Less than a year has passed since Vancouver junior Edgewater Exploration (TSX-V:EDW) picked up a gold property in Spain and already the company has increased reserves there 400%.
On Tuesday, industry veteran and Edgewater president and CEO George Salamis said the company’s Corcoesto property contained some 325,000 ounces of gold in measured and indicated categories, and more than 1.1 million ounces in an inferred category.
“With the 2011 increased resource we now feel that Corcoesto has the potential to demonstrate economic viability and therefore this resource will form the basis of a scoping study to be completed in 2011,” said Salamis, the former president of Vancouver gold producer Rusoro Mining (TSX-V:RML).
Edgewater picked up Corcoesto last September in an US$8 million deal with Lundin Mining (TSX:LUN).
The property, which is still at an exploration stage, lies in northwest Spain approximately 36 kilometres from the port city of La Coruna.
Edgewater has said the project has excellent infrastructure, including paved roads and a power line.
Corcoesto is also located in one of the most pro mining regions of Spain, the company said.
“The local support demonstrated for the project at all levels of government supports our view that Corcoesto will one day become a viable gold producer,” Salamis said.
The project’s new resource estimate was based on 42,111 metres of drilling across 342 holes.
The company has begun work on a scoping study that’s expected to be complete later this year.
Edgewater had $6.5 million in cash and cash equivalents as of March 31.
At press time, the company’s shares were up 2% to $0.90.
Joel McKay
Twitter: jmckaybiv