Headwater Gold Announces Additional High-Grade Gold Drill Results from the Spring Peak Project, Nevada
Suite 1210 – 1130 West Pender Street
Vancouver, British Columbia, V6E 4A4 Canada
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Headwater Gold Announces Additional High-Grade Gold Drill
Results from the Spring Peak Project, Nevada
Vancouver, British Columbia, February 13, 2024: Headwater Gold Inc. (CSE: HWG) (OTCQB:
HWAUF) (the "Company" or "Headwater") is pleased to announce final assay results from its
2023 Spring Peak drilling program. Drilling at Spring Peak was fully funded by a subsidiary of
Newmont Corporation (“Newmont”) (NYSE: NEM, TSX: NGT, ASX: NEM, PNGX: NEM) pursuant
to the earn-in agreements announced on August 16, 2022.
Highlights:
● Drilling at the Disco Zone has identified high-grade gold mineralization along the 400
metre (‘m”) drilled strike extent of the zone with multiple intercepts in excess of 10 grams
per tonne gold (“g/t Au ”). Mineralization remains open to the northeast , southwest, at
depth and up-dip toward surface;
● Drill hole SP23-32 intercepted 39.81 m grading 1.93 g/t Au including 4.60 g/t Au over
11.43 m and drill hole SP23-31 intercepted 40.08 m grading 1.51 g/t Au including 4.55 g/t
Au over 9.76 m;
● Step-out drill hole SP23-37 completed on the Pioneer target area approximately 400 m to
the northeast along strike of the main Disco Zone intersected four assay intervals grading
over 1 g/t Au within a 59-m-wide structural zone that hosts widespread low-grade gold and
elevated pathfinder element mineralization;
● New surface sampling from the Pioneer target area has returned gold values up to 3.61
g/t Au in epithermal vein grab samples, prioritizing this area for future follow up;
● All drill holes from the 2023 program are now reported; and
● Discussions with earn-in partner Newmont are ongoing to finalize the 2024 work program
for Spring Peak.
Caleb Stroup, the President and CEO of the Company, states: “We are very excited to announce
the final assays from our 2023 exploration program at Spring Peak. This project continues to
deliver positive results and further validates our exploration model. With these latest assays we
have demonstrated that the drilled strike extent of the Disco Zone is mineralized with various
epithermal veins assaying in excess of 10 g/t Au over greater than 400 metres of strike and
remaining open in both directions. Mineralization also extends to greater than 350 metres vertical
depth with no geochemical or textural indications that we are approaching the bottom of the
epithermal boiling zone implying further exploration potential at depth. Drill hole SP23 -32
intercepted 4.60 g/t Au over 11.43 metres within a broader zone of 1.93 g/t Au over 39.81 metres
which is one of the better intersections in the Disco Zone to date, demonstrating additional up-dip
potential from approximately 180 metres vertical depth potentially all the way to surface. The
Company is also very pleased to have successfully achieved our objective of further defining and
expanding the footprint of mineralization at the Disco Zone while also advancing exploration in
new targets, demonstrating the potential for future discoveries within the broader project area.”
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Figure 1: Map of Spring Peak land position showing location of main target areas tested during the 2023
drill program.
2023 Spring Peak Drill Program:
Headwater completed a multi-rig drill program totaling 8,475 metres at Spring Peak in 2023. The
primary objective of the drill program was to further define and expand the Disco Zone both along
strike and down dip (Figures 1 and 2). The Disco Zone was discovered by Headwater in 2022 by
drilling beneath a thick accumulation of unmineralized silica sinter at surface and hosts a series
of mineralized epithermal veins at depth within a property-scale fault zone referred to as the Bear
Fault.
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Previous Headwater drilling at the Disco Zone intercepted multiple, discrete epithermal veins with
textures indicative of boiling including ginguro banding, silica replacement of lattice-bladed calcite
and vein sediments. The highest-grade gold encountered to date at the Spring Peak project is in
drill hole SP22-13 which intersected two separate veins assaying 15.92 g/t Au over 2.38 m and
10.43 g/t Au over 2.01 m. The highest individual assay from SP22-13 returned 69.6 g/t Au over
0.34 m within a broader zone of 2.73 g/t Au over 34.72 m. The 2023 drill program targeted the
same elevation horizon as the previous drilling along the trend of the Bear Fault, between 150
and 400 m below a zone of silica sinter exposed at surface.
