(TheNewswire)
Vancouver, British Columbia- TheNewswire - December 7, 2022: Headwater Gold Inc. (CSE:HWG ) | ( OTC: HWAUF) (the "Company" or"Headwater") is pleased to announce the completion of the2022 drill programs at the Spring Peak and Agate Point projectslocated in Nevada, United States. Drilling was suspended due to theonset of inclement winter weather. All drilling was 100% funded byNewcrest Mining Limited (“Newcrest”) pursuant to the earn-inagreements announced on August 16, 2022.
Highlights:
-
Headwater’s 2022 drill program at Spring Peakconsisted of ten drill holes totaling 3,173 metres, all of whichencountered significant epithermal veining and alteration zones. Allassays are pending and expected in early 2023;
-
Spring Peak drilling targeted high-grade epithermalvein mineralization in multiple interpreted structural feeder zones,including four holes offsetting the Disco Vein zone discovered byHeadwater in 2021;
-
The thickest vein intervals observed in this year’sSpring Peak drilling were along the up and down-dip projection of theDisco Vein zone, where all four holes intercepted broad intervals ofginguro banded epithermal veining, silicification and hydrothermalbreccias along an apparently planar structural zone; and,
-
1,027 metres of wide-spaced scout reverse circulation(“RC”) drilling in four drill holes was also completed at AgatePoint. Two of the holes encountered significant epithermalalteration at depth. Assays are pending.
Figure 1: 3D image of gingurobanded quartz vein from the Disco Vein zone intersected in drill holeSP22-13. Core is HQ size. Full resolution video is available here .
Caleb Stroup, Headwater’s President and CEO, states: “Spring Peak is a projectthat continues to show all the classic signs of a largelow-sulfidation epithermal vein system. We are highly encouragedthat our initial offset drilling along the Disco Vein is demonstratinggeologic continuity consistent with our exploration model. Theepithermal vein textures and mineralogy encountered in the four coreintersections of the Disco Vein are exactly what we were hoping tosee. Veining occurs within a greater than 25-metre-thick structuralzone, with multiple individual banded veins ranging from centimetre-scale to greater than 2 metres. Several additional zones of veining and alteration were alsoidentified with step-out exploration drilling. This season’sdrilling has clearly accomplished our initial goals of offsetting lastyear’s vein discovery and simultaneously demonstrating theproperty-wide potential of this large and fully intact epithermalsystem.”
Figure 2: 3D image of gingurobanded quartz vein from the Disco Vein zone intersected in drill holeSP22-11. Core is HQ size. Full resolution video is available here .
About the 2022 Spring Peak DrillProgram:
The Company successfully utilized a combination of coreand RC drilling at Spring Peak to complete 3,173 metres of drilling ina short time frame prior to the winter shut-down. The programconsisted of 993 metres of core drilling, 1,076 metres of RCpre-collars and 1,104 metres of RC exploration drilling. All RCsamples have been submitted for assay and core processing is underwayto be expedited for laboratory analysis.
The Disco Vein was the top priority target of theprogram and was intersected with oriented core in all four holesdesigned to test the target. The four holes that intersected theDisco Vein structural zone were drilled on a single fence withmineralization open up-dip, down-dip and along strike.
An additional six drill holes tested a variety oftargets at depths greater than 150 metres elsewhere on the property. All holes encountered epithermal alteration and veining, confirmingthat the epithermal system extends beneath silica alteration mapped atsurface over a large area of the property.
Figure 3: Core drilling at SpringPeak, looking southwest along trend of the Disco Vein.
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 Mining’s (NYSE:HL) past producing Aurora Mine complex, where existing infrastructureincludes a 350 ton per day mill, several production water wells andhigh-voltage three-phase power.
A large hydrothermal alteration cell occurs in thecenter of the Spring Peak project area, which represents a high-levelmanifestation of an epithermal precious metal system. An approximate5-metre thick silica sinter, which extends over 500 metres in strike,occurs in the center of this alteration cell and displays various ventfacies textures interpreted to reflect a high-energy hydrothermal ventenvironment.
