presentation
TRANSCRIPT
TSX.V:EDW
Corporate Presentation | May 2012
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 and other factors which may cause the actual results, performance 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; the estimation or realization of mineral reserves and resources; the timing and the 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; the Company’s history of operating 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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Forward Looking Statement
Edgewater’s peer review group averages $36/oz Gold (EV/Resources)
Edgewater is currently valued at $10/oz Gold with significant shareholder potential in 2012
EDW Value Opportunity
3 $8.8
$10.0 $11.6
$13.6 $15.5
$17.3
$29.8 $30.8
$33.6 $36.0
$41.7
$61.1
$66.4
$74.4
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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 progressing
TEAM AND PARTNERS: Proven, Successful, Experience
• Proven management with mine building and production experience
• Financial Advisor: Mr. AJ Ali has successfully raise over $1B debt project finance
• Featherstone Capital Adviors: have significant success in creating shareholder wealth
• Tetra Tech: An internationally recognized leader in the design and engineering of feasibility level
gold projects world wide.
• Kinross Gold Corp.: A Canadian-based gold mining company with mines and projects in Brazil,
Canada, Chile, Ecuador, Ghana, Mauritania, Russia and United States.
100% Ownership
51/49 Joint Venture Kinross Gold Corp.
Investment Highlights
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• Preliminary Economic Assessment*
• Q2, 2012 Project Finance and Resource Estimate Update
• Q3/Q4, 2012 Mining Permit
• Q4, 2012 Bankable Feasibility Study and Project Finance
ESTABLISHED PROJECTS
*$1500 Au
CORCOESTO GOLD PROJECT, Galicia NW Spain
ENCHI GOLD PROJECT, GHANA
• NPV 5% $340 Million
• IRR 34%
• PAYBACK yrs 2.5
• Average Annual Net Revenue $80M
• 60 Km south west of Chirano Gold Mine (5M ounces)
• Inferred Resource complete Q2, 2012
• +500sq km land package
100% Ownership
51/49 Joint Venture Kinross Gold Corp.
Investment Highlights
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George Salamis, President & CEO, Director +20 years experience directing exploration, development, and mining operations of a number of gold, base metal and coal projects, Mr. Salamis has held senior management positions with Placer Dome and Cameco Corporation and has 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
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 Mining Corporation (2004 to 2006) before it merged with Lundin 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
Edgewater Team
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Mgmt & Insiders
19%
Institutional 38%
Retail 38%
Kinross Gold Corp
5%
Ownership Share Structure
Issued & Outstanding 74,269,187
Warrants 6,515,000 @ 1.10 (2013)
984,780 @ $1.10 (2012)
7,806,500 @ $1.40 (2013)
’19,681,500
Options 7,902,000
Fully Diluted* 101,852,687*
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).
Edgewater Capital Structure (May 2012)
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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 economics with an average of 100k/oz a year gold project with expansion potential
Updated NI 43-101 Resource Estimate – Q3, 2012
Bankable feasibility study - Q4, 2012
Mine permitting - Q3/Q4, 2012
Project Finance underway - Q4, 2012
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Corcoesto Gold Project
6,000 tpd Years 1-10 (Base Case $US1300/oz)
Average annual production (Au oz) 102,000
Average annual net revenue ($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 $1500/oz
Payback (years) 3.4 2.5
IRR (%) 24 34
NPV (5%) (Million) 206 340
Average annual net revenue ($US M) 60.0 80.3
Corcoesto Gold Project PEA
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
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$0
$50
$100
$150
$200
$250
$300
0 1 2 3 4 5 6 7 8
Base Case ($1300/oz)
Edgewater’s Corcoesto Project
Auryx Gold Corp Otjikoto Project *92%
Annual Avg Production 102,000 100,000
Cash Cost $US/oz 713 725
Initial Capital Cost 135* 110
Mill Feed Grade 1.70g/t gold 1.52g/t gold
Strip Ratio 8.0:1 7.3:1
Payback 3.4 yrs 4.9 yrs
Basic Market Cap $29 M $142 M
*B2Gold acquired Auryx Gold for $160M, excluding contingency, working capital and both projects are at the PEA stage.
Mkt
Cap
($M
illio
n)
$22M Mkt Cap
$142 Mkt Cap (1.4M oz Au)
(1.5M oz Au)
Corcoesto Project / Peer Comparison
Edgewater Exploration Astur Gold Corp Group Average Auryx Gold Corp Ampella Mining Lydian International Gryphon Minerals
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Corcoesto Gold Project - Design
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1.5km
200m
Resource expansion potential significant at depth
Corcoesto Resource Expansion Potential
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NI 43-101 Resource Summary
Resource Class Cutoff (g/t Au)
Tonnes (x1000)
Gold g/t
Contained Gold (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
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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
Corcoesto 2011 Resource Estimate
51/49 Joint Venture with Kinross Gold (TSX: K)
Mid-stage exploration comprised of 8 licenses totaling 568km2
290km west of the capital city Accra, 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
Exploration and drilling program underway
2nd largest
producer in
Africa
6Moz Enchi
Cote d’Ivoire
3Moz
3Moz
+5Moz
45Moz
37Moz
17Moz
5Moz
Enchi
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Analagous to Chriano and Bibiani Gold Mines
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
Enchi Gold Project
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NI 43-101 Resource Summary
Zone Cutoff (g/t Au)
Tonnes Gold g/t
Contained Gold
Boin 0.70 9,551,000 1.20 369,600
Nyam 0.70 3,633,000 1.06 123,700
Sewum 0.70 7,449,000 1.07 255,750
Total 20,627,000 1.13 749,000
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1. CIM definition standards were followed for the resource estimate. 2. The 2012 resource models used ordinary kriging (OK) grade estimation within a three-dimensional block model with mineralized zones defined by wireframed solids. 3. A base cutoff grade of 0.7 g/t Au was used for reporting resources with a capping of gold grades at 18 g/t. 4. A density of 2.45 g/cm3 was applied. 5. Numbers may not add exactly due to rounding. 6. Mineral Resources that are not mineral reserves do not have economic viability
Enchi 2012 Inferred Resource Estimate
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Enchi Resource with cut-off Range
NI 43-101 Resource Summary
Cutoff (g/t Au)
Tonnes Gold g/t
Contained Gold
0.30 71,241,000 0.65 1,489,295
0.40 51,633,000 0.76 1,269,739
0.50 37,278,000 0.89 1,063,868
0.60 27,538,000 1.01 892,682
0.70 20,627,000 1.13 749,081
0.80 15,887,000 1.24 635,200
0.90 12,644,000 1.35 546,878
Enchi Potential
2.65g/t Au over 35m
Open in all directions
1.44g/t Au over 17m
Open in all directions
3 geo-chemical
anomalies over
3km long
Open in all
directions
1.13g/t Au over 34m
Open in all directions
Sewum highest geo-chemical
anomaly
Drill results include: 2.0g/t Au
over 30m, 0.53g/t Au over 81m
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1.14g/t Au over 68m
Open in all directions
Several different targets identified with multi-million ounce potential to build upon
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2 0 1 2 2 0 1 3
Q1 Q2 Q3 Q4 Q1
20,000m Diamond Drill Program
Environment / Permitting
Project Financing
Final Feasibility Study
Mining
Permit
Edgewater News Flow & Timeline
Resource
Estimate
Project
Finance
Feasibility
Study
10,000m Drill Program
Corcoesto
Enchi
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
Enchi covers 50km of the Bibiani Shear Zone
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Edgewater Summary
