Headwater Gold begins drilling at Lodestar

The most recent news releases from October 14, 2025, announce that Headwater Gold Inc. has commenced its inaugural drill program at the Lodestar Project in the Walker Lane mineral belt, western Nevada.

Key details of the drilling program include: * Total Metres: Up to 3,500 metres. * Drilling Type: A combination of core and reverse circulation (RC) drilling. * Number of Holes: 10 to 15 holes are planned. * Funding: The program is fully financed by Newmont Corporation through a US$2 million minimum expenditure commitment, as part of their earn-in agreement announced on May 9, 2023. * Priority Targets: * The Zodiac sinter ridge target, aiming to test epithermal vein targets at depths greater than 100 metres below the silica sinter and adjacent intensely altered breccias. The inferred boiling horizon is expected at 150-250 metres below surface. * Concealed structural targets identified by CSAMT resistivity, induced polarization (IP), and detailed gravity data, to be tested with RC scout drilling. * Significance: This marks the first modern drill test of the Lodestar property, applying an exploration model similar to Headwater's successful Spring Peak project. Headwater holds an option to acquire 100% interest (subject to royalties), with Newmont having an option to acquire up to 75% upon meeting certain expenditures and delivering a prefeasibility study.

The commencement of drilling at the Lodestar project is a positive operational milestone, demonstrating the company's ability to execute its exploration plans as previously communicated. This event was anticipated, especially after the drill permit was announced on October 2, 2025, and previous news (July 24, 2025, and October 31, 2024) had guided for drilling in "early fall 2025" or "Q4 2025" following permitting.

The fact that the program is fully funded by Newmont is a significant positive, as it minimizes immediate dilution for Headwater shareholders and reflects Newmont's continued confidence in the project's potential. However, since the drilling commencement was expected, the news itself is not a "game changer." The material impact on the stock price will depend entirely on the actual drill results, which have yet to be released. For now, it represents a successful execution of a planned activity.

Headwater Gold Inc. (CSE: HWG) is a gold exploration company based in Vancouver, Canada, primarily focused on discovering high-grade epithermal gold deposits in the Western United States, specifically Nevada and Idaho. The company operates with a hybrid business model, combining self-funded grassroots exploration with strategic earn-in partnerships on more advanced projects to minimize dilution while accelerating development.

Flagship Projects and Status:

• Spring Peak Project (Nevada): This is a key partner-funded project under an earn-in agreement with Newmont Corporation. Newmont initially earned a 51% interest by funding US$15 million in exploration and has now elected to proceed to Stage 2, committing an additional US$40 million to potentially earn a 65% interest. Headwater discovered the high-grade Disco zone here in 2022 (e.g., 15.92 g/t Au over 2.38 m). The land position has been significantly expanded, and a multi-rig drill program (up to 7,000 m) is planned for 2024 to test extensions and new targets, including on newly acquired private lands. The project is strategically located adjacent to Hecla Mining's past-producing Aurora mine, which has existing infrastructure.
• Lodestar Project (Nevada): Also under an earn-in agreement with Newmont Corporation, with a US$2 million minimum exploration commitment. The project is geologically analogous to Spring Peak, featuring silica sinter and high-level epithermal alteration, indicating potential for high-grade veins at depth. Drilling (up to 3,500 m) has just commenced, representing the first modern test of the property. Newmont can earn up to 75% interest.
• TJ, Jake Creek, & Hot Creek Projects (Nevada): These projects are subject to a Letter of Intent (LOI) with a subsidiary of Oceanagold Corp., allowing OceanaGold to earn up to a 75% interest through US$65 million in exploration expenditures across the three projects. Headwater will initially operate and receive a 10% management fee. Drilling at TJ is expected to commence soon after the definitive agreement is finalized. Jake Creek and Hot Creek are 100% owned by Headwater (Hot Creek is also royalty-free).
• Crane Creek Project (Idaho): This is a 100% owned project, fully permitted for drilling. Recent geophysical surveys and geological mapping have defined new high-priority drill targets beneath outcropping gold-bearing epithermal quartz veins that have never been tested at depth. Headwater is evaluating strategic options, including partnerships, for its advancement.
• Whiskey Project (Nevada): Acquired in April 2025, this is a 100% owned epithermal gold project located in the Walker Lane belt, near Spring Peak and Lodestar. It features high-grade surface mineralization (e.g., 19.2 g/t Au) and encouraging historical drill intercepts. Geophysical survey interpretation is ongoing to define drill targets.
• Midas North Project (Nevada): Previously under an earn-in with Newmont, the project reverted 100% to Headwater (royalty-free) after Newmont met its minimum expenditure but declined to proceed to Phase I. Headwater plans a self-funded 2024 field program to further develop targets.
• Mahogany Project (Oregon): Similar to Midas North, Newmont declined further earn-in, and the project reverted 100% to Headwater (royalty-free). No further work is currently planned.
• Katey Project (Oregon): This 100% owned, royalty-free project, which had a high-grade discovery in 2021, saw a drilling campaign in 2023 yield no significant intercepts. No further work is planned at this time, indicating it has been deprioritized.

Headwater's strategy focuses on systematic exploration of high-potential epithermal systems, often leveraging geophysics to identify deeper feeder structures below less-mineralized surface expressions.