Headwater Gold Provides Exploration Update, Including Additional High-Grade Gold Results from Spring Peak
Suite 1210 – 1130 West Pender Street
Vancouver, British Columbia, V6E 4A4 Canada
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Headwater Gold Provides Exploration Update, Including
Additional High-Grade Gold Results from Spring Peak
Vancouver, British Columbia, December 6, 2023: Headwater Gold Inc. (CSE: HWG) (OTCQB:
HWAUF) (the "Company" or "Headwater") is pleased to announce the completion of its 2023
drilling programs. Drilling at Spring Peak, Midas North and Mahogany was fully funded by
Newmont Corporation (“Newmont”) (NYSE: NEM) pursuant to the earn-in agreements announced
on August 16, 2022.
Highlights:
● Spring Peak – Twenty-five drill holes were completed in the 2023 drill campaign totaling
8,475 metres (“m”);
o Initial drill results extend Disco Zone mineralization to the northeast and southwest
over a strike extent of at least 350 m, and to a depth of greater than 300 m below
surface. Mineralization remains open in both directions and at depth;
▪ Drill hole SP23-28 intercepted 25.54 m grading 1.75 g/t Au including 8.04 g/t
Au over 1.19 m and 5.35 g/t Au over 2.59 m;
▪ Drill hole SP23-33 intercepted 37.01 m grading 1.28 g/t Au including 6.53 g/t
Au over 1.68 m and 6.27 g/t Au over 1.19 m;
o A step out drill hole (SP23-37) has been completed approximately 400 m northeast
along strike of the main Disco Zone. This hole encountered multiple epithermal
veins in the target zone. Assays are pending for this hole as well as 11 additional
holes from the 2023 program.
● Midas North – Nine drill holes were completed totaling 4,202 m at Midas North, testing six
target areas. Epithermal veining and alteration were encountered in multiple target areas
across the property. Assays are pending;
● Mahogany – Five drill holes were completed totaling 1,524 m at Mahogany, testing two
target areas. No significant precious metal intercepts were encountered. The Company
continues to review the data in consultation with earn-in partner Newmont to determine if
additional targets of merit remain on the property; and,
● Katey – Eleven drill holes were completed totaling 2,803 m at Katey, testing four target
areas. No significant precious metals intercepts were encountered. No further work on
the project is planned at this time.
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Figure 1. Headwater project portfolio including the locations of 2023 drill projects.
Caleb Stroup, the President and CEO of the Company, states: “This year was a very exciting and
productive year for the Company with over 17,000 metres of drilling completed across four
projects. Assays remain outstanding for approximately half of this drilling but initial results from
Spring Peak continue to validate our geological model and extend mineralization in all directions.
We have now established over 350 metres of strike extent at the Disco Zone and are seeing
positive indications that the system may extend beyond this. A recent step -out drill hole
approximately 400 metres northeast of the main Disco Zone demonstrates that the Bear Fault
mineralized structure persists and continues to host epithermal veining and favourable alteration.
These initial geological results point to continued potential over several kilometres of prospective
strike extent along the Bear Fault corridor.
Drilling at Katey and Mahogany has failed to demonstrate persistent mineralization at depth in the
targets tested and activities have been paused on these projects. Although this outcome is not
what we had anticipated, the Company’s disciplined strategy to quickly and aggressively advance
exploration targets to critical decision points remains unchanged. We remain committed to our
strategy of utilizing partner funding , in combination with self-funded exploration, to advance our
portfolio of projects and explore for high-impact gold discoveries.”
