(TheNewswire)
Vancouver, B C - TheNewswire - March 2, 2023- Headwater Gold Inc. (CSE:HWG) (OTC:HWAUF) (the"Company" or "Headwater") is pleased to announce the remainder of the assay results fromthe Spring Peak exploration drilling program completed by the Companyin Q4 2022.
Highlights:
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Ten holes were completed in multiple target areas. Four of the ten holes intercepted epithermal veins containingindividual assays greater than 15 grams per tonne gold (“g/t Au”). Seven of the ten holes intercepted intervals greater than 1 g/t Au.
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Drilling at the Disco Zone has confirmed the presenceof multiple high-grade epithermal veins within a broader mineralizedenvelope. Mineralization remains open at depth and alongstrike;
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Drill hole SP22-11 intercepted 43.7 g/t Au over 0.63metres (“m”) within a broader interval of 40.63 m grading 1.86 g/tAu;
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Drill hole SP22-12 intercepted 23.5 g/t Au over 0.33 mwithin a broader interval of 42.61 m grading 0.94 g/t Au;
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Drill hole SP22-13 (previously announced) intercepted34.72 m grading 2.73 g/t Au, including 15.92 g/t Au over 2.38 m and10.43 g/t Au over 2.01 m.
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A new high-grade epithermal vein has been discoveredlocated approximately 900 m west of the Disco Zone in the Opal Ridgetarget area. Reverse circulation (“RC”) scout hole SP22-14intercepted 16.4 g/t Au over 1.52 m within a broader interval of 10.67m grading 2.73 g/t Au;
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A large multi-rig drill program at Spring Peak iscurrently being designed and expected to begin in Q2 of 2023. Thisprogram will include drilling the Disco Zone along strike and down dipas well as following up on the Opal Ridge discovery with orienteddrill core; and,
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Additional claim staking has also been completedresulting in an approximately 30% increase in the Spring Peak projectland position, covering several newly identified areas the Companyconsiders prospective for epithermal veins.
Caleb Stroup, the President and CEO of the Company,states: “We are very pleased to announceremaining results from our 2022 Spring Peak drill program. TheCompany believes these results demonstrate a new gold discovery in alarge historic high-grade Nevada gold district. The Spring Peakproject continues to exhibit all the classic features of a preciousmetal bearing epithermal vein system. We are especially encouragedby the continuity of high-grade mineralization within the Disco Zoneas well as the new discovery of additional high-grade goldmineralization at the Opal Ridge target, over 900 metres away. Weanticipate a very exciting and active year of drilling ahead as welook to drill off the Disco Zone and follow up on the highest-priorityadditional targets within the land package, including the newlydiscovered Opal Ridge Zone.”
Figure 1. Expanded Spring Peak landposition showing vein targets and Hecla Mining Company’s adjoiningpast-producing Aurora mine complex.
2022 Spring Peak DrillProgram:
The Company utilized a combination of diamond core andRC drilling at Spring Peak to complete 3,173 metres of drilling priorto the winter shut-down. The program consisted of 993 metres of coredrilling, 1,076 metres of RC pre-collars and 1,104 metres of RCexploration drilling.
The Disco Zone was the highest priority target of theprogram and was intersected with oriented diamond core in four holesdesigned to test for high-grade veins. The Disco Zone occupies thefootwall margin of a broad, northeast-striking fault zone that isoriented similarly to vein trends at the adjacent past-producingAurora mine complex. The four holes that intersected the targetstructure were drilled on a single fence with mineralization opendown-dip and along strike. Within the DiscoZone, holes SP22-07, SP22-11, SP22-12 and SP22-13 intersected multiplediscrete veins with textures indicative of boiling, including gingurobanding, silica replacement of lattice-bladed calcite and veinsediments. With the exception of SP22-07, all of these holesintersected veins grading over 15 g/t Au (Table 1). SP22-07 alsointercepted abundant epithermal quartz veins. Headwater geologistsbelieve the lack of high-grade gold in this hole is attributable tothe shallow depth at which it penetrated the target structure, andrepresents lower-grade mineralization above the boiling zone (Figure2), which is the target zone within an epithermal system typicallyassociated with high-grade precious metals.
