Headwater Gold Commences Drilling at Lodestar Project, Nevada

Executive Summary

• Headwater Gold announced the start of a fully funded up‑to‑3,500 m core and RC drilling program on the Lodestar project in Nevada.
• The program, financed by Newmont’s US$2 M minimum spend commitment, will test 10–15 holes targeting the Zodiac sinter ridge epithermal system and concealed structural targets.
• Initial focus is a three‑hole fence beneath the Zodiac target’s silicified breccia and sinter ridge, aiming to intersect a boiling horizon 150–250 m deep where high‑grade low‑sulfidation veins may occur.

Key Details

• Program Scope: Up to 3,500 m of combined core and reverse‑circulation drilling; 10–15 holes across multiple gold targets.
• Funding: Fully funded through Newmont’s earn‑in agreement with a minimum US$2 M expenditure commitment.
• Primary Target – Zodiac Sinter Ridge:
• First systematic test of epithermal vein targets >100 m below silica sinter and altered breccias.
• Three‑hole fence planned beneath silicified breccia, plus at least one hole 175 m north under thick sinter blocks; all holes oriented to intersect a west‑dipping structural zone.
• Secondary Targets: RC scout drilling of concealed structures identified by CSAMT resistivity, induced polarization, and gravity surveys (footwall structure parallel to Zodiac, ENE‑trending gravity break).
• Geological Objectives: Intersect inferred boiling horizon 150–250 m below surface; test feeder faults for potential high‑grade gold‑silver mineralization in low‑sulfidation veins.
• Flexibility: Program design allows adaptation based on field‑based analytical results, including pre‑collared RC/core tails along strike if mineralized structures are confirmed.
• Project Context: Lodestar lies ~10 km north of Headwater’s Spring Peak project and adjacent to Hecla Mining’s Aurora mine (existing 600 t/d mill, water wells, power). Historic shallow drilling showed anomalous gold but did not test deeper feeders.
• Option Structure: Headwater holds an option for a 100% undivided interest in Lodestar; Newmont may earn up to 75% after meeting spend thresholds and delivering a Pre‑Feasibility Study.

Notable Quotes

“The start of drilling at Lodestar marks an exciting step for Headwater… we are well positioned to advance Lodestar aggressively and test multiple high‑priority targets in one of Nevada’s most prospective gold districts.” – Caleb Stroup, President & CEO

All technical information reviewed by Dr. Gregory Dering, P.Geo (Qualified Person).