(TheNewswire)
Vancouver, British Columbia - TheNewswire - December 6, 2023: Headwater Gold Inc. (CSE:HWG) (OTC:HWAUF) (the"Company" or "Headwater") is pleased to announce the completion of its 2023drilling programs. Drilling at Spring Peak,Midas North and Mahogany was fully funded byNewmont Corporation (“Newmont”) (NYSE: NEM) pursuant to the earn-in agreements announced onAugust 16, 2022.
Highlights:
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Spring Peak – Twenty-five drillholes were completed in the 2023 drill campaign totaling 8,475 metres(“m”);
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Initial drill results extend Disco Zone mineralizationto the northeast and southwest over a strike extent of at least 350 m,and to a depth of greater than 300 m below surface. Mineralizationremains open in both directions and at depth;
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Drill hole SP23-28 intercepted 25.54 m grading 1.75 g/tAu including 8.04 g/t Au over 1.19 m and 5.35 g/t Au over 2.59m;
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Drill hole SP23-33 intercepted 37.01 m grading 1.28 g/tAu including 6.53 g/t Au over 1.68 m and 6.27 g/t Au over 1.19m;
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A step out drill hole (SP23-37) has been completedapproximately 400 m northeast along strike of the main Disco Zone. This hole encountered multiple epithermal veins in the target zone.Assays are pending for this hole as well as 11 additional holes fromthe 2023 program.
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Midas North – Nine drill holeswere completed totaling 4,202 m at Midas North, testing six targetareas. Epithermal veining and alteration were encountered inmultiple target areas across the property. Assays arepending;
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Mahogany – Five drill holes werecompleted totaling 1,524 m at Mahogany, testing two target areas. Nosignificant precious metal intercepts were encountered. The Companycontinues to review the data in consultation with earn-in partnerNewmont to determine if additional targets of merit remain on theproperty; and,
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Katey – Eleven drill holes werecompleted totaling 2,803 m at Katey, testing four target areas. Nosignificant precious metals intercepts were encountered. No furtherwork on the project is planned by the Company at this time.
Figure 1. Headwater project portfolio including thelocations of 2023 drill projects.
Caleb Stroup, the President and CEO of the Company,states: “This year was a very exciting andproductive year for the Company with over 17,000 metres of drillingcompleted across four projects. Assays remain outstanding forapproximately half of this drilling but initial results from SpringPeak continue to validate our geological model and extendmineralization in all directions. We have now established over 350metres of strike extent at the Disco Zone and are seeing positiveindications that the system may extend beyond this. A recentstep-out drill hole approximately 400 metres northeast of the mainDisco Zone demonstrates that the Bear Fault mineralized structurepersists and continues to host epithermal veining and favourablealteration. These initial geological results point to continuedpotential over several kilometres of prospective strike extent alongthe Bear Fault corridor.
Drilling at Katey and Mahogany has failed todemonstrate persistent mineralization at depth in the targets testedand activities have been paused on these projects. Although thisoutcome is not what we had anticipated, the Company’s disciplinedstrategy to quickly and aggressively advance exploration targets tocritical decision points remains unchanged. We remain committed toour strategy of utilizing partner funding, in combination withself-funded exploration, to advance our portfolio of projects andexplore for high-impact gold discoveries.”
Table 1: New Drill Results from Headwater’s 2023Spring Peak Drill Program 1
Hole ID | Type | From (m) | To (m) | Interval (m) | Au (g/t) | Ag (g/t) | Az | Inc | TD (m) | Comments |
SP23-20 | RC | 153.92 | 156.97 | 3.05 | 0.89 | 2.76 | 311 | -73 | 166.1 | New zone in Disco hanging wall |
and | DD | 172.76 | 178.92 | 6.16 | 0.71 | 2.58 | ||||
and | DD | 234.73 | 258.59 | 23.86 | 0.46 | 5.48 | Disco Zone. True thickness estimated at 60% | |||
SP23-21 | RC | 96.01 | 102.11 | 6.10 | 0.80 | 6.35 | 293 | -78 | 194.2 | New zone in Disco Zone hanging wall |
and | DD | 248.41 | 250.85 | 2.44 | 3.80 | 4.46 | New zone in Disco Zone hanging wall | |||
