Headwater Gold Inc. (CSE: HWG) (OTCQB: HWAUF) (the "Company" or
"Headwater") is pleased to announce the Company has acquired the
Midas North gold-silver project (the “Project” or “Property”) in
northern Nevada through claim staking.
Summary Highlights:
- Company has acquired a 100%
interest in a large, undrilled epithermal alteration cell
immediately north of and adjoining Hecla Mining Company’s (“Hecla”)
(NYSE: HL) Midas mine;
- Widespread sinter, water table
silica, and clay alteration infers a fully preserved epithermal
system is present;
- Analogous geologic setting to
Hecla’s Midas mine and the recent Green Racer Sinter vein
discovery, where gold grades of 111.8 grams per tonne (“g/t”) and
silver grades of 490 g/t Ag were intercepted over a drilled
thickness of 1.4 metres (see Hecla news release dated February 18,
2021) (1);
- Widespread areas of highly
anomalous mercury geochemistry, which is one of the key pathfinder
elements for epithermal vein exploration; and
- The Project was acquired through
the staking of 199 unpatented claims on open Bureau of Land
Management (“BLM”) land and is 100% owned and royalty-free.
Figure 1: Outcrop of opalized sediments and
silica sinter at the Big Opal target area, Midas North Project,
Nevada.https://www.globenewswire.com/NewsRoom/AttachmentNg/58c732ff-f04c-4892-bdb5-da55ebb2eccb
Caleb Stroup, Headwater’s President and CEO,
commented: “It is very rare to have the opportunity to stake such a
large, untested epithermal alteration cell in a prolific high-grade
Nevada mining district. The Midas mine complex immediately to the
south serves as clear geologic analog, with over two million ounces
of gold and over 25 million ounces of silver historically produced
from high-grade epithermal veins at Midas between 1998 and 2019(1,
2) by operators such as Franco-Nevada, Newmont and Hecla. The Midas
North project has all the components we look for when targeting
large, blind, high-grade epithermal veins. Hecla’s impressive Green
Racer Sinter discovery announced earlier this year demonstrates
that, despite a long history of mining, this district remains
highly prospective and under-explored.”
Figure 2: Location of Midas North Project and
other Headwater Gold Nevada
projects.https://www.globenewswire.com/NewsRoom/AttachmentNg/3ebf2519-1e5c-4440-83b7-2250616524b5
About the Midas District:
The Midas North project is located in the Midas
District of northern Nevada, approximately 100 kilometres north of
the town of Winnemucca and directly adjoins Hecla Mining’s Midas
mine complex. In 1994 an array of high-grade banded epithermal
veins were discovered and historic production from the Midas mine
was initiated by Franco-Nevada Corporation in 1998, with historic
reserves of 2.46 million tonnes at a grade of 38.2 g/t Au(1),(2).
Mining continued until 2019 when Hecla elected to temporarily halt
production as a result of decreasing head grade. Existing
infrastructure at the Midas mine includes a 1,200 ton per day mill,
several production water wells, high voltage power, and a fleet of
underground mining equipment.
Mineralization in the Midas area is related to
mid-Miocene bimodal volcanism associated with the Northern Nevada
Rift and is analogous to high-grade low-sulfidation epithermal
veins in Northern Nevada including Sleeper, Fire Creek, and
Hollister. Gold and silver mineralization in the Midas district
typically occurs in sub-vertical banded low-sulfidation epithermal
vein arrays, the most significant being the Colorado Grande vein in
the central Midas mine area.In February 2021, Hecla announced the
discovery of a new high-grade vein system in a previously undrilled
area, approximately 3 km southeast of the main mine area. This new
discovery is reported to occur beneath a mapped exposure of
geyserite sinter which was correctly identified as a surface
venting feature of an epithermal vein system. This discovery
highlights the potential for future exploration in the greater
Midas district, targeting blind veins beneath widespread high-level
epithermal alteration.
Figure 3: Midas North land position, showing the
principal high-level epithermal target areas in the Midas district.
