Headwater Gold survey maps fault corridor in Nevada

Executive Summary

• Headwater Gold Inc. released results from a gravity geophysics survey on its Spring Peak and Lodestar projects in Nevada, revealing the Bear fault corridor extends over 12 km, significantly expanding the known strike length and identifying new prospective targets under volcanic cover.
• The survey identified key priority targets, including the Zodiac target on the Lodestar project and the Doug target on Spring Peak, with drilling at Zodiac (up to 3,500 meters) currently underway to test high-grade vein potential.
• The company highlighted the strategic partnership with Newmont Corp, noting Newmont's election to advance to Stage 2 of the Spring Peak earn-in agreement, allowing them to increase their interest from 51% to 65% by funding $40 million in exploration over three years.

Key Details

• Survey Scope: Gravity survey covered approximately 200 square kilometers with 2,336 ground stations (400m spacing, 200m spacing over core targets).
• Bear Fault Corridor: Gravity data interprets the Bear fault as a major extensional structure spanning over 12 km, far beyond the previously known 1 km strike. The structure extends from the Disco zone (southwest) to the Doug area (northeast) and is buried under thin postmineral volcanic cover.
• Disco Zone Context: Drilling at the southern end of the Bear fault (Disco zone) has confirmed high-grade gold mineralization, including intersections of 15.92 g/t Au over 2.38 m and 10.43 g/t Au over 2.01 m.
• Doug Target: Located on the northern end of the Bear fault corridor, this target features outcropping high-grade veins (announced March 15, 2025) and sits on a gravity break interpreted as a subsidiary fault strand.
• Zodiac Target (Lodestar): Identified as the top priority drill target on the Lodestar property. It features a silicified and brecciated ridgeline with a silica sinter. Gravity data shows a prominent northwest-trending gravity break interpreted as a deep-seated extensional fault, analogous to the Disco zone setting.
• Drilling Activity: An initial drill program totaling up to 3,500 meters (10 to 15 holes) is underway to test the Zodiac target and other Lodestar targets.
• Newmont Earn-In Agreement (Spring Peak): Newmont elected to advance to Stage 2 of the earn-in agreement on September 26, 2025. This allows Newmont to increase its interest from 51% to 65% by funding $40 million (U.S.) in exploration expenditures over a three-year period.
• Project Infrastructure: Spring Peak adjoins Hecla Mining’s past-producing Aurora mine complex, utilizing existing infrastructure including a 600-ton-per-day mill, water wells, and high-voltage power.
• Permitting: Spring Peak has been selected for the U.S. federal FAST-41 permitting program. An exploration plan proposes up to 266 additional drill sites.
• Ownership Structure: Headwater holds an option to acquire 100% of Spring Peak from Orogen Royalties, subject to Newmont’s option to acquire up to 75% after expenditures and a prefeasibility study. Headwater also holds an option to acquire 100% of Lodestar from a private vendor, subject to similar Newmont terms.

Notable Quotes

• "This gravity survey transforms our view of the Bear fault corridor, expanding it to district-scale proportions and highlighting kilometres of untested potential under shallow postmineral cover. We've gained critical insights into the 3-D structure that controls known gold mineralization in the camp and have targets identified for potential future exploration activities. This prospective corridor stands out across multiple data sets, boosting our confidence in pursuing blind targets to make the next big Nevada discovery." — Caleb Stroup, President and CEO