corporate presentation
TRANSCRIPT
1
Certain statements in this document constitute “forward looking statements” which maynot be based on historical fact. Such forward looking statements involve known andunknown risk, uncertainties and other factors which may cause the actual results,performance or achievements of the Company, or industry results to be materiallydifferent from any future results, performance, or achievements expressed or implied bysuch forward looking statements. Such factors include, among others, the following:actual results of exploration and development activities; the estimation or realization ofmineral reserves and resources; the timing and the amount of future production; the costsand 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’shistory of operating losses and uncertainty of future profitability; uncertainty of access toadditional capital; environmental liability claims and insurance; and dependence on jointventure partners.
Mr. Gregory Smith, P.Geo, Vice President of Exploration for the Company, is the Qualified
Person as defined by NI 43-101, and is responsible for the accuracy of the technical data
and information.
STRONG MANAGEMENT TEAMProven mine builders, with experience internationally and specifically within Spain
UPDATED MEASURED AND INDICATED RESOURCE ESTIMATE EXCEEDS ONE MILLION OUNCES GOLD*Micon International completed open pit constrained resource (Spain)
Approved Environmental Impact Statement (Milestone Permit)December 2012 Ministry of Environment approved The Corcoesto project for open pit mining
INFERRED RESOURCE ESTIMATE EXCEEDS ONE MILLION OUNCES GOLD**Tetra Tech 2012, Ghana, West Africa (Joint Venture Edgewater 51%/Kinross 49%)
$5 Million market capitalization ($3/oz Gold in the ground valuation)
100% owned Advanced Stage Corcoesto Gold Project NW, Spain (NI 43-101 PEA completed, Updated Measured & Indicated Resource)
51% own Advanced Stage Enchi Gold Project Ghana, West Africa(Inferred Resource)
*See slide 9 for full details ** slide 16 for full details
Conventional open-pit advanced stage goldproject
100% Ownership+15,000 ha along the Gold belt
FIRST WORLD, PRO-MINING JURISDICTION
ADVANCED GOLD DEVELOPMENT PROJECT (Preliminary Economics Complete)
PIT-CONSTRAINED GOLD RESOURCE (Significant Exploration Upside Potential)
EXCELLENT LOCATION WITH ALL INFRASTRUCTURE IN PLACE
FULL ENVIRONMENTAL IMPACT STATEMENT APPROVED (DEC. 2012)
ALL LEVELS OF GOVERNMENT AND LOCAL COMMUNITIES SUPPORTIVE
EXPLORATION UPSIDE
George Salamis, President & CEO, Director +20 years experience directing exploration, development, and miningoperations of a number of gold, base metal and coal projects, Mr.Salamis has held senior management positions with Placer Dome andCameco Corporation and has completed M & A transactions valuedover $1B
Greg Smith, P.Geo, Vice President Exploration+23 years exploration experience working for both junior & seniormining operations and has been involved in outlining +10Moz golddiscovery
Edward Farrauto, CFO+20 years experience as CFO and Director of public companies, hasbeen involved in raising over $500 million of equity and debt andcompleted M & A transactions valued over $750 million
Dr. John Thomas, COO+38 years experience in the mining industry in several countries. Hisexperience covers a wide range of activities including processdevelopment, feasibility studies, management of construction andoperation of mines. Dr. Thomas is a professional engineer and has aB.Sc., M.Sc., and a PhD in metallurgical processing
Mr. AJ Ali, Project Finance AdvisorMr. Ali has +20 years experience in the mining industry and has been involved with over $2B in M&A and project financings for mining projects. Previously Mr. Ali was the CFO and Director of CentenarioCopper Corp before its acquisition by Quadra FNX Mining and CFO of EuroZinc Mining Corporation before it merged with Lundin Mining.
Doug Forster, M.Sc. P.Geo, Director+30 years resource project development, M&A, equity finance and publiccompany management, Mr. Forster is President & CEO of FeatherstoneCapital, he has been Founder and director of several public companies
Francisco Arechaga Director of Corporate AffairsMining Engineering with over 30 years in the Galician Mining Industry. Previously Mr. Arechaga held the position of Chief Director of the Mina de Puentes, the largest open pit mine in Galicia
Lluís Boixet Country ManagerOver 25 years in exploration and development of gold and base metal projects in the Iberian Peninsula
Mgmt &
Insiders 13%
Institutional
37%
Retail 45%
Kinross Gold
Corp 5%
Ownership Share Structure
Issued & Outstanding 88,794,437
Warrants2,500,000 @0.50 (2015)(Kinross)*2,500,000 @1.00 (2015)(Kinross)*
666, 720 @ 0.47 (2015)
5,666,720
Options 7,860,000
Fully Diluted* 102,321,157
Cash $1,000,000
Nov 2013 Market Capitalization
5.4 Million
M+I+I Resources $4/oz
*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).
