Headwater Commences Drilling on TJ Project and Provides Update on Spring Peak and Lodestar Projects, Nevada
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Headwater Commences Drilling on TJ Project and Provides
Update on Spring Peak and Lodestar Projects, Nevada
Vancouver, British Columbia, October 31, 2024: Headwater Gold Inc. (CSE: HWG) (OTCQB:
HWAUF) (the "Company" or "Headwater") is pleased to announce it has commenced the maiden
drill program on its 100% owned TJ project located in northeast Nevada and provides an update
on the Spring Peak and Lodestar projects which are being explored in partnership with Newmont
Corporation (“Newmont”) (NYSE: NEM, TSX: NGT, ASX: NEM, PNGX: NEM) through earn-in
agreements announced on August 16, 2022 and May 9, 2023.
Highlights:
• TJ Drilling Program: Approximately 2,000 metres of drilling is underway on Headwater’s
100% owned TJ project. This maiden drill program will test multiple targets for high-grade
epithermal vein s at depth beneath outcropping silica sinter and down -dip of historic
shallow drill holes that encountered broad zones of silicification, epithermal alteration and
anomalous gold.
• Spring Peak Drilling Completed: Drilling activities have concluded for the field season
at the Spring Peak project. Eighteen holes totaling 6,874 metres were completed, with a
focus on scout drilling in new target areas. Results from nine scout holes have been
received, including several zones of anomalous gold and pathfinder elements in new
target areas.
• Lodestar Drilling Update: Receipt of the Lodestar drilling permit has been delayed due
to staffing shortages within the US government regulatory agency. Permit approval and
drilling is now expected in spring of 2025.
Caleb Stroup, President and CEO of the Company, states: “We are very excited to launch the
maiden drill program on our TJ project in Nevada which has quickly become one of our top
priorities. With well-preserved silica sinter at surface and compelling resistivity targets at depth,
our geologists see strong parallels to our high -grade discovery at Spring Peak and have
significantly upgraded the target’s potential since acquiring the project just over a year ago.
In parallel, we have completed drilling for the year on the Spring Peak project and received assays
from nine initial scout holes. Several of these holes encountered zones of anomalous gold
mineralization and key pathfinder elements across new target areas. We are encouraged by these
initial results and the remaining assays will clarify the significance of these new zones within the
context of the broader project.
While we initially planned to drill the Lodestar project this fall, permitting delays have shifted that
program to spring 2025. Funding for the planned program from Newmont remains fully committed
under the $2M minimum spend component of the Lodestar earn -in agreement, ensuring no
material impact on our broader exploration strategy.”
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Figure 1: Interpreted cross section through the center of the mai n silica sinter target at TJ with CSAMT
geophysics apparent resistivity profile overlain by historic drill holes, conceptual vein targets and proposed
Headwater drill holes.
2024 TJ Drill Program:
Headwater’s maiden drill program at TJ is underway and is expected to consist of approximately
5 to 7 reverse circulation (“RC”) drill holes ranging 250 to 400 metres in depth (Figure 1). 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 epithermal 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 did not drill to depths
beyond 150 metres. Several of the historic holes encountered anomalous gold values (>0.1 g/t
Au) with some ending in mineralization.
Headwater’s drilling is targeting 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 . If RC drilling cannot reach target depths due to drilling conditions or
groundwater inflows, the holes will be temporarily cased and completed with a diamond core drill
in the spring of 2025.
2024 Spring Peak Drill Program:
The 2024 drill campaign at Spring Peak consisted of 18 holes totaling 6,874 metres, with assays
received for the first nine holes and results pending for the remaining nine. Several scout holes
targeted new structures parallel to the Disco Zone with encouraging initial results, albeit generally
with low level gold. Drill hole SP24 -47 intersected broad zones of low -level gold mineralization,
including 76.2 metres grading 0.16 g/t Au, with an included interval of 4.57 metres at 0.70 g/t Au.
