Headwater Gold Commences Drilling on the Midas North Project, Nevada
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Headwater Gold Commences Drilling on the Midas North Project,
Nevada
Vancouver, British Columbia, August 22, 2023: Headwater Gold Inc. (CSE: HWG) (OTCQB:
HWAUF) (the "Company" or "Headwater") is pleased to announce the commencement of an
approximate 3,500 metre (“m”) maiden drill program on its Midas North project, Nevada. Drilling
is fully funded by Newcrest Mining Limited (“Newcrest”) (ASX, TSX, PNGX: NCM) pursuant to the
option and earn-in agreement (the “Earn-In Agreement”) announced on August 16, 2022.
Highlights:
• Approximately 3,500 m of initial drilling is planned, utilizing a combination of reverse
circulation (“RC”) and diamond core drilling;
• The Midas North project hosts a large, un -drilled epithermal alteration cell in the
northern Midas District, approximately 13 km north of Hecla Mining Company’s
(“Hecla”, NYSE: HL) past-producing Midas Mine;
• The goal of the program is to drill multiple structural targets at depth in the inferred
epithermal boiling zone and test for the presence of high -grade gold and silver
mineralization; and,
• Midas North represents the fourth drill program of 2023 across the Headwater portfolio.
More information on the other drill programs is available here.
o Midas North: ~3,500 metres (this release)
o Spring Peak: ~11,500 metres (in progress)
o Katey: ~3,500 metres (in progress)
o Mahogany: ~1,500 metres (assays pending)
Caleb Stroup, the President and CEO of the Company, states: “This maiden Midas North drill
program presents Headwater shareholders with a rare opportunity to be the first to explore th e
northern extension of the famous high-grade Midas District, which hosts multiple past producing
gold and silver veins immediately to the south. Our team is confident that the Midas North project
has the potential to yield a new discovery and we are committed to utilizing the very best
exploration techniques to unlock its full potential. Since acquiring the project, our technical team
has assembled a comprehensive geologic and geophysical dataset that has allowed us to
generate numerous high -priority drill targets which will be tested with this initial maiden drill
program. The commencement of the Midas North drilling marks the fourth drill progra m in the
Headwater portfolio this year, demonstrating a scale of activity that sets the Company apart from
most of our peers. Our partnership with Newcrest provides our shareholders with exposure to a
substantial amount of high-impact exploration while minimizing dilution at a corporate level.”
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Figure 1: Map of the Midas high -grade vein district in northern Nevada. Headwater Gold’s Midas North
project adjoins Hecla’s past producing Midas Mine complex, encompassing another large epithermal
alteration cell along trend and directly north of the Midas Mine.
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2023 Drill Program:
The drill program is expected to consist of approximately eight to ten holes comprising 3,500 m
of drilling. A combination of RC and diamond core drilling will be utilized to test five principal
target areas where potential feeder structures have been identified through the integration of
geologic mapping and controlled -source audio-frequency magnetotelluric (“CSAMT”) resistivity
geophysical interpretation. The presence of steam heated alteration, outcropping vent facies
silica sinter, and collapse structures suggests the epithermal alteration cell is fully preserved with
potential for high-grade gold and silver mineralization in an interpreted epithermal boiling zone,
approximately 150 to 250 m below surface.
Figure 2: Geological map showing drill targets and planned drill holes for the maiden drill program at
Midas North which is interpreted to represent a fully preserved epithermal system. Cross-section A-A’
corresponds to Figure 3 below.
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Figure 3: Interpretive cross section through section A -A’ with CSAMT geophysics apparent resistivity
profile, modelled geology and planned drill holes.
About the Midas North Project:
Headwater’s 100% owned and royalty-free Midas North project adjoins Hecla Mining Company’s
past producing Midas Mine complex to the north and covers a large hydrothermal alteration cell,
extending at least 4 kilometres in strike and 1 kilometre in width. Geologic mapping, surface
sampling and geophysics completed by the Company in the project area have highlighted several
priority areas to explore for high-grade epithermal veins at depth. Extensive epithermal alteration
exists on the project, including widespread zones of high -level chalcedonic to opaline silica
flooding, clay alteration and local sinter formation with fossilized geyser vents. The project has
seen very limited historic exploration with no documented exploration drilling. Midas North is
subject to Newcrest’s option to acquire up to 75% of the project following expenditures totaling
US$30,000,000 and the completion of a Pre-Feasibility Study within a designated timeframe.
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
comprised of experienced geologists with divers e capital markets, junior company and major
mining company experience. The Company is systematically drill testing several projects in
Nevada, Idaho, and Oregon and in August 2022 and May 2023 announced significant
transactions with Newcrest Mining Limite d where Newcrest acquired a 9.9% strategic equity
interest in the Company and entered into several earn-in agreements on Headwater’s projects.
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
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+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 expenditures, exploration activities and the specifications, targets,
results, analyses, interpretations, benefits, costs and timing of them, Newcrest ’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. Al though 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 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 Newcrest 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 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 A uthorities, copies of which can be found under the Company’s
profile on the SEDAR website at www.sedar.com. In addition, o n May 14, 2023 Newcrest and Newmont
Corporation (“Newmont”) entered into a binding scheme implementation deed in relation to a proposa l for
Newmont to acquire 100% of the issued shares in Newcrest by way of an Australian scheme of
arrangement. If the proposed merger receives shareholder and regulatory approval and is completed within
the budget period outlined above, there is no certainty that the new combined entity will commit to the
contemplated exploration activities approved by Newcrest.
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.