including | DD | 248.41 | 249.94 | 1.53 | 5.80 | 6.26 | ||||
and | DD | 302.97 | 309.43 | 6.46 | 0.79 | 4.63 | Disco Zone. True thickness estimated at 50% | |||
and | DD | 315.16 | 325.22 | 10.06 | 0.54 | 5.72 | ||||
SP23-22 | RC | 100.58 | 105.16 | 4.58 | 0.38 | 2.61 | 316 | -46 | 304.8 | True thickness estimated at 90% |
SP23-23 | RC | 170.69 | 179.86 | 9.17 | 0.54 | 7.12 | 299 | -47 | 304.8 | New area of mineralization encountered in footwall ofDisco Zone |
and | RC | 259.08 | 294.13 | 35.05 | 0.40 | 3.02 | ||||
SP23-24 | DD | 157.43 | 157.86 | 0.43 | 5.25 | 38.01 | 344 | -45 | 487.7 | New zone in Disco Zone hanging wall |
and | DD | 184.71 | 192.18 | 7.47 | 1.67 | 9.44 | Disco Zone. True thickness estimated at 85% | |||
including | DD | 185.29 | 186.54 | 1.25 | 6.12 | 16.03 | ||||
SP23-25 | DD | 310.90 | 313.18 | 2.28 | 1.43 | 6.00 | 284 | -79 | 407.1 | Disco Zone. True thickness estimated at 45% |
SP23-27 | DD | 200.56 | 204.43 | 3.87 | 0.90 | 3.57 | 313 | -68 | 279.2 | Disco Zone. True thickness estimated at 65% |
and | DD | 210.01 | 218.39 | 8.38 | 1.77 | 2.06 | ||||
including | DD | 216.71 | 218.39 | 1.68 | 7.40 | 5.24 | ||||
SP23-28 | DD | 114.27 | 116.49 | 2.22 | 2.14 | 7.19 | 359 | -76 | 359.1 | New zone in Disco Zone hanging wall |
including | DD | 114.27 | 114.60 | 0.33 | 11.20 | 25.22 | ||||
and | DD | 301.48 | 327.02 | 25.54 | 1.75 | 10.78 | Disco Zone. True thickness is estimated at 50%. Highestindividual sample 11.2 g/t Au over 0.3m from 317.48 to 317.78m | |||
including | DD | 302.06 | 304.65 | 2.59 | 5.35 | 35.81 | ||||
including | DD | 317.48 | 318.67 | 1.19 | 8.04 | 66.96 | ||||
SP23-33 | DD | 179.31 | 216.32 | 37.01 | 1.28 | 12.63 | 306 | -58 | 251.2 | True thickness is estimated at 75%. Highest individualsample 18.0 g/t Au over 0.37m from 206.04 to206.41m |
including | DD | 196.99 | 198.18 | 1.19 | 6.27 | 63.92 | ||||
including | DD | 206.04 | 207.72 | 1.68 | 6.53 | 112.56 |
1 Reported grades were calculated using a 0.2 g/t cut-off gradefor primary intervals and a 2 g/t cut-off grade for includedintervals. Intervals correspond to downhole thickness. Unlessotherwise stated in the “Comments” field, insufficient informationis available to determine true thickness of mineralized intervals. DD signifies diamond drilling and RC reversecirculation.
Figure 2: Plan geological map of thecentral Spring Peak drill area with location of sections A-A’(Figure 3) and section B-B’ (Figure 4). Higher resolution figureavailable here .
Figure 3: Disco Zone longitudinal crosssection A – A’ showing completed drilling to date with selectdrill hole intercepts. Higher resolution figure available here .
Figure 4 . Interpretivegeological cross section B – B’ showing results from 2023 DiscoZone drilling .
2023 Spring Peak DrillProgram:
A multi-rig drill program totaling up to 8,475 m wascompleted in 2023. The primary objective ofthe 2023 drill program at Spring Peak was to further define and expandthe Disco Zone along strike and down dip at 50 to 100 m increments. The Disco Zone is a mineralized corridor whichhosts a series of high-grade epithermal veins at depth discovered byHeadwater in 2022 by drilling beneath a thick accumulation ofunmineralized silica sinter at surface.
Previous Headwater drilling at the Disco Zone intercepted multiple, discrete epithermalveins with textures indicative of boiling, including ginguro banding,silica replacement of lattice-bladed calcite and vein sediments. Thehighest-grade gold encountered to date at the Spring Peak project is in drill hole SP22-13 which intersected two separate veins assaying 15.92 g/t Au over2.38 m and 10.43 g/t Au over 2.01 m. The highest individual assayreturned 69.6 g/t Au over 0.34 m. These intervals are part of abroader zone which assayed 2.73 g/t Au over 34.72 m . The 2023 drill program targeted the same elevationhorizon as the previous drilling between 150 m and 400 m below anextensive zone of silica sinter exposed at surface.
Drill holes SP23-24 and SP23-27 have extended thestrike extent of the mineralized zone to greater than 350 m, and thezone remains open both to the northeast and southwest. Drill holesSP23-25 and SP23-28 also demonstrate that mineralization extends togreater than 300 m below surface and remains open at depth. Drillhole SP23-33, which intercepted the Disco Zone approximately 150 mbelow surface, encountered a thick zone of epithermal veining assaying1.28 g/t Au over 37.01 m suggesting the mineralized zone is openup-dip as well, closer to the surface (Table 1, Figure 2, Figure 3,Figure 4).
