Presentation
- 1. EXPLORATION LTD. Corporate Presentation | March 2012 TSX.V:EDW
- 2. Forward Looking Statement Certain statements in this document constitute “forward looking statements” which may not be based on historical fact. Such forward looking statements involve known and unknown risk, uncertainties nd th r factors hi h may u the tu l results, performance r hi m nt un rt inti and other f t r which m cause th actual r ult p rf rm n or achievements of the Company, or industry results to be materially different from any future results, performance, or achievements expressed or implied by such forward looking statements. Such factors include, among others, the following: actual results of exploration and development activities; activities the estimation or realization of mineral reserves and resources the timing and the resources; amount of future production; the costs 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 on foreign ownership; ownership the Company’s history of operating losses and uncertainty of future profitability Company s profitability; uncertainty of access to additional capital; environmental liability claims and insurance; and dependence on joint venture partners. 2
- 3. EDW Value Opportunity Edgewater’s peer review group averages $50/oz Gold (EV/Resources) $180 $160 Edgewater i currently valued at $20/ G ld with significant Ed is l l d $20/oz Gold i h i ifi shareholder potential in 2012 $140 $120 $120 $100 $80 $60 $40 $20 $0 3
- 4. Investment Highlights 100% Ownership PRO MINING, STABLE MINING JURISDICTIONS • First world, pro mining jurisdiction • Advanced Gold development project • All levels of government supportive • Expedited/fast track to mining permits in 2012 • Project financing progress underway 51/49 Joint Venture J TEAM AND PARTNERS: Proven, Successful, Experience Kinross Gold Corp. • Proven management with mine building and production experience • Financial Advisor: Mr. AJ Ali has successfully raise over $ debt project finance J y $1B p j • Featherstone Capital Adviors: have significant success in creating shareholder wealth • Wardrop Engineering: An internationally recognized leader in the design and engineering of feasibility level gold projects world wide. 4 • Kinross Gold Corp.: A Canadian-based gold mining company with mines and projects in Brazil, Canada, Chile, Ecuador, Ghana, Mauritania, Russia and United States.
- 5. Investment Highlights 100% Ownership ESTABLISHED PROJECTS CORCOESTO GOLD PROJECT, Galicia NW Spain • Preliminary Economic Assessment* • NPV 5% $340 Million • IRR 34% • PAYBACK yrs 2.5 • Average Annual Net Revenue $80M 51/49 Joint Venture J Kinross Gold Corp. • Q2, 2012 Project Finance and Resource Estimate Update • Q3/Q4, 2012 Mining Permit • Q4, 2012 Bankable Feasibility Study and Project Finance ENCHI GOLD PROJECT, GHANA • 60 Km south west of Chirano Gold Mine (5M ounces) 5 • Maiden M d Resource Q2 2012 Q2, • +500sq km land package *$1500 Au
- 6. Edgewater Team George Salamis, President & CEO, Director +20 years experience directing exploration, development, and mining operations of a number of gold, base metal and coal p j , projects, Mr. Salamis has held senior management positions with Placer Dome and Cameco Corporation and has g p p completed M & A transactions valued over $1B Greg Smith, P.Geo, Vice President Exploration +23 years exploration experience working for both junior & senior mining operations and has been involved in outlining +10Moz gold discovery 10Moz Edward Farrauto, CFO +20 years experience as CFO and Director of public companies, has been involved in raising over $500 million of equity and debt and completed M & A transactions valued over $750 million Dr. John Thomas, COO +38 years experience in the mining industry in several countries. His experience covers a wide range of activities including process development, feasibility studies, management of construction and operation of mines. Dr. Thomas is a professional engineer and has a B.Sc., M.Sc., and a PhD in metallurgical processing Mr. AJ Ali, Project Finance Advisor Mr. Ali has over 20 years experience in the mining industry and has been involved with over $2B (USD) in M&A and project financings for global mining projects. Previously Mr. Ali was the Chief Financial Officer and a Director of Centenario Copper Corporation before its acquisition by Quadra FNX Mining and Chief Financial Officer of EuroZinc 6 Mining Corporation (2004 to 2006) before it merged with Lundin Mining. Mining Doug Forster, M.Sc. P.Geo, Director +30 years resource project development, M&A, equity finance and public company management, Mr. Forster is President & CEO of Featherstone Capital, he has been Founder and director of several public companies
- 7. Edgewater Capital Structure (March 2012) Ownership Share Structure Kinross Gold Corp Issued & Outstanding 67,282,187 5% Warrants 6,515,000 1 10 6 515 000 @ 1.10 (2013) Mgmt & ’15,451,280 Insiders 984,780 @ $1.10 (2012) Retail 38% 19% 7,806,500 @ $1.40 (2013) Options 7,102,000 Fully Diluted* 94,209,592* Institutional 38% Cash $4,000,000 * If Edgewater delineates a NI43-101 compliant resource of 3Moz of gold in the M&I category on the Enchi Gold Project, then Kinross can exercise an additional 2.5M warrants at $0.50 and 2.5M warrants at $1.00 (included in the fully diluted number above). 7
