(TheNewswire)
Vancouver, British Columbia - TheNewswire - February 13, 2024: Headwater Gold Inc. (CSE:HWG) (OTC:HWAUF) (the"Company" or "Headwater") is pleased to announce final assay results from its 2023 Spring Peakdrilling program. Drilling at Spring Peak wasfully funded by a subsidiary of NewmontCorporation (“Newmont”) (NYSE:NEM , TSX: NGT, ASX: NEM, PNGX: NEM ) pursuant to the earn-in agreementsannounced on August 16, 2022.
Highlights:
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Drilling at the Disco Zone has identified high-gradegold mineralization along the 400 metre (‘m”) drilled strikeextent of the zone with multiple intercepts in excess of 10 grams pertonne gold (“g/t Au”). Mineralization remains open to thenortheast, southwest, at depth and up-dip toward surface;
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Drill hole SP23-32 intercepted 39.81 m grading 1.93 g/tAu including 4.60 g/t Au over 11.43 m and drill hole SP23-31intercepted 40.08 m grading 1.51 g/t Au including 4.55 g/t Au over9.76 m;
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Step-out drill hole SP23-37 completed on the Pioneertarget area approximately 400 m to the northeast along strike of themain Disco Zone intersected four assay intervals grading over 1 g/t Auwithin a 59-m-wide structural zone that hosts widespread low-gradegold and elevated pathfinder element mineralization;
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New surface sampling from the Pioneer target area hasreturned gold values up to 3.61 g/t Au in epithermal vein grabsamples, prioritizing this area for future follow up;
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All drill holes from the 2023 program are now reported;and
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Discussions with earn-in partner Newmont are ongoing tofinalize the 2024 work program for Spring Peak.
Caleb Stroup, the President and CEO of the Company,states: “We are veryexcited to announce the final assays from our 2023 exploration programat Spring Peak. This project continues to deliver positive resultsand further validates our exploration model. With these latestassays we have demonstrated that the drilled strike extent of theDisco Zone is mineralized with various epithermal veins assaying inexcess of 10 g/t Au over greater than 400 metres of strike andremaining open in both directions. Mineralization also extends togreater than 350 metres vertical depth with no geochemical or texturalindications that we are approaching the bottom of the epithermalboiling zone implying further exploration potential at depth. Drillhole SP23-32 intercepted 4.60g/t Au over 11.43 metres within a broader zone of 1.93 g/t Au over39.81 metres which is one ofthe better intersections in the Disco Zone to date, demonstratingadditional up-dip potential from approximately 180 metres verticaldepth potentially all the way to surface. The Company is also verypleased to have successfully achieved our objective of furtherdefining and expanding the footprint of mineralization at the DiscoZone while also advancing exploration in new targets, demonstratingthe potential for future discoveries within the broader projectarea.”
Figure 1: Map of Spring Peak landposition showing location of main target areas tested during the 2023drill program .
2023 Spring Peak DrillProgram:
Headwater completed a multi-rig drill program totaling8,475 metres at Spring Peak in 2023. Theprimary objective of the drill program was to further define andexpand the Disco Zone both along strike and down dip (Figures 1 and2). The Disco Zone was discovered by Headwaterin 2022 by drilling beneath a thick accumulation of unmineralizedsilica sinter at surface and hosts a series of mineralized epithermalveins at depth within a property-scale fault zone referred to as theBear Fault.
Previous Headwater drilling at the Disco Zone intercepted multiple, discrete epithermalveins with textures indicative of boiling including ginguro banding,silica replacement of lattice-bladed calcite andvein sediments. The highest-grade gold encountered to date at theSpring Peak project is in drill hole SP22-13 which intersected two separate veins assaying 15.92 g/t Au over2.38 m and 10.43 g/t Au over 2.01 m. The highest individual assayfrom SP22-13 returned 69.6 g/t Au over 0.34 m within a broader zone of2.73 g/t Au over 34.72 m . The 2023 drillprogram targeted the same elevation horizon as the previous drillingalong the trend of the Bear Fault, between 150 and 400 m below a zoneof silica sinter exposed at surface.
