Headwater Gold Inc.

Company Data | Introduction | Projects in Hand | Management
News Update | Chinese

Company Data

Introduction

Headwater Gold Inc. 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 of experienced geologists with diverse capital markets, junior and major mining company backgrounds.

The Company is systematically drill testing several projects in Nevada and in August 2022 and May 2023 announced significant transactions with Newmont Corp. where it acquired a 9.9% strategic equity interest in the Company and entered into earn-in agreements on several of Headwater's projects.

Projects in Hand

Newmont Earn-In Agreement

Newmont to earn up to a 75% interest individually in Mahogany, Lodestar, Midas North, and Spring Peak Projects for cumulative earn-in exploration expenditures of US $145,000,000 and completion of Pre-Feasibility Studies.

Newmont to sole fund US $10,000,000 in exploration expenditures across four projects on 2 year timelines or pay the difference to Headwater.

Headwater operates all earn-in projects and collects a 10% management fee.

Shareholders retain significant upside through carried interest in each project to Pre-Feasibility and back-end royalties.

Spring Peak Project, Nevada (Newmont Earn-In Project)

The Spring Peak project is located in the Aurora Mining District in the Walker Lane belt, west-central Nevada, approximately 50 km southwest of the town of Hawthorne. The project adjoins Hecla Mining Company's past-producing Aurora Mine.

A multi-rig drill program totaling up to approximately 7,000 metres over 20 to 25 holes is scheduled to begin in early summer 2024. The primary objective of the drill program will be to test for extensions of mineralization along the Bear Fault corridor which hosts high-grade mineralization at the Disco Zone discovery. Targets along strike, down dip and in the hanging wall of the Bear Fault will be drill tested.

The Disco Zone is a mineralized corridor which hosts a series of high-grade epithermal veins at depth discovered by Headwater in 2022. Drilling at the Disco Zone intercepted multiple discrete mineralized veins. The highest-grade gold encountered to date at the Spring Peak project is in drill hole SP22-13 which intersected two individual veins assaying 15.92 g/t Au over 2.38 m and 10.43 g/t Au over 2.01 m. The highest individual assay returned 69.6 g/t Au over 0.34 m. These intervals are part of a broader zone which assayed 2.73 g/t Au over 34.72 m.

A further objective of the 2024 drill program will be to test multiple new targets across the property package with initial scout drilling, including targets on newly acquired private lands which have no prior drilling. Drilling is authorized for 2024 under an existing drill permit and an expanded Plan of Operations permit has been submitted to the United States Forest Service which is projected to be approved for the 2025 drilling season.

(See news release dated April 3, 2024)

Lodestar Project, Nevada (Newmont Earn-In Project)

The Lodestar project is located approximately 10 kilometres north of the Company's Spring Peak project. A multi-rig drill program totaling up to approximately 3,500 metres over 10 to15 holes is currently scheduled to begin in the fall of 2024. The primary objective of the drill program will be to test for high-grade precious metals in steeply dipping feeder structures under the Zodiac target. Additional scout drill holes are planned to test under-cover geophysical targets adjacent to the Zodiac target. A drilling permit application has been submitted to the United States Forest Service for the 2024 drill program. Authorization of drilling activities under this permit is anticipated in Q3 2024.

(See news release dated April 3, 2024)

Midas North Project, Nevada (Newmont Earn-In Project)

Large under-explored precious metal system with a clear analog at Hecla’s Midas Mine

• Exploration program 100% funded by Newmont
• Large, epithermal alteration cell immediately north of and adjoining Hecla Mining Company’s Midas Mine.
• 2023 drill campaign completed with 9 holes in 4,202 m of drilling.
• Intense alteration with several intersections of anomalous precious metals, including 47.0 g/t silver over 9.1 m

100% OWNED SELF-FUNDED PROJECTS

• Seven self-funded and 100% owned exploration projects
• Multiple projects with drill-ready epithermal vein targets
• Actively generating new projects and discovery opportunities