Hecla’s recent Green Racer discovery occurs in an analogous
structural and stratigraphic setting to Midas North, with similar
high-level epithermal alteration features present at
surface.https://www.globenewswire.com/NewsRoom/AttachmentNg/b5e4476a-03ed-4f07-8765-bd2fdbd3a817
About the Midas North
Project:
Headwater’s Midas North project area covers a
large hydrothermal alteration cell, extending at least 4 kilometres
in strike and 1 kilometre in width, which is interpreted by
Headwater geologists as representing the high-level manifestations
of an epithermal precious metal system. This system occurs
approximately 10 kilometres along strike north of the Midas mine.
The Headwater Project consists of 199 unpatented mining claims on
BLM land and covers approximately 1,530 hectares.
Figure 4: Headwater’s Midas North property map,
showing the location of the principal target areas with rock and
stream sediment sample mercury
geochemistry.https://www.globenewswire.com/NewsRoom/AttachmentNg/f1858a7c-f03c-4881-8124-36804b1ed5b9
Two priority target areas have been identified
by Headwater geologists in the field: the Nevada Grande target and
Big Opal target areas (Figure 4), both of which exhibit widespread
high-level chalcedonic to opaline silica flooding, clay alteration,
and local sinter formation. The Nevada Grande target area consists
of a ridge forming, linear zone of chalcedonic and opaline
silicification over an approximately 1 km strike extent,
interpreted to be the high-level manifestations of a potential
epithermal feeder structure. The Big Opal target area consists of a
widespread zone of sub-horizontal opaline and chalcedonic silica
flooding, with localized occurrences of interpreted near-vent
sinter facies, such as fossilized geyser vents (Figure 5). To date,
90 rock chip samples and 54 stream sediment samples have been
collected by the Company from the Project area. This limited
initial sampling as already highlighted several priority areas of
anomalous precious metal values, with highly anomalous values of
important epithermal pathfinder elements, such as mercury.
The Project area has seen very limited historic
exploration. Although the Project was reportedly staked by Newmont
Corporation in the past, Headwater is not aware of any historic
exploration drilling on the property. Headwater geologists are
currently planning an expanded multi-disciplinary surface
exploration program which will be carried out in late 2021 and into
2022 with a goal of identifying additional high-priority drill
targets. This program is expected to include detailed geologic
mapping, rock chip sampling, systematic soil sampling, airborne
magnetics, airborne radiometrics, and ground based resistivity
profiles.
Figure 5: Interpreted fossilized geyser vent
within the Big Opal sinter zone. Note the silica mound surrounding
the vent throat as well as the desiccation cracks on the vent
walls.https://www.globenewswire.com/NewsRoom/AttachmentNg/c1aad06b-e571-49d0-9b93-9be2b56d2329
Update on Other Exploration
Activities:
Spring Peak Project
Assays from five holes are pending from the
Spring Peak drill program, which was completed earlier this month
(see news release dated September 15, 2021). The Company expects
assay results some time during the second half of October.
Highland Project
The Company has received assay results from the
Highland drill program which was completed in early August (see
news release dated August 10, 2021). No significant high-grade vein
intercepts were encountered in the initial seven-hole program. The
Company believes the high-priority targets in the district have
been adequately tested and the underlying property owner has been
notified of Headwater’s intention to terminate its option
agreement. The decision to terminate the option is in-line with the
Company’s disciplined exploration strategy of pursuing high-impact
discoveries by testing high-quality targets as quickly and
cost-effectively as possible.
Mahogany and Katey Projects
Federal and state drill permits have been
received for the Company’s 100% owned Katey and Mahogany Projects
in eastern Oregon. A Boart Longyear diamond drill rig is scheduled
to mobilize to the Mahogany Project in mid-October, where the focus
will be testing multiple vein targets along the Main Ridge Fault
zone, which locally contains high-grade gold values in surface
sampling, up to 170 g/t Au. Following the conclusion of drilling at
Mahogany, the rig is scheduled to move to the Katey Project.
