Thursday, November 17, 2011

NEWS RELEASE: EDW - Edgewater Exploration PEA study - $200m+ NPV

Hey everyone!!

Our darling stock (EDW.V) - put out their much anticipated PEA (preliminary Economic Study) today:


recent pps: $0.62 - view quote here

Here are the summary "Base Case Highlights" - View the full release above

Base Case Highlights

Average Annual Gold Production102,000 /oz
Average Annual Net Revenue (US$)60.0 Million
Life of mine Net Present Value (NPV)(US$)(5%)206 Million
Pre-Tax Internal Rate of Return (IRR)24%
Pre-Tax Payback (years)3.4
Initial Open pit and underground Capital Cost (US$)135 Million
Average Annual Cost (US$/oz)713
Combined open pit and underground operation9.9 year mine life

Why I like this company and Management so much:

1) They've only had this property for 1 year.

2) They bought the property for $8,000,000 and it had 300,000 oz of Gold

3) NOW IT HAS: 1,500,000 oz of Gold and a Net Present Value of over $200,000,000

4) There's still ridiculous upside since I didn't even mention their Enchi property or the fact that they still have 4 drills turning to keep transferring inferred into measured and indicated categories.

The Market... 

Stock is still at $0.62 and trading at a Market Cap of only $40,000,000+... so in my opinion it's still VERY UNDERVALUED.

Happy trading and remember to always do your own due diligence and refer to my disclaimer at the bottom!!