Crane Creek Project, Idaho

Headwater 100% Owned

• Fully-preserved epithermal vein system with multiple high-grade targets, open pit and underground potential
• Gold-bearing epithermal quartz veins at surface
• High-grade vein potential within and beneath shallowly-defined mineralization
• Targeting basalt-hosted high-grade veins at depths > 100 m
• Exploration planned

TJ Project, Nevada

Headwater 100% Owned

• Preserved high-level epithermal alteration with analogous geologic features to Headwater’s Spring Peak Property
• Thick silica sinter and other analogous geologic features to Spring Peak, indicate potential for preserved high-grade veins at depth
• Anomalous gold and silver encountered in shallow historic RC drilling
• Final drill targeting and permitting in process for 2024 drill program

Investment Highlights

• Experienced Team With Local Presence
• Strong capital market expertise combined with a diverse, highly experienced Western US technical team
• Quality Jurisdiction
• High-grade gold and silver exploration in the mining-friendly Western USA
• Strategic Partnership With Newmont
• Four active earn-in projects with Newmont, which owns 9.9% of the outstanding HWG shares
• Large Active Project Portfolio
• Aggressively advancing a large portfolio of 100%-owned and partner-funded projects
• Multiple Upcoming Catalysts
• Steady news flow from active drilling across the portfolio of projects
• Leverage To The Upside
• Early success with a tight share structure, provide shareholders leverage to success

Management

Management and Directors

Caleb Stroup, BSc, MSc Geology, President & Chief Executive Officer

Geologist with over 15 years experience in exploring for gold, base metals, and geothermal resources.

Former Senior Geologist for Kinross Gold Corporation, responsible for greenfields project generation and advanced property evaluation in Nevada.

Previous roles with NovaGold, Tintina Resources, and Ram Power working on diverse resource projects from Central America to Alaska.

Sandra Wong, CPA, CGA, Chief Financial Officer

Over twenty years of working experience with several TSXV and CSE listed companies.

Currently as the CFO of RT Minerals Corp.

Alistair Waddell, BSc (Hons), MAusIMM, Chairman

Geologist with over 25 years of diverse global mineral exploration experience

Founder and CEO of Australia focused Inflection Resources (CSE: AUCU)

Wendell Zerb, P.Geol., Director

Fraser MacCorquodale, Director

Tero Kosonen, MSc (Econ), Director

Graeme Currie, Director

Technical Team

Dr. Greg Dering, PhD Geology, Vice President of Exploration

Structural geologist with experience in gold and geothermal exploration in the western US and Alaska since 2008.

Expert in the growth of high-level vein systems and dynamics of magma Emplacement.

Previous roles with Barrick and the Nevada Bureau of Mines and Geology.

Randy Vance, MSc Geology, Chief Geologist

Geologist with extensive bonanza epithermal experience in northern Nevada and the Great Basin.

More than 40 years experience in metals exploration and discovery.

Worked in the western U.S., Alaska, and the Yukon for Newmont, Klondex, Hecla Nevada, and as a consulting geologist.

Dr. Andrew Canada, PhD Geology, Project Geologist

Geologist with experience in mapping and resource exploration in Nevada and Idaho since 2014.

Brent Cook, BSc Geology, Technical Advisor

Rick Streiff, BSc Geology, Technical Advisor

Dr. Richard Jemielita, PhD Geology, Technical Advisor

News Update

On October 07, 2024, Headwater Gold Inc. has identified multiple high-priority drill targets and has finalized plans for the company's maiden drill program on its 100-per-cent-owned TJ project located in northeastern Nevada. Highlights:

• Drilling program scheduled: Drilling permits have been received, and plans finalized for a maiden drill program projected to consist of an initial 2,000 metres. Drilling is scheduled to commence in fall 2024 and will be fully financed by Headwater Gold.
• Drill program objective: This maiden drill program will test multiple targets for high-grade epithermal veins at depth beneath outcropping silica sinter and downdip of historic shallow drill holes that encountered broad zones of silicification and epithermal alteration, ending in anomalous gold mineralization.
• Controlled-source audio-frequency magnetotelluric survey: Recently acquired CSAMT geophysics have identified a number of high-priority drill targets vertically below a mapped silica sinter exposure at surface. Several large areas of elevated resistivity have been mapped at depth, which Headwater Gold geologists interpret as silicification related to potential feeder structures.
• New target zone: Detailed geologic mapping and rock chip sampling have identified a new target area containing subcropping quartz vein boulders with epithermal textures and anomalous gold values one kilometre south of the main sinter target area.

