Headwater Gold completes first pass drill program at TJ Project, Nevada

Headwater Gold Inc. [CSE: HWG; OTCQB: HWAUF] successfully completed the company’s maiden drill program on its 100%-owned TJ project, located in northeast Nevada.

Highlights: Headwater’s initial drill program at TJ consisted of five reverse circulation (RC) drill holes totalling 1,030 metres.

The drilling tested multiple targets for high-grade epithermal veins beneath outcropping silica sinter and generally downdip of shallow historic drill holes that encountered anomalous gold mineralization.

All drill holes encountered strong alteration indicative of the upper levels of an epithermal system, characterized by broad and laterally extensive intervals of silicification, veining, hydrothermal brecciation and elevated sulphide concentrations. Three holes targeting the East Sinter fault intersected significant quartz veining with epithermal vein textures diagnostic of the upper portions of an epithermal system.

Favourable alteration and epithermal veining encountered in the first-pass drill program confirm the presence of a large, fully preserved epithermal system and will provide critical vectors to guide future drilling to test for high-grade gold at depth and along strike.

Final assay results are pending and expected in Q1 2025.

Caleb Stroup, president and CEO, stated: “We are very pleased to announce the successful completion of our maiden drill program at TJ, which confirms the presence of a robust and fully preserved epithermal system at depth below the silica sinter at surface. The abundance of epithermal quartz veining and the high sulphide content of the vein zones are particularly encouraging. Initial visual observations suggest the vein intersections are relatively high in the epithermal system, leaving significant potential for further exploration at depth.

“Assays are pending and expected early in the new year, but the geological and alteration data from this program already provides critical insights into the scale and preservation of the system. This information will guide future drilling, particularly deeper into the system where further potential remains. TJ continues to stand out as a high-quality project that looks more promising than ever, with excellent potential to create value for shareholders through a meaningful discovery.”

Headwater’s maiden drill program at TJ consisted of five RC drill holes totalling 1,030 metres, completed prior to the winter shutdown. Three holes (TJ24-02, TJ24-03 and TJ24-05) targeted and successfully intercepted epithermal veining and alteration along the East Sinter fault. Hole TJ24-01 did not reach target depth due to challenging drilling conditions and one hole (TJ24-04) was set as a precollar for future diamond core drilling.

The primary objective of the drill program was to test for high-grade veins at depth along multiple subparallel structures in the core of the alteration cell. Shallow historic drilling completed by Kennecott and Challenger Gold between 1988 and 1992 targeted near-surface oxide mineralization and encountered broad zones of silicification, epithermal alteration and anomalous gold but did not penetrate to sufficient depths in the epithermal system to test for potential high-grade feeder structures. The majority of historic holes were vertical and none of the holes drilled to depths beyond 150 metres. Several of the deeper historic holes encountered anomalous gold values (greater than 0.1 gram per tonne gold) with some ending in mineralization.

All RC samples have been submitted for analysis, with results expected in Q1 2025.

Headwater drilling validated the presence of a thick and laterally extensive zone of strong silicification, disseminated sulphides and multiphase brecciation and veining that extends to depths of at least 150 metres vertically beneath the silica sinter exposed at surface.

The TJ project is located on BLM (Bureau of Land Management) land in a relatively underexplored area of northeastern Nevada, approximately 25 km southeast of the town of Jackpot. The company believes that the project has potential for high-grade vein-style mineralization at depth and completed an initial drill program in the fall of 2024.

The TJ project consists of 90 unpatented mining claims staked by Headwater 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 $US250,000 work commitment over a two-year term, Headwater 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 any annual minimum payments, subject to NSR (net smelter return) royalties of 2.5% on the vendor claims and 1.5% applicable on claims within a defined area of interest. The company may purchase 40% of the NSR royalty for US$2 million at any time and an additional 40% of the NSR royalty may be purchased for fair value within 90 days after completion of a NI 43-101 compliant prefeasibility report.

The company 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”s projects, including Spring Peak and Lodestar. In September 2024, Centerra Gold Inc. acquired a strategic 9.9% interest in the company through a non-brokered private placement at a premium to market.

Headwater is part of the NewQuest Capital Group, which is a discovery-driven investment enterprise that builds value through the incubation and financing of mineral projects and companies.