- 8. Corcoesto Gold Project Overwhelming support from all levels of government and community in Galicia, NW Spain An autonomous region, all mine permits granted locally at the municipal and state levels (no federal approvals required) Potential to fast track permitting with “Strategic Project” Excellent logistics with roads, power and water Robust R b economics with an average of 100k/oz a year gold h f 100k/ ld project with expansion potential Updated NI 43-101 Resource Estimate – Q3, 2012 Bankable feasibility study - Q4, 2012 Mine permitting - Q3/Q4, 2012 8 Project Finance underway - Q4, 2012
- 9. Corcoesto Gold Project PEA 6,000 tpd Years 1-10 (Base Case $US1300/oz) Average annual production (Au oz) 102,000 102 000 Average annual net revenue ($US M) 60.0 Metallurgical recovery (%) 89.1 Strip Ratio 8.0/1 Average annual net cost ($US/oz) 713 Capital cost ($US M) (17.5% Contingency) 160 $1300/oz $1500/oz Payback (y y (years) ) 3.4 2.5 IRR (%) 24 34 NPV (5%) (Million) Average annual net revenue ($US M) 206 60.0 340 80.3 9 Preliminary Economic Assessment NI43‐101 Compliant includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized *Slide 10 containing details of the NI43‐101 Compliant resource
- 10. Corcoesto Project / Peer Comparison Edgewater’s Auryx Gold Corp Base Case ($ ($1300/oz) / ) Corcoesto Project Otjikoto Project *92% 92% Annual Avg Production 102,000 100,000 Cash Cost $US/oz 713 725 Initial Capital Cost I ii lC i lC 135* 110 Mill Feed Grade 1.70g/t gold 1.52g/t gold Strip Ratio 8.0:1 7.3:1 Payback P b k 3.4 yrs 4 4.9 4 yrs Basic Market Cap $29 M $160 M $450 $ $400 $350 $300 Million) $250 $160 Mk C Mkt Cap Mkt Cap ($M $200 (1.4M oz Au) $150 $100 $28M Mkt Cap ( (1.5M oz Au) ) 10 $50 $0 0 1 Edgewater Exploration 2 Astur Gold Corp 3 Group Average 4 Auryx Gold Corp Ampella 5 Mining 6 Lydian International Gryphon 7 Minerals 8 *B2Gold acquired Auryx Gold for $160M, excluding contingency, working capital and both projects are at the PEA stage.
- 11. Corcoesto Gold Project - Design 11
- 12. Corcoesto Resource Expansion Potential 1.5km 200m Resource expansion potential significant at depth 12
- 13. Corcoesto 2011 Resource Estimate NI 43-101 Resource Summary Cutoff Tonnes Gold G ld Contained Gold Resource Class (g/t Au) (x1000) g/t (x1000 oz) Measured 0.65 3,899 1.77 222 Indicated 0.65 1,823 1.69 103 Measured + Indicated 0.65 5,783 1.74 325 Inferred 0.65/2.0 20,265 1.76 1,149 A total of 1,101.9 m of surface trenching in 55 trenches, 443.1 m of adit sampling in 4 adits and 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 13
- 14. 2nd largest Enchi produce r in Cote d’Ivoire Africa 17Moz 51/49 Joint Venture with Kinross Gold 3Moz (TSX: K) +5Moz 5Moz 3Moz Mid-stage exploration comprised of 8 45Moz licenses totaling 568km2 Enchi 6Moz 290km west of the capital city Accra Accra, 37Moz accessed via sealed roads Locating the next +3-5M ounce gold deposit on the Bibiani Shear Zone Bibiani Shear Zone hosts +25M ounces of gold, Enchi hosts the largest contiguous land package g p g Q2, 2012 Maiden Resource Estimate 14
- 15. Enchi Gold Project Analagous to Chriano and Bibiani Gold Mines G ld M Chirano covers 9km of the Bibiani Shear Zone Enchi covers 50km over the Bibiani Shear Zone 10,000m drilling program underway Trenching and soil sampling underway Airborne geophysical survey identified +25 new targets 25 15
- 16. Enchi Potential 3 geo-chemical anomalies over Several different targets identified with 3km long multi-million ounce potential p Open in all directions 1.44g/t Au over 17m Open in all directions 1.13g/t Au over 34m Open in all directions 1.14g/t Au over 68m 2.65g/t Au over 35m g Open in all directions Open in all directions Sewum highest geo-chemical anomaly Drill results include: 2.0g/t Au 16 over 30m, 0.53g/t Au over 81m 30m 0 53g/t
- 17. Edgewater News Flow & Timeline g 2012 2013 Q1 Q2 Q3 Q4 Q1 Corcoesto Resource 20,000m Diamond Drill Program Estimate Mining Environment / Permitting Permit Feasibility Final Feasibility Study Study 17 Project Project Financing Finance Resource Enchi Estimate 10,000m Drill Program
- 18. Edgewater Summary g Spain Stable and pro mining development in a first world jurisdiction Supportive Government and local community Experienced management with mine building and project finance expertise Completed a PEA demonstrating a 5% discounted NPV of $340M using a $1500 gold price. 2012 updated resource, mine permitting, project financing and bankable feasibility study. Ghana Located in one of the most prolific gold regions of the world South west of three large open pit and under ground mining operations Located the next 3-5M ounce gold deposit on the Bibiani Shear Zone Bibiani Shear Zone hosts +25M ounces over a 200km strike length 25M Enchi covers 50km of the Bibiani Shear Zone 18
- 19. EXPLORATION LTD. Contact Ryan King, Vice-President 604 628 1012 rking@edgewaterx.com www.edgewaterx.com