Caleb Stroup, president and chief executive officer of the company, stated: "We are very excited for this upcoming drill program at our TJ project. Following the results of our recent CSAMT survey, this project has immediately moved to the top of our list for self-funded drilling. The project shows remarkable similarities to our Spring Peak project, also in Nevada, where we have discovered a new high-grade epithermal vein system. Like Spring Peak, TJ hosts a well-preserved silica sinter with a strong trace element signature at surface underlain by a high-resistivity zone directly below. Shallow historic drilling encountered anomalous gold but did not drill deep enough to test for high-grade veins in the projected boiling horizon at depth. The company has a strong treasury following the recent strategic financing with Centerra Gold [Inc.], allowing us to advance our mandate of creating additional shareholder value through aggressive, high-impact exploration. The TJ project represents an excellent opportunity to pursue this mission in our focus area of Nevada."

On September 17, 2024, Further to its news release of Sept. 9, 2024, Headwater Gold Inc. has completed a non-brokered private placement to raise gross proceeds of $1.54-million through the sale of seven million common shares of the company priced at 22 cents per share to Centerra Gold Inc.

Centerra has acquired 9.9 per cent of the issued and outstanding common shares of the company. The company and Centerra have entered into an investor rights agreement, whereby, subject to certain conditions, including time and ownership thresholds, Centerra will retain certain limited rights, including the right to participate in future equity issuances to maintain its percentage ownership in the company.

The proceeds from the financing will be used for exploration activities at the company's Western United States projects and for general working capital. All securities issued are restricted from trading until Jan. 17, 2025.

On September 09, 2024, Headwater Gold Inc. and Centerra Gold Inc. have agreed to a strategic investment under which Centerra will acquire 9.9 per cent of the issued and outstanding common shares of the company. Centerra will purchase, through a non-brokered private placement, seven million common shares of the company at a price of 22 cents per share for gross proceeds of $1.54-million. The issue price represents a 15-per-cent premium to the last closing price of Headwater common shares on the Canadian Securities Exchange as of Sept. 6, 2024.

Caleb Stroup, president and chief executive officer of the company, states: "We are very pleased to welcome Centerra as a new strategic Headwater shareholder. The company continues to advance our mission of delivering value through the discovery of high-grade, high-upside gold deposits in one of the most mining-friendly jurisdictions in the world and I believe this represents a great vote of confidence in both our technical work and overall business strategy. This additional capital comes at an attractive premium and favourable terms for shareholders and will result in a strong treasury position of over $4-million to accelerate our ongoing generative initiatives and 100-per-cent-funded exploration activities in Nevada in a rising gold price environment."

The proceeds from the offering will be used for exploration activities at the company's Western United States projects and for general working capital. The closing of the offering is subject to certain conditions including, but not limited to, approval of the Canadian Securities Exchange and receipt of all required regulatory and other approvals. The company anticipates the offering will close on Sept. 16, 2024, and does not intend to expand the offering beyond the participation by Centerra.

On September 04, 2024, Headwater Gold Inc. has acquired two additional epithermal vein projects, Rock Creek and Hot Creek, in northern Nevada. Both projects have been acquired through claim staking on open ground managed by the Bureau of Land Management (BLM). Highlights:

• Two new projects in northern Nevada: Headwater has acquired the Rock Creek and Hot Creek epithermal gold projects by claim staking on BLM land. Both projects are 100 per cent owned and are royalty free.
• Large epithermal gold systems: Both projects host widespread epithermal alteration footprints indicative of large hydrothermal systems. High-level silica alteration, including hydrothermal vent breccias and opalized sediments, are present indicating the systems are likely fully preserved.
• Untested high-grade targets: Historical surface sampling and drilling indicate the widespread presence of near-surface anomalous gold mineralization on the properties. Limited drilling has been completed in the target epithermal boiling zones at depth.