Table 1: New Drill Results fromHeadwater’s 2023 Spring Peak Drill Program 1
Hole ID | Type | From (m) | To (m) | Interval (m) | Au (g/t) | Ag (g/t) | Az | Inc | TD (m) | Comments |
SP23-26 | RC | 129.54 | 140.21 | 10.67 | 0.48 | 3.17 | 289 | -74 | 326.1 | New zone in Disco Zone hanging wall |
and | DD | 172.97 | 179.22 | 6.25 | 0.52 | 2.30 | ||||
and | DD | 224.94 | 232.87 | 7.93 | 1.37 | 5.81 | Disco Zone. True thickness estimated at 50% | |||
including | DD | 227.84 | 229.82 | 1.98 | 3.91 | 13.65 | ||||
and | DD | 278.95 | 283.49 | 4.54 | 1.18 | 3.04 | ||||
SP23-29 | DD | 117.29 | 124.36 | 7.07 | 1.48 | 10.61 | 246 | -45 | 413.9 | New Opal Ridge Zone; highest individual sample 7.24 g/tAu over 0.61 m from 121.74 to 122.35 m |
including | DD | 119.88 | 122.35 | 2.47 | 3.32 | 16.10 | ||||
SP23-30 | DD | 342.20 | 350.52 | 8.32 | 1.34 | 3.06 | 287 | -76 | 417.1 | Disco Zone. True thickness is estimated at 50%. Highestindividual sample 9.41 g/t Au over 0.52 m from 348.23 to 348.75m |
including | DD | 347.78 | 349.24 | 1.46 | 5.30 | 9.18 | ||||
and | DD | 368.63 | 371.22 | 2.59 | 1.16 | 4.69 | ||||
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%. Highestindividual sample 17.60 g/t Au over 0.76 m from 234.39 to 235.15m |
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%. Highestindividual sample 15.00 g/t Au over 0.77 m from 206.04 to 206.81m |
including | DD | 206.04 | 217.47 | 11.43 | 4.60 | 37.94 | ||||
SP23-34 | DD | 324.92 | 325.47 | 0.55 | 10.90 | 73.86 | 321 | -45 | 480.4 | Disco Zone. True thickness estimated at 90% |
SP23-35 | DD | 293.67 | 296.27 | 2.60 | 1.76 | 7.11 | 353 | -68 | 373.4 | Disco Zone. True thickness is estimated at 60%. Highestindividual sample 12.90 g/t Au over 0.31 m from 293.67 to 293.98m |
including | DD | 293.67 | 293.98 | 0.31 | 12.90 | 51.40 | ||||
and | DD | 305.81 | 314.16 | 8.35 | 0.74 | 1.22 | ||||
SP23-40 | DD | 104.24 | 114.15 | 9.91 | 1.00 | 7.13 | 344 | -83 | 443.0 | New zone in Disco Zone hanging wall |
and | DD | 334.73 | 339.55 | 4.82 | 0.56 | 1.36 | Disco Zone. True thickness estimated at 40% | |||
and | DD | 372.71 | 379.84 | 7.13 | 0.87 | 3.14 | ||||
Including | DD | 377.07 | 377.89 | 0.82 | 4.04 | 6.77 | ||||
SP22-10 | DD | 244.18 | 252.22 | 8.04 | 0.57 | 3.99 | 316 | -59 | 289.9 | Disco Zone. True thickness estimated at 75% |
1 Reported grades were calculated using a 0.2 g/tAu cut-off grade for primary intervals and a 2.0 g/t Au cut-off gradefor included intervals. Intervals correspond to downhole thickness. Unless otherwise stated in the “Comments” field, insufficientinformation is available to determine true thickness of mineralizedintervals. DD signifies diamond drilling and RC, reversecirculation.