• An autonomous region, all mine permits granted locally at the municipal and state levels (no federal approvals required), supportive from all levels of government
• Excellent logistics with roads, power and water amenable to low cost development
• PEA demonstrates robust economics with an average of 100k/oz a year gold project with expansion potential*
2013 Transformational Year Upcoming Milestones
• Updated NI 43-101 Resource Completed – Q3, 2013
Corcoesto Plant site Drawing
*see slide 10 for details
NI 43-101 Pit Constrained Resource Summary (0.5 & 0.8 g/t Gold Cut-off)
Resource ClassCutoff (g/t Au)
Tonnes(x1000)
Goldg/t
Contained Gold (x1000 oz)
Measured 0.5 14,910 1.34 644
Indicated 0.5 9,298 1.28 383
Measured + Indicated 0.5 24,208 1.32 1,027
Inferred 0.5 5,321 1.21 207
Measured 0.8 10,170 1.67 546
Indicated 0.8 6,065 1.63 317
Measured + Indicated 0.8 16,235 1.65 863
Inferred 0.8 3,733 1.44 173
1. Mineral resources were classified following the guidelines of the JORC Code (2012) an accepted reporting code in terms of Canadian National Instrument 43-101.
2. Mineral resources are constrained within a Whittle pit shell based on a gold price of US$1,400/oz.
3. Numbers may not compute due to rounding.
4. All grades have been quoted in grams per tonne (g/t) for the resource inventory.
5. Density values were assigned in relation to an oxide surface; no further distinction between fresh and oxide material has been made within this resource estimate.
6. There are no known legal, political, environmental or other risks that could materially affect the potential development of these mineral resources
Open-pit constrained 1.2 Million Ounce Gold Resource with significant potential at depth and on strike
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
Pre-Tax Financial Model $1300/oz $1500/oz $1700/oz
Payback (years) 3.4 2.5 2.0
IRR (%) 24 34 41
NPV (5%) (Million) 206 340 446
Average annual net revenue ($US M) 60.0 80.3 96
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 09 includes the updated NI 43-101 resource estimate, the PEA economic details use the older (2011 resource estimate for these PEA calculations)
(Nov 2011)
• Capital cost ongoing, work confirms low capex to date
• Operating costs inline with 2011 Preliminary Economic Assessment
• Metallurgy optimization underway
• Site layout complete
• Mine contractor rates confirmed
• Geotechnical/reclamation work complete
• Flow sheet confirmed and design nearing completion
• Permitting well advanced with EIA completed (Dec 2012)
W
6000 tpd FEED
ORE
FEED
ORE FEED
STOCKPILE
OPTIONAL INDERECT
FEEDING
100 ton TRUCK
180 m3
BIN
FEEDER
JAW
CRUSHER
FEED BELT
CONVEYOR
MAGNET
P80 -
150m
m
CRUSHED ORE
STOCKPILE
Diam.44.0m
FEED BELT
CONVEYOR
SAG MILL
VIBRATING
SCREEN
O/S
+5m
mm
OVERSIZE
CONVEYOR
Water
CYCLONE FEED
PUMP
HYDRO
CYCLONE
SUMP
O/F
TRASHO/S
2 BALL MILLS
TRASH
SCREEN
CENTRIFUGAL
CONCENTRATOR
TAIL
S
U/F
FLOTATION
CONCENTRATE
FLOTATION
CELLS
CONCENTRATE
THICKENER
CON
C.
FLOTATION
TAILINGS DAM
RECLAIM
WATER POND
O/F
PROCESS
WATER LOOP
U/F
TAILINGS
THICKENERFLOTATION
TAILINGS
REGRINDING
MILL (ISA)
CONCENTR
ATE
GOLD
ELECTROWINNING8 CIL AGITATED TANKS
CYANIDE
DESTRUCTION
CARBON
ELUTION
CARBON
REGENERATION
REGENERATED
CARBON
PREGNANT CARBON
LEACH RESIDUE
TAILINGS DAM
SMELTING
FURNACE
GOLD
DORE
Design by : JAT Date28/01//2013
RETURN
WATER TO
PROCESS
U/S
U/S
-5mm
WASTE ROCK/TAILINGS
Potential Resource
below pits
Pozo Del Ingles Gold Zone Grade thickness long section
Corcoesto Gold Project – Plan Map
Peton de Lobo Gold Zone Grade thickness long section
Cova Crea Zone Open at Depth
Potential extensions to structures on strike
Open at Depth
Open at Depth
Current Open pit shell
• 51/49 Joint Venture with Kinross Gold (TSX: K)
• Mid-stage exploration comprised of 8 licenses totaling 568km2
• Located above the highly prolific Bibiani Shear Zone which is host to two >5 million ounce deposits
• Chirano Gold Mine ~40km NW covers 9km of the Bibiani Shear Zone
• Enchi covers 50km over the BibianiShear Zone
• Airborne geophysical survey
identified +25 new targets
• Completed NI 43-101 Gold Resource
+1M ounces*
• All zones open at depth and along
strike*see slide 16 for details
16
NI 43-101 Mineral Resource Summary
Cutoff (g/t Au)
TonnesGoldg/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
*West African average cut-off is 0.4g/t which represents +1.2M ounces Gold
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
• Environmental Impact Permits – Approved
• Updated Measured and Indicated Resource
grew +200% completed with significant
upside potential
• Management team has extensive M&A, mine
building, operational and in country open-pit
expertise
• Low capital, simple and short timeline
• Committed to maximizing social economic benefits
to the region