Figure 2: Interpretive geological cross section A –A’ showing results from the Disco Zone drill fence.
The high-grade veins in holes SP22-11, SP22-12, andSP22-13 (Table 1) occur within a broader mineralized envelope whichcontains additional veins and breccia intervals characterized byfine-grained silica-sulfide flooding and argillic alteration. Veinthicknesses and grade both appear to increase with depth. Theopaque, fine-grained character of silica within the veins, along withthe absence of coarse crystalline quartz textures, implies thatdrilling may not have reached the base of the boiling horizon, withgood potential for extending mineralization at depth (Figure 2).
Figure 3: Plan geological map of thecentral Spring Peak drill area with location sections A-A’ (Figure2) and section B-B’ (Figure 5).
Figure 4: 3D image of ginguro banded quartz vein fromthe Disco Zone intersected in drill hole SP22-12. Core is HQ size. The pictured vein forms a sample interval which assayed 23.50 g/t Auover 0.33 m from 211.96 m to 212.29 m. Full resolution video isavailable here
Diamond drill hole SP22-11 is a core twin of RC hole SP21-03, whichwas the initial Headwater discovery hole at Spring Peak. SP21-03intercepted 38.1 m of 1.0 g/t Au but did not contain any individualsamples over 5 g/t Au. Twin core hole SP22-11 intersected 43.7 g/tAu over a drilled thickness of 0.58 m within a brecciated veininterval, indicating that while RC drilling is a useful early-stageexploration tool, the potential exists for under-representing narrowhigh-grade structures.
Drill hole SP22-10 is also located in the Disco Zonetarget area, approximately 150 metres northeast along strike of theprimary drill fence. This hole was an RC pre-collar drilled to adepth of 201.17 m but inclement weather precluded the completion ofthe hole through the target zone with core. Although this hole didnot penetrate the target structure as modelled, it did intersect 0.53g/t Au over 36.58 m near the bottom of the pre-collar, indicating thatDisco Zone mineralization persists to the northeast along strike,presenting a logical starting point for follow-up core drilling in thecoming field season.
An additional five drill holes tested a variety oftargets elsewhere on the property. All holes encountered epithermalalteration and veining including RC scout hole SP22-14 whichintersected a new high-grade vein at the Opal Ridge target whichassayed 16.4 g/t Au over a drilled thickness of 1.52 m, within abroader zone of 2.70 g/t Au over 10.67 m (Figure 5). Banded quartzvein material with fine-grained sulfide stringers was observed withinthis interval. The Company believes this intersection represents anew high-grade vein discovery on the project. The target vein systemat Opal Ridge remains open along strike and down dip.
Figure 5: Interpretive geological cross section B –B’ showing newly discovered high-grade mineralization in the OpalRidge Zone as well as shallow historic drilling which encounteredmodest anomalous mineralization above the interpreted boilingzone.
2023 Exploration Program:
A large multi-rig drill program is currently beingdesigned and expected to begin in the second quarter of 2023. Theprimary objective of the drill program will be to further define andexpand the Disco Zone along strike and down dip at approximate 50 mincrements. Several drill pads are fully permitted and alreadyconstructed to facilitate testing of the Disco Zone over an initialstrike length of approximately 750 metres.
Several diamond core holes have also been designed totest the potential of the newly discovered Opal Ridge Zone at depthbelow relatively shallow high-grade mineralization encountered in RCdrill hole SP22-14.
CSAMT resistivity geophysics has proven to be a veryuseful tool in targeting high-grade mineralization at the Spring Peakproject. Existing CSAMT resistivity profiles along the length of theDisco Zone target show a consistent resistivity break similar to theCSAMT break associated with high-grade mineralization on the primary2022 drill fence. An expanded CSAMT program is being planned to extend the footprint of coverage throughoutthe property to allow for additional vein targeting. Shallowpost-mineral cover persists over much of the eastern project area andCSAMT will be the primary means for targeting additional veins atdepth here.
