Edgewater Exploration completes 100% purchase of Corcoesto, PEA near finished

Edgewater Exploration (CVE:EDW) said Thursday it has completed the 100 percent acquisition of the Corcoesto gold project in Galicia, Spain from a subsidiary of Lundin Mining (TSE:LUN), by making a final cash payment of US$3.0 million.
To acquire a 100% interest in the Corcoesto project, Edgewater paid a total of US$8.0 million over a 12 month period. Lundin Mining will retain a 1.5% net smelter return (NSR) royalty once commercial production from the Corcoesto project begins, subject to Edgewater having the right to purchase 1.0 percent of the NSR royalty at any time for US$1.5 million.
In May,  Edgewater announced the updated NI 43-101 compliant resource at Corcoesto, which consists of a measured and indicated resource of 5.78 million tonnes grading 1.74 g/t gold, containing 325,000 ounces at a 0.65 g/t gold cut-off.
The property also hosts an NI 43-101 compliant inferred resource of 20.27 million tonnes grading 1.76 g/t gold containing 1.15 million ounces of gold.
The latest resource will form the basis for a preliminary economic assessment on the project, which is now nearing completion. Edgewater said it expects the results to be announced  in the next several weeks.
The economic report will also form the basis for all documentation required by the government of Galicia to initiate the exploitation permitting process, a major step in allowing the company the right to construct and operate a gold mine at Corcoesto. Permit applications are expected to be submitted by the end of 2011, Edgewater said.
"Since acquiring the Corcoesto Gold Project in July, 2010 Edgewater has completed 12,400 metres of infill and step-out diamond drilling and has successfully increased the gold resource by over 400%," said president and CEO, George Salamis.
"Over the past year Edgewater has made great progress at Corcoesto and has assembled a world-class team of gold project builders, environmental managers and engineering consultants, all of whom have a proven track-record to advance Corcoesto into its next phase of growth.
"With the PEA nearing completion and after recently spending some time at Corcoesto I am very encouraged on how the project is advancing both from an economic and mine permitting stand point."
Edgewater now has four diamond drill rigs conducting a program of infill and step-out drilling on the project, with results returning intersections including 16.45 metres of 2.08 g/t gold in hole DDH11W38.

Aside from Corcoesto, Edgewater is developing the Enchi gold project in Ghana, West Africa.