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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
SP23-20 RC 153.92 156.97 3.05 0.89 2.76
311 -73 166.1
New zone in Disco hanging wall
and DD 172.76 178.92 6.16 0.71 2.58
and DD 234.73 258.59 23.86 0.46 5.48 Disco Zone. True thickness estimated at 60%
SP23-21 RC 96.01 102.11 6.10 0.80 6.35
293 -78 194.2
New zone in Disco Zone hanging wall
and DD 248.41 250.85 2.44 3.80 4.46
New zone in Disco Zone hanging wall
including DD 248.41 249.94 1.53 5.80 6.26
and DD 302.97 309.43 6.46 0.79 4.63
Disco Zone. True thickness estimated at 50%
and DD 315.16 325.22 10.06 0.54 5.72
SP23-22 RC 100.58 105.16 4.58 0.38 2.61 316 -46 304.8 True thickness estimated at 90%
SP23-23 RC 170.69 179.86 9.17 0.54 7.12
299 -47 304.8 New area of mineralization encountered in
footwall of Disco Zone and RC 259.08 294.13 35.05 0.40 3.02
SP23-24 DD 157.43 157.86 0.43 5.25 38.01
344 -45 487.7
New zone in Disco Zone hanging wall
and DD 184.71 192.18 7.47 1.67 9.44
Disco Zone. True thickness estimated at 85%
including DD 185.29 186.54 1.25 6.12 16.03
SP23-25 DD 310.90 313.18 2.28 1.43 6.00 284 -79 407.1 Disco Zone. True thickness estimated at 45%
SP23-27 DD 200.56 204.43 3.87 0.90 3.57
313 -68 279.2 Disco Zone. True thickness estimated at 65% and DD 210.01 218.39 8.38 1.77 2.06
including DD 216.71 218.39 1.68 7.40 5.24
SP23-28 DD 114.27 116.49 2.22 2.14 7.19
359 -76 359.1
New zone in Disco Zone hanging wall
including DD 114.27 114.60 0.33 11.20 25.22
and DD 301.48 327.02 25.54 1.75 10.78 Disco Zone. True thickness is estimated at
50%. Highest individual sample 11.2 g/t Au
over 0.3m from 317.48 to 317.78m
including DD 302.06 304.65 2.59 5.35 35.81
including DD 317.48 318.67 1.19 8.04 66.96
SP23-33 DD 179.31 216.32 37.01 1.28 12.63
306 -58 251.2
True thickness is estimated at 75%. Highest
individual sample 18.0 g/t Au over 0.37m
from 206.04 to 206.41m
including DD 196.99 198.18 1.19 6.27 63.92
including DD 206.04 207.72 1.68 6.53 112.56
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 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 section B-B’ (Figure 4). Higher resolution figure available here.
Figure 3: Disco Zone longitudinal cross section A – A’ showing completed drilling to date with select drill
hole intercepts. Higher resolution figure available here.
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Figure 4. Interpretive geological cross section B – B’ showing results from 2023 Disco Zone drilling.
2023 Spring Peak Drill Program:
A multi-rig drill program totaling up to 8,475 m was completed in 2023. The primary objective of
the 2023 drill program at Spring Peak was to further define and expand the Disco Zone along
strike and down dip at 50 to 100 m increments. 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 unmineralized silica sinter at surface.
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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 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. The 2023 drill
program targeted the same elevation horizon as the previous drilling between 150 m and 400 m
below an extensive zone of silica sinter exposed at surface.
Drill holes SP23 -24 and SP23 -27 have extended the strike extent of the mineralized zone to
greater than 350 m, and the zone remains open both to the northeast and southwest. Drill holes
SP23-25 and SP23-28 also demonstrate that mineralization extends to greater than 300 m below
surface and remains open at depth. Drill hole SP23 -33, which intercepted the Disco Zone
approximately 150 m below surface, encountered a thick zone of epithermal veining assaying
1.28 g/t Au over 37.01 m suggesting the mineralized zone is open up -dip as well, closer to the
surface (Table 1, Figure 2, Figure 3, Figure 4).
Scout RC drill hole SP23 -23 was drilled below an outcropping zone of intense silicification
approximately 350 m northwest of the surface projection of the Disco Zone (Figure 2). This hole
intercepted two broad zones of anomalous gold values grading 0.54 g/t Au over 9.17 m and 0.40
g/t Au over 35.05 m, respectively.
