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As a general
rule, the most successful man in life is the man who has the best information
Over the last few
years some of the biggest wins in the market have come from gold plays in
Africa. The one-time forgotten continent is now one of the hottest places in
the junior mining world.
Recent success
stories such as:
-Red Back Mining
(TSX -RBI) $3.50 - $30.00 800% Gain
-Semafo (TSX -
SMF) $2.00 - $9.00 450% Gain
-Keegan Resources
(TSX - KGN) $1.00 - $5.00 500% Gain
-Canaco Resources
(TSX.V - CAN) $0.10 - $2.00 2000% Gain
have the
investment community ripe with confidence and excitement.
The Kinross
acquisition ($7.1Bn deal) of Red Back Mining has cemented Western Africa in
investor’s minds as a good place to be invested. Now Edgewater
Exploration TSX.V - EDW is positioned to benefit from the excitement and they
have the most important things I look for in a potentially successful
company:
Management
President &
CEO - George Salamis built Rusoro Mining into a company with a 17m oz gold
reserve
Director -
Patrick Soares took Brett Resources from a $0.10 company to over $5.00 in a
recent Osisko buyout
Featherstone
Capital – Edgewater’s financial advisors - put together Terrane
Metals from scratch and Terrane just got purchased by Thompson Creek Minerals
in a $650M deal.
Share Structure
- Only 26m out
- Red Back (now
Kinross) has 7.5%
- 60% held
between management, insiders and RBI
Of course, no
company can enjoy real success if they don’t have the goods in the
ground.
Projects
EDW’s
advanced stage Spanish asset gives the company a solid base to build off of.
The resource was recently updated to 1.2m oz (M&I + Inf.) @ 1.7 g/t
average and is open along strike and at depth.
But the Spanish
asset isn’t what caused a commentator on BNN to call them a “Red
Back Mining Junior.” No, what has everyone talking about
Edgewater’s potential is the Enchi Gold Project in Ghana - formerly Red
Back Mining’s top exploration target. If the RBI buyout only validated
one thing, it’s that they know Ghana and can pick the right properties
to work on.
EDW is earning
into Enchi for a 51% stake. The project is located within the Bibiani Shear
Zone (over 40km of strike length) and is comprised of 16 separate mineralized
zones. For those unfamiliar with gold mineralization in Ghana this is how
many of the big mines are made up - Red Back’s Chirano Mine is comprised
of 11 gold deposits spread along 9km of strike length.
The Boin Gold
Zone (within Enchi) has itself seen over 80 drill holes return over 1 g/t Au,
highlighted by:
-30m of 1.92 g/t Au
-33m of 2.1 g/t Au
-16m of 2.26 g/t
Au
The Nyamebekyere
Gold Zone is highlighted by:
-11m of 3.6 g/t Au
-16m of 1.83 g/t Au
Another zone,
Eradi Central, assayed 37m of 1.47 g/t Au in trenches.
Overall, the
company’s goal is to delineate a multi-million ounce deposit by Q1
2011. And it looks to this author as if Red Back really believed this will
happen – after all, they own 5 million warrants in EDW that can
only be exercised if EDW reports a 43-101 resource of at least 3m
ounces.
Evidence of the
excitement in the markets over EDW and gold mining in Ghana can be seen in
the recent movement of its stock price - when RBI announced they were being
bought by Kinross the stock ran up 50%.
Conclusion
Edgewater has
everything that I look for in a company:
• A highly
experienced successful management team
• Tightly
held low outstanding number of shares
• Quality
projects
Ghana gold and
Edgewater Exploration TSX.V – EDW should be on every investors radar
screen.
Are they on yours?
Richard Mills
Aheadoftheherd.com
Richard
is host of www.aheadoftheherd.com and invests in the
junior resource sector. His articles have been published on over 60 websites
including - Wall Street Journal, 24hGold, Kitco, USAToday, Safehaven,
SeekingAlpha, The Gold/Energy Reports, Gold-Eagle and Financial Sense. If you're interested in
learning more about specific junior gold/silver stocks and the junior
resource market in general please come and visit his site at
www.aheadoftheherd.com
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