Headwater Announces Drilling Plans for the TJ Project, Nevada
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Headwater Announces Drilling Plans for the TJ Project, Nevada
Vancouver, British Columbia, October 7, 2024: Headwater Gold Inc. (CSE: HWG) (OTCQB:
HWAUF) (the "Company" or "Headwater") is pleased to announce it has identified multiple high-
priority drill targets and has finalized plans for the Company’s maiden drill program on its 100%
owned TJ project located in northeast Nevada.
Highlights:
• Drilling Program Scheduled: Drilling permits have been received and plans finalized for
a maiden drill program projected to consist of an initial 2,000 metres. Drilling is scheduled
to commence in fall 2024 and will be fully funded by Headwater.
• Drill Program O bjective: This maiden drill program will t est multiple targets for high-
grade epithermal veins at depth beneath outcropping silica sinter and down-dip of historic
shallow drill holes that encountered broad zones of silicification and epithermal alteration,
ending in anomalous gold mineralization.
• CSAMT Survey: Recently acquired CSAMT geophysics have identified a number of high-
priority drill targets vertically below a mapped silica sinter exposure at surface. Several
large areas of elevated resistivity have been mapped at depth which Headwater geologists
interpret as silicification related to potential feeder structures.
• New Target Zone : Detailed geologic mapping and rock chip sampling has identified a
new target area containing subcropping quartz vein boulders with epithermal textures and
anomalous gold values one kilometre south of the main sinter target area.
Caleb Stroup, President and CEO of the Company, states: “We are very excited for this upcoming
drill program at our TJ project. Following the results of our recent CSAMT survey, this project has
immediately moved to the top of our list for self-funded drilling. The project shows remarkable
similarities to our Spring Peak project, also in Nevada, where we have discovered a new high -
grade epithermal vein system. Like Spring Peak, TJ hosts a well -preserved silica sinter with a
strong trace element signature at surface underlain by a high -resistivity zone directly below.
Shallow historic drilling encountered anomalous gold but did not drill deep enough to test for high-
grade vein s in the projected boiling horizon at depth. The Company has a strong treasury
following the recent strategic financing with Centerra Gold allowing us to advance our mandate
of creating additional shareholder value through aggressive, high -impact exploration. T he TJ
project represents an excellent opportunity to pursue this mission in our focus area of Nevada.”
2024 Drill Program:
Headwater’s maiden drill program at TJ has been planned and is currently scheduled to
commence in late October 2024. Drill permits have been authorized by the Bureau of Land
Management and drill contracts are in place. The initial TJ drill program is expected to consist of
approximately 5 to 7 reverse circulation drill holes ranging in depth from 250 to 400 metres.
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Figure 1: Map of the TJ project area showing generalized project geology, alteration, and locations of
proposed drill holes. Cross-section A-A’ corresponds to the interpreted CSAMT section shown in Figure 3.
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The primary objective of the drill program is to test for high-grade veins at depth along multiple
sub-parallel structures in the core of the alteration cell. Shallow historic drilling targeting near
surface oxide mineralization encountered broad zones of silicification, epithermal alteration, and
anomalous gold in this area but did not penetrate to sufficient depths to test for potential high -
grade feeder structures. The majority of historic holes were vertical and none of the holes drilled
to depths beyond 150 metres. Several of the deeper historic holes encountered anomalous gold
values (>0.1 g/t Au) with some ending in mineralization. Headwater drilling will target depths of
approximately 175 to 250 metres vertically beneath the silica sinter exposed at the surface to test
for high-grade epithermal veins within a potential epithermal boiling zone.
Figure 2: Interpreted cross section through A -A’ with CSAMT geophysics apparent resistivity profile
overlain by historic drill holes, conceptual vein targets, and proposed Headwater drill holes.
CSAMT Survey:
A controlled-source audio -frequency magnetotelluric (“CSAMT”) resistivity survey totaling 8.2
line-kilometres on five parallel profiles was completed by Headwater over the TJ project. Survey
lines were located proximal to the main target area, where a thick accumulation of silica sinter is
preserved (Figure 1) and were designed to identify the subsurface geometry and strike extent of
potential mineralized structures at depth. A broad zone of high apparent resistivity was identified
directly below the sinter (Figure 2). This high-resistivity feature appears to be continuous over a
north-south strike length exceeding 700 metres and a good correlation exists between this high
resistivity and silicified intervals logged in historic drill holes, supporting the interpretation that the
observed high-resistivity is due to silicification introduced by hydrothermal alteration. Multiple
high-angle resistivity breaks are also apparent in the CSAMT data within and at the margins of
resistive bodies and are interpreted as p otential mineralized feeder structures and the primary
targets for Headwater’s 2024 drilling (Figure 2).