Table 1: Drill Results from Headwater’s 2022 SpringPeak drilling program 1
Hole ID | Type | From (m) | To (m) | Interval (m) | Au Grade (g/t) | Ag Grade (g/t) | Az | Inc | TD (m) | Comments |
SP22-06C | DD | 400.99 | 404.20 | 3.21 | 0.64 | 1.69 | 0 | -48 | 429.77 | |
and | DD | 418.73 | 419.50 | 0.77 | 1.16 | 4.95 | ||||
SP22-07 | DD | 175.87 | 190.65 | 14.78 | 0.93 | 11.37 | 330 | -45 | 374.75 | |
DD | 198.18 | 202.60 | 4.42 | 1.12 | 3.00 | |||||
SP22-10 | RC | 161.54 | 198.12 | 36.58 | 0.53 | 2.82 | 315 | -58 | 201.17 | Pre-collar only, core completionpending. |
SP22-11 | RC | 105.16 | 117.35 | 12.19 | 1.15 | 3.79 | 330 | -62 | 237.74 | True thickness is estimated at 75% ofthe reported downhole thickness. |
including | RC | 111.25 | 112.78 | 1.53 | 6.58 | 18.44 | ||||
and | DD | 185.38 | 226.01 | 40.63 | 1.86 | 18.63 | ||||
including | DD | 197.39 | 198.18 | 0.79 | 7.37 | 55.81 | ||||
including | DD | 208.33 | 208.91 | 0.58 | 43.70 | 351.00 | ||||
SP22-12 | RC | 114.30 | 126.49 | 12.19 | 0.53 | 1.30 | 330 | -68 | 271.27 | Significant zones of poor core recoverywere experienced through the mineralized interval. True thickness is estimated at 70% ofthe reported downhole thickness. |
and | DD | 205.59 | 248.20 | 42.61 | 0.94 | 8.91 | ||||
including | DD | 211.96 | 212.29 | 0.33 | 23.50 | 64.19 | ||||
including | DD | 235.18 | 236.83 | 1.65 | 4.28 | 66.13 | ||||
SP22-13 | RC | 108.20 | 134.11 | 25.91 | 0.38 | 2.17 | 330 | -72 | 315.47 | True thickness is estimated at 60% ofthe reported downhole thickness. Previously reported RC results.Highest individual sample 69.6 g/t Au over 0.34 m from 275.90 m to276.24 m. |
and | DD | 256.12 | 290.84 | 34.72 | 2.73 | 18.38 | ||||
including | DD | 262.46 | 264.47 | 2.01 | 10.43 | 55.35 | ||||
including | DD | 275.26 | 277.64 | 2.38 | 15.92 | 90.83 | ||||
SP22-14 | RC | 169.16 | 179.83 | 10.67 | 2.70 | 1.94 | 246 | -46 | 297.18 | Hole ended in 0.90 g/t Au over 3.05m. |
including | RC | 170.69 | 172.21 | 1.52 | 16.40 | 4.43 | ||||
and | RC | 231.65 | 245.36 | 13.71 | 0.50 | 4.09 | ||||
and | RC | 294.13 | 297.18 | 3.05 | 0.90 | 4.03 |
1 Reported grades were calculated using a 0.2 g/t cut-off gradefor primary intervals and a 2 g/t cut-off grade for includedintervals. Intervals correspond to downhole thickness. Unlessotherwise stated in the “Comments” field, insufficient informationis available to determine true thickness of mineralizedintervals.
2022 Agate Point Drill Program:
A first-pass scout drill program was also completed atthe Company’s Agate Point project consisting of four RC holes,totaling 1,027 metres. No significant precious metals interceptswere encountered. Four separate structural targets were testedbeneath a large alteration cap characterized by anomalous mercury,arsenic, and antimony. The program was 100% funded by Newcrest, pursuant to the earn-in agreements announced onAugust 16, 2022.
The geological targets tested by Headwater consist ofhigh-angle structures with the potential to host epithermal feederveins beneath silicified breccias mapped at surface. The breccias atsurface above the vein targets contain textures characteristic ofhigh-level epithermal alteration, including banded chalcedonic veinfill. Two of the four holes encounteredsignificant epithermal alteration at depth associated with weaklyanomalous gold values and highly anomalous epithermal pathfindergeochemistry. The Company is currently reviewing the data todetermine if additional targets are present on the property whichwarrant further work.
