Proyecto de Explotación de las minas de Oro en Corcoesto 250 puestos de trabajo directos en Cabana

1. RIO NARCEA GOLD MINES, S.L.
5/4/2012

2. Main Gold Deposits in the Iberian Peninsula
Salave 2 M Oz
El Valle-Boinás-Carlés 3 M Oz
Corcoesto 1.2 M Oz
Las Médulas
 Corcoesto Gold
Deposit is 100% Jales/Gralheira 1.2 M Oz
owned by Edgewater Penedono
Exploration Ltd.,
since 2010. Castromil
 Location: Galicia, in
NW Spain.
Montemor
Filon Sur Cerro Colorado 3 M Oz
Rodalquilar
Major Gold Deposits

3. Geological Map
Salave
El Valle-Boinás-Carlés
Corcoesto 1
Las Médulas
4 2
Iberian Herzinian Massif Jales/Gralheira
Penedono
1. Cantabrian Zone Castromil
3
2. West-Asturian-Leonese Zone
3. Central Iberian Zone
Montemor
4. Galician-Tras-Os-Montes Zone 5
Filon Sur Cerro Colorado
5. Ossa Morena Zone
6 Rodalquilar
6. South-Portuguese Zone
Major Gold Deposits

4. Claim Status
Surface
Mineral Right Type Number Granted Expiring (Ha)
Emilita Exploitation Concession 1221 May-18-1912 Ago-10-2064 270,5
Ciudad de Masma Exploitation Concession 1455 June-16-1926 Ago-10-2064 305,5
Ciudad de Landró Exploitation Concession 1454 June-16-1926 Ago-10-2064 197,6

5. Adjacent properties
 EDW applied for addtional
ground along the gold belt
(more than 15,000 Hectares)
 Legend
Corcoesto Exploitation
Concessions. (Granted)
Investigation Permits &
Exploitation Concession
pending of resolution.
(Public Tender)
Investigation Permits
pending of granting.

6. Government and Community Support
 Support for Project Development at Local and
Regional Levels
 Regional Government promoting Mining Industry in
Galicia (www.mineriadegalicia.com)
 Mining Title confirmed for period of 90 years since
August, 1974 (up to August, 2064)
 Positive meetings with mining and environmental
ministries.
 Support for Project development from the local
community
 EDW and drilling companies employing local
people (currently 17 locals directly employed at
Corcoesto)
 Excellent relationship with local authorities
 Company sponsoring local celebration at
Corcoesto

7. Key Project Personnel
 Country Manager: Lluís Boixet, (Senior Geologist)
 Mining Engeneers: Francisco Bellón &
Fernando Diaz
 Environment Department: Francisco Ruiz
 Legal Counsel: Julio Cesar Valle
 Project Geologist: Carmen Sorribas
 Exploration Geologist: David Rodriguez
 Senior Logistics assistant: Amancio López
 Prep. Lab. Manager: Jesús Antonio López
 GIS Department: Pedro Cuervo
 Local Accountant: Ana Suárez
 Communication Department: Navia Franco & Celeste Suarez

8. Regional Geology Cabo Ortegal
Complex
 Malpica–Tuy Gold Belt
(Over 150 Km structural zone with
numerous gold ocurrences)
Corcoesto
Malpica-Tuy
Belt
ordenes
Complex
ALLOCTHONOUS COMPLEXES
GTMZ
SCHISTOSE DOMAIN OF Bragança
GALICIA - TRAS - OS - MONTES (SDGTM)
(Malpica-Tuy Gold Belt)
Complex
CENTRAL IBERIAN ZONE (CIZ)
WEST ASTURIAN - LEONESE ZONE (WALZ)
THRUST FAULT Morais
Complex
GOLD OCCURRENCES

9. Property Geology
Introduction
 Gold Mineralization associated with
Quartz veins, silicification and
disseminated Apy.
 Related to N70E Extensional Zones
(Second Order Shear) into N30E
Dextral Shear Zone (First Order
Shear).

10. Property Geology
Local Geology
 Corcoesto Map, Showing
lithologies and gold vein
systems:
 Principal zones:
Cova Crea, Pozo del Ingles,
Petón de Lobo
 Additional structures:
Lithology
Leucocratic gneiss
Montefurado, Fonterremula, Schists
Alternating gneiss/
Picotos and Lampreira. metasediments/migmatites
Felsitic dyke
Gold vein sytems
Inferred contact

11. Property Geology Lithologies
Biotitic Gneiss Metasediments
Leucocratic Gneiss. Coarse grained Leucocratic Gneiss. Fine grained
Migmatites
Felsitic Dyke

12. Property Geology
Mineralization
 Gold mineralization consists mainly of Arsenopyrite-bearing Q Veins included in
larger zones of silicification, commonly with sericitic and K alteration.
 There are three different styles of mineralization:
 1.- Sheeted Quartz Veins
 2.- Descrete Quartz Veins
 3.- Silicified Breccia

