Headwater Gold drills 1.75 g/t gold over 25.54 metres at Spring Peak, Nevada

Headwater Gold Inc. [CSE-HWG; OTCQB-HWAUF] has completed its 2023 drilling programs. Drilling at Spring Peak, Midas North and Mahogany, Nevada, was fully funded by Newmont Corp. [NYSE- NEM] under the earn-in agreements announced August 16, 2022.

Highlights: Spring Peak – Twenty-five drill holes were completed in the 2023 drill campaign totaling 8,475 metres. Initial drill results extend Disco Zone mineralization to the northeast and southwest over a strike extent of at least 350 metres, and to a depth of greater than 300 metres below surface. Mineralization remains open in both directions and at depth.

Drill hole SP23-28 intercepted 25.54 metres grading 1.75 g/t gold, including 8.04 g/t gold over 1.19 metres and 5.35 g/t gold over 2.59 metres. Drill hole SP23-33 intercepted 37.01 metres grading 1.28 g/t gold, including 6.53 g/t gold over 1.68 metres and 6.27 g/t gold over 1.19 metres.

A step-out drill hole (SP23-37) has been completed approximately 400 metres 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 from the 2023 program.

Midas North – Nine drill holes were completed totaling 4,202 m at Midas North, testing six target areas. Epithermal veining and alteration were encountered in multiple target areas across the property. Assays are pending.

Mahogany – Five drill holes were completed totaling 1,524 m at Mahogany, testing two target areas. No significant precious metal intercepts were encountered. The company continues to review the data in consultation with earn-in partner Newmont to determine if additional targets of merit remain on the property.

Katey – Eleven drill holes were completed totaling 2,803 metres at Katey, testing four target areas. No significant precious metals intercepts were encountered. No further work on the project is planned by the Company at this time.

Caleb Stroup, President and CEO, stated: “This year was a very exciting and productive year for the company with over 17,000 metres of drilling completed across four projects. Assays remain outstanding for approximately half of this drilling but initial results from Spring Peak continue to validate our geological model and extend mineralization in all directions. We have now established over 350 metres of strike extent at the Disco Zone and are seeing positive indications that the system may extend beyond this. A recent step-out drill hole approximately 400 metres northeast of the main Disco Zone demonstrates that the Bear Fault mineralized structure persists and continues to host epithermal veining and favourable alteration. These initial geological results point to continued potential over several kilometres of prospective strike extent along the Bear Fault corridor.

“Drilling at Katey and Mahogany has failed to demonstrate persistent mineralization at depth in the targets tested and activities have been paused on these projects. Although this outcome is not what we had anticipated, the company’s disciplined strategy to quickly and aggressively advance exploration targets to critical decision points remains unchanged. We remain committed to our strategy of utilizing partner funding, in combination with self-funded exploration, to advance our portfolio of projects and explore for high-impact gold discoveries.”

A multi-rig drill program totaling up to 8,475 m was completed in 2023. The primary objective of the 2023 drill program at Spring Peak was to further define and expand the Disco Zone along strike and down dip at 50 to 100-metre increments.

The Spring Peak project is located in the Aurora Mining District of west-central Nevada, approximately 50 km southwest of the town of Hawthorne. The project adjoins Hecla Mining Company’s [NYSE-HL] past-producing Aurora Mine complex, where existing infrastructure includes a 350 ton-per-day mill, several production water wells and high-voltage three-phase power.

Headwater holds an option to acquire a 100% undivided interest in the Spring Peak project from Orogen Royalties [TSXV-OGN], subject to retained royalties and subject to Newmont’s option to acquire up to 75% of the project following certain expenditures and preparation of a Pre-Feasibility Study within a designated timeframe.

Headwater holds a 100% undivided interest in the Midas North project, subject to Newmont’s option to acquire up to 75% of the project following certain expenditures and preparation of a Pre-Feasibility Study within a designated timeframe.

The Mahogany project is located 20 km northwest of the Integra Resources [NYSE-ITRG] DeLamar deposit. Surface alteration at Mahogany is typical of a high-level epithermal system.

Headwater’s initial drill program in 2021 confirmed the presence of structurally-controlled high-grade gold zones, including a drill intercept that returned 9.37 g/t Au over a drilled thickness of 0.73 m in hole MH21-02.

Five holes totaling 1,573 metres were completed in 2023 targeting the down dip extension of mineralization encountered in 2021 drilling, as well as testing the Vent Breccia target which has seen no known exploration drilling below approximately 50 metres depth.

Headwater holds a 100% undivided interest in the Mahogany project, subject to Newmont’s option to acquire up to 75% of the project following certain expenditures and preparation of a Pre-Feasibility Study within a designated timeframe.

The Katey project is located 50 km northwest of the Integra Resources DeLamar deposit and 30 km southeast of Paramount Gold Nevada’s [NYSE-PZG] Grassy Mountain development project. The project was identified by Headwater geologists, acquired through claim staking on BLM land and is 100%-owned and royalty free. Drilling conducted by Headwater at Katey in 2021 intercepted high-grade epithermal mineralization in an interpreted feeder structure in drill hole KT21-01 (6.34 g/t Au over 14.54 m, including 30.73 g/t Au over 1.95 metres).

Eleven holes totaling 2,803 metres were completed in 2023 targeting extensions of the high-grade mineralization encountered in KT21-01 as well as testing multiple additional targets along strike. Drilling did not intercept significant precious metals along strike or at depth, including below drill hole KT21-01. No further work on the project is planned at this time.

Headwater Gold is focused on the exploration and discovery of high-grade precious metal deposits in the Western USA.

The company is systematically drill testing several projects in Nevada, Idaho, and Oregon. Headwater is part of the NewQuest Capital group.