High-Grade Gold From Multiple Veins At The Spring Peak Project

VANCOUVER - Headwater Gold Inc. reported initial assay results from the core completion of drill hole SP22-13 from its Spring Peak project, located in Nevada. Drill hole SP22-13 intersected two individual veins which assayed 15.92 grams per tonne gold (“g/t Au”) over 2.38 meters (“m”) and 10.43 g/t Au over 2.01 m respectively. 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. Initial assays confirm the presence of high-grade gold in banded epithermal veins in the Disco Zone which was discovered by Headwater scout drilling in November 2021. These results are the first and only batch of assays received to date from Headwater’s 2022 Spring Peak drill program.  Results from the remainder of the 2022 program, which totaled 3,173 m, are expected in Q1 2023. The Spring Peak drill program was funded by Newcrest Mining Limited pursuant to the earn-in agreements. A more extensive follow-up drilling program to define the lateral and down dip extents of the vein system is currently being planned.

Caleb Stroup, President and CEO, said, “We are very pleased to announce these initial high-grade assays from the 2022 Spring Peak drill campaign.  Proving the presence of high-grade banded epithermal veins below a barren sinter cap is a significant milestone for the Spring Peak project and for Headwater.  These high-grade intercepts further support the geologic similarity of Spring Peak to Hecla’s nearby past producing Aurora mine complex and highlight the exploration potential of the Project.  We are eagerly awaiting the remainder of the assays, including final silver assays, but the initial SP22-13 results are particularly exciting because they demonstrate the high-grade potential of the Disco Zone.  A more extensive follow-up drilling program to define the lateral and down dip extents of the vein system is currently being planned.  The remaining pending assays, including assays from the RC pre-collar of SP22-13 (surface to 231.65 m), will shed further light on the character and grade of the vein zone up dip, where we only have a single RC intercept from 2021.  Also pending are assays from multiple new target zones which were tested in 2022 throughout the Spring Peak property where we believe there is good potential for additional high-grade veins.”