Headwater Gold Commences Drilling on Mahogany Project
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Headwater Gold Commences Drilling on Mahogany Project
Vancouver, British Columbia, June 29, 2023: Headwater Gold Inc. (CSE: HWG) (OTCQB:
HWAUF) (the "Company" or "Headwater") is pleased to announce the commencement of an up
to 2,000 metre (“m”) drill program at the Mahogany project in Oregon and Idaho, to be wholly
funded by Newcrest Mining Limited (“Newcrest”) (ASX, TSX, PNGX: NCM) pursuant to the option
and earn-in agreement announced on August 16, 2022. The program is designed to follow-up on
Headwater’s 2021 drill results which intercepted 1.47 grams per tonne gold (“g/t Au”) over 12.25
m including 9.37 g/t Au over 0.73 m (see Headwater news release dated January 27, 2022).
Highlights:
• Approximately 2,000 m of drilling is currently planned, utilizing two rigs and a
combination of reverse circulation and core drilling;
• Mahogany is located along the Oregon-Idaho border, approximately 15 km southeast
of Headwater’s Katey project and approximately 20 km northwest of Integra
Resources’ (TSX-V: ITR, NYSE: ITRG) DeLamar mine complex;
• The drill program is fully funded by Newcrest through the option and earn-in
transaction announced August 16, 2022; and
• The goals of the drill program are to:
o Target the source of high -grade vein material within the mineralized Main Ridge
Fault, which returned up to 170.0 g/t Au from surface sampling;
o Test high-grade epithermal vein targets at depth along the Main Ridge Fault below
Headwater’s 2021 drilling whic h intercepted 1.47 g/t Au over 12.25 m including
9.37 g/t Au over 0.73 m; and
o Drilling will test two hydrothermal vent breccias which outcrop and include clasts
of sinter and quartz vein fragments, and have no known drilling at depth s greater
than 50 m.
Caleb Stroup, the President and CEO of the Company, states: “We are very excited to begin a
busy year of drilling with the Mahogany follow-up drill program. Results from our previous drilling
campaign, which was limited in scale, identified several positive indicators of epithermal veining,
including fault-hosted banded quartz veins and silica -cemented breccias with gold value s up to
9.37 g/t Au. Due to the shallow nature of all previous drilling, we believe the true potential remains
untested at depth and the focus of this year’s drilling will be to intersect the prospective feeder
structures at Mahogany at depths of between 150 m and 250 m. Additionally, the Vent Breccia
area is a new drill target for this year. Headwater geologists interpret the breccias exposed at the
surface to be the surface manifestations of a high-energy feeder structure with untested vein
potential at depth.”
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Figure 1: Angular block of silica sinter entrained in a silicified phreatic breccia at the Vent Breccia target .
2023 Drill Program:
The 2023 drill program is expected to consist of up to 2,000 m to test two target areas.
Main Ridge Fault Target: Drilling will target the source of high -grade vein material within the
Main Ridge Fault, which has yielded up to 170.0 g/t Au from surface sampling and 1.47 g/t Au
over 12.25 m in drilling, including 9.37 g/t Au over 0.73 m . The current drill pr ogram will test
depths of approximately 200 m to 250 m along the Main Ridge Fault and at orientations identified
during the Company’s initial oriented core program. Drill targeting also leverages results from a
controlled-source audio-frequency magnetotelluric (“CSAMT”) resistivity survey totaling 11.3 line-
kilometres completed by Headwater in 2022.
Vent Breccia Target: Drilling will target vein-style mineralization in feeder structures inferred from
geology and new CSAMT resistivity data beneath intensely silicified hydrothermal breccias
containing silica sinter and quartz vein fragments. Results from the Company’s CSAMT survey
support the existence of a major northeasterly structure and associated clay alteration envelope
surrounding the outcrop exposures of hydrothermal breccia. Shallow historic drilling and
trenching was completed on Breccia Hill by Manville Exploration in the 1980’s, but no known
drilling exceeded depths of 50 m. Headwater plans to test for high-grade epithermal veins in an
inferred boiling horizon approximately 150 m to 225 m beneath the vent breccias.
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Figure 2: Alteration map of the Mahogany project area showing existing and planned drill holes and
epithermal alteration features.
