Headwater Gold to drill TJ Project, Nevada
Headwater Gold Inc. [CSE: HWG; OTCQB: HWAUF] has identified multiple high-priority drill targets and has finalized plans for the company’s maiden drill program on its 100%-owned TJ project, northeastern Nevada.
Drilling permits have been received, and plans finalized for a maiden drill program projected to consist of an initial 2,000 metres. Drilling is scheduled to commence in fall 2024 and will be fully financed by Headwater Gold.
Drill program objective: This maiden drill program will test multiple targets for high-grade epithermal veins at depth beneath outcropping silica sinter and downdip of historic shallow drill holes that encountered broad zones of silicification and epithermal alteration, ending in anomalous gold mineralization.
Controlled-source audio-frequency magnetotelluric survey: Recently acquired CSAMT geophysics have identified a number of high-priority drill targets vertically below a mapped silica sinter exposure at surface. Several large areas of elevated resistivity have been mapped at depth, which Headwater Gold geologists interpret as silicification related to potential feeder structures.
New target zone: Detailed geologic mapping and rock chip sampling have identified a new target area containing subcropping quartz vein boulders with epithermal textures and anomalous gold values 1 km south of the main sinter target area.
Caleb Stroup, president and CEO, stated: “We are very excited for this upcoming drill program at our TJ project. Following the results of our recent CSAMT survey, this project has immediately moved to the top of our list for self-funded drilling. The project shows remarkable similarities to our Spring Peak project, also in Nevada, where we have discovered a new high-grade epithermal vein system.
“Like Spring Peak, TJ hosts a well-preserved silica sinter with a strong trace element signature at surface underlain by a high-resistivity zone directly below. Shallow historic drilling encountered anomalous gold but did not drill deep enough to test for high-grade veins in the projected boiling horizon at depth. The company has a strong treasury following the recent strategic financing with Centerra Gold [Inc.], allowing us to advance our mandate of creating additional shareholder value through aggressive, high-impact exploration. The TJ project represents an excellent opportunity to pursue this mission in our focus area of Nevada.”
Headwater Gold’s maiden drill program at TJ has been planned and is currently scheduled to commence in late October 2024. Drill permits have been authorized by the Bureau of Land Management, and drill contracts are in place. The initial TJ drill program is expected to consist of approximately five to seven reverse circulation drill holes ranging in depth from 250 to 400 metres.
The primary objective of the drill program is to test for high-grade veins at depth along multiple subparallel structures in the core of the alteration cell. Shallow historic drilling targeting near-surface oxide mineralization encountered broad zones of silicification, epithermal alteration and anomalous gold in this area, but did not penetrate to sufficient depths to test for potential high-grade feeder structures.
A controlled-source audio-frequency magnetotelluric resistivity survey totalling 8.2 line-km on five parallel profiles was completed by Headwater Gold over the TJ project.
Detailed geologic and alteration mapping completed by Headwater Gold near the main sinter target area, as well as regional mapping across the broader project area, has delineated structures and helped identify multiple high-priority drill targets.
Recent surface rock chip sampling returned anomalous epithermal pathfinder element geochemistry with strongly anomalous gold and silver values from samples of silicified breccias and chalcedonic quartz veins.
The TJ project is located on Bureau of Land Management land in an underexplored area of northeastern Nevada, approximately 25 km southeast of the town of Jackpot. The project area contains indications of a fully preserved epithermal system, including a thick and laterally extensive accumulation of silica sinter and water table silica in the core of the property.
The TJ project consists of 90 unpatented mining claims staked by Headwater Gold and 13 unpatented mining claims under option from a private arm’s-length party. By making an initial cash payment of US$15,000, escalating annual payments and a US$250,000 work commitment over a two-year term, Headwater Gold retains a 30-year right to purchase an undivided 100% interest in the vendor claims for a one-time payment of US$1.5 million inclusive of the annual minimum payments, subject to net smelter return royalties of 2.5% on the vendor claims and 1.5% applicable on claims within an area of interest. The company may purchase 40% of the NSR for US$2 million at any time, and an additional 40% of the NSR may be purchased for fair value within 90 days after completion of a NI 43-101-compliant prefeasibility report.
Headwater Gold is systematically drill testing several projects in Nevada, and in August, 2022, and May, 2023, announced significant transactions with Newmont, where it acquired a 9.9% strategic equity interest in the company and entered into earn-in agreements on several of Headwater Gold’s projects, including Spring Peak and Lodestar, which continue under partnership. In September of 2024, Centerra Gold acquired a strategic 9.9% interest in the company through a non-brokered private placement at a premium to market.