Headwater Gold Announces Planned 2024 Drill Programs on Spring Peak and Lodestar Projects, Nevada
Suite 1210 – 1130 West Pender Street
Vancouver, British Columbia, V6E 4A4 Canada
T +1 (604) 681-9100
Headwater Gold Announces Planned 2024 Drill Programs on
Spring Peak and Lodestar Projects, Nevada
Vancouver, British Columbia, April 3 , 2024: Headwater Gold Inc. (CSE: HWG) (OTCQB:
HWAUF) (the "Company" or "Headwater") is pleased to announce the planned 2024 exploration
activities on the Spring Peak and Lodestar projects under earn -in agreements (the “Earn -In
Agreements” or “Agreements”) with Newmont Corporation (“Newmont”) (NYSE: NEM, TSX: NGT,
ASX: NEM, PNGX: NEM) announced on August 16, 2022 and May 9, 2023.
Highlights:
• Headwater and Newmont have agreed upon proposed 2024 exploration activities at the
Spring Peak and Lodestar projects targeting high-grade gold mineralization in epithermal
veins;
• Exploration activities are currently expected to include up to 7,000 metres of drilling at
Spring Peak and up to 3,500 metres of drilling at Lodestar;
• Further exploration activities including geophysics, additional geological mapping and
environmental baseline surveys are currently planned across both project areas;
• Drilling is estimated to commence at Spring Peak in early summer 2024 and at Lodestar
in the fall of 2024;
• As the current operator, Headwater will earn a 10% management fee on earn -in
exploration expenditures; and
• Discussions are underway regarding potential work plans across the remainder of the
Newmont earn-in project portfolio.
Caleb Stroup, the President and CEO of the Company, states: “We are very excited to announce
plans for another busy year of drilling funded by our earn-in partner, Newmont. The Company is
pleased to see Newmont’s commitment to further test our vision for Tier 1 potential at the Spring
Peak and Lodestar gold projects. This year’s drilling will cover an expanded land position and
footprint of exploration in the district. In addition to the ongoing step-out drilling at the Disco Zone
high-grade discovery, we will be devoting a significant proportion of our proposed drilling activity
to new areas, including targets on the recently acquired private lands at Spring Peak and an
exciting first test of the Zodiac sinter target at Lodestar. Our understanding of this mineralized
system has grown significantly over the last two years of drilling and our team is very excited to
apply that knowledge at a district scale. Our partnership with Newmont offers shareholders a rare
opportunity to gain exposure to a substantial amount of partner-funded greenfields exploration in
a tier-one jurisdiction, in addition to pure upside from our 100% owned and operated exploration
projects while minimizing dilution at the corporate level.”
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 (“Hecla”, NYSE: HL) past -producing Aurora Min e complex where
existing infrastructure includes a 350 ton per day mill, several production water wells and high -
voltage three-phase power.
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A multi-rig drill program totaling up to approximately 7,000 metres over 20 to 25 holes is scheduled
to begin in early summer 2024. The primary objective of the drill program will be to test for
extensions of mineralization along the Bear Fault corridor which hosts high-grade mineralization
at the Disco Zone discovery. Targets along strike, down dip and in the hanging wall of the Bear
Fault will be drill tested.
The Disco Zone is a mineralized corridor which hosts a series of high -grade epithermal veins at
depth discovered by Headwater in 2022 by drilling beneath a thick accumulation of silica sinter at
surface. Drilling at the Disco Zone intercepted multiple discrete mineralized veins (Table 1). The
highest-grade gold encountered to date at the Spring Peak project is in drill hole SP22-13 which
intersected two individual veins assaying 15.92 g/t Au over 2.38 m and 10.43 g/t Au over 2.01 m.
The highest individua l assay returned 69.6 g/t Au over 0.34 m. These intervals are part of a
broader zone which assayed 2.73 g/t Au over 34.72 m.
A further objective of the 2024 drill program will be to test multiple new targets across the property
package with initial scout drilling, including targets on newly acquired private lands which have no
prior drilling. Drilling is authorized for 2024 under an existing drill permit and an expanded Plan
of Operations permit has been submitted to the United States Forest Service which is projected
to be approved for the 2025 drilling season.
Table 1: Select Previously Released Results from Headwater’s Spring Peak Drilling1
Hole ID Type From
(m)
To
(m)
Interval
(m)
Au
(g/t)
Ag
(g/t)
Az Inc TD
(m)
Comments
SP22-11 RC 105.16 117.35 12.19 1.15 3.79
330 -62 237.74
Disco Zone hanging wall including RC 111.25 112.78 1.53 6.58 18.44
and DD 185.38 226.01 40.63 1.86 18.63
Disco Zone. True thickness is estimated at
75% of downhole thickness including DD 197.39 198.18 0.79 7.37 55.81
including DD 208.33 208.91 0.58 43.70 351.00
SP22-13 DD 256.12 290.84 34.72 2.73 18.38
330 -72 315.47
Disco Zone. True thickness is estimated at
60%. Highest individual sample 69.6 g/t Au
over 0.34 m from 275.90 m to 276.24 m
including DD 262.46 264.47 2.01 10.43 55.35
including DD 275.26 277.64 2.38 15.92 90.83
SP23-17 RC 108.20 135.64 27.44 0.95 9.87
014 -73 376.52
Disco Zone hanging wall
and DD 267.13 270.05 2.92 3.92 3.93
Disco Zone. True thickness is estimated at
50%. Highest individual sample 20.5 g/t Au
over 0.42 m from 329.28 to 329.7 m
including DD 267.74 268.53 0.79 9.10 6.38
and DD 310.59 331.01 20.42 2.59 15.16
including DD 312.12 313.33 1.21 13.0 105.4
including DD 327.90 331.01 3.11 9.0 43.2
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
1Reported grades were calculated using a 0.2 g/t cut-off grade for primary intervals and a 2 g/t cut-off grade for included
intervals. Intervals correspond to downhole drilled thickness. Unless otherwise stated in the “Comments” section,
insufficient information is available to determine true thickness of mineralized intervals.
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 time frame.
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For more information on the Spring Peak project refer to the news release dated February 13,
2024.
Figure 1: Map of Spring Peak and Lodestar land positions showing location of main target areas tested
during the 2023 drill program.
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.
4
A multi-rig drill program totaling up to approximately 3,500 metres over 10 to15 holes is currently
scheduled to begin in the fall of 2024. The primary objective of the drill program will be to test for
high-grade precious metals in steeply dipping feeder structures under the Zodiac sinter target.
The Zodiac target 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. Additional scout drill holes are planned to test under -cover geophysical
targets adjacent to the Zodiac target, beneath a thin veneer of post -mineral basalt. A drilling
permit application has been submitted to the United States Forest Service for the 2024 drill
program. Authorization of drilling activities under this permit is anticipated in Q3 2024.
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.
For more information on the Lodestar project refer to the news release dated March 7, 2023.
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 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.
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
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.
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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 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”, “anticipates”, “believes”, “potential” or
variations of such words including negative variations th ereof, 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 a ctivities 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 ability of the Company to obtain the required permits, changes in laws,
regulations and policies af fecting 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.