Figure 2: Plan geological map of the centralSpring Peak drill area with location of sections A – A’ (Figure3) and B – B’ (Figure 4). Higher resolution figure available here .
Figure 3: Disco Zone longitudinal crosssection A–A’ showing drillingcompleted to date with select drill hole intercepts. Higherresolution figure available here .
Disco Zone:
Drill holes SP23-31 and SP23-32 were step outs alongstrike from 2022 drill holes in the Disco Zone and intercepted aseries of epithermal veins and vein breccias in the target structure(Figures 3 and 4). SP23-32 intercepted 39.81 m grading 1.93 g/t Auincluding 4.60 g/t Au over 11.43 m (Table 1). Within this zone there was a higher-grade core grading 9.44 g/t Auover 3.66 m. The highest individual assay returned 15.00 g/t Au over0.77 m. Drill hole SP23-32 extends the elevation of known high-grade goldmineralization up dip to approximately 180 m below the sinter (Figure3). SP23-31 intercepted the target zone approximately 50 m down dipof SP23-32 and assayed 1.51 g/t Au over 40.08 mincluding 4.55 g/t Au over 9.76 m. This zone also contained ahigher-grade core grading 9.17 g/t Au over 3.51 m. The highestindividual assay returned 17.60 g/t Au over 0.76 m.
Figure 4 : Interpretivegeological cross section B–B’ showing results from 2023 Disco Zonedrilling .
Drill hole SP23-35, located at the southwestern limitof the Disco Zone as defined by current drilling, was designed as adown-dip offset of SP23-24. SP23-35 intercepted 1.76 g/t Au over2.60 m including 12.90 g/t Au over 0.31 m. Drill hole SP23-34, defining thenortheast extent of the current drill pattern, intersected a narrow,high-grade interval that assayed 10.90 g/t Au over 0.55 m. Thewidespread presence of gold grades in excess of 10 g/t Au along thedrilled extent of the Disco Zone and to verticaldepths greater than 350 m (Figure 3) demonstrates the importance ofthe Bear Fault structure as a fluid conduit and highlights furtherpotential for high grade mineralization in all directions. Initialdrilling also suggests that the vein thickness variations observedalong the trend of Disco Zone are likely attributable to localvariability in the geometry of the Bear Fault zone, resulting inlocalized constricting zones with adjacent dilational zones whereveining is thickest (example, Figure 4). Structural modeling of thezone is currently underway to enhance the Company’s ability topredict the location and elevation of these dilational zones andtarget them for future drilling.
Other Target Areas:
Multiple drill holes in the 2023 program intersected anew shallow zone of mineralization in the hanging wall of the DiscoZone. Drill hole SP23-17 intercepted 27.44 m grading 0.95 g/t Au(Figure 4, see news release dated October 32, 2023) and drill holeSP23-40 intercepted 1.00 g/t Au over 9.91 m (this release). Headwater geologists interpret these intercepts as evidence for apreviously unrecognized hanging wall structure or splay to the DiscoZone, potentially representing the upper portions of a parallelmineralized zone which is largely un-tested at depth.
Step out drill hole SP23-37 was completed approximately400 m northeast of the main Disco Zone on the Pioneer target andencountered 58.98 m of anomalous gold grading 0.16 g/t Au from 377.95m to 436.93 m (Figure 2). Mineralization is associated withsulfide-rich silica-cemented breccias and narrow quartz veins in thehanging wall of the main Bear Fault structure. SP23-37 intersectedthe Bear Fault approximately 350 m below surface (Figure 3). Newsurface sampling from the Pioneer target returned up to 3.61 g/t Au in rock chip samples of veins withquartz-after-calcite and other epithermal vein textures. Theseinitial results from the Pioneer target indicate widespread fluid flowalong the Bear Fault and opens up further potential along strike tothe northeast.