Table 1: New Drill Results from Headwater’s 2023 Spring Peak Drill Program1
Hole ID Type From
(m)
To
(m)
Interval
(m)
Au
(g/t)
Ag
(g/t)
Az Inc TD
(m)
Comments
SP23-26 RC 129.54 140.21 10.67 0.48 3.17
289 -74 326.1
New zone in Disco Zone hanging wall and DD 172.97 179.22 6.25 0.52 2.30
and DD 224.94 232.87 7.93 1.37 5.81
Disco Zone. True thickness estimated at
50% including DD 227.84 229.82 1.98 3.91 13.65
and DD 278.95 283.49 4.54 1.18 3.04
SP23-29 DD 117.29 124.36 7.07 1.48 10.61
246 -45 413.9
New Opal Ridge Zone; highest individual
sample 7.24 g/t Au over 0.61 m from
121.74 to 122.35 m including DD 119.88 122.35 2.47 3.32 16.10
SP23-30 DD 342.20 350.52 8.32 1.34 3.06
287 -76 417.1
Disco Zone. True thickness is estimated at
50%. Highest individual sample 9.41 g/t Au
over 0.52 m from 348.23 to 348.75 m
including DD 347.78 349.24 1.46 5.30 9.18
and DD 368.63 371.22 2.59 1.16 4.69
SP23-31 DD 208.79 248.87 40.08 1.51 14.87
359 -63 253.0
Disco Zone. True thickness is estimated at
60%. Highest individual sample 17.60 g/t
Au over 0.76 m from 234.39 to 235.15 m including DD 226.16 235.92 9.76 4.55 40.36
SP23-32 DD 182.27 222.08 39.81 1.93 19.65
354 -56 243.2
Disco Zone. True thickness is estimated at
70%. Highest individual sample 15.00 g/t
Au over 0.77 m from 206.04 to 206.81 m including DD 206.04 217.47 11.43 4.60 37.94
SP23-34 DD 324.92 325.47 0.55 10.90 73.86 321 -45 480.4 Disco Zone. True thickness estimated at
90%
SP23-35 DD 293.67 296.27 2.60 1.76 7.11
353 -68 373.4
Disco Zone. True thickness is estimated at
60%. Highest individual sample 12.90 g/t
Au over 0.31 m from 293.67 to 293.98 m
including DD 293.67 293.98 0.31 12.90 51.40
and DD 305.81 314.16 8.35 0.74 1.22
SP23-40 DD 104.24 114.15 9.91 1.00 7.13
344 -83 443.0
New zone in Disco Zone hanging wall
and DD 334.73 339.55 4.82 0.56 1.36
Disco Zone. True thickness estimated at
40% and DD 372.71 379.84 7.13 0.87 3.14
Including DD 377.07 377.89 0.82 4.04 6.77
SP22-10 DD 244.18 252.22 8.04 0.57 3.99 316 -59 289.9 Disco Zone. True thickness estimated at
75%
1Reported grades were calculated using a 0.2 g/t Au cut-off grade for primary intervals and a 2 .0 g/t Au cut-off grade
for included intervals. Intervals correspond to downhole thickness. Unless otherwise stated in the “Comments” field,
insufficient information is available to determine true thickness of mineralized intervals. DD signifies diamond drilling
and RC, reverse circulation.
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Figure 2: Plan geological map of the central Spring Peak drill area with location of sections A –A’ (Figure
3) and B–B’ (Figure 4). Higher resolution figure available here.
Figure 3: Disco Zone longitudinal cross section A–A’ showing drilling completed to date with select drill
hole intercepts. Higher resolution figure available here.
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Disco Zone:
Drill holes SP23-31 and SP23-32 were step outs along strike from 2022 drill holes in the Disco
Zone and intercepted a series of epithermal veins and vein breccias in the target structure
(Figures 3 and 4). SP23 -32 intercepted 39.81 m grading 1.93 g/t Au including 4.60 g/t Au over
11.43 m (Table 1). Within this zone there was a higher-grade core grading 9.44 g/t Au over 3.66
m. The highest individual assay returned 15.00 g/t Au over 0.77 m. Drill hole SP23-32 extends
the elevation of known high -grade gold mineralization up dip to approximately 180 m below the
sinter (Figure 3). SP23-31 intercepted the target zone approximately 50 m down dip of SP23-32
and assayed 1.51 g/t Au over 40.08 m including 4.55 g/t Au over 9.76 m. This zone also contained
a higher-grade core grading 9.17 g/t Au over 3.51 m. The highest individual assay returned 17.60
g/t Au over 0.76 m.
Figure 4: Interpretive geological cross section B–B’ showing results from 2023 Disco Zone drilling.
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Drill hole SP23 -35, located at the southwestern limit of the Disco Zone as defined by current
drilling, was designed as a down -dip offset of SP23 -24. SP23 -35 intercepted 1.76 g/t Au over
2.60 m including 12.90 g/t Au over 0.31 m. Drill hole SP23-34, defining the northeast extent of
the current drill pattern, intersected a narrow, high-grade interval that assayed 10.90 g/t Au over
0.55 m. The widespread presence of gold grades in excess of 10 g/t Au along the drilled extent
of the Disco Zone and to vertical depths greater than 350 m (Figure 3) demonstrates the
importance of the Bear Fault structure as a fluid conduit and highlights further potential for high
grade mineralization in all directions. Initial drilling also suggests that the vein thickness variations
observed along the trend of Disco Zone are likely attributable to local variability in the geometry
of the Bear Fault zone , resulting in localized constricting zones with adjacent dilational zones
where veining is thickest ( example, Figure 4) . Structural modeling of the zone is currently
underway to enhance the Company’s ability to predict the location and elevation of these dilational
zones and target them for future drilling.
