(TheNewswire)
Vancouver, British Columbia – TheNewswire - February 21, 2023: Headwater Gold Inc. (CSE:HWG) (OTC:HWAUF) (the"Company" or "Headwater") is pleased to announce it has defined multiple high-prioritydrill targets to extend high-grade mineralization encountered inprevious core drilling by the Company at its 100% owned Katey goldproject located in southeast Oregon.
Highlights:
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Headwater has defined multiple high-priority drilltargets that focus on extending the high-grade mineralized structureencountered in drill hole KT21-01 (see news release dated February 10,2022) to the north and south along strike, as well as downdip;
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Metallic-screen assays from the previously reportedhigh-grade intercept in drill hole KT21-01 returned 6.34 grams pertonne gold (“g/t Au”) over 14.54 metres, including 30.73 g/t Auover 1.95 metres. Metallic-screen assays show approximately 30%higher grade than original values and indicate the presence of coarsefree gold;
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A mixed diamond core and reverse circulation (“RC”)drill program consisting of approximately 3,500 metres is fullypermitted and scheduled to commence in early summer 2023;
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Deep auger soil sampling has defined an area of highlyanomalous gold, silver and epithermal pathfinder geochemistry over anapproximately 1 kilometre zone along the projection of the West ZoneFault which hosts the high-grade gold intercepted in drill holeKT21-01; and
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Channel samples collected at surface across the mainWest Zone Fault returned 13.26 g/t Au and 45.2 grams per tonne silver(“g/t Ag”) over 0.69 m, demonstrating up-dip continuity of themain mineralized structure intercepted in drill hole KT21-01.
Caleb Stroup, the President and CEO of the Company,states: “Following thecompletion of our recent financing, we are very excited to get backout to Katey to follow up on the high-grade discovery made in ourfirst drillhole completed on the project and the only hole drilled todate by the Company in the West Zone target area. The Katey projectis 100% owned and royalty-free and is our highest-priority self-fundedexploration project. Low-cost surface work conducted sinceannouncing this discovery suggests that the mineralized system extendsboth to the north and to the south for at least a kilometre andpotentially continues under shallow cover beyond. The upcoming drill program will focus ondrill testing the length of this mineralized trend and offsetting ourprevious intercept with multiple holes down dip in an attempt to addscale to a target we already know has high-grade gold.”
Figure 1. Key geologic features of the twomain target areas at the Katey gold project and location of crosssection shown in Figure 5. Inset box shows the location of Figure2.
West Zone SoilGeochemistry:
Auger soil sampling completed by Headwater indicates a broad zone ofanomalous gold, silver and epithermal pathfinder element geochemistryin the Katey West Zone (Figure 2).
Headwater geologists suspect shallowhistoric samples in the West Zone area were likely compromised bytransported material resulting in a subdued and unreliablegeochemistry. A motorized hand auger was used topenetrate shallow alluvial and colluvial cover surrounding the WestZone and sample soil directly above weathered bedrock which results in much higher confidence sampleswhich accurately represent locally derived soil. Headwater collected 184 samples along an approximately 25 m x 50 mspaced grid to a typical depth of 0.5– 1.0 metre. Augured holes also allowed for geologic mappingof exposed bedrock beneath the thin alluvial cover that blankets theWest Zone.
Figure 2: Simplified geologic map showing thelocation of KT21-01 and the primary target areas and contoured soilsample geochemical data from soil and auger sampling of the West Zoneover high-resolution drone digital surface model.
Nearly all auger soil samples contained detectable gold(93%) and the majority of samples (59%) contained at least 200 ppbsilver. Sampling reveals that anomalous gold-silver soilgeochemistry extends over nearly a kilometre of strike length to thenorth and south of the strongly silicifiedsandstone knob, where historic drilling and sampling has been focused(Figures 2 and 4). These soil samples returned individual values upto 2.38 g/t Au and 26.4 g/t Ag. A broad zone of anomalous epithermalpathfinder elements also occurs coincident with the gold in soilanomaly (Figure 2). Such pathfinders are commonly associated withthe upper levels (elevations) of epithermal gold systems and arehighly useful in tracking the extent of the system laterally. Thiszone includes highly anomalous mercury (“Hg”), arsenic (“As”),and antimony (“Sb”) with up to 13.1 ppm Hg, 243 ppm As, and 62.5ppm Sb.
Figure 3: Photo of the West Zone Fault inoutcrop and two channel samples collected across the width of themineralized structure.
Detailed Geologic and AlterationMapping:
Detailed geologic and alteration mapping completed bythe Company in the Katey West Zone has proven effective for definingthe orientation and extent of the main mineralized structureintercepted in KT21-01. The West Zone Fault, interpreted as theprincipal controlling structure for goldmineralization, was mapped in detail where it cuts across the surfaceat the West Zone discovery outcrop. Channel samples of this outcrop(Figure 3) returned 13.26 g/t Au and 45.2 g/t Ag over 0.69 m and 4.91g/t Au and 19.0 g/t Ag over 0.74 m, respectively. This outcrop sitsapproximately 100 m vertically above the high-grade drill interceptencountered in hole KT21-01 and demonstrates that high-grademineralization extends to surface. The projection of the West ZoneFault was mapped both to the north and the south by usingstratigraphic offset and alteration zonation observed in soil augerholes.
Metallic-Screen GoldAssays of KT21-01:
The results of metallic-screen gold assays completed on thehigh-grade intercept in KT21-01 returned 14.54 metres grading 6.34 g/tAu, including 30.73 g/t Au over 1.95 metres, which is a 30% increasefrom the original assay values (Table 1).