Preliminary interpretations suggest this zone may represent a parallel structure to the Disco Zone
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in the Bear Fault footwall. The scout program also marked the first drill test of targets on recently
acquired private lands. In this area RC hole SP24 -49 targeted the Bug Fault corridor and
intercepted 2.25 g/t Au over 1.52 metres within a zone of adularia-sulfide veining.
The remaining assays, which focus more heavily on the Disco Zone and Opal Ridge target areas,
are expected in the coming weeks. Drilling at the Disco Zone targeted both up-dip and down-dip
extensions, while scout holes at Opal Ridge followed up on previous high -grade intercepts,
including 1.52 metres at 16.4 g/t Au.
Lodestar Drill Program:
On April 3, 2024, the Company announced a planned drill program at the Lodestar project,
targeting high-grade precious metals in steeply dipping feeder structures beneath the Zodiac
sinter target. This program will be funded by Newmont under the $2M minimum commitment
component of the Lodestar earn-in agreement (see news release dated March 7, 2023) and aims
to drill up to 3,500 metres across 10 to 15 holes. Receipt of the necessary drill permit was
anticipated by late 2024; however, unforeseen delays due to staffing shortfalls within the United
States Forest Service have extended the expected approval timeline. Drilling is now anticipated
to commence in the spring of 2025, by which time the Company expects the required permit to
be in place.
The Zodiac target remains a high-priority target within the Headwater portfolio and consists of a
prominent silicified and brecciated ridgeline capped by a silica sinter similar in character to the
sinter exposed above the Disco Zone discovery at the Company’s Spring Peak project. In addition
to the main feeder target, scout drill holes are planned to test under -cover geophysical targets
adjacent to the exposed sinter, beneath a thin veneer of post-mineral basalt.
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
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 graben basin filled with Miocene-age sedimentary
rocks. Limited historic exploration at the property included shallow RC drilling that confirmed the
presence of a broad zone of high-level epithermal alteration but did not test for high-grade feeder
veins at depth.
Headwater holds an option to acquire a 100% undivided interest in the TJ project from a private
vendor.
About the Spring Peak Project:
The Spring Peak project is located in the Aurora Mining District in the Walker Lane belt, west -
central Nevada, approximately 50 km southwest of the town of Hawthorne. The project adjoins
Hecla Mining Company’s past -producing Aurora Mine complex, where exis ting infrastructure
includes a 350 ton per day mill, several production water wells, and high -voltage three-phase
power. Drilling at the Disco Zone has confirmed the presence of high -grade gold mineralization,
including significant intersections such as 15.92 g/t Au over 2.38 m and 10.43 g/t Au over 2.01 m
within a broader zone of 2.73 g/t Au over 34.72 m and 9.44 g/t Au over 3.66 m within a broader
zone of 39.81 m grading 1.93 g/t Au.
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The majority of the Spring Peak project was acquired by Headwater through claim staking of open
ground and is 100% owned. The remaining portion of the project is subject to an option agreement
with Orogen Royalties (TSXV: OGN), under which Headwater can ac quire a 100% undivided
interest, subject to retained royalties. The Spring Peak project is subject to Newmont’s right to
earn up to a 75% interest in the project upon meeting certain expenditure thresholds and
completing a Pre-Feasibility Study within a designated timeframe.
About the Lodestar Project:
The Lodestar project is located approximately 10 kilometres north of the Company’s Spring Peak
project in the Aurora Mining District in the Walker Lane belt, west -central Nevada and adjoins
Hecla’s past-producing Aurora mine complex where existing infrastructure includes a 350 ton per
day mill, several production water wells and high -voltage three -phase power. Silica sinter
exposures and other high -level epithermal alteration features at Lodestar are geologically
analogous to the Spring Peak project and suggest the potential for preservation of undiscovered
high-grade epithermal veins at depth.
Headwater holds an option to acquire a 100% undivided interest in the Lodestar project from a
private vendor, subject to retained royalties and Newmont’s option to acquire up to 75% of the
project following certain expenditures and preparation of a Pre -Feasibility Study within a
designated time frame.
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 compa ny
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 2024, Centerra Gold Inc. acquired a strategic 9.9% interest in the Company through
a non-brokered private placement.
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
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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 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 expenditures, 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.