About the Spring Peak Project:
The Spring Peak project is located in the Aurora MiningDistrict of west-central Nevada, approximately 50 kilometres southwestof the town of Hawthorne. The project adjoins Hecla MiningCompany’s (NYSE: HL) past producing Aurora Mine complex, whereexisting infrastructure includes a 350 ton per day mill, severalproduction water wells and high-voltage three-phase power.
Headwater holds an option to acquire a 100% undividedinterest in the Spring Peak project from Orogen Royalties (TSXV: OGN),subject to retained royalties and subject to Newcrest MiningLimited’s (“Newcrest”) option to acquire up to 75% of theproject following certain expenditures and preparation of aPre-Feasibility Study within a designated timeframe.
About the Agate Point Project:
The Agate Point project is located in northwest Nevada,50 kilometres along trend from the historic, high-grade Sleeper Mine. Headwater holds a 100% royalty-free interestin the Agate Point project, subject to Newcrest’s option to acquire75% of the project following certain expenditures and preparation of aPre-Feasibility Study within a designated timeframe.
About Headwater Gold:
Headwater Gold Inc. (CSE: HWG, OTCQB: HWAUF) is atechnically-driven mineral exploration company focused on theexploration and discovery of high-grade precious metal deposits in theWestern USA. Headwater is aggressively exploring one of the mostwell-endowed and mining-friendly jurisdictions in the world with agoal of making world-class precious metal discoveries. Headwater hasa large portfolio of epithermal vein exploration projects and atechnical team comprised of experienced geologists with diversecapital markets, junior company and major mining company experience. The Company is systematically exploring several projects in Nevada,Idaho, and Oregon and in August 2022 announced a significanttransaction with Newcrest Mining Limited where Newcrest acquired a9.9% strategic equity interest in the Company and entered into earn-inagreements on four of Headwater’s projects.
For more information, please visit the Company'swebsite 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 newsrelease has been reviewed and approved by Scott Close, P.Geo (158157),a “Qualified Person” (“QP”) as defined in National Instrument43-101 – Standards of Disclosure for Mineral Projects.
(1) The Qualified Person has been unable to verify theinformation on the adjacent properties. Mineralization hosted onadjacent and/or nearby and/or geologically similar properties is notnecessarily indicative of mineralization hosted on the Company’sproperties. Historical resource estimates, historical drillintercepts, and historical surface samples are treated by the Companyas historical in nature, and not current or NI 43-101compliant.
Forward-Looking Statements:
This news release includes certain forward-lookingstatements and forward-looking information (collectively,“forward-looking statements”) within the meaning of applicableCanadian securities legislation. All statements, other than statementsof historical fact, included herein including, without limitation,statements regarding future capital expenditures, explorationactivities and the specifications, targets, results, analyses,interpretations, benefits, costs and timing of them, Newcrest’santicipated funding of the earn-in projects and the timing thereof,and the anticipated business plans and timing of future activities ofthe Company, are forward-looking statements. Although the Companybelieves that such statements are reasonable, it can give no assurancethat such expectations will prove to be correct. Often, but notalways, forward looking information can be identified by words such as“pro forma”, “plans”, “expects”, “may”, “should”,“budget”, “scheduled”, “estimates”, “forecasts”,“intends”, “anticipates”, “believes”, “potential” orvariations of such words including negative variations thereof, andphrases 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 fromany future results, performance or achievements expressed or impliedby the forward-looking statements. Such risks and other factorsinclude, among others, risks related to the anticipated business plansand timing of future activities of the Company, including theCompany’s exploration plans and the proposed expenditures forexploration work thereon, the ability of the Company to obtainsufficient financing to fund its business activities and plans, therisk that Newcrest will not elect to obtain any additional interest inthe Projects in excess of the minimum commitment, the ability of theCompany to obtain the required permits, changes in laws, regulationsand policies affecting mining operations, the Company’s limitedoperating history, currency fluctuations, title disputes or claims,environmental issues and liabilities, as well as those factorsdiscussed under the heading “Risk Factors” in the Company’sprospectus dated May 26, 2021 and other filings of the Company withthe Canadian Securities Authorities, copies of which can be foundunder the Company’s profile on the SEDAR website atwww.sedar.com.
Readers are cautioned not to place undue reliance onforward-looking statements. The Company undertakes no obligation toupdate any of the forward-looking statements, except as otherwiserequired by law.
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