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Headwater Gold Announces New Blind Epithermal Gold Discovery at Spring Peak, Nevada and Triples Size of Land Position

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VANCOUVER, British Columbia, Nov. 22, 2021 (GLOBE NEWSWIRE) — Headwater Gold Inc. (CSE: HWG) (OTCQB: HWAUF) (the “Firm” or “Headwater”) is happy to report outcomes from 5 reverse circulation (“RC”) drill holes accomplished on its first-pass drill program at its Spring Peak Undertaking, situated in Nevada, USA, instantly adjoining to the previous producing high-grade Aurora gold mine owned by Hecla Mining Firm (“Hecla”).

Highlights

  • New blind gold discovery made with drill gap SP21-03 which intersected 38.1 metres (“m”) grading 1.00 grams per tonne (“g/t”) gold together with 9.2 m grading 2.49 g/t gold;
  • 4 of 5 holes encountered important intervals of gold mineralization starting roughly 100 metres depth under floor;
  • Drill outcomes validate Headwater’s exploration mannequin, confirming the presence of a laterally steady gold-bearing epithermal boiling zone under a cap of silica sinter and barren alteration occurring on floor;
  • Vein textures and multi-element geochemistry recommend the mineralization encountered happens within the prime of the focused boiling horizon, with clear follow-up targets offered instantly down dip;
  • The Firm has expanded the Spring Peak land place via declare staking, and roughly tripled the scale of the declare block since optioning the Undertaking from Orogen Royalties Inc.; and
  • Comply with-up drilling is presently being deliberate by the Firm.

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Desk 1: Drill outcomes from the Spring Peak Undertaking, Nevada 1

Gap ID From
(m)
To
(m)
Interval
(m)
Gold Grade
(g/t)
Az
(deg)
Inc
(deg)
TD
(m)
Feedback
SP21-02 161.5 164.6 3.1 1.36 180 -55 269.7 Gap led to 16.8m of 0.28 g/t Au
together with 163.1 164.6 1.5 2.82
and 176.8 181.4 4.6 0.76
and 240.8 245.4 4.6 0.41
and 253.0 269.7 TD 16.8 0.28
 
SP21-03 182.9 221.0 38.1 1.00 330 -65 227.1 Most worth of 4.31 g/t Au
Gap led to 4.6m of 0.10 g/t Au
together with 193.5 202.7 9.2 2.49
 
SP21-04 230.1 237.7 7.6 0.43 180 -45 274.3 Gap led to 1.5m of 0.34 g/t Au
and 251.5 268.2 16.7 0.44
 
SP21-05 271.3 275.8 4.5 0.38 330 -45 333.8  
and 300.2 310.9 10.7 0.43

1 Reported grades have been calculated utilizing a 0.2 g/t cut-off grade for major intervals and a 2 g/t cut-off grade for included intervals. Intervals correspond to downhole thickness, with inadequate info obtainable to calculate true thickness.

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Caleb Stroup, Headwater’s President and CEO, states: “ We’re very impressed with the widespread and constant nature of anomalous gold mineralization starting at roughly 100 metres under floor at Spring Peak; depths which weren’t examined by shallow historic drilling. Particularly, the grades and widths encountered in SP21-03 characterize a brand new blind gold discovery in a prolific historic district 2 , with compelling follow-up targets instantly down dip. Though restricted in scale, the first-pass drilling has clearly completed our major aim of demonstrating the existence of serious blind gold mineralization under a barren alteration cap. We very a lot look ahead to future drilling on the Undertaking and are excited to check the scale and grade potential of this new discovery.

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Determine 1: Location of the Spring Peak Undertaking relative to Hecla Mining Firm’s Aurora mine complicated.
https://www.globenewswire.com/NewsRoom/AttachmentNg/7879b11b-d541-4a94-827c-f1388bb05cb4

In regards to the Spring Peak 2021 Drill Program:

The Spring Peak Undertaking is situated within the Aurora Mining District of west-central Nevada, roughly 50 kilometres southwest of the city of Hawthorne and adjoins Hecla Mining’s Aurora mine complicated. A big hydrothermal alteration cell happens within the middle of the Spring Peak Undertaking space which is interpreted by Headwater geologists as representing the high-level manifestations of an epithermal valuable steel system. Utilizing quite a lot of geological and geophysical focusing on instruments, Headwater geologists recognized a number of beforehand undrilled high-grade vein targets at depth beneath this high-level alteration cap, which have been examined by the current drilling.

