500 @ $1.40 (2013)
Options p Institutional 28%
4,827,000 , ,
Cash
$9,000,000
Fully Diluted*
70,958,780 *
* If Edgewater delineates a NI43-101 compliant resource of $3Moz of gold in the M&I category on the Enchi Gold Project, then Red Back Mining can exercise an additional 2.5M warrants at $0.50 and 2.5M warrants at $1.00 (included in the fully diluted number above). 4
Edgewater Projects
5
Corcoesto Project | Overview
•
Located 35km W of the La Coruna in NW Spain, Spain one of the most propro mining regions
•
100% ownership p
•
2010 NI43-101 Compliant Resource – Measured & Indicated: 315,000oz , Gold Inferred: 885,000oz Gold
•
7 major gold vein systems open along strike and at depth
•
Active drill program underway – Highlight Drill Hole to date 10E10: 10.72 g/t Gold over 17m
•
Potential for both open pit and underground operations 6
Corcoesto Project | Details • Previous work on the project has consisted of
geological mapping, geophysical surveying, and soil and rock g geochemistry y including g trenching and 42,000m of diamond and RC drilling in +400 holes
• Gold mineralization associated with quartz
veins quartz breccias and silicification veins,
• Amenable to conventional open-pit mining
(low strip ratio due to favorable topography)
• Excellent infrastructure; roads and 22 Kv
power line crossing project
• Currently permitted for small scale mining • Permit to be resubmitted due to increase in
resource size.
7
Corcoesto | 2010 Resource Estimate NI 43-101 Mineral Resource Summary Resource Class Measured Indicated Measured + Indicated Inferred
Cutoff
Tonnes
g/t Gold
Contained Gold
0.65
3,834
1.76
217
0.65
1,823
1.67
98
0.65
5,657
1.73
315
0.65/2.0
16,542
1.66
885
(g/t Au)
(x1000)
(x1000 oz)
•
A total t t l off 1 1,101.9 101 9 m off surface f trenching t hi in i 55 trenches, t h 443.1 443 1 m off adit dit sampling li iin 4 adits dit and d 42,326.2 m of diamond and RC drilling in 436 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 196 m
•
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 8
Corcoesto | Aerial View
12,000m Di Diamond dD Drill ill Program Underway
3 Drill Rigs Onsite
$2.5M Budget
In country Team In-country with extensive experience 9
Corcoesto | 2010 -2011 Drill Results Longitudinal section Pozo del Ingles Ore Zone PI-27 Cut-0ff 1.0g/t Au Longitudinal section Cova Crea Ore Zone PI-27 Cut-0ff 0.5 g/t Au
10.72 g/t Gold over 17m
1.51 g/t Gold over 43.40m
2.66 g/t Gold over 13.3m
Drill Hole
Mineralized
Intercept
Length
Au
Zone
From
To
(m)
(g/t)
Hole 10E01
Peton de Lobo
25.10
30.05
4.95
1.60
Hole 10E02
Cova Crea
159 0 159.0
165 0 165.0
6 00 6.00
4 27 4.27
Hole 10E03
Cova Crea
155.0
167.5
12.50
0.75
Hole 10E05
Cova Crea
174.7
182.8
8.10
1.71
Hole 10E07
Cova Crea
261.2
304.6
43.40
1.51
Hole 10E09
Pozo De Ingles
0.00
8.60
8.60
1.29
Hole 10E10
Pozo De Ingles
164.0
181.0
17.00
10.72
Hole 11E13
Pozo De Ingles
320.8
334.1
13.3
2.66
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Corcoesto | Development Timeline 2011 Q1
Q2
2012 Q3
Q4
Q1
12,000m Diamond Drill Program
NI 43-101 Resource Estimate S Scoping i St Study d
$2.5 M Drilling / Scoping Budget 11
2nd largest producer in Africa
Enchi Gold Project • Located in Ghana, 70km SW of the
5Moz Chirano gold mine associated with 9km long Bibiani Shear Zone • Spending $5M to earn net 51%
interest from Kinross Gold Corp(TSX:K)
• Mid-stage exploration comprised of 8
licenses totalling 568km2 • 290km west of the capital city Accra,
accessed via sealed roads 12
Enchi | Location $2.5M Budget
12,000m Diamond Drill Program y Underway
2 Drill Rigs Onsite
5Moz Gold Mine • Enchi geology is analogous
to Chirano Gold mine, epigenetic i ti mesothermal th l quartz vein style gold deposits • Gold mineralization is
Ashanti-type the most p yp of g important type gold in West Africa • Includes 16 known gold
targets associated with a 40 km section of the Bibiani Shear Zone