Scout RC drill hole SP23-23 was drilled below anoutcropping zone of intense silicification approximately 350 mnorthwest of the surface projection of the Disco Zone (Figure 2). This hole intercepted two broad zones of anomalous gold valuesgrading 0.54 g/t Au over 9.17 m and 0.40 g/t Au over 35.05 m,respectively.
Step out drill hole SP23-37 was completed approximately400 m northeast along strike of the main Disco Zone (Figure 2 andFigure 3). This hole encountered multiple epithermal veins in thetarget zone including complex epithermal breccias (Figure 5) and afault-hosted vein zone that includes a 2.5-m-wide discrete epithermalvein with silica replacement of lattice-bladed calcite and bandedchalcedonic quartz (Figure 6). Epithermal veining and alteration hasnow been intercepted over a strike extent of approximately 750 m alongthe Bear Fault corridor, from hole SP23-24 on the southwest to SP23-37in the northeast and remains open in both directions.
Figure 5 . Photograph of epithermal s ilica-cemented hydrothermal breccia from 379.9 m in drillhole SP23-37. Core is HQ size (6.1 cm diameter). Assayspending.
Figure 6 . Core photographs of step-out hole SP23-37 from 443.0 m to451.7 m showing epithermal veining hosted in the Bear Fault zone. True width is estimated at 90% of drilled thickness. Assayspending.
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(“Hecla”, NYSE: HL) past-producing Aurora Mine complex, whereexisting infrastructure includes a 350 ton per day mill, severalproduction water wells and high-voltage three-phase power.
For more information on the 2023 Spring Peak drillprogram, please see Headwater news releases dated July 13, 2023 andOctober 31, 2023.
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 Newmont’s option toacquire up to 75% of the project following certain expenditures andpreparation of a Pre-Feasibility Study within a designatedtimeframe.
Midas North Project:
Headwater’s Midas North project adjoins Hecla’spast-producing Midas Mine complex and covers a large hydrothermalalteration cell, extending at least 4 km in strike and 1 km in width. Extensive epithermal alteration on the project includ es widespread zones of high-levelchalcedonic to opaline silica flooding, clay alteration , local sinter formation, and fossilized geyser vents. TheCompany believes the project has potential for high-grade epithermalvein style gold mineralization at depth.
A multi-rig, mixed reverse circulation and diamond coremaiden drill program totaling 4,202 m was completed by the Company in2023. This program consisted of nine drill holes with depths rangingfrom 350 m to 600 m. The nine holes tested six targets andepithermal veining and favourable alteration was encountered inmultiple target areas across the property. Assays are pending. This program represents the first known exploration drillingcampaign within the Midas North project area. See Headwater newsrelease dated August 22, 2023 for more information.
Headwater holds a 100% undivided interest in the MidasNorth project, subject to Newmont’s option to acquire up to 75% ofthe project following certain expenditures and preparation of aPre-Feasibility Study within a designated timeframe.
Mahogany Project:
The Mahogany project is located 20 km northwest ofIntegra Resources’ (NYSE: ITRG) DeLamar deposit. Surfacealteration at Mahogany is typical of a high-level epithermalsystem. Headwater’s initial drill program in2021 confirmed the presence of structurally-controlled high-grade goldzones, including a drill intercept that returned 9.37 g/t Au over adrilled thickness of 0.73 m in hole MH21-02.
Five holes totaling 1,573 m were completed in 2023targeting the down dip extension of mineralization encountered in 2021drilling, as well as testing the Vent Breccia target which has seen noknown exploration drilling below approximately 50 m depth. The target structures were intercepted in bothtarget areas but assays returned no significant precious metals. TheCompany continues to review the data in consultation with earn-inpartner Newmont to determine if additional targets of merit remain onthe property.
Headwater holds a 100% undivided interest in theMahogany project, subject to Newmont’s option to acquire up to 75%of the project following certain expenditures and preparation of aPre-Feasibility Study within a designated timeframe.
Katey Project:
The Katey project is locate d 50km northwest of Integra Resources’ (NYSE: ITRG) DeLamar deposit and30 km southeast of Paramount Gold Nevada’s (NYSE: PZG) GrassyMountain development project. The Project was identified byHeadwater geologists, acquired through claim staking on BLM land andis 100% owned and royalty free. Drilling conducted by Headwater atKatey in 2021 intercepted high-grade epithermal mineralization in aninterpreted feeder structure in drill hole KT21-01 (6.34 g/t Au over14.54 m, including 30.73 g/t Au over 1.95 m. See Headwater newsrelease dated February 21, 2023).