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Geologic Mapping and Surface Sampling:
Detailed geologic and alteration mapping completed by Headwater near the main sinter target
area (Figure 1), as well as regional mapping across the broader project area, has delineated
structures and helped identify multiple high -priority drill targets. High-level epithermal alteration
is preserved at the surface of the property and includes a broad envelope of argillic alteration
centered around a thick and laterally extensive accumulation of silica sinter and water table silica
(see Headwater news release dated October 3, 2023).
Recent surface rock chip sampling returned anomalous epithermal pathfinder element
geochemistry with strongly anomalous gold and silver values from samples of silicified breccias
and chalcedonic quartz vein s (Figure 1). Shallow alluvial cover blankets much of the property
and outcrop exposures are limited, but silicified outcrops and concentrations of vein float closely
align with mapped structures. Reconnaissance geology returned a range of subcrop and float
vein samples with diagnostic epithermal textures, including lattice-bladed quartz-after-calcite that
indicates boiling conditions (Figure 3). Initial rock chip sampling returned values up to 354 ppb
Au for these vein samples , and revealed an area with subcropping epithermal veins along the
southern continuation of the main structural corridor. Vein compositions and textures in this area
are generally indicative of high-level portions of an epithermal system, but imply the potential for
high-grade mineralization at depth. Detailed follow-up sampling and geologic mapping is planned
to further characterize this new target area.
Figure 3: Subcrop and float samples of chalcedonic quartz vein with lattice-bladed calcite and quartz-after-
calcite textures, indicative of boiling conditions within an epithermal system.
About the TJ Project:
The TJ project is located on BLM land in an underexplored area of northeastern Nevada,
approximately 25 km southeast of the town of Jackpot. The project area contains indications of
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a fully preserved epithermal system, including a thick and laterally extensive accumulation of silica
sinter and water table silica in the core of the property. Epithermal alteration is localized along a
series of steeply inclined faults that bound a sedimentary graben filled with Miocene -age
sedimentary rocks and locally extends into granitic basement. Limited historic exploration at the
property included shallow RC drilling that confirmed the presence of a broad zone of high -level
epithermal alteration. The Company believes that the project has potential for high -grade vein-
style mineralization at depth and plans to complete an initial drill program in fall of 2024.
The TJ project consists of 90 unpatented mining claims staked by Headwater and 13 unpatented
mining claims under option from a private arm’s length party (the “Vendor Claims”). By making an
initial cash payment of US$15,000, escalating annual payments and a US$250,000 work
commitment over a two -year term, Headwater retains a 30 -year right to purchase an undivided
100% interest in the Vendor Claims for a one -time payment of US$1,500,000 inclusive of the
annual minimum payments, subject to NSR royalties of 2. 5% on the Vendor Claims and 1.5%
applicable on claims within an area of interest. The Company may purchase 40% of the NSR for
US$2,000,000 at any time and an additional 40% of the NSR may be purchased for fair value
within 90 days after completion of a NI 43-101 compliant pre-feasibility report.
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 go al of making world -class precious metal discoveries.
Headwater has a large portfolio of epithermal vein exploration projects and a technical team of
experienced geologists with diverse capital markets, junior and major mining company
backgrounds. The Company is systematically drill testing several projects in Nevada and in
August 2022 and May 2023 announced significant transactions with Newmont where it acquired
a 9.9% strategic equity interest in the Company and entered into earn-in agreements on several
of Headwater’s projects, including Spring Peak and Lodestar which continue under partnership..
In September of 2024 Centerra Gold Inc. acquired a strategic 9.9% interest in the Company
through non-brokered private placement at a premium to market.
Headwater is part of the NewQuest Capital Group which is a discovery -driven investment
enterprise that builds value through the incubation and financing of mineral projects and
companies. Further information about NewQuest can be found on the company webs ite at
www.nqcapitalgroup.com.
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
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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 information
(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 capital exp enditures, exploration activities and the specifications, targets,
results, analyses, interpretations, benefits, costs and timing of them, Newmont’s anticipated fu nding of the
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”, “antic ipates”, “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 known 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 Newmont will not elect to obtain any additional interest in the earn -in projects in excess
of the minimum commitment, the abilit y 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.
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.