(TheNewswire)
Vancouver, British Columbia – TheNewswire - November 16, 2022: Headwater GoldInc. (CSE:HWG ) ( OTC:HWAUF) (the"Company" or "Headwater") is pleased to announceit has commenced a 2,000 metre drill program at the Agate Pointproject, Nevada.
Highlights:
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Approximately 2,000 m of reverse circulation (“RC”)drilling is currently underway as part of a first-pass scout drillingprogram;
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The drill program is designed to test for goldmineralization at depth below a large epithermal alteration footprintcharacterised by widespread mercury and arsenic surfacegeochemistry;
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Agate Point is located approximately 50 km along trendfrom the historic, high-grade Sleeper gold mine in northern Nevada;and,
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The drill program is fully funded by Newcrest MiningLimited (“Newcrest”) as part of a larger multi-project earn-inagreement (see news release dated August 16, 2022).
Caleb Stroup, Headwater’s President and CEO, states: “It is very exciting to seedrilling underway at Agate Point. A first-pass scout program under alarge alteration system such as this provides a great opportunity tomake a new high-impact gold discovery. 100% of the funding for thisprogram is provided through our earn-in agreement with Newcrest, whichsignificantly de-risks such a program while preserving significantupside for our shareholders.”
Figure 1: Drilling currentlyunderway at the Agate Point project, Nevada.
About the Agate Point Project:
The Agate Point project is located in northwest Nevada,50 km along trend from the historic, high-grade Sleeper Mine. Theclaim block covers an easily accessible linear ridge of untestedwidespread, high-level epithermal alteration with consistent, highlyanomalous trace-element geochemistry typical of upper parts ofepithermal gold deposits in Nevada and globally. There has been limited exploration on the project and no knownexploration drilling testing for high-grade precious metal bearingveins.
Exploration at Agate Point will consist of scout RCdrilling to test multiple structural targets below surface alterationand geochemistry indicative of high-level epithermal mineralization.
The Company believes this drilling will be the firstever test for a structurally hosted precious metal-bearing epithermalboiling zone at Agate Point.
Figure 3: Agate Point projectshowing proposed drillhole locations. Drilling will test for goldmineralization at depth below a large epithermal alterationfootprint.
Earn-in Agreement withNewcrest:
Newcrest will sole fund a firm minimum commitment ofUS$500,000 in exploration expenditures on the Agate Point project orpay the difference to Headwater.
During the staged earn-in phase, Newcrest has the rightto earn up to a 65% interest in the Agate Point project by solefunding exploration expenditures (inclusive of the minimum commitment)of US$30,000,000 over a 6-year period.
Newcrest retains the right to earn an additional 10%interest in the Project (for a total interest of 75%) by ceding a 2%net smelter return royalty to Headwater subject to certain partialbuydown rights and completing a Pre-Feasibility Study, solely fundedby Newcrest and which includes a minimum 1.5 million ounce gold orgold-equivalent resource within an additional 24-month period.
The Agate Point project is one of four Headwaterprojects under earn-in agreements with Newcrest (see news releasedated August 16, 2022 for information on all Newcrest earn-inagreements).
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 has recently announced a significanttransaction with Newcrest Mining Limited whereby Newcrest has acquireda 9.9% strategic equity interest in the Company and entered intoearn-in agreements 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 thatsuch expectations will prove to be correct. Often, but not always,forward looking information can be identified by words such as “proforma”, “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 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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