(TheNewswire)
Vancouver, British Columbia - TheNewswire - November 1, 2023 - Headwater Gold Inc. (CSE: HWG) (OTCQB: HWAUF) (the"Company" or "Headwater") is pleased to announce it has signed agreements with a privatelandowner and staked additional claims to consolidate and expand theland position of the Spring Peak project (the “Project”) inNevada.
Highlights:
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Headwater has signed two lease agreements with optionsto purchase two packages of private lands within the Spring Peakproject.
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Several drill targets have been identified on the newlyacquired lands, scheduled to be tested in 2024.
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Headwater has staked an additional 179 unpatentedmining claims in 2023, expanding the land package to the east andnorth over several newly identified target areas.
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The combined land consolidation represents an 87%increase in the property position and secures 880 acres of surfacerights which may be utilized for potential long-term projectinfrastructure.
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The Company has also completed 32 line-km ofcontrolled-source audio-frequency magnetotellurics (CSAMT) resistivitygeophysics, a soil survey consisting of 615 additional soil samplesand an airborne hyperspectral survey which collectively identifymultiple new target areas.
Caleb Stroup, the President and CEO of the Company,states: “The expansion andconsolidation of the Spring Peak land position is an importantmilestone in the development of the Project. We now have mineralrights and access to explore the full extent of the alteration cellexposed at Spring Peak. Our geological understanding of the Projectcontinues to evolve as we collect more surface data and completeadditional exploration drilling. The scale of the epithermal cell atSpring Peak continues to impress our geologists. We believe thepotential for mineralization extends well beyond the Opal Ridge andDisco Zone areas which have been our focus thus far and we are excitedto continue to develop and test targets throughout the property. Surface alteration and geophysical targets continue to the east ontoour newly staked claims and to the west onto private lands now underoption. The surface rights associated with the private land optionagreements also provide significant optionality, particularly in thelong term, as permitting of infrastructure on private lands isgenerally a streamlined alternative to permitting on federallyadministered lands.”
Figure 1. Spring Peak landposition showing newly leased private lands and recent claim staking.
Spring Peak LandConsolidation:
Following ongoing exploration success at the SpringPeak project (see Headwater news release dated October 31, 2023)Headwater has significantly expanded the Company’s land positionthrough claim staking and two agreements with a private landowner(Figure 1). The private land agreements consolidate all inlier landpositions and allow Headwater to explore the western extension of thesurface alteration and establish a potential location for futureinfrastructure on private land. Access to a water well located onthe private land also provides a cost-effective source for drill water to support continued explorationdrilling. The agreements are with a private landowner and cover twoclasses of lands: 1) lands with privately owned surface rights andfederally administered mineral rights (appropriated by Headwaterthrough claim staking); and 2) lands with private mineral rights andprivate surface rights.
Recent claim staking to the east and north has now alsosecured mineral rights over the eastern projection of several targetstructures, including the Bear Fault trend which hosts the Disco Zonediscovery. These structures are obscured by shallow post-mineralvolcanic cover to the east but preliminary modelling of newly acquiredCSAMT geophysics supports the interpretation that these structurescontinue and are covered by generally less than 100 metres of cover.
The expanded land position is subject to the existingearn-in agreement at Spring Peak with Newcrest.
Terms of Private LandAgreements:
Headwater has entered into a mining lease with anarm’s length private company covering 240 acres of private land inthe Spring Peak project area. By making an initial cash payment ofUS$10,000 on signing and escalating annual payments over the 30-yearterm, beginning at $10,000 on the first anniversary of the agreement,Headwater is granted exclusive surface and mineral right and retainsan option to purchase the land for US$1,000,000, indexed to inflation,and exercisable at any time during the term of agreement subject to a5% NSR royalty, half of which can be purchased at any time forUS$500,000 and the remaining half for US$1,000,000 before commencementof commercial production on the property.