Caleb Stroup, the president and chief executive officer of the company, states: "The acquisition of the Rock Creek and Hot Creek projects significantly enhances our portfolio of high-potential epithermal gold projects in northern Nevada. The historical datasets from these projects provide a strong foundation for a systematic modern exploration effort with the geological characteristics pointing towards untested potential for high-grade precious metals at depth. We are particularly excited about the potential at Rock Creek where the Main vein target remains open along strike in both directions, as well as downdip. These 100-per-cent-owned and royalty-free acquisitions align perfectly with our strategy of maintaining a large, active portfolio of high-grade epithermal projects and provide our shareholders with exposure to significant upside potential."

On August 16, 2024, Headwater Gold Inc. provided an update on activities across the Company’s portfolio of projects under earn-in agreements (the “Earn-In Agreements” or “Agreements”) with Newmont Corporation (“Newmont”) announced on August 16, 2022 and May 9, 2023. Highlights:

• Spring Peak Drilling: A multi-rig drill program is underway at the Spring Peak Project earn-in with Newmont. Approximately 2,500 metres of up to 7,000 metres of planned drilling has been completed. Five drill holes have been completed, with three additional Reverse Circulation “RC” pre-collars cased and pending completion with diamond core. The program is designed to follow-up on high-grade epithermal vein intercepts as well as stepping out testing new target areas.
• Spring Peak and Lodestar Regional Exploration Program: District-scale geophysical surveys have been completed over Headwater’s recently expanded land position including gravity, magnetics and radiometrics. Reconnaissance rock sampling on Headwater’s newly acquired ground has identified large areas of epithermal vein float. Initial sample results include 6.7 g/t Au and 3.2 g/t Au from banded epithermal vein float. Follow-up sampling and geologic mapping is already underway.
• Midas North and Mahogany: The Company has received notice that Newmont has declined to continue exploration into Phase I of the earn-in agreements announced on August 16, 2022 after having met the minimum commitment required expenditure on both. The projects revert to Headwater on a 100% owned and royalty-free basis. A 2024 field program at Midas North is planned and will be executed by Headwater, including additional geological mapping and the completion of a previously planned soil geochemistry survey . No further work is planned at Mahogany.

Caleb Stroup, President and CEO of the Company, states: “We are very pleased with the ongoing work programs at our Spring Peak and Lodestar projects in Nevada. Drilling is proceeding as we had hoped and our regional exploration program on the newly expanded Lodestar and Spring Peak land positions is turning up positive indications of a large, previously unrecognized epithermal system. This year’s systematic exploration program is on track to significantly advance our efforts to unlock the full potential of this high-grade district, which has become the primary focus of our partner funded exploration with Newmont. We are also excited to advance exploration at Midas North on a 100% owned basis as we further develop targets for a Phase II drill program testing this high-upside project at depth.”

On July 23, 2024, Headwater Gold Inc. has granted 1.7 million incentive stock options to directors, officers, employees and consultants of the company. Each option is exercisable to purchase one common share of the company at a price of 20 cents for a five-year term and vests immediately. The options are subject to the acceptance of the Canadian Securities Exchange.

On July 18, 2024, Headwater Gold Inc. has commenced drilling at the Spring Peak project in Nevada. The program is designed to follow up on Headwater's 2022 and 2023 drill programs, which discovered high-grade epithermal veins in two distinct target areas (see Headwater's news release dated March 2, 2023). Highlights:

• Jurisdiction: Spring Peak is located in the Walker Lane belt of Nevada, adjoining Hecla Mining Company's past-producing Aurora mine.
• Drilling program: Up to approximately 7,000 metres of drilling are planned, utilizing a combination of diamond core and reverse circulation (RC) drilling.
• Financing: The drill program is fully financed by Newmont Corp., pursuant to the option and earn-in transaction announced on Aug. 16, 2022.
• Objectives:
• Test for extensions up dip and downdip from high-grade veins discovered by previous Headwater drilling at the Disco zone, which intercepted 34.72 metres grading 2.73 grams per tonne gold, including 15.92 g/t Au over 2.38 m and 10.43 g/t Au over 2.01 m (see Headwater's new release dated Jan. 9, 2023);
• Test for along-strike extensions of high-grade mineralization within the Bear fault corridor, both to the southwest and to the northeast of the central Disco zone;
• Test multiple additional high-priority target areas on the property with initial scout drilling, including undrilled target areas on recently acquired private lands.

