Intercepts At New Target Area In Spring Peak Project

VANCOUVER - Headwater Gold Inc. reported on the final results from the Company’s 2024 drill program on its Spring Peak project, located in the Walker Lane trend, western Nevada. Shadow Target: Drill hole SP24-57 in the new Shadow target intersected 7.62 metres (“m”) grading 3.55 g/t Au and 4.57 m grading 3.16 g/t Au including 7.67 g/t Au over 1.52 m beneath a gold-barren mercury-in-soil anomaly located approximately 800 m northwest of the high-grade Disco Zone. Southpaw Target: Drill holes SP24-52 and SP24-53 in the new Southpaw target intersected 4.75 g/t Au over 1.52 m and 3.23 g/t Au over 1.52 m, respectively, in a 320 m step-out southwest of the Disco Zone.  Mineralization appears to occur in hanging wall structures, with the principal target still untested. Opal Ridge: Broad zones of anomalous gold encountered in two drill holes at Opal Ridge further expand the footprint of gold mineralization on the property. Bear Fault Corridor: Headwater controls 15 km of strike extent along the highly prospective Bear Fault corridor, with drilling testing less than 1.5 km of this extent. Results to date confirm high-grade mineralization in the Bear Fault at the Disco Zone, gold-bearing hanging wall structures at Southpaw and the potential for parallel mineralized structures such as at the Shadow target, highlighting the corridor’s broader exploration potential.

Caleb Stroup, President and CEO, said, “The 2024 Spring Peak drill program delivered several important step-out intercepts that significantly expand the known extent of high-grade mineralization on the property and highlight multiple new target zones for future follow-up drilling.  The positive initial test of the Shadow target where SP24-57 intersected multiple high-grade gold intervals beneath a gold-barren mercury-in-soil anomaly, demonstrates our ability to explore blind-to-surface targets and points to the broader potential for new high-grade discoveries on the project.  Similarly, initial scout drilling into the Southpaw target returned strong gold intercepts in a substantial step out southwest from the Disco Zone.  The strike extent of mineralization in the Bear Fault corridor now exceeds one kilometre and remains open both to the Northeast and Southwest.  These results cap a successful 2024 season where, together with our partner Newmont, we completed over 6,000 metres of drilling and doubled the size of the Spring Peak land position, securing approximately 15 km of strike extent along the Aurora trend.  We look forward to finalizing plans for the next phase of drilling, continuing to step out from these intercepts and further expanding the footprint of high-grade mineralization.”

Headwater completed a multi-rig drill program totaling 6,205 m of drilling across 18 holes at Spring Peak in 2024. The program focused on the kilometre-scale alteration cell in the southern part of the property which includes the Spring Peak sinter. The objectives of the drill program were to 1) test multiple new target areas on the land package that had seen little or no previous drilling; and 2) test for extensions of mineralization along the Bear Fault corridor beyond the limits of the high-grade Disco Zone, discovered by Headwater in 2022.  Both objectives were successful.  The new Shadow target drilling confirmed the presence of high-grade gold in a new blind target area and initial holes into the Southpaw target, together with previously reported intercepts for the Pioneer target, show the Bear Fault corridor is mineralized over a kilometre-scale strike extent and remains open to the southwest and northeast.

Drill hole SP24-57 tested the northeast projection of a mapped fault beneath a largely gold-barren mercury-in-soil anomaly 300 m northeast of previous drilling. Drill hole SP24-57 encountered high-grade gold in two discrete zones, an upper intercept of 4.57 m grading 3.16 g/t Au, including 1.52 m grading 7.67 g/t Au and a lower intercept of 7.62 m of 3.55 g/t Au, including 1.52 m of 6.47 g/t Au. Chalcedonic quartz-pyrite veins were observed in these intervals hosted in Cretaceous granite host rock. The width of individual veins cannot be measured from RC cuttings but veins make up no more than 20% of any individual 1.5 m sample interval, which may indicate that the reported assay intervals are potentially driven by narrow even higher-grade veins. Above the gold mineralized zones, the drill hole penetrated a silica-clay alteration cap approximately 40 m thick characterized by strongly anomalous antimony (averaging 312 ppm) and mercury (averaging 7.3 ppm) with only weakly anomalous gold (averaging 33 ppb).  The association of antimony and mercury with blind gold mineralization at depth reiterates the utility of these pathfinders on the property and will serve as a critical tool for continued exploration along the 15 km strike-length Bear-Fault corridor.