The Company has also entered into a surface lease withthe same private company on 640 acres of contiguous private surfaceland in the Spring Peak project area where Headwater holds existingmineral rights it acquired through claim staking. By making aninitial cash payment of US$10,000 on signing and escalating annualpayments over the 30-year term, beginning at $5,000 on the firstanniversary of the agreement, Headwater is granted exclusive surfacerights and retains an option to purchase the land for US$1,600,000indexed to inflation and exercisable at any time prior to the tenthanniversary of the agreement.
Property-WideExploration:
Airborne HyperspectralSurvey:
Hyperspectral imagery was acquired over approximately100 km 2 in the Project area using a fixed-wing aircraft with ashortwave infra-red and longwave infra-red hyperspectral camera.Airborne hyperspectral surveys are a commonly employed technique formineral exploration and particularly applicable in low-sulfidationepithermal systems. This class of imagery allows for airbornemapping of alteration minerals to determine the footprint ofepithermal alteration and track subtle variations in alterationmineralogy which can be important vectors for identifying feeder zonesprospective for high-grade vein mineralization.
The survey conducted at Spring Peak has identifiedepithermal alteration minerals over most of the exposed pre-mineralbedrock on the property in an approximately 5 kilometres long and 1.5kilometres wide corridor (Figure 2). Several northeast trending(Disco Zone parallel) alteration anomalies were detected as well astwo distinct kaolinite-alunite altered rhyolite dome complexes,referred to as Aurora Dome and Alunite Canyon. Reconnaissancemapping and prospecting is currently underway following up on theseand other target areas.
Figure 2. Top) Simplified geologicmap of Project area showing alteration mineralogy from hyperspectraldata and newly generated hyperspectral target areas. Bottom)Simplified geologic map showing illite crystallinity, select rock chip samples,and target areas. High crystallinity (warmer colors) generallycorresponds to higher temperature clay minerals and more intensealteration.
CSAMT Geophysics and SoilSurvey:
The Company has also completed a 32 line-kilometreCSAMT geophysical survey extending the coverage east and west from thefootprint of historic surveys (Figure 3). CSAMT resistivitygeophysics has proven to be a very useful tool in targeting high-grademineralization at the Spring Peak project. Existing CSAMTresistivity profiles along the length of the Disco Zone target playeda critical role in Headwater’s initial discovery, showing aconsistent resistivity break along the Bear Fault which is nowrecognized as the primary control on high-grade mineralization. Other similar resistivity breaks exist on the property and the newlyacquired survey was designed to add definition to these features andtrack them both east and west. Shallow post-mineral cover persistsover much of the eastern project area. Preliminary CSAMT resultsappear to track multiple structures under cover and also indicate thatthe depth of cover is less than 100 metres. Final inversion modelingof the CSAMT data is underway.
Figure 3. Simplified geologic mapof Project area showing the location of newly acquired and historicCSAMT lines.
A soil survey consisting of 615 soil samples was alsoconducted with samples collected along the CSAMT lines at 25 metre to50 metre spacing. Historical soil data was limited to the centralportion of the claim block and this expanded survey now covers thebulk of the exposed pre- mineral bedrock in theProject area. The combined soil dataset and the newly acquired CSAMTand hyperspectral surveys are currently being integrated into aproperty wide targeting model which will be used to prioritize newtargets for testing in 2024.
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 on a portion of the Project and subjectto Newcrest Mining Limited’s option to acquire up to 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 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 andplans, the risk that Newcrest will not elect to obtain any additionalinterest in the earn-in projects in excess of the minimum commitment,the ability 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. In addition, on May 14, 2023 Newcrest and NewmontCorporation (“Newmont”) entered into a binding schemeimplementation deed in relation to a proposal for Newmont to acquire100% of the issued shares in Newcrest by way of an Australian schemeof arrangement. The proposed merger received shareholder andregulatory approval and has an implementation date of November 6,2023. There is no certainty that the new combined entity will committo the contemplated exploration activities approved by Newcrest beyondthe minimum project commitments.
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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