Other Target Areas:
Multiple drill holes in the 2023 program intersected a new shallow zone of mineralization in the
hanging wall of the Disco Zone. Drill hole SP23 -17 intercepted 27.44 m grading 0.95 g/t Au
(Figure 4, see news release dated October 32, 2023) and drill hole SP23-40 intercepted 1.00 g/t
Au over 9.91 m (this release). Headwater geologists interpret these intercepts as evidence for a
previously unrecognized hanging wall structure or splay to the Disco Zone , potentially
representing the upper portions of a parallel mineralized zone which is largely un-tested at depth.
Step out drill hole SP23-37 was completed approximately 400 m northeast of the main Disco Zone
on the Pioneer target and encountered 58.98 m of anomalous gold grading 0.16 g/t Au from
377.95 m to 436.93 m (Fig ure 2). Mineralization is associated with sulfide -rich silica-cemented
breccias and narrow quartz veins in the hanging wall of the main Bear Fault structure. SP23-37
intersected the Bear Fault approximately 350 m below surface (Figure 3). New surface sampling
from the Pioneer target returned up to 3.61 g/t Au in rock chip samples of veins with quartz-after-
calcite and other epithermal vein textures. These initial results from the Pioneer target indicate
widespread fluid flow along the Bear Fault and opens up further potential along strike to the
northeast.
Drill hole SP23-29, located approximately 900 m west of the Disco Zone confirmed the presence
of high-grade mineralization on the Opal Ridge target (Figure 2). SP23 -39 was designed as a
follow up to scout RC hole SP22-14 which intersected 16.40 g/t Au over 1.52 m within a broader
interval of 2.73 g/t Au over 10.67 m (see news release dated March 2, 2023). Diamond core hole
SP23-29 encountered a broad interval of variably mineralized centimetre-scale epithermal veins
hosted in strongly illite-altered granite with a maximum grade of 7.24 g/t Au over 0.61 m. The
mineralization encountered in SP22 -14 and SP23-29 occurs between 100 m and 120 m below
surface. Continued follow-up drilling to test the depth extent of this mineralized zone is currently
being planned by the Company.
About the Spring Peak Project:
The Spring Peak project is located in the Aurora Mining District of west -central Nevada,
approximately 50 km southwest of the town of Hawthorne. The project adjoins Hecla Mining
Company’s (“Hecla”, NYSE: HL) past -producing Aurora Mine complex, where existing
infrastructure includes a 350 ton per day mill, seve ral production water wells and high -voltage
three-phase power.
For more information on the 2023 Spring Peak drill program, please see Headwater news
releases dated October 31, 2023 and December 6, 2023.
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Headwater holds an option to acquire a 100% undivided interest in the Spring Peak project from
Orogen Royalties (TSXV: OGN), subject to retained royalties and subject to Newmont’s option to
acquire up to 75% of the project following certain expenditures and preparation of a Pre-Feasibility
Study within a designated timeframe. All drill holes from the 2023 Spring Peak drill program are
now reported.
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 of
experienced geologists with diverse capital markets, junior and major mining company
backgrounds. The Company is systematically drill testing several projects in Nevada and Idaho
and in August 2022 and May 2023 announced significant transaction s 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.
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 website 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
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.
Sampling Quality Control:
Drill core was transported from the Project to the Company’s logging facility in Hawthorne, Nevada. Core
was then logged in detail, split in half using an electric -powered core saw, sampled at specified intervals,
bagged, and delivered to Bureau Veritas (“BV”) facilities in Sparks, Nevada. RC samples were bagged at
the rig and transported directly from the Project to BV. Samples were prepared by crushing and grinding
via BV method PRP70-500 to obtain a 500g sub-sample. Geochemical analyses including fire assay were
carried out at ISO 17025:2017 accredited Bureau Veritas laboratories in Vancouver, B ritish Columbia.
Pulps were assayed for 59 elements via method MA250 using a 25g sample after a four acid near total
digest with an ICP-MS finish. Gold was assayed by fire assay using BV method FA330 with a 30g sample
charge and ICP -ME finish. In addition to the laboratory's quality control program, a rigorous quality
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assurance and quality control program was implemented by the Company involving the insertion of blanks,
standards and duplicates to ensure reliable assay results. Laboratory standards and QA-QC are monitored
by the Company.
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 funding 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.