Headwater Gold receives drill permit for Lodestar

Executive Summary

• Headwater Gold Inc. received U.S. Forest Service approval for the Lodestar plan of operations, enabling immediate commencement of drilling.
• The up‑to‑3,500 m drill program (10–15 holes) is fully financed by a $2 million minimum expenditure commitment from Newmont Corp. under their earn‑in agreement.
• Initial drilling will target the high‑priority “Zodiac” silica‑sinter ridge, a previously untested high‑grade vein target in Nevada’s Walker Lane belt.

Key Details

• Drill Permit: U.S. Forest Service approved the Lodestar plan of operations; work can start immediately.
• Mobilization: Earth‑work and core‑drilling contractors have been instructed to mobilize equipment to site now.
• Program Scope: Planned drilling up to 3,500 m total depth, comprising 10–15 holes.
• Financing: Fully funded through Newmont’s $2 million minimum spend commitment under the earn‑in agreement announced May 9 2023.
• Target – Zodiac: First hole will intersect the prominent silica‑sinter ridge at the “Zodiac” target, interpreted as a preserved paleosurface of an epithermal system with dynamic hydrothermal activity.
• Project Context: Lodestar lies in the Walker Lane mineral belt, ~10 km north of Headwater’s Spring Peak project and adjacent to Hecla Mining’s Aurora mine infrastructure (600‑t/d mill, water wells, power).
• Historical Data: Prior shallow drilling showed anomalous gold; deeper feeder structures remain untested.
• Earn‑in Structure: Headwater holds an option for 100 % of Lodestar from a private vendor; Newmont may acquire up to 75 % after meeting spend thresholds and delivering a prefeasibility study within the agreed timeline.

Notable Quotes

“We are very pleased to have this much‑anticipated permit in place, providing permission to commence drilling at Lodestar… The project exhibits all the hallmarks of a robust and well‑preserved epithermal system… we are eager to get drills turning and begin unlocking this potential for our shareholders.” – Caleb Stroup, President & CEO, Headwater Gold Inc.