Newmont funding exploration at two Headwater Gold projects
Headwater Gold Inc. [HWG-CSE, HWAUF-OTCQB] said an inaugural drill program will begin immediately at the company’s Lodestar project, which is located on the Walker Lane mineral belt in western Nevada. The project is being explored in partnership with Newmont Corp. [NGT-NEO, NEM-NYSE, ASX, PNGX], which is also funding exploration at Headwater’s nearby Spring Peak project.
The company said a planned drilling program at Lodestar, which is fully funded through a US$2.0 million minimum expenditure commitment by Newmont, will consist of up to 3,500 metres (10 to 15 holes).
The company said initial drilling will test beneath the prominent silica sinter ridge at the Zodiac target, currently interpreted as the preserved paleosurface of an epithermal system which shows evidence of a dynamic hydrothermal activity which the company considers significant.
“The upcoming program is particularly exciting, as it will be the first ever test of what we consider to be a very high-priority untested high-grade vein target,’’ said Headwater President and CEO Caleb Stroup. “We believe this presents a rare opportunity to make a new discovery in one of Nevada’s most prospective gold districts, and we are eager to get drills turning and begin unlocking this potential for our shareholders,’’ he said.
The Lodestar project is located in the Aurora Mining District in the Walker Lane belt, west-central Nevada, approximately 10 kilometres north of Headwater’s Spring Peak project and adjacent to Hecla Mining Co.’s [HL-NYSE] past-producing Aurora mine complex, which hosts existing infrastructure, including a 600 ton per day mill, several production water wells and high-voltage three-phase power.
Lodestar features a prominent silicified and brecciated ridgeline capped by a silica sinter, similar to the sinter overlying the Disco Zone at Spring Peak, where Headwater intersected high-grade gold mineralization, including 15.92 g/t gold over 2.38 metres and 10.43 g/t gold over 2.01 metres.
Headwater holds an option to acquire a 100% undivided interest in the Lodestar project from a private vendor, subject to retained royalties and Newmont’s option to acquire up to 75% of the project following certain expenditures and delivery of a pre-feasibility study within a designated time frame.
Headwater shares were unchanged at 56 cents on Friday and trade in a 52-week range of 80 cents and 13.4 cents.
In a press release on September 26, 2025, Headwater said Newmont has completed Stage 1.0 of the Spring Peak earn-in agreement announced on August 16, 2022, by sole funding US$15 million in exploration expenditures at the project. As a result, Newmont has earned a 51% interest in the Spring Peak project and has elected to proceed to Stage 2.0 of the earn-in agreement to potentially earn a 65% in the project by sole funding an additional US$40 million within 36 months. The parties will establish a joint venture company pursuant to a definitive joint venture agreement, to be negotiated, which will govern management, funding commitments and operator transition terms to continue exploration on the project. Headwater is the operator of the project and earns a 10% management fee.