Eleven holes totaling 2,803 m were completed in 2023targeting extensions of the high-grade mineralization encountered inKT21-01 as well as testing multiple additional targets along strike. Drilling did not intercept significant precious metals along strikeor at depth, including below drill hole KT21-01. No further work onthe project is planned by the Company at this time.
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 is systematically drilltesting several projects in Nevada, Idaho, and Oregon; and in August2022 and May 2023 announced significant transactions with NewcrestMining Limited (now Newmont Corporation) where it acquired a 9.9%strategic equity interest in the Company and entered into earn-inagreements on several of Headwater’s projects.
Headwater is part of the NewQuest Capital group whichis a discovery-driven investment company that builds value through theincubation and financing of mineral projects and companies. Furtherinformation about NewQuest can be found on the company website at www.nqcapitalgroup.com .
For more information, please visit the Company'swebsite at www.headwatergold.com .
On Behalf of the Board of Directors
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.
Sampling Quality Control:
Spring Peak and Mahogany
Drill core was transported from the Project to theCompany’s logging facility in Hawthorne, Nevada. Core is thenlogged in detail, split in half using an electric-powered core saw,sampled at specified intervals, bagged, and delivered to BureauVeritas (“BV”) facilities in Sparks, Nevada. RC samples arebagged at the rig and transported directly from the Project to BV. Samples are prepared by crushing and grinding via BV methodPRP70-500 to obtain a 500g sub-sample. Geochemical analyses includingfire assay were carried out at ISO 17025:2017 accredited BureauVeritas laboratories in Vancouver, British Columbia. Pulps wereassayed for 59 elements via method MA250 using a 25g sample after afour acid near total digest with an ICP-MS finish. Gold is assayedby fire assay using BV method FA330 with a 30g sample charge andICP-ME finish. In addition to the laboratory's quality controlprogram, a rigorous quality assurance and quality control program isimplemented by the Company involving the insertion of blanks,standards and duplicates to ensure reliable assay results. Laboratory standards and QA-QC are monitored by the Company.
Katey
All drill core was transported to the Company’slogging facility in Sparks, NV, where the core is logged in detail,then split in half to the Company’s specified sample intervals usingan electric-powered core saw and bagged. Samples were sent to ParagonGeochemical Laboratories in Sparks, an accredited analyticallaboratory meeting ISO/IEC Standard 17025:2017. RC samples are sentdirectly from the project to Paragon. Samples are prepared by crushingand grinding via Paragon method PREP-PKG to obtain a 250g sub-sample.Pulps were assayed for 50 elements via method 50AR-MS using a 25gsample after aqua regia digest with an ICP-MS finish. Gold isassayed by fire assay using Paragon method Au-AA30 using a 30g samplecharge and AAS finish. In addition to the laboratory's qualitycontrol program, a rigorous on-site quality assurance and qualitycontrol program was implemented which involves the insertion ofblanks, standards and splits to ensure reliable assay results. Laboratory standards and QA-QC are monitored by the Company.
Forward-Looking Statements:
This news release includes certain forward-lookingstatements and forward-looking information (collectively,“forward-looking statements”) within the meaning of applicableCanadian securities legislation. All statements, other than statementsof historical fact, included herein including, without limitation,statements regarding future capital expenditures, explorationactivities and the specifications, targets, results, analyses,interpretations, benefits, costs and timing of them, Newmont’santicipated funding of the earn-in projects and the timing thereof,and the anticipated business plans and timing of future activities ofthe Company, are forward-looking statements. Although the Companybelieves that such statements are reasonable, it can give no assurancethat such expectations will prove to be correct. Often, but notalways, forward looking information can be identified by words such as“pro forma”, “plans”, “expects”, “may”, “should”,“budget”, “scheduled”, “estimates”, “forecasts”,“intends”, “anticipates”, “believes”, “potential” or variations of such wordsincluding 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 Newmont Corporation will not elect to obtain anyadditional interest in the earn-in projects in excess of the minimumcommitment, the ability of the Company to obtain the required permits,changes in laws, regulations and policies affecting mining operations,the Company’s limited operating history, currency fluctuations,title disputes or claims, environmental issues and liabilities, aswell as those factors discussed under the heading “Risk Factors”in the Company’s prospectus dated May 26, 2021 and other filings ofthe Company with the Canadian Securities Authorities, copies of whichcan be found under the Company’s profile on the SEDAR website atwww.sedar.com.
Readers are cautioned not to place undue reliance onforward-looking statements. The Company undertakes no obligation toupdate any of the forward-looking statements, except as otherwiserequired by law.
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