We sat down with Ryan King from Edgewater Exploration (EDW.V) to follow up with him on the approval of the EIS by the government of Galicia.
- You just received the environmental license for the Corcoesto Gold project. Which permitting milestones are left?
- This approval is a very significant milestone for EDW and for that matter any company with a natural resource. We have been working extremely hard to get the project through the major environmental approval which touches on many aspects including; massive amounts of baseline studies, a properly design layout for all aspects of the project and engaging with all government and local communities interested in contributing to the project. This is the major approval needed, we now proceed on to development and work towards all levels of construction licenses which have all been touched on in the EIS process.
- What are the next catalysts for the company?
- The next major catalyst for the company is an updated resource estimate, scheduled for late-January 2012. Over the course of 2012 we have completed +50,000m of infill drilling on this deposit. Our last resource estimate had a majority of the gold resources in an Inferred category. These resources required upgrading to a Measured and Indicated level for the upcoming Feasibility study which is the second major catalyst, set to be released late Q1 early Q2, 2013.
- What’s your current cash position?
- Currently we have just over ~3.0M in the treasury and our burn rate has slowed dramatically now that we have finished all of the infill drilling in Spain.
- Are you doing any work in Ghana, or are all your resources focused on developing Corcoesto into Spain’s next producing gold mine?
Yes, our resources are currently almost fully focused on the Corcoesto Gold Project. We believe this project is going to be developed and have us producing gold and making cash-flow within two years, separating us from a large pack of junior exploration companies. Our primary goal is to advance Corcoesto through to production before the end of 2014 and in 2013 we have some major milestones along the way which will get us there.
Our asset in Ghana is still very important to us, since it currently has a +750,000 ounce resource, which we believe can grow significantly since it is shallow and is completely wide-open for expansion.
We were surprised to see the share price fall on this excellent news as the approval of the EIS is an important step in de-risking the Corcoesto gold project.
Disclosure: The author holds a long position in Edgewater Exploration Ltd. Please see our disclaimer for current positions.