(TheNewswire)
Vancouver, British Columbia – TheNewswire - October 31, 2023: Headwater Gold Inc. (CSE:HWG) (OTC:HWAUF) (the"Company" or "Headwater") is pleased to announce initial assay results from the ongoing2023 Spring Peak exploration drilling program which is fully funded by Newcrest Mining Limited as part of anexploration agreement announced on August 16, 2022 .
Highlights:
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Spring Peak is located in the Walker Lane belt ofNevada, immediately south of Hecla Mining Company’s (NYSE:HL) past producing Aurora Mine
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Recent drilling has extended mineralization at theDisco Zone target, intercepting high-grade epithermal veins in anapproximately 70 metre step-out from previous drilling.
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Drill hole SP23-17 intercepted 13.0 grams per tonnegold (“g/t Au”) over 1.21 metres (“m”) and 9.0 g/t Au over3.11 m within a broader interval of 20.46 m grading 2.59 g/t Au in theDisco Zone target;
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Drill hole SP23-17 also intercepted 27.44 m grading0.95 g/t Au above the Disco Zone in a newly recognized zone which mayrepresent a parallel mineralized structure;
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Mineralization remains open at depth and along strikeand ongoing drilling continues to intersect epithermal veins in thetarget zone;
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Assays from the initial four holes of the program arepresented here, with the remainder of the assays pending;and,
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A multi-rig drill program is still underway at SpringPeak with 22 holes completed to date and assays pending for 18holes.
Caleb Stroup, the President and CEO of the Company,states: “We are verypleased to announce initial results from our 2023 Spring Peak drillprogram. Drill hole SP23-17 represents our first step out from lastyear’s drilling. This drill hole encountered high-grade epithermalveins nearly exactly where our geologists expected, demonstratingcontinued exploration potential along strike to the northeast and downdip. SP23-17 also intercepted a new zone of shallower mineralizationapproximately 130 metres above the Disco Zone, which may represent theshallow portions of a stacked parallel vein system. With themajority of the assays for the 2023 program still pending from thelaboratory, we very much look forward to the potential upcomingcatalysts for the Spring Peak project and the Company as awhole.”
2023 DrillProgram:
The primary objective of the 2023 drill program is tofurther define and expand the Disco Zone along strike and down dip at50 to 100 metre increments. The Disco Zone isa mineralized corridor which hosts a series of high-grade epithermalveins at depth discovered by Headwater in 2022 by drilling beneath athick accumulation of silica sinter at surface.
Earlier Headwater’s drilling at the Disco Zone intercepted multiple discrete veins withtextures indicative of boiling, including ginguro banding, silicareplacement of lattice-bladed calcite and vein sediments. Thehighest-grade gold encountered to date at the Spring Peak project isin drill hole SP22-13 which intersected twoindividual veins assaying 15.92 g/t Au over 2.38 m and 10.43 g/t Auover 2.01 m. The highest individual assay returned 69.6 g/t Au over0.34 m. These intervals are part of a broader zone which assayed2.73 g/t Au over 34.72 m .
The 2023 drill program is targeting the same elevationhorizon as the previous drilling between 150 m and 400 m below anextensive zone of silica sinter exposed at surface. Drill holeSP23-17 was the first core hole of the 2023 program and successfullyextended the mineralization encountered in SP22-13. SP23-17intercepted 13.0 g/t Au over 1.21 m and 9.0 g/t Au over 3.11 m withina broader interval of 20.46 m grading 2.59 g/t Au (Table 1, Figure 2).
Figure 1: Plan geological map of the centralSpring Peak drill area with location sections A-A’ (Figure 2) andsection B-B’ (Figure 3).
Mineralization in drill hole SP23-17 consists of bandedquartz-calcite veins with quartz-after-bladed calcite, vein sediments,and silica cemented breccias. The highest-grade mineralizationintercepted in SP23-17 occurs within discrete quartz dominant zones atthe margins of the broader mineralized interval. This drillintercept occurs approximately 325 metres below surface and remainsopen at depth and along strike. Several additional step out holesalong strike and down dip of this intercept are either currently inprogress or completed with assays pending.