Drill hole SP23-29, located approximately 900 m west ofthe Disco Zone confirmed the presence of high-grade mineralization onthe Opal Ridge target (Figure 2). SP23-39 was designed as a followup to scout RC hole SP22-14 which intersected 16.40 g/t Au over 1.52 mwithin a broader interval of 2.73 g/t Au over 10.67 m (see newsrelease dated March 2, 2023). Diamond core hole SP23-29 encountereda broad interval of variably mineralized centimetre-scale epithermalveins hosted in strongly illite-altered granite with a maximum gradeof 7.24 g/t Au over 0.61 m. The mineralization encountered inSP22-14 and SP23-29 occurs between 100 m and 120 m below surface. Continued follow-up drilling to test the depth extent of thismineralized zone is currently being planned by the Company.
About the Spring Peak Project:
The Spring Peak project is located in the Aurora MiningDistrict of west-central Nevada, approximately 50 km southwest of thetown of Hawthorne. The project adjoins Hecla Mining Company’s(“Hecla”, 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.
For more information on the 2023 Spring Peak drillprogram, please see Headwater news releases dated October 31, 2023 andDecember 6, 2023.
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 Newmont’s option toacquire up to 75% of the project following certain expenditures andpreparation of a Pre-Feasibility Study within a designated timeframe. All drill holes from the 2023 Spring Peak drill program are nowreported.
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 of experienced geologists with diverse capital markets,junior and major mining company backgrounds. The Company is systematically drilltesting several projects in Nevada and Idaho and in August 2022 andMay 2023 announced significant transactions with Newmont where itacquired a 9.9% strategic equity interest in the Company and enteredinto earn-in agreements on several of Headwater’s projects.
Headwater is part of the NewQuest Capital Group whichis a discovery-driven investment enterprise that builds value throughthe incubation and financing of mineral projects and companies. Further information about NewQuest can be found on the companywebsite at www.nqcapitalgroup.com .
For more information, please visit the Company'swebsite at www.headwatergold.com .
On Behalf of the Board ofDirectors
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.
Sampling Quality Control:
Drill core was transported from theProject to the Company’s logging facility in Hawthorne, Nevada. Core was then logged in detail, split in half using anelectric-powered core saw, sampled at specified intervals, bagged, anddelivered to Bureau Veritas (“BV”) facilities in Sparks, Nevada. RC samples were bagged at the rig and transported directly from theProject to BV. Samples were prepared by crushing and grinding via BVmethod PRP70-500 to obtain a 500g sub-sample. Geochemical analysesincluding fire assay were carried out at ISO 17025:2017 accreditedBureau Veritas laboratories in Vancouver, British Columbia. Pulpswere assayed for 59 elements via method MA250 using a 25g sample aftera four acid near total digest with an ICP-MS finish. Gold wasassayed by fire assay using BV method FA330 with a 30g sample chargeand ICP-ME finish. In addition to the laboratory's quality controlprogram, a rigorous quality assurance and quality control program wasimplemented by the Company involving the insertion of blanks,standards and duplicates to ensure reliable assay results. Laboratory standards and QA-QC are monitored by the Company.
Forward-Looking Statements:
This news release includes certainforward-looking statements and forward-looking information(collectively, “forward-looking statements”) within the meaning ofapplicable Canadian securities legislation. All statements, other thanstatements of historical fact, included herein including, withoutlimitation, statements regarding future capital expenditures,exploration activities and the specifications, targets, results, analyses,interpretations, benefits, costs and timing of them, Newmont’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 Newmont will not elect to obtain any additional interest inthe earn-in projects in excess of the minimum commitment, the abilityof the Company to obtain the required permits, changes in laws,regulations and policies affecting mining operations, the Company’slimited operating history, currency fluctuations, title disputes orclaims, 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 at www.sedar.com.
Readers are cautioned not to placeundue reliance on forward-looking statements. The Company undertakesno obligation to update any of the forward-looking statements, exceptas otherwise required by law.
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