13. Property Geology
Mineralization Styles
1.- Sheeted Quartz Veins (N70W/70NE):
 Tightly spaced mm-cm Q veins,with weak Apy dissemination (<1% As).
 Thick mineralized zones at low grade, up to 1.95g Au/t over 41.10m,
including 3.67g Au/t over 14.05m.
 Hosted mainly in the fine grained leucocratic gneiss.
COR-29x

14. Property Geology
Mineralization Styles
2.- Descrete Quartz Veins (N70E/70NW):
 Grey-bluish cm-dm Q Veins with fine grained
disseminated Apy (>1% As).
 High grade in narrow zones, up to 148.50g Au/t over
1.10m (ddh 10W10)
 Normally, high grade veins are included in lower grade
zones of weak silicification with small veins.
 There may be large zones including few sets of High
grade Q veins up to 10.72g Au/t over 17.0m (ddh
10W10)
 Hosted mainly in biotitic gneiss and migmatites (Pozo
del Ingles and Cova Crea West).
10E10

15. Property Geology
Mineralization Styles
3.- Silicified Breccia:
 Grey-bluish silica with fine grained disseminated Apy
(>1% As) flooding breccia zones.
 High grade in narrow zones, up to 46g Au/t over 1.0m.
 Hosted in biotitic gneiss (Pozo del Ingles West)

16. Property Geology
Structural control for gold mineralization
DEFORMATION ELLIPSOID
ASSOCIATED WITH MAIN (N30E)
DEXTRAL SHEAR
N70E TREND
Au - As SOIL
ANOMALIES
ANTITHETIC RIEDEL
FRACTURES (N80-70W)
(TRANSTENSIVE REGIME)
S-C Fabric SYNTHETIC RIEDEL
FRACTURES (N40-50E)
(TRANSPRESSIVE REGIME)
LEGEND:
EXTENSION NW TREND FOR DEFORMATION ELLIPSOID MINERALIZED VEINS
(N50W-30W)
Au-As SOIL ANOMALIES ? DEFORMATION ELLIPSOID
FRACTURES

17. Project History
 Shallow pits from the Roman Times.
 Between 1895 and 1910: Shallow UG
exploitation by the British company
“Sagasta Gold Mines Ltd”.
 Several Companies did exploration
between 1918 and 1987.
 1997-2004 (RNGM): Soil Geochemistry,
18,000m of Trenching and 19,250m of
Drilling. Feas. Study for Heap Leach
Operation.
 2005-2010 (KNB): Soil Geochemistry,
Mag Survey, 1,100m of Trenching and
8,710m of drilling.
 Oct, 2010 - Nov,2011 (EDW): Step-out
and in-fill drilling 15,000m. Scoping study
and mine permitting in progress.

18. Project History
Soil Geochemistry (Au and As)
 KNB Detailed Survey (Au + 35
elements). Lines spacing at 75m and
samples at 25m.
 Au and As anomalies oriented N70E,
crosscutting regional geology (N30E).
Au (ppb) As (ppm)
0 - 228.8 0 - 643.6
228.8 - 378 643.6 - 851
378 - 609.45 851 - 1,190
609.45 - 1,021.4 1,190 - 1,627.6
1,021.4 - 1,316.9 1,627.6 - 2,276.9
1,316.9 - 2,659.69 2,276.9 - 3,724.19
2,659.69 - 5,360 3,724.19 - 4,090

19. Project History Number of Holes Total Meters
Drilling Summary EDW Diamond Drilling 59 15,102.45
(Oct-2010 up to Nov-2011
… in Progress)
KNB Diamond Drilling
2006-2007 45 6,465.10
2005 12 2,245.15
KNB Total 57 8,710.25
RNGM Drilling
Core 192 16,794.65
Reverse Circulation 31 2,366.30
RNGM Total 223 19,160.95
Rio Tinto Drilling*
Core 38 7,582.98
*RNGM made a selection from the Rio
Tinto drill hole database, finally
determining that 38 of the available 50 Project Total 377 50,556.63
holes were reliable.

20. Corcoesto ddh location map
Legend
Ended (59 ddh / 15,102.45 m.)
EDW Drilling
In progress
RNGM
Old Drilling KNB
RTM
Lithology
Leucocratic gneiss
Schists
Alternating gneiss/
metasediments/migmatites
Felsitic dyke
Inferred contact

21. Corcoesto S-N Project Cross Section (3660)

22. Deposit modeling: Pozo del Inglés. Cross Section 3860
N

23. Deposit modeling: Pozo del Inglés. Longitudinal Section (grade x thickness)

24. Deposit modeling: Pozo del Inglés. Longitudinal Section (grade x thickness)

25. Deposit modeling:
Petón de Lobo. Cross Section 4400
(Rotated)

26. Deposit modeling: Petón de Lobo. Longitudinal Section (grade x thickness)

27. Deposit modeling:
Cova Crea. Cross Section 3660
N

28. Deposit modeling: Cova Crea. Longitudinal Section (grade x thickness)
N

29. Existing Resources: (Alan Noble, May 2011) Table
Cutoff Grade
Class (g/t Au) Tonnes (g/t Au) Oz Au N
Measured (M) 0.65 3.899.000 1.77 222.000
Indicated (I) 0.65 1.884.000 1.69 103.000
M+I 0.65 5.783.000 1.74 325.000
Inferred 0.65 / 2.00 20.265.000 1.76 1.149.000