Drillhole SP23-17 also intercepted a new zone ofmineralization approximately 130 metres above the Disco Zone,containing 0.95 g/t Au over 27.44 m. This new zone was interceptedin the reverse circulation pre-collar portion of the hole. Adjacentcore-from-surface holes (assays pending) encountered several zones offault gouge and sparse veining at a similar depth. Initialinterpretations are that this may represent the shallow portions of astacked Disco-Zone-parallel vein system which remains to be testedwith drilling at depth (Figure 3).
Table 1: Drill Results fromHeadwater’s 2023 Spring Peak drilling program 1
Hole ID | Type | From (m) | To (m) | Interval (m) | Au (g/t) | Ag (g/t) | Az | Inc | TD (m) | Comments |
SP23-16 | RC | - | - | - | - | - | 0 | -90 | 135.64 | Water well, no significant intercepts |
SP23-17 | RC | 108.20 | 135.64 | 27.44 | 0.95 | 9.87 | 014 | -73 | 376.52 | New zone within Disco Zone hanging wall |
and | DD | 267.13 | 270.05 | 2.92 | 3.92 | 3.93 | Disco Zone. True thickness is estimated at 50% of thereported downhole thickness. Highest individual sample 20.5 g/t Au over 0.42 m from 329.28 to 329.7 m | |||
including | DD | 267.74 | 268.53 | 0.79 | 9.10 | 6.38 | ||||
and | DD | 310.59 | 331.01 | 20.42 | 2.59 | 15.16 | ||||
including | DD | 312.12 | 313.33 | 1.21 | 13.0 | 105.4 | ||||
including | DD | 327.90 | 331.01 | 3.11 | 9.0 | 43.2 | ||||
SP23-18 | RC | 118.87 | 135.64 | 16.77 | 0.46 | 5.30 | 005 | -69 | 335.98 | New zone within Disco Zone hanging wall |
and | DD | 279.96 | 292.30 | 12.34 | 0.88 | 5.16 | Disco Zone. True thickness estimated at 55% | |||
SP23-19 | DD | 151.39 | 160.45 | 9.06 | 0.53 | 3.92 | 299 | -63 | 383.13 | New zone within Disco Zone hanging wall |
and | DD | 272.16 | 284.53 | 12.37 | 1.25 | 6.18 | Disco Zone. True thickness estimated at 65% |
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. Unless otherwise stated in the “Comments” field, insufficientinformation is available to determine true thickness of mineralizedintervals.
Figure 2: Disco Zone longitudinal cross section A – A’ showing planned andcompleted drilling to date.
Results have also been received for two additionalholes from the Disco Zone, both up-dip of SP23-17. Holes SP23-18 andSP23-19 intercepted zones of highly anomalous precious metalmineralization in fault gouge with veins and vein clasts along theprojection of the Disco Zone but did not intercept Au grades greaterthan 5 g/t. Initial interpretations suggest this may be due to alocalized inflection in the Bear Fault plane resulting in aconstricting segment of the zone.
Figure 3. Interpretive geological cross section B– B’ showing results from the 2023 Disco Zone drilling .
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(NYSE: HL) past-producing Aurora Mine complex, where existinginfrastructure includes a 350 ton per day mill, several productionwater 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 option to acquire up to 75% of the project followingcertain expenditures and preparation of a Pre-Feasibility Study withina 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 of experienced geologists with diverse capital markets,junior and major mining company backgrounds. The Company issystematically drill testing several projects in Nevada, Idaho, andOregon; and in August 2022 and May 2023 announced significanttransactions with Newcrest Mining Limited where Newcrest acquired a9.9% strategic equity interest in the Company and entered into earn-inagreements on several 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 and plans, the risk thatNewcrest will not elect to obtain any additional interest in theearn-in projects in excess of the minimum commitment, the ability ofthe 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.In addition, on May 14, 2023 Newcrest and Newmont Corporation(“Newmont”) entered into a binding scheme implementation deed inrelation to a proposal for Newmont to acquire 100% of the issuedshares in Newcrest by way of an Australian scheme of arrangement. Theproposed merger received shareholder and regulatory approval and hasan implementation date of November 6, 2023. There is no certainty thatthe new combined entity will commit to the contemplated explorationactivities approved by Newcrest beyond the minimum projectcommitments.
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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