Step out drill hole SP23 -37 was completed approximately 400 m northeast along strike of the
main Disco Zone (Figure 2 and Figure 3). This hole encountered multiple epithermal veins in the
target zone including complex epithermal breccias (Figure 5) and a fault-hosted vein zone that
includes a 2.5-m-wide discrete epithermal vein with silica replacement of lattice -bladed calcite
and banded chalcedonic quartz (Figure 6). Epithermal veining and alteration has now been
intercepted over a strike extent of approximately 750 m along the Bear Fault corridor, from hole
SP23-24 on the southwest to SP23-37 in the northeast and remains open in both directions.
Figure 5. Photograph of epithermal silica-cemented hydrothermal breccia from 379.9 m in drill hole SP23-
37. Core is HQ size (6.1 cm diameter). Assays pending.
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Figure 6. Core photographs of step-out hole SP23-37 from 443.0 m to 451.7 m showing epithermal veining
hosted in the Bear Fault zone. True width is estimated at 90% of drilled thickness. Assays pending.
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 exist ing
infrastructure includes a 350 ton per day mill, several 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 July 13, 2023 and October 31, 2023.
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.
Midas North Project:
Headwater’s Midas North project adjoins Hecla’s past-producing Midas Mine complex and covers
a large hydrothermal alteration cell, extending at least 4 km in strike and 1 km in width. Extensive
epithermal alteration on the project includ es widespread zones of high -level chalcedonic to
opaline silica flooding, clay alteration , local sinter formation, and fossilized geyser vents. The
Company believes the project has potential for high -grade epithermal vein style gold
mineralization at depth.
A multi-rig, mixed reverse circulation and diamond core maiden drill program totaling 4,202 m was
completed by the Company in 2023 . Th is program consisted of nine drill holes with depths
ranging from 350 m to 600 m. The nine holes tested six targets and epithermal veining and
favourable alteration was encountered in multiple target areas across the property. Assays are
pending. This program represents the first known exploration drilling campaign within the Midas
North project area. See Headwater news release dated August 22, 2023 for more information.
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Headwater holds a 100% undivided interest in the Midas North project, 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.
Mahogany Project:
The Mahogany project is located 20 km northwest of Integra Resources’ (NYSE: ITRG) DeLamar
deposit. Surface alteration at Mahogany is typical of a high-level epithermal system. Headwater’s
initial drill program in 2021 confirmed the presence of structurally -controlled high -grade gold
zones, including a drill intercept that returned 9.37 g/t Au over a drilled thickness of 0.73 m in hole
MH21-02.
Five holes totaling 1,573 m were completed in 2023 targeting the down dip extension of
mineralization encountered in 2021 drilling, as well as testing the Vent Breccia target which has
seen no known exploration drilling below approximately 50 m depth. The target structures were
intercepted in both target areas but assays returned no significant precious metals. The Company
continues to review the data in consultation with earn -in partner Newmont to determine if
additional targets of merit remain on the property.
Headwater holds a 100% undivided interest in the Mahogany project, 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.
Katey Project:
The Katey project is locate d 50 km northwest of Integra Resources’ ( NYSE: ITRG) DeLamar
deposit and 30 km southeast of Paramount Gold Nevada’s (NYSE: PZG) Grassy Mountain
development project. The Project was identified by Headwater geologists, acquired through claim
staking on BLM land and is 100% owned and royalty free. Drilling conducted by Headwater at
Katey in 2021 intercepted high-grade epithermal mineralization in an interpreted feeder structure
in drill hole KT21-01 (6.34 g/t Au over 14.54 m, including 30.73 g/t Au over 1.95 m. See Headwater
news release dated February 21, 2023).
Eleven holes totaling 2,803 m were completed in 2023 targeting extensions of the high -grade
mineralization encountered in KT21-01 as well as testing multiple additional targets along strike.
Drilling did not intercept significant precious metals along strike or at depth, including below drill
hole KT21-01. No further work on the project is planned at this time.
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, Idaho, and
Oregon; and in August 2022 and May 2023 announced significant transaction s with Newcrest
Mining Limited (now Newmont Corporation) where it acquired a 9.9% strategic equity interest in
the Company and entered into earn-in agreements on several of Headwater’s projects.