Headwater Gold Commences Drilling at Spring Peak Project, Nevada
Suite 1210 – 1130 West Pender Street
Vancouver, British Columbia, V6E 4A4 Canada
T +1 (604) 681-9100
Headwater Gold Commences Drilling at Spring Peak Project,
Nevada
Vancouver, British Columbia, July 18, 2024 : Headwater Gold Inc. (CSE: HWG) (OTCQB:
HWAUF) (the "Company" or "Headwater") is pleased to announce the commencement of drilling
at the Spring Peak project in Nevada. The program is designed to follow-up on Headwater’s 2022
and 2023 drill programs which discovered high-grade epithermal veins in two distinct target areas
(see Headwater news release dated March 2, 2023).
Highlights:
• Jurisdiction: Spring Peak is located in the Walker Lane belt of Nevada, adjoining Hecla
Mining Company’s (NYSE: HL) past producing Aurora Mine.
• Drilling Program: Up to approximately 7,000 metres of drilling is planned, utilizing a
combination of diamond core and reverse circulation (“RC”) drilling.
• Funding: The drill program is fully funded by Newmont Corporation (“Newmont”) (NYSE:
NEM) pursuant to the option and earn-in transaction announced on August 16, 2022.
• Objectives:
• Test for extensions up-dip and down -dip from high-grade veins discovered by
previous Headwater drilling at the Disco Zone, which intercepted 34.72 m grading
2.73 grams per tonne gold (“g/t Au”), including 15.92 g/t Au over 2.38 m and 10.43
g/t Au over 2.01 m (see Headwater New Release dated January 9, 2023).
• Test for along-strike extensions of high-grade mineralization within the Bear Fault
corridor, both to the southwest and to the northeast of the central Disco Zone.
• Test multiple additional high-priority target areas on the property with initial scout
drilling including undrilled target areas on recently acquired private lands.
Caleb Stroup, President and CEO of the Company, states: “We are very happy to kick off this fully
funded drill program at Spring Peak with our partner Newmont. This year ’s drilling represents a
very exciting opportunity to extend zones of known high -grade mineralization and expand the
footprint of exploration by testing new target areas with initial scout drilling. Approximately half of
the planned 7,000 metres of drilling will be allocated to the Bear Fault corridor which hosts high-
grade veins at the Disco Zone and remains open along strike in both directions as well as up and
down-dip. The remainder of our planned drilling will be focused on initial tests of new high-priority
target areas, including the first drilling on newly acquired private land s in the western portion of
the land package. We will also look to drill the initial holes into several compelling targets just
south of the Bear Fault in newly recognized parallel fault structures . We believe this year ’s
program represents a great opportunity for the Company to significantly advance the Spring Peak
project and continue to build on quality results from our previous drilling.”
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Figure 1: Map of the Spring Peak project area showing existing and proposed 2024 drill holes.
2024 Drill Program:
The 2024 drill program is expected to consist of up to 7,000 metres of drilling over 20 to 25 holes,
utilizing one core and one RC drill rig. The primary objectives of the drill program are to test for
extensions of known mineralization along the Bear Fault corridor and test multiple new targets
across the property with initial scout drilling. Drilling is authorized for 2024 under existing dr ill
permits with the United States Forest Service and the Nevada Bureau of Mining Regulation and
Reclamation.
Disco Zone: 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 Fau lt. The 2023 drill
program expanded the known strike extent of the Disco Zone to over 400 m, with mineralization
remaining open in all directions. Drilling to date in the Disco Zone has intercepted multiple discrete
veins with textures indicative of epithermal boiling, including ginguro banding, silica replacement
of lattice-bladed calcite and vein sediments. Re-interpreted geophysical (CSAMT resistivity) data
(Figure 2) show s a strong association between silicification and epithermal mineralization and
high apparent resistivity.
A primary objective of the 2024 drill program is to expand the Disco Zone both up and down-dip.
Drill results from late in the 2023 drill program highlighted the up-dip potential with drill hole SP23-
32 intercepting 9.44 g/t Au over 3.66 m within a broader zone of 39.81 m grading 1.93 g/t Au near
the top of the current drill pattern (see Headwater News Release dated February 13, 2024).
Approximately 180 metres of vertical potential remains untested above drill hole SP23-32 within
a strong coincidental CSAMT resistivity anomaly (Figure 2). Several planned holes have been
designed to test this target in the 2024 program.
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Figure 2: Cross sectional view (200 m wide) looking southwest showing association of gold mineralization
with high resitivity feature revealed by CSAMT geophysics . The drill program underway will also test an
adjacent high restivity zone with an antithetic orientation.
Bear Fault Step Out Drilling: Multiple drill holes are planned to test for extensions of mineralization
along a 1.5 km segment of the Bear Fault corridor, both northeast and southwest of the central
Disco Zone (Figure 1) . Drilling to date has demonstrated the importance of the Bear Fault
structure as a fluid conduit at the Disco Zone, highlighting potential for discovering extensions to
the known high-grade mineralization or additional high-grade shoots.
Only one drill hole has intercepted the Bear Fault outside of the main Disco Zone. In 2023, step
out drill hole SP23-37 was completed approximately 400 m northeast of the main Disco Zone on
the Pioneer target below new surface sampling , which returned up to 3.61 g/t Au in rock chip
samples of veins with quartz -after-calcite and other epithermal vein textures. This hole
encountered sulfide-rich silica-cemented breccias and quartz veins in the hanging wall of the main
Bear Fault structure, including a 58.98 m zone of anomalous gold with four assay intervals grading
over 1 g/t Au at a vertical depth of approximately 350 metres. Up-dip and along-strike follow up
drill holes are proposed as part of the 2024 drill program on the Pioneer target.
Scout Drilling: Approximately half of the planned 2024 drill program at Spring Peak will be focused
on first-pass scout drilling of multiple high-priority target areas on the propert y, including targets
on newly acquired private lands which have no prior drilling. The western portion of the Spring
Peak project was recently acquired through two lease agreements with options to purchase
private lands within the project area (see Headwater News Release dated November 1, 2023) .
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In addition to potential long term infrastructure optionality, these private lands host a number of
high-priority exploration targets. A property-scale northeast trending structure known as the Bug
Fault is a primary focus for initial scout drilling on the private lands (Figure 1) and occupies a
favorable structural orientation, broadly parallel the trend of the Disco Zone and the high -grade
veins at the nearby Aurora mine complex. Epithermal alteration occurs over the exposed strike
extent of the fault and a large, altered rhyolite dome intrudes the Bug Fault in the western portion
of the property. This dome host s steam heated epithermal alteration with abundant alunite
alteration and elevated mercury geochemistry. Several drill holes are planned along an
approximately 1.5 km strike extent of the Bug Fault corridor.
Recent geological mapping, surface geochemistry and re -interpretation of CSAMT resistivity
geophysics has also highlighted several additional new target areas in the core of the property.
Northeast-trending (Disco Zone and Aurora parallel) features will be the primary focus, including
a strong CSAMT anomaly in the immediate hanging wall of Disco Zone (Figure 2) which
Headwater geologists interpret as a potential antithetic mineralized structure. Multiple additional
parallel features in both the hangingwall and footwall of the Disco Zone/Bear Fault will also be
tested.
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 existing 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.
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.
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.
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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 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.