Headwater Gold
Commences Multi-Rig Drill Program at the Spring Peak Project,
Nevada to Follow Up Epithermal Vein Discoveries
Vancouver,
British Columbia, September 28, 2022 -- InvestorsHub NewsWire --
Headwater Gold Inc. (CSE:
HWG | OTCQB: 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."
Figure
1:
Reverse-circulation
drilling currently underway at the Spring Peak Project,
Nevada.
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.
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.