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Headwater’s preliminary first-pass RC drilling program consisted of 5 drill holes totalling 1,350 metres. Drilling efficiently intersected epithermal quartz veins at a spread of elevations in a number of constructions. Particular person vein zones vary from 1.4 to 18.3 metres in drilled width. The widest zone of veining and mineralization occurred in gap SP21-03 which intersected a fault-hosted vein zone instantly beneath a mapped silica sinter at floor. This interval returned gold values of 1.00 g/t gold over 38.1 metres, together with 9.2 metres of two.49 g/t gold, representing a brand new, blind gold discovery and a affirmation of the Headwater exploration mannequin. Drill gap SP21-03 was terminated as a result of difficult drilling circumstances whereas nonetheless in alteration, and solely 6.1 metres past the reported 1.00 g/t interval. The vein textures encountered in SP21-03 vary from clear, white chalcedonic quartz to finely banded chalcedonic quartz with quartz-after-platy-calcite textures, and minor stringers and clots of darkish gray sulfosalts. These textures, along with the comparatively low Ag:Au ratio (roughly 10:1), and the absence of considerable base steel values, recommend SP21-03 solely penetrated the very higher elements of the focused boiling zone, with the first high-grade goal remaining at depth and but to be drill examined. The mineralization encountered in SP21-03 is open in all instructions. The closest drill gap which penetrated to the suitable depth is SP21-02, roughly 900 metres to the west, which led to 16.8 m grading 0.28 g/t Au.

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Determine 2: Plan map of the Spring Peak alteration footprint and interpreted precept structural controls, with 2021 drill gap places, and site of part line proven in Determine 3.
https://www.globenewswire.com/NewsRoom/AttachmentNg/50b24593-ec6e-4cc4-b42e-a1e7dce99861

Drill holes SP21-02, SP21-04, and SP21-05 additionally intercepted important intervals of gold mineralization in stockwork quartz vein zones starting roughly 100 metres under the trendy floor; depths which have been beforehand not examined by historic drilling. Drill gap SP21-01 returned no important gold intercepts. In mixture, these outcomes show the presence of a big >1 kilometre zone of highly-anomalous gold values within the higher parts of a widespread epithermal boiling horizon. Headwater geologists imagine this to be extremely encouraging, particularly given the proximity and geologic similarity with the mineralization within the close by high-grade Aurora mine space 2 , roughly three kilometres to the northwest.

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Section II Comply with-up:

The Firm believes that RC drilling was an environment friendly and cost-effective means to substantiate the presence of a viable epithermal valuable steel system at depth, however has inherent limitations within the depth extent to which it’s sensible. Future applications will embrace a mix of RC drilling and diamond core to raised take a look at the true width and grade of the veins encountered and higher guarantee goal depths will be reached. Future core drilling may even implement oriented core applied sciences, permitting the gathering of detailed structural info essential for projecting and offsetting vein intercepts. Headwater geologists are presently updating the exploration mannequin at Spring Peak by incorporating all new info and increasing the geologic mapping and floor geochemical sampling. The intensive CSAMT resistivity geophysical knowledge collected by earlier operators on the property seems to be a wonderful device for delineating zones of silicification and veining at depth, and extra resistivity modelling efforts are being initiated to assist the focusing on course of.

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Determine 3: Interpretive geological cross part A-A’ displaying CSAMT resistivity, drill gap SP21-03 with outcomes, and proposed future offset drill holes.
https://www.globenewswire.com/NewsRoom/AttachmentNg/5389a0f0-e079-4fff-ac6b-88509d853a5d

The Firm is within the means of planning a drill program to offset the newly found gold mineralization at depth and take a look at further parts of the strike extent of the system. Diamond core follow-up holes might be designed to offset the vein zone encountered in SP21-03 at depth, in addition to different structural zones in a good geologic setting for the formation of high-grade veins (Determine 3).

Principal Phrases of the Spring Peak Choice Settlement:
The Settlement permits for Headwater to amass a 100% undivided curiosity, topic to retained royalties, within the Spring Peak undertaking from Orogen Royalties Inc. (“Orogen”) by incurring exploration expenditures of US$250,000 previous to July 2023, making a money or share fee totaling US$250,000 (topic to receipt of sure future allowing milestones) and sustaining all required underlying choice funds and royalties as outlined under.

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Orogen will retain a 0.5% web smelter return (“NSR”) royalty and an choice to buy an extra 0.5% NSR royalty for US$1,000,000. The underlying choice funds embrace an annual lease fee commencing at US$40,000 and escalating as much as US$60,000 (listed to inflation) with a US$500,000 buyout. The underlying optionor will retain a 2.5% NSR royalty of which 1.5% of the NSR could also be bought for US$1,500,000 at any time.

