(TheNewswire)
Vancouver, British Columbia – TheNewswire - September 28, 2022: Headwater GoldInc. (CSE:HWG ) ( OTC:HWAUF) (the"Company" or "Headwater") is pleased to announcethe commencement of a multi-rig, 4,000 metre drill program at theSpring Peak project, Nevada. The drill program is designed tofollow-up on Headwater’s 2021 discovery of a gold-bearing epithermalquartz vein in the Phase 1 drill program which intercepted 1.0 gramsper tonne gold (“g/t Au”) over 38.1 metres (“m”), including2.5 g/t Au over 9.2 m (see news release dated November 22, 2021). The 2022 drill program will include step-out drilling on therecently discovered vein as well as testing multiple new high-gradevein targets, totalling approximately 4,000 metres of drilling.
Highlights
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Approximately 4,000 m of drilling is planned, including2,000 m of reverse circulation (“RC”) and 2,000 m of coredrilling;
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Spring Peak is located immediately adjacent to the pastproducing Aurora gold mine, owned by Hecla Mining Company(“Hecla”);
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Drill program is fully funded by Newcrest MiningLimited (“Newcrest”) as part of a multi-project earn-in agreement(see news release dated August 16, 2022); and
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The goal of the drill program is to further expand thezone of mineralization encountered in Headwater’s 2021 discoverydrill hole SP21-03, which intersected 38.1 m of 1.0 g/t Au and testmultiple other high-priority vein targets throughout theproperty.
Caleb Stroup, Headwater’s President and CEO, states: “Our 2021 scout drillprogram confirmed the Spring Peak project hosts a blind, gold-enrichedboiling zone at depth. Building on that success, we will now beginoffsetting the most significant intervals from last year, andsystematically drill testing multiple other high-priority structuraltargets for high-grade gold bearing epithermal veins like thoselocated immediately to the north at the past producing Aurora minecomplex. The recently announced Newcrest earn-in transactionprovides Headwater with an attractive financing mechanism toaggressively ramp-up the scale of our activities at Spring Peak with alarge amount of drilling.”
Figure 1: Reverse-circulationdrilling currently underway at the Spring Peak Project, Nevada.
Figure 2: Spring Peak projectgeological map with drill targets and the location of planned drillholes. Drilling will follow up on last year’s blind vein discoveryand drill multiple untested high-grade vein targets on adjacentstructures.
Figure 3: Cross section of theSpring Peak project showing CSAMT geophysical image with 2022 drillingand planned drill holes currently underway.
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 existinginfrastructure includes a 350 ton per day mill, several productionwater wells, and high-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-pass RCdrill program consisting of five holes totalling 1,350 metres. Drilling successfully intersected epithermal quartz veins at a rangeof elevations in multiple structures (see Headwater News Release datedNovember 22, 2021). Individual vein zones range from 1.4 to 18.3metres in drilled width with the widest zone of veining andmineralization occurring in hole SP21-03, which intersected afault-hosted vein zone immediately beneath a mapped silica sinter atsurface. This interval returned gold values of 1.00 g/t Au over 38.1metres, including 9.2 metres of 2.49 g/t Au, representing a new, blindgold discovery and a confirmation of the Headwater exploration model. Mineralization encountered in SP21-03 is open both up and down-dip,as well as along strike in both directions.
Headwater holds an option to acquire a 100% undividedinterest in the Spring Peak project from the underlying owner, subjectto retained royalties and subject to Newcrest’s option to acquire75% of the Spring Peak project following certain expenditures andpreparation of a Pre-Feasibility Study within a designatedtimeframe.
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 suchwords including negative variations thereof, and phrases that refer tocertain actions, events or results that may, could, would, might orwill occur or be taken or achieved. Forward-looking statements involveknown and unknown risks, uncertainties and other factors which maycause the actual results, performance or achievements of the Companyto differ materially from any future results, performance orachievements expressed or implied by the forward-looking statements.Such risks and other factors include, among others, risks related tothe anticipated business plans and timing of future activities of theCompany, 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.
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