Edgewater Exploration

Edgewater Exploration (EDW-TSXv) has 1.5M ounces of Gold in Spain and trading at a ~$20M enterprise value! That’s $15per ounce of gold for every share. And unlike many juniors that may be struggling to raise capital right now, EDW has close to $12M in the bank and plenty news flow coming.  This stock is starting to look DIRT CHEAP. 

If you like advanced stage gold assets, deep pockets and experience management, there is nothing to not like about what Edgewater has created for shareholders.

There are two ways to value this company right now: 

1)   Value Corcoesto (1.5M ounces in Spain) at $10 per ounce enterprise value (a fraction of peer comparables) and you are getting the upside the very exciting exploration Ghana prospect which looks like early days Bibiani (5M+ ounces gold and) or Chirano (5M+ ounces gold) for free.

OR…

2)   Value the Enchi Ghana exploration project at $15M   enterprise value which looks like early days Bibiani (5M+ ounces gold) and early days Chirano (5M+ ounces gold) and you are getting the value of Spain for free. The model of the Ghana project looks so similar to the early days Chirano and Bibiani that Kinross cut a cheque in the last $11M financing at $0.80 to control 12.5% fully diluted interest in the Company. (Yes – stock now trading below $0.50)

Here are a few more details on the projects:

The Corcesto Project in Spain is 100% owned by Edgewater Exploration; it has a NI 43-101 compliant resource of 1.5 million ounces @ 1.74 g/t Au (M&I+I) Further details found here

Studies are currently underway to demonstrate how this project will be mined, it is anticipated the project will be amenable to both open pit and underground methods. Edgewater currently holds a small-scale mining license yet the company has begun the permitting process for a larger scale mining operation as the gold deposit has grown and continues to grow since the last exploitation permit was granted. The Corcesto Project has 7 major veins running through it and with some more drilling I can see Edgewater further increasing the economically viable ounces of gold. Edgewater currently has three drill rigs turning on this project now.

Edgewater has been working on a Preliminary Economic Assessment on the Corcoesto Gold Project.  Results from the study are anticipated during Q4, 2011.

Once again this is currently being value at $15 per ounce enterprise value so investors would be getting the Enchi gold project in Ghana for free.

The Enchi Project is just south west of the producing Chirano and Bibiani mines, Ghana West Africa, elephant country. And it is looking like both of those highly profitable deposits in its infancy.

I urge you to review the power point presentation as it contains much more detailed geological review.  But below is a map that shows the proximity to the producing mines.

Enchi remains on strike, on the same shear zone, and multiple zones have replicated early days drilling to the highly profitable gold producing Bibiani and Chirano mines. The company currently has three drills turning on the project so exploration news flow should be continuous

Shouldn’t this play be worth the $20M enterprise value in the stock alone right now?

Please contact Ryan King, VP of Corporate Development for further details of the company. He is very approachable, factual and won’t feed you with the typical over-hype you get from most junior mining executives.

Contact

Ryan King

604-628-1010

www.edgewaterx.com