Pattern High quality Management:
Drilling at Spring Peak was carried out by Boart Longyear utilizing a wheel-mounted reverse circulation drill rig. The drill chips have been logged on website and at Firm places of work in Reno, Nevada. Samples have been transported from website to American Assay Laboratories (“AAL”), situated in Sparks, Nevada by American Assay personnel. Previous to dispatch, samples have been positioned in numbered luggage with common insertion of blind internationally licensed reference supplies, blanks, or a pattern duplicate. American Assay Laboratories are an accredited analytical laboratory assembly ISO/IEC 17025:2017 and AC89 IAS necessities. Samples have been ready by customary AAL crushing and grinding strategies. The pulps have been then assayed for 21 parts through AAL technique ICP-2AM21 utilizing a 0.5 g pattern after a two acid close to complete digest with an ICP-OES/MS end. Gold was assayed by hearth assay utilizing AAL technique FA-Pb30 utilizing a 30g pattern cost and ICP-OES end. Laboratory requirements and QA-QC are monitored by the Firm.

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About Headwater Gold:
Headwater Gold Inc. is a technically-driven mineral exploration firm centered on exploring for high-grade valuable steel deposits within the Western USA. Headwater is aggressively exploring probably the most well-endowed and mining-friendly jurisdictions on this planet with a aim of constructing world-class valuable steel discoveries. Headwater has a big portfolio of epithermal vein exploration initiatives, and a technical workforce composed of skilled geologists with numerous capital markets, junior firm, and main mining firm expertise. The Firm is systematically drill testing a number of initiatives in Nevada, Idaho, and Oregon.

For extra info, please go to the Firm’s web site at www.headwatergold.com .

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On Behalf of the Board of Administrators

“Caleb Stroup”
President & CEO

For additional info, please contact:

Brennan Zerb
Investor Relations Supervisor
+1 (778) 867-5016
bzerb@headwatergold.com

Certified Individual
The technical info contained on this information launch has been reviewed and permitted by Scott Shut (158157), a “Certified Individual” (“QP”) as outlined in Nationwide Instrument 43-101 – Requirements of Disclosure for Mineral Tasks.

1 Reported grades have been calculated utilizing a 0.2 g/t cut-off grade for major intervals and a 2 g/t cut-off grade for included intervals. Intervals correspond to downhole thickness, with inadequate info obtainable to calculate true thickness.

2 The Certified Individual has been unable to confirm the data on the adjoining properties. Mineralization hosted on adjoining and/or close by and/or geologically comparable properties will not be essentially indicative of mineralization hosted on the Firm’s properties. Historic useful resource estimates and historic drill intercepts are handled by the Firm as historic in nature, and never present or NI 43-101 compliant

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Ahead-Trying Statements: 
This information launch consists of sure forward-looking statements and forward-looking info (collectively, “forward-looking statements”) inside the which means of relevant Canadian securities laws. All statements, aside from statements of historic reality, included herein together with, with out limitation, statements relating to future capital expenditures, anticipated content material, graduation, and value of exploration applications in respect of the Firm’s initiatives and mineral properties, and the anticipated enterprise plans and timing of future actions of the Firm, are forward-looking statements. Though the Firm believes that such statements are affordable, it may give no assurance that such expectations will show to be right. Usually, however not at all times, ahead wanting info will be recognized by phrases akin to “professional forma”, “plans”, “expects”, “could”, “ought to”, “price range”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes”, “potential” or variations of such phrases together with damaging variations thereof, and phrases that seek advice from sure actions, occasions or outcomes that will, may, would, would possibly or will happen or be taken or achieved. Ahead-looking statements contain identified and unknown dangers, uncertainties and different elements which can trigger the precise outcomes, efficiency or achievements of the Firm to vary materially from any future outcomes, efficiency or achievements expressed or implied by the forward-looking statements. Such dangers and different elements embrace, amongst others, statements as to the anticipated enterprise plans and timing of future actions of the Firm, together with the Firm’s exploration plans. the proposed expenditures for exploration work thereon, the power of the Firm to acquire ample financing to fund its enterprise actions and plans, delays in acquiring governmental and regulatory approvals (together with of the Canadian Securities Trade), permits or financing, adjustments in legal guidelines, rules and insurance policies affecting mining operations, the Firm’s restricted working historical past, forex fluctuations, title disputes or claims, environmental points and liabilities, in addition to these elements mentioned underneath the heading “Danger Components” within the Firm’s prospectus dated Could 26, 2021 and different filings of the Firm with the Canadian Securities Authorities, copies of which will be discovered underneath the Firm’s profile on the SEDAR web site at  www.sedar.com .

Readers are cautioned to not place undue reliance on forward-looking statements. The Firm undertakes no obligation to replace any of the forward-looking statements, besides as in any other case required by legislation.

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