In 2021, Headwater conducted an initial first-passdrill program consisting of five holes totalling 1,350 metres wheredrilling intersected epithermal quartz veins at a range of elevationsin multiple structures (see Headwater news release dated November 22,2021). Individual vein zones range from 1.4 to 18.3 metres indrilled width with the widest zone of veining and mineralizationoccurring in hole SP21-03, which intersected a fault-hosted vein zoneimmediately beneath a mapped silica sinter at surface. This intervalreturned gold values of 1.00 g/t Au over 38.1 metres, including 9.2metres of 2.49 g/t Au, representing a new, blind gold discovery and aconfirmation of the Headwater exploration model. Mineralizationencountered in SP21-03 is open both up and down-dip, as well as alongstrike in both directions.
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’s option toacquire 75% of the project following certain expenditures andpreparation of a Pre-Feasibility Study within a designatedtimeframe.
About the 2022 Agate Point DrillProgram:
The first-pass drill program completed at Agate Pointconsisted of an initial four RC holes, totaling 1,027 metres. TheCompany tested four separate structural targets beneath an alterationcap characterized by anomalous mercury, arsenic, and antimony. Thegeological targets tested by Headwater consist of high-anglestructures with the potential to host epithermal feeder veins beneathsilicified breccias mapped at surface. The breccias at surface abovethe vein targets contain textures characteristic of high-levelepithermal alteration, including banded chalcedonic vein fill. Two of the four holes encountered significantepithermal alteration at depth. Headwater believes this is the first ever drill test forstructurally controlled vein mineralization at depth at Agate Point. All samples have been submitted for laboratory analysis with assayspending.
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. The claim block covers an easily accessible linear ridge of untestedwidespread, high-level epithermal alteration with consistent,anomalous trace-element geochemistry typical of upper parts ofepithermal gold deposits in Nevada and globally. There has beenlimited exploration on the project and no known exploration drillingtesting for high-grade precious metal bearing veins. Headwater holds a 100% royalty-free interest in the AgatePoint project, subject to Newcrest’s option to acquire 75% of theproject 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 drill testing several projects inNevada, Idaho, and Oregon.
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.
Forward-Looking Statements:
This news release includes certainforward-looking statements and forward-looking information(collectively, "forward-looking statements") within themeaning 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 thetiming thereof, and the anticipated business plans and timing offuture activities of the Company, are forward-looking statements.Although the Company believes that such statements are reasonable, itcan give no assurance that such expectations will prove to be correct.Often, but not always, forward looking information can be identifiedby words such as "pro forma", "plans","expects", "may", "should","budget", "scheduled", "estimates","forecasts", "intends", "anticipates","believes", "potential" or variations of such words includingnegative variations thereof, and phrases that refer to certainactions, events or results that may, could, would, might or will occuror be taken or achieved. Forward-looking statements involve known andunknown risks, uncertainties and other factors which may cause theactual results, performance or achievements of the Company to differmaterially from any future results, performance or achievementsexpressed or implied by the forward-looking statements. Such risks andother factors include, among others, risks related to the anticipatedbusiness plans and timing of future activities of the Company,including the Company's exploration plans and the proposedexpenditures for exploration work thereon, the ability of the Companyto obtain sufficient financing to fund its business activities andplans, the risk that Newcrest will not elect to obtain any additionalinterest in the Projects in excess of the minimum commitment, theability of the Company to obtain the required permits, changes inlaws, regulations and policies affecting mining operations, theCompany's limited operating history, currency fluctuations, titledisputes or claims, environmental issues and liabilities, as well asthose factors discussed under the heading "Risk Factors" inthe Company's prospectus dated May 26, 2021 and other filings of theCompany with the Canadian Securities Authorities, copies of which canbe found under the Company's profile on the SEDAR website atwww.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.
Copyright (c) 2022 TheNewswire - All rights reserved.