30. QA / QC
EDW KNB
LABORATORY % EXTERNAL LAB % LAB % EXTERNAL LAB %
CHEMEX OMAC ITMA CHEMEX
SAMPLES 3190 90 SAMPLES 2954 90
DUPLICATES 175 5 124 3.5 DUPLICATES 207 6 198 6
BLANKS 167 5 BLANKS 117 4
TOTAL 3532 100 3.5 TOTAL 3278 100 6
N

31. Scoping Study - Preliminary Economic Assessment
Alan Noble, Mining Engineer
Jaye Pitarks, Metalluric Engineer
Dermot M Claffey, Geotechnical Engineer
 Site Visit. OK
 Resource Model Update. OK
 Open Pit Design. OK
 Plant Design – Preliminary Review. OK
 Preliminary Metallurgical Test Program.OK
 Develop Conceptual Plant Capital and
W
E
Operating Costs. OK
 Conceptual siting study for Tailings
Storage Facility. OK
 Environmental and Permitting. OK
 Economic Analysis. OK
 Report. In Progress.

32. Preliminary Economic Assessment
 Project Assumptions (US $)
 Gold Price $ 1,300
 Dollar/Euro $ 1.38/ Euro
 Royalty 0.5%
 Capital Contingency 17.5%
 Discount Rate 5.0%
 Base Case Highlights
 Average Annual Gold Production 102,000 Oz
 Average Annual Net Revenue $ 60.0 Million
 NPV $ 206 Million
 Pre-Tax IRR 24%
 Pre-Tax Payback 3.4 years
W
E
 OP and UG Capital Costs $ 135 Million
 Life of Mine 9.9 years
 Life-of-Mine Parameters
 Mill Feed Grade 1.70 g/t Au PRE-TAX FINANCIAL MODEL
 Stripping Ratio 8.0 / 1 Gold Price Scenarios
Units Base Case Current
 Annual Troughput 2.1 M tonnes
Gold US $ /Oz 1300 1500 1700
 Milling Rate 6,000 t/day NPV 5% discount 206 340 475
 Gold Recovery 89.1% Payback Years 3.4 2.5 1.9
IRR % 24 34 43

33. Preliminary Economic Assessment: Open Pits Location

34. Preliminary Economic Assessment: Facilities Layout

35. Preliminary Economic Assessment: Alternatives
 Batán Valley Alternative  Lourido Valley Alternative

36. Underground Design
• Resource expansion at Corocesto highly
likely, due to “open ended” resource
boundaries at depth below the currently
planned pits
• Underground Ramp Engineering Study to
explore ramp sighting options
• Ramp to be used for deeper exploration
and, subject to future studies, for future
underground mining
* The Information above includes preliminary designs
* The actual designs to be determined

37. Permitting Time Table
W
E

38. Communication and PR (Guindeira Communication & Events)
 Communication Strategy based on:
 Transparency
 Engagement with Local Community and with the Environment
EDW has made presentations to:
 Local and Authonomic Government
 Local Politic Groups
 Main Environment Galician Group
 Corcoesto Local Community
EDW has also contacted with:
 Local Social-Economic Associations
W
 Local Press and Journalists E
 Galician University experts
 Environmental groups
Conclusions:
 Excellent Receptivity of all groups to the company transparency
 Excellent Receptivity to the Mining Project

39. Municipality Suport to the Mining Project
 Mayor’s winning campaign platform coming out in support of Corcoesto Mining Project:
 Local Municipality will assist and support with advancing the project to Exploitation.
 > 250 new direct jobs estimated for Life-of-Mine (9.9 years) plus construction
W
E

40. Highlights and milestones for 2011 and 2012
 Drilling campaign (total of 42,000 m since Oct,
2010 to Dec, 2012). Currently drilled 15,000 m.
 INFILL: Upgrade 90-95% Inferred to
Measured + Indicated
 STEP-OUT/DOWN DIP: Testing high grade
ore shoot extensions for additional UG
resources
 EXPLORATION: Drilling additional targets
 Updated Resource Estimate (May 2011),
resulting in a 5 fold increase in W
respect the
former reported by Kinbauri in 43-101, August E
2006.
 Preliminary Economic Assessment (November,
2011)
 Exploitation Project and Environmental Study in
Progress (December, 2011)
 Prefeasibility/Feasibility Study (Dec, 2012)

41. RIO NARCEA GOLD MINES, S.L.
5/4/2012