Vancouver, British Columbia – TheNewswire - September 28, 2022: Headwater Gold Inc. (CSE:HWG) (OTC:HWAUF) (the "Company" or "Headwater") is pleased to announce the commencement of a multi-rig, 4,000 metre drill program at the Spring Peak project, Nevada.  The drill program is designed to follow-up on Headwater’s 2021 discovery of a gold-bearing epithermal quartz vein in the Phase 1 drill program which intercepted 1.0 grams per tonne gold (“g/t Au”) over 38.1 metres (“m”), including 2.5 g/t Au over 9.2 m (see news release dated November 22, 2021).  The 2022 drill program will include step-out drilling on the recently discovered vein as well as testing multiple new high-grade vein targets, totalling approximately 4,000 metres of drilling.

Highlights

• Approximately 4,000 m of drilling is planned, including 2,000 m of reverse circulation (“RC”) and 2,000 m of core drilling; 

• Spring Peak is located immediately adjacent to the past producing Aurora gold mine, owned by Hecla Mining Company (“Hecla”); 

• Drill program is fully funded by Newcrest Mining Limited (“Newcrest”) as part of a multi-project earn-in agreement (see news release dated August 16, 2022); and 

• The goal of the drill program is to further expand the zone of mineralization encountered in Headwater’s 2021 discovery drill hole SP21-03, which intersected 38.1 m of 1.0 g/t Au and test multiple other high-priority vein targets throughout the property. 

 

Caleb Stroup, Headwater’s President and CEO, states: “Our 2021 scout drill program confirmed the Spring Peak project hosts a blind, gold-enriched boiling zone at depth.  Building on that success, we will now begin offsetting the most significant intervals from last year, and systematically drill testing multiple other high-priority structural targets for high-grade gold bearing epithermal veins like those located immediately to the north at the past producing Aurora mine complex.  The recently announced Newcrest earn-in transaction provides Headwater with an attractive financing mechanism to aggressively ramp-up the scale of our activities at Spring Peak with a large amount of drilling.”

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Figure 1:  Reverse-circulation drilling currently underway at the Spring Peak Project, Nevada.

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Figure 2: Spring Peak project geological map with drill targets and the location of planned drill holes.  Drilling will follow up on last year’s blind vein discovery and drill multiple untested high-grade vein targets on adjacent structures.

 

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Figure 3: Cross section of the Spring Peak project showing CSAMT geophysical image with 2022 drilling and planned drill holes currently underway.

 

About the Spring Peak Project:

The Spring Peak project is located in the Aurora Mining District of west-central Nevada, approximately 50 kilometres southwest of the town of Hawthorne.  The project adjoins Hecla Mining’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.

A large hydrothermal alteration cell occurs in the center of the Spring Peak project area, which represents a high-level manifestation of an epithermal precious metal system.  An approximate 5-metre thick silica sinter, which extends over 500 metres in strike, occurs in the center of this alteration cell and displays various vent facies textures interpreted to reflect a high-energy hydrothermal vent environment.

In 2021, Headwater conducted an initial first-pass RC drill program consisting of five holes totalling 1,350 metres.  Drilling successfully intersected epithermal quartz veins at a range of elevations in multiple structures (see Headwater News Release dated November 22, 2021).  Individual vein zones range from 1.4 to 18.3 metres in drilled width with the widest zone of veining and mineralization occurring in hole SP21-03, which intersected a fault-hosted vein zone immediately beneath a mapped silica sinter at surface.  This interval returned gold values of 1.00 g/t Au over 38.1 metres, including 9.2 metres of 2.49 g/t Au, representing a new, blind gold discovery and a confirmation of the Headwater exploration model.  Mineralization encountered in SP21-03 is open both up and down-dip, as well as along strike in both directions.

Headwater holds an option to acquire a 100% undivided interest in the Spring Peak project from the underlying owner, subject to retained royalties and subject to Newcrest’s option to acquire 75% of the Spring Peak project following certain expenditures and preparation of a Pre-Feasibility Study within a designated timeframe.

About Headwater Gold:

Headwater Gold Inc. (CSE: HWG, OTCQB: HWAUF) is a technically-driven mineral exploration company focused on the exploration and discovery of high-grade precious metal deposits in the Western USA.  Headwater is aggressively exploring one of the most well-endowed and mining-friendly jurisdictions in the world with a goal of making world-class precious metal discoveries.  Headwater has a large portfolio of epithermal vein exploration projects, and a technical team comprised of experienced geologists with diverse capital markets, junior company, and major mining company experience.  The Company is systematically drill testing several projects in Nevada, Idaho, and Oregon.

For more information, please visit the Company's website at www.headwatergold.com.

On Behalf of the Board of Directors

Caleb Stroup

President and CEO

+1 (775) 409-3197

cstroup@headwatergold.com

For further information, please contact:

Brennan Zerb

Investor Relations Manager

+1 (778) 867-5016

bzerb@headwatergold.com

 

Qualified Person

The technical information contained in this news release has been reviewed and approved by Scott Close, P.Geo (158157), a “Qualified Person” (“QP”) as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

Forward-Looking Statements:

This news release includes certain forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding future capital expenditures, exploration activities and the specifications, targets, results, analyses, interpretations, benefits, costs and timing of them,, Newcrest’s anticipated funding of the earn-in projects and the timing thereof, and the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Often, but not always, 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 words including negative variations thereof, and phrases that refer to certain actions, events or results that may, could, would, might or will occur or be taken or achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and other factors include, among others, risks related to the anticipated business plans and timing of future activities of the Company, including the Company's exploration plans and the proposed expenditures for exploration work thereon, the ability of the Company to obtain sufficient financing to fund its business activities and plans, the risk that Newcrest will not elect to obtain any additional interest in the Projects in excess of the minimum commitment, 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, as well as those factors discussed under the heading "Risk Factors" in the Company's prospectus dated May 26, 2021 and other filings of the Company with the Canadian Securities Authorities, copies of which can be found under the Company's profile on the SEDAR website at www.sedar.com.

Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to update any of the forward-looking statements, except as otherwise required by law.