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Enchi | Shear Zones • Similar geology following the
Chirano and Bibiani shear zones
• 40,000m of drilling
conducted by previous operators
• Abundant drill ready targets • Edgewater g to focus on 3
Main Zones to begin: • Boin Zone
• Nyamebekyere Zone • Sewum Zone • Over 45 drill holes and
trenches > 1g/t over 10M not followed up 14
Enchi | Key Gold Zones Nyamebekyere
Boin
• Over 1.5 km of continuous gold
• Mineralization +10km associated
mineralization identified
with the Bibiani Shear Zone
• Shallow: drilled to avg depth of less than
• Work by Red Back included 26
trenches totalling 3,945m and 112 RC drill holes totaling 13,033 m
• No deep drilling has been conducted • Major resource delineation drill
• Consistent: widths of 10 – 20m of economic
grade gold intercepted in previous drilling
• As of yet, no 43-101 resource estimate
done
program planned
• Completely open on-strike and at depth
Historical RC Drilling Results Hole
100m
Historical RC Drilling Results*
From (m)
To (m)
Intercept (m)
Au (g/t)
KBRC001
29
49
20
1.57
KBCR004
67
83
16
KBRC007
84
96
KBRC008
26
KBRC012
31
Hole
From (m)
To (m)
Intercep t (m)
Au (g/t)
KRC021
29
43
14
1.57
2.26
KRC027
3
14
11
3.60
12
1.75
KRC032
69
85
16
1.83
56
30
1.92
KRC065
15
24
9
1 92 1.92
64
33
2.1
KRC075
12
28
16
1.66
KRC097
7
16
9
2.77
*RC drilling results greater than 1.0 g/t Au from Nyamebekyere Gold zone
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Enchi | Undrilled Gold Zones Eradi • Three parallel soil anomalies
each approx. approx 3.2km 3 2km strike length • Only 2 trenches totaling 435m
were completed on the anomalies li
Sewum
• Not drilled to date
•
• Assayed 37m of 1.47 g/t
gold in trenches • Obuasi-Enchi Lineament is
•
associated with the major 40 Moz Ashanti gold deposit located 100 km east of the Enchi Project
Highly prospective, multiple kilometers of strike length defined
Previous trench highlights: 1.14g/t over 24.2m 2.35 g/t over 11m 0.70g/t over 221m 1.06g/t over 17 m 0.88g/t over 50 m g/ over 17 m 1.86g/t
•
Land access negotiations are underway, road construction to begin shortly 16
Enchi | Project Timeline 2011 Q1
Q2
2012 Q3
Q4
Q1
Geological Mapping, Trenching, & Soil Sampling
Prioritizing Drill Targets
NI 43-101 Resource Estimate
12,000m Diamond Drill Program
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Enterprise Value (US$/oz) $300
“
$259 EV / Total Resourc ce (US$/oz Au u)
$250
$200
Edgewater Exploration is currently trading at a market value of C$48.08/oz of gold resource compared with the weighted average market value of C$87.5/oz that we estimate for junior gold companies.
”
$170 $155
- Canaccord, Junior Mining Weekly, 1 February 2011
$150
$100
$86
$86
$82
$81
$79
$76
$75 $
$68
$66
$59
$50
$49 $30
$19
$0 AZM
Date February 28/2010
RN
LYD
OLE
KGN
VTR
AGC
EPZ
BSX
RVS
SPM
KBR
OYM
AYX
EDW
CPN
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Summary
• Ghana – Enchi Gold Project: located in one of the most prolific gold
regions of the world; major resource delineation and new gold target drilling program. A 12,000m Diamond drilling program underway
• Spain – Advanced stage 100% controlled Corcoesto gold deposit:
hosts a NI 43-101 43 101 M&I resource of 315,000 315 000 oz Gold with 885 885,000 000 oz Gold of Inferred, the deposit is open for resource expansion and is potentially amenable to low cost open pit mine development. A 12,000m Diamond drilling program underway
• Management team - in place with a proven track record of advancing
undervalued gold projects and maximizing shareholder value
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Acquiring and Advancing Undervalued Worldwide Gold Assets Contact: Ryan King, Vice-President Phone: h 60 628 1012 604 0 2 Email: rking@edge-water.com Website: www.edge-water.com
TSX-V: EDW