Caleb Stroup, president and chief executive officer of the company, stated: "We are very happy to kick off this fully funded drill program at Spring Peak with our partner Newmont. This year's drilling represents a very exciting opportunity to extend zones of known high-grade mineralization and expand the footprint of exploration by testing new target areas with initial scout drilling. Approximately half of the planned 7,000 metres of drilling will be allocated to the Bear fault corridor, which hosts high-grade veins at the Disco zone and remains open along strike in both directions as well as up and downdip. The remainder of our planned drilling will be focused on initial tests of new high-priority target areas, including the first drilling on newly acquired private lands in the western portion of the land package. We will also look to drill the initial holes into several compelling targets just south of the Bear fault in newly recognized parallel fault structures. We believe this year's program represents a great opportunity for the company to significantly advance the Spring Peak project and continue to build on quality results from our previous drilling."

On June 25, 2024, Headwater Gold Inc. has made significant expansions of its Spring Peak and Lodestar projects in Nevada, and has initiated a comprehensive district-scale exploration program. The land expansion and regional exploration programs are being financed through earn-in agreements with Newmont Corp. announced on Aug. 16, 2022, and May 9, 2023. Highlights:

• Ninety-seven-per-cent land position expansion: Headwater Gold has staked 583 new claims, expanding its combined Spring Peak and Lodestar land positions by 97 per cent. This now secures approximately 15 kilometres of strike extent along the Aurora trend, which historically produced nearly four million ounces of gold.
• District-scale exploration program: A comprehensive exploration program is under way in the district, including gravity geophysics, CSAMT geophysics, helicopter magnetics and radiometrics, stream sediment sampling, rock sampling, and soil sampling utilizing Newmont's deep sensing geochemistry methodology.
• Drilling program scheduled: A multirig drill program at Spring Peak, totalling up to approximately 7,000 metres over 20 to 25 holes, is scheduled to begin in the first half of July, 2024. The primary objective of the drill program will be to test for extensions of mineralization along the Bear fault corridor, which hosts high-grade mineralization at the Disco zone discovery.
• New Doug target zone: Subcropping mineralized epithermal veins have been identified at the new Doug target area. Vein textures in the area are characteristic of the shallow portions of an epithermal vein system. Initial rock samples have yielded gold values up to 2.05 grams per tonne gold, with additional follow-up sampling under way.

Caleb Stroup, president and chief executive officer of the company, stated: "We are thrilled with the strategic expansion of our land position, which we believe significantly increases our potential for discovering a Tier 1 high-grade gold deposit along the prolific Aurora trend. The commencement of our district-scale exploration program, together with the identification of the new Doug target, underscores our commitment to aggressive and systematic exploration in the district. We are particularly excited about our ongoing application of advanced geophysical and geochemical techniques, including Newmont's deep sensing geochemistry, to explore areas with thin postmineral cover. We believe these tools will play a critical role in our efforts to unlock the full potential of this high-grade district."

April 11, 2024, Headwater Gold Inc. Appoints Fraser MacCorquodale as Director

https://headwatergold.com/2024/headwater-gold-appoints-fraser-maccorquodale-as-director/

April 3, 2024, Headwater Gold Announces Planned 2024 Drill Programs on Spring Peak and Lodestar Projects, Nevada

https://headwatergold.com/2024/headwater-gold-announces-planned-2024-drill-programs-on-spring-peak-and-lodestar-projects-nevada/

February 13, 2024, Headwater Gold Announces Additional High-Grade Gold Drill Results from the Spring Peak Project, Nevada

https://headwatergold.com/2024/headwater-gold-announces-additional-high-grade-gold-drill-results-from-the-spring-peak-project-nevada/

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