Metallic-screen assays are often used to test for the presence ofcoarse gold and better represent true gold grade by using a muchlarger sample which also incorporates coarse size fractions from apulp. A 1-kilogram sample is split from the original samplematerial, crushed, and sieved to create a coarse (+150) and fine(-150) fraction which are then assayed.
Nearly all samples from KT21-01 returned metallic-screen gold valuesgreater than the original assays, indicating the presence of coarsegold that was not accurately measured by the original assays. Asample from 103.6–104.4 metres depth in KT21-01 returned 229.37 g/tAu in the coarse (+150) fraction indicating the presence of a largeamount of coarse gold. Metallic-screen assays of the highest-gradesample from KT21-01 returned 40.59 g/t Au over 1.04 metres, a 44%increase from the original assay value.
Moving forward, metallic-screen assays will be routinely utilized asa standard practice on the project whenever the presence of coarsegold is suspected.
Table 1: Metallic-screen assay results from the KateyProject 1
Hole ID | From | To | Interval | Original Grade | Calc Grade | Az | Inc | TD | Comments |
(m) | (m) | (m) | (g/t) | (g/t) 1 | (deg) | (deg) | (m) | ||
KT21-01 | 98.39 | 112.93 | 14.54 | 4.86 | 6.34 | 90 | -45 | 259.38 | Highest individual sample 40.59 g/t Au over 1.04m |
including | 109.88 | 111.83 | 1.95 | 23.62 | 30.73 |
1 Reported grades were calculated using a 0.2 g/tcut-off grade for primary intervals and a 2 g/t cut-off grade forincluded intervals. Intervals correspond to downhole thickness. Truethickness of the mineralized intervals is estimated at approximately90% of the reported downhole thickness. Calculated grade represents a weighted averageof gold from coarse (+150) and fine (-150) fractions ofmetallic-screen assays.
Figure 4: High-resolution drone digitalsurface model of the West Zone target area showing historic drilling,key geologic features, select auger soil samples and proposedHeadwater drill holes.
Figure 5: Interpretive geologic cross sectionshowing historic drillholes in the West Zone target area with the location of drill hole KT21-01 andproposed Headwater drill holes.
2023 Drill Targets:
Analysis of previous drilling and surface geologicaland geochemical data have resulted in the following high-prioritydrill targets for the current year:
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KT22-01 Offset Target: Diamond core hole KT21-01 was the first hole drilled byHeadwater at the Katey project and remains the only hole drilled bythe Company in the West Zone (Figure 5). Immediate offsets of thehigh-grade gold intercept encountered in this hole ( 14.54 mgrading 6.34 g/t Au, including 30.73 g/t Au over 1.95m) are planned both down dip and alongstrike in approximate 50 m increments.
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Northern ExtensionTarget: North of the strongly silicifiedoutcrop where the West Zone Fault outcrops, the main mineralizedstructure disappears under shallow cover but is traced by stronglyanomalous auger soil samples and subsurface mapping. Auger samplesreveal strongly oxidized and silicified sandstone with quartz veiningalong the NNW trend of the West Zone Fault mapped in outcrop (Figure4). Anomalous soil geochemistry immediately adjacent to thisstructure returned up to 2.38 ppm Au and up to 26.4 ppm Ag.
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Upper Flats Target: Planned holes in this area directly offset KT21-01 to thesouth and test the along-strike continuity of the main mineralizedstructure (Figure 4). Anomalous soilgeochemistry extends along the mapped trace of the West Zone Fault andincludes up to 135 ppb Au and up to 1890 ppb Ag.
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Southern ExtensionTarget: Geologic mapping completed with the aidof high-resolution drone imagery and subsurface auger mapping tracethe West Zone Fault structural corridor through this area. Plannedholes test this known structural corridor and a splay off the WestZone Fault that corresponds to anomalous soil and rock chipgeochemistry.
2023 Drill Program:
A multi-rig, mixed RC and diamond core drill programhas been planned and multiple bids have been received from contractorsto commence drilling in early summer 2023. Headwater is authorizedto proceed drilling under its existing exploration permit with theState and Bureau of Land Management. Combining RC and core drillingis a cost-effective way to maximize the number of drill intersectionsand rapidly test the along-strike potential of the alteration system. Core drilling will be focused in the KT21-01 offset target areawhile RC will be utilized along the trace of the West Zone Fault wherethere is no historic drilling information. The program is expectedto consist of an initial 3,500 metres with potential to extend theprogram subject to positive results.
About the KateyProject:
The Katey Project is located in southeastern Oregon, approximately50 km northwest of Integra Resources’ (TSX: ITR) DeLamar deposit and30 km southeast of Paramount Gold Nevada’s (NYSE: PZG) GrassyMountain development project. The Project was identified byHeadwater geologists and acquired through claim staking on BLM landand is 100% owned and royalty free. Gold mineralization on theProperty is associated with regional mid-Miocene bimodal volcanism andextensional faulting related to Yellowstone Hotspot volcanism. TheProperty sits along the margin of the Three Fingers Caldera and isbisected by several caldera-related ring fractures, which areinterpreted to have served as fluid conduits, localizing alterationand mineralization. Compilation of limited historic explorationdata, as well as a drone magnetic survey, geologic mapping and surfacesampling completed by Headwater resulted in the development of twoprincipal target areas on the Property, referred to as the East Zoneand West Zone.
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 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 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 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,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” in theCompany’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.
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