Drill Plan To Offset High-Grade Gold Discovery At Katey Project

VANCOUVER - Headwater Gold Inc. has defined multiple high-priority drill targets to extend high-grade mineralization encountered in previous core drilling by the Company at its 100% owned Katey gold project located in southeast Oregon.

The multiple high-priority drill targets focus on extending the high-grade mineralized structure encountered in drill hole KT21-01. Metallic-screen assays from the previously reported high-grade intercept in drill hole KT21-01 returned 6.34 grams per tonne gold (“g/t Au”) over 14.54 meters, including 30.73 g/t Au over 1.95 meters.  Metallic-screen assays show approximately 30% higher grade than original values and indicate the presence of coarse free gold.

A mixed diamond core and reverse circulation (RC) drill program consisting of approximately 3,500 meters is fully permitted and scheduled to commence in early summer 2023. Deep auger soil sampling has defined an area of highly anomalous gold, silver and epithermal pathfinder geochemistry over an approximately 1 kilometer zone along the projection of the West Zone Fault which hosts the high-grade gold intercepted in drill hole KT21-01. Channel samples collected at surface across the main West Zone Fault returned 13.26 g/t Au and 45.2 grams per tonne silver (“g/t Ag”) over 0.69 m, demonstrating up-dip continuity of the main mineralized structure intercepted in drill hole KT21-01.

Caleb Stroup, President and CEO, said, “Following the completion of our recent financing, we are very excited to get back out to Katey to follow up on the high-grade discovery made in our first drillhole completed on the project and the only hole drilled to date by the Company in the West Zone target area.  The Katey project is 100% owned and royalty-free and is our highest-priority self-funded exploration project.  Low-cost surface work conducted since announcing this discovery suggests that the mineralized system extends both to the north and to the south for at least a kilometer and potentially continues under shallow cover beyond.  The upcoming drill program will focus on drill testing the length of this mineralized trend and offsetting our previous intercept with multiple holes down dip in an attempt to add scale to a target we already know has high-grade gold.”