Sample Quality Control:
Drilling at Highland was conducted by Boart
Longyear using a wheel-mounted reverse circulation drill
rig. The drill chips were logged on site and at Company
offices in Reno, Nevada. Drilling totalled 2,097 metres, and 1,376
original samples were collected. Samples were transported from site
to American Assay Laboratories (“AAL”), located in Sparks, Nevada
by American Assay personnel. Prior to dispatch, samples
were placed in numbered bags with regular insertion of blind
internationally certified reference materials, blanks, or a sample
duplicate. American Assay Laboratories are an
accredited analytical laboratory meeting ISO/IEC 17025:2017 and
AC89 IAS requirements. Samples were prepared by
standard AAL crushing and grinding methods. The pulps
were then assayed for 21 elements via AAL method ICP-2AM21 using a
0.5 g sample after a two acid near total digest with an ICP-OES/MS
finish. Gold was assayed by fire assay using AAL method
FA-Pb30 using a 30g sample charge and ICP-OES finish.
Laboratory standards and QA-QC are monitored by the Company.
About Headwater Gold:
Headwater Gold Inc. is a technically-driven
mineral exploration company focused on exploring for 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 composed of experienced geologists with diverse capital
markets, junior company, and major mining company experience. The
Company is systematically drill testing several of its 100% owned
projects in Nevada, Idaho, and Oregon.
For more information, please visit the Company's
website at www.headwatergold.com.On Behalf of the Board of
Directors
"Caleb Stroup"President & CEO
For further information, please contact:
Brennan ZerbInvestor Relations Manager+1 (778) 867-5016
bzerb@headwatergold.com
Qualified PersonThe technical
information contained in this news release has been reviewed and
approved by Mr. Derrick Strickland, P.Geo. (1000315), a “Qualified
Person” (“QP”) as defined in National Instrument 43-101 – Standards
of Disclosure for Mineral Projects.
- The Qualified
Person has been unable to verify the information on the adjacent
properties. Mineralization hosted on adjacent and/or nearby and/or
geologically similar properties is not necessarily indicative of
mineralization hosted on the Company's properties.
Historical resource estimates are treated by the Company as
historical in nature, and not current.
- Goldstrand, P.M., and Schmidt,
K.W., 2000, Geology, mineralization, and ore controls at the Ken
Snyder gold-silver mine, Elko County, Nevada, in Cluer, J.K.,
Price, J.G., Struhsacker, E.M., Hardyman, R.F., and Morris, C.L.,
eds., Geology and Ore Deposits 2000: The Great Basin and Beyond:
Geological Society of Nevada Symposium Proceedings, May 15-18,
2000, p. 265-287.
Forward-Looking
Statements: This news release includes certain
forward-looking statements and forward-looking information
(collectively, "forward-looking statements") within the meaning of
applicable Canadian securities legislation. All statements, other
than statements of historical fact, included herein including,
without limitation, statements regarding future capital
expenditures, anticipated content, commencement, and cost of
exploration programs in respect of the Company's projects and
mineral properties, and the anticipated business plans and timing
of future activities of the Company, are forward-looking
statements. Although the Company believes that such statements are
reasonable, it can give no assurance that such expectations will
prove to be correct. Often, but not always, forward looking
information can be identified by words such as "pro forma",
"plans", "expects", "may", "should", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates", "believes",
"potential" or variations of such words including negative
variations thereof, and phrases that refer to certain actions,
events or results that may, could, would, might or will occur or be
taken or achieved. Forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company to
differ materially from any future results, performance or
achievements expressed or implied by the forward-looking
statements. Such risks and other factors include, among others,
statements as to the anticipated business plans and timing of
future activities of the Company, including the Company's
exploration plans. the proposed expenditures for exploration work
thereon, the ability of the Company to obtain sufficient financing
to fund its business activities and plans, delays in obtaining
governmental and regulatory approvals (including of the Canadian
Securities Exchange), permits or financing, changes in laws,
regulations and policies affecting mining operations, the Company's
limited operating history, currency fluctuations, title disputes or
claims, environmental issues and liabilities, as well as those
factors discussed under the heading "Risk Factors" in the Company's
prospectus dated May 26, 2021 and other filings of the Company with
the Canadian Securities Authorities, copies of which can be found
under the Company's profile on the SEDAR website
at www.sedar.com.
Readers are cautioned not to place undue
reliance on forward-looking statements. The Company undertakes no
obligation to update any of the forward-looking statements, except
as otherwise required by law.
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