Headwater Gold Identifies High-Priority Drill Targets at Midas North Project
Elko County, Nevada -- January 23, 2023 -- NewsGenie -- Headwater Gold Inc. (CSE:HWG) (OTC:HWAUF) has announced an exploration update on its Midas North project, located in Elko County, Nevada. The exploration program is fully funded by Newcrest Mining Limited, under an earn-in agreement finalized in August 2022.
The company has defined multiple high-priority drill targets located directly on trend north of Hecla Mining Company’s past producing Midas high-grade mine complex. Headwater interprets the project as a fully preserved epithermal system, with potential for high-grade mineralization at depth below broad areas of alteration.
Geophysical surveys, including CSAMT, radiometric, and aeromagnetic surveys, have identified key zones of interest. CSAMT surveys revealed high-resistivity zones, potentially indicating silicification and feeder structures. Radiometric surveys highlighted zones of alteration, while aeromagnetic surveys pinpointed corridors of mag-destructive alteration, potentially indicating feeder structures at depth. A maiden drill program is scheduled to commence in Q2.
Caleb Stroup, President and CEO of Headwater, noted the use of geoscientific tools to identify feeder structures with the potential to host high-grade epithermal gold-silver mineralization. He cited the Midas mine complex as a geologic analog, which historically produced over two million ounces of gold and 25 million ounces of silver.
Figure 1: Map of the Midas high-grade vein district in northern Nevada. Headwater Gold’s Midas North project adjoins Hecla’s past producing Midas Mine complex.
The geophysical surveys included a CSAMT resistivity survey totaling 36.3 line-kilometres, airborne magnetic and radiometric surveys totaling 357 line-km, and a ground gravity survey consisting of 767 stations.
Figure 2: (A) CSAMT geophysics apparent resistivity profile with (B) Headwater’s working geological model and preliminary drill targets in the Big Opal target area.
Figure 3: Midas North property map highlighting the principal alteration zones, target areas and approximate geophysical survey footprints.
Headwater has identified multiple drill targets, including the Big Opal Sinter Target, Big Opal Fault Target, Jo Belle Fault Target, and Nevada Grande Resistor, analyzing multi-parameter geophysical data.
Figure 4: 3D oblique view of CSAMT geophysical profiles, high-resistivity anomalies, interpreted faults and surface alteration features.
CSAMT data has mapped subsurface geometries of silica alteration. Radiometric survey results show linear radiometric highs, potentially representing corridors of illite-adularia alteration. The potassium data reveal a broad low, potentially attributable to argillic alteration.
Figure 5: Radiometric survey potassium channel results showing central radiometric low, potentially attributable to extensive clay alteration and discrete linear radiometric highs.
Magnetic response contrasts reveal linear magnetic lows and a broad magnetic high, interpreted as a possible buried mafic intrusion. Gravity data indicates a broad gravity low, suggesting a zone of argillic alteration.
Figure 6: Aeromagnetic geophysical survey highlighting several linear zones of magnetite-destructive alteration interpreted to represent potential feeder structures.
Figure 7: Residual gravity image showing a broad embayment in the central project area interpreted to correspond to the footprint of intense clay alteration.
The Midas North project adjoins Hecla Mining Company’s past producing Midas Mine complex, covering a hydrothermal alteration cell. Newcrest is funding a minimum of US$2,000,000 in exploration expenditures over two years and has the right to earn up to a 65% interest in the project by sole funding US$30,000,000 over six years. They can earn an additional 10% by ceding a 2% net smelter return royalty and completing a Pre-Feasibility Study.
Headwater Gold Inc. is focused on the exploration and discovery of high-grade precious metal deposits in the Western USA.