About the Mahogany Project:
The Mahogany project is located in southeastern Oregon, 20 km northwest of Integra Resources’
(TSX-V:ITR, NYSE: ITRG) DeLamar deposit. Surface alteration at Mahogany is typical of a high-
level epithermal system , including silica sinter and adularia within a broader zone of argillic
alteration. Headwater’s initial drill program at Mahogany , completed in late 2021 , consisted of
five diamond core drill holes totaling 810 metres (see Headwater News Release dated January
27, 2022). Drilling confirmed the presence of structurally controlled high -grade gold zones,
including a drill intercept that returned 9.37 g/t Au over a drilled thickness of 0.73 metres in hole
MH21-02. Multiple priority targets will be tested in the two-rig drill program announced here.
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About Headwater Gold:
Headwater Gold Inc. (CSE: HWG, OTCQB: HWAUF) is a technically -driven mineral exploration
company focused on the exploration and discovery of high-grade precious metal deposits in the
Western USA. Headwater is aggressively exploring one of the most well -endowed and mining-
friendly jurisdictions in the world with a goal of making world-class precious metal discoveries.
Headwater has a large portfolio of epithermal vein exploration projects and a technical team
comprised of experienced geologists with diverse capital markets, junior company and major
mining company experienc e. The Company is systematically drill testing several projects in
Nevada, Idaho, and Oregon and in August 2022 and May 2023 announced transactions with
Newcrest Mining Limited where Newcrest acquired a 9.9% strategic equity interest in the
Company and entered into several option and earn-in agreements on Headwater’s projects.
For more information, please visit the Company's website at www.headwatergold.com.
On Behalf of the Board of Directors
Caleb Stroup
President and CEO
+1 (775) 409-3197
For further information, please contact:
Brennan Zerb
Investor Relations Manager
+1 (778) 867-5016
Qualified Person:
The technical information contained in this news release has been reviewed and approved by
Scott Close, P.Geo (158157), a “Qualified Person” (“QP”) as defined in National Instrument 43 -
101 – Standards of Disclosure for Mineral Projects.
Forward-Looking Statements:
This news release includes certain forward -looking statements and forward -looking info rmation
(collectively, “forward-looking statements”) within the meaning of applicable Canadian securities legislation.
All statements, other than statements of historical fact, included herein including, without limitation,
statements regarding future capi tal expenditures, exploration activities and the specifications, targets,
results, analyses, interpretations, benefits, costs and timing of them, Newcrest ’s anticipated funding of the
option and earn-in projects and the timing thereof, and the anticipated business plans and timing of future
activities of the Company, are forward -looking statements. Although the Company believes that such
statements are reasonable, it can give no assurance that such expectations will prove to be correct. Often,
but not always, forward looking information can be identified by words such as “pro forma”, “plans”,
“expects”, “may”, “should”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”,
“believes”, “potential” or variations of such words including negative variations thereof, and phrases that
refer to certain actions, events or results that may, could, would, might or will occur or be taken or achieved.
Forward-looking statements involve know n and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the Company to differ materially from any future
results, performance or achievements expressed or implied by the forward -looking statements. Such risks
and other factors include, among others, risks related to the anticipated business plans and timing of future
activities of the Company, including the Company’s exploration plans and the proposed expenditures for
exploration work thereon, the ability of the Company to obtain sufficient financing to fund its business
activities and plans, the risk that Newcrest will not elect to obtain any additional interest in the option and
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earn-in projects in excess of the minimum commitment, the ability of the Company to obtain the required
permits, changes in laws, regulations and policies affecting mining operations, the Company’s limited
operating history, currency fluctuations, title disputes or claims, environmental issues and liabilities, as well
as those factors discussed under the heading “Risk Factors” in the Company’s prospectus dated May 26,
2021 and other filings of the Company with the Canadian Securities Authorities, copies of which can be
found under the Company’s profile on the SEDAR website at www.sedar.com. In addition, on May 14, 2023
Newcrest and Newmont Corporation (“Newmont”) entered into a binding scheme implementation deed in
relation to a proposal for Newmont to acquire 100% of the issued shares in Newcrest by way of an
Australian scheme of arrangement. If the proposed merger receives shareholder and regulatory approval
and is completed within the budget period outlined above, there is no certainty that the new combined entity
will commit to the contemplated exploration activities approved by Newcrest.
Readers are cautioned not to place undue reliance on forward -looking statements. The Company
undertakes no obligation to update any of the forward-looking statements, except as otherwise required by
law.