Headwater Gold Receives Drill Permit for Lodestar Project, Nevada

Executive Summary

• The U.S. Forest Service approved Headwater Gold’s Lodestar Plan of Operations, allowing immediate commencement of drilling.
• A fully funded up‑to 3,500 m drill program (10–15 holes) is being mobilized, backed by a US$2 M minimum spend commitment from Newmont under the existing earn‑in agreement.
• Initial drilling will target the high‑priority “Zodiac” silica‑sinter ridge, interpreted as the preserved paleosurface of an epithermal system with strong discovery potential.

Key Details

• Permit Approval: U.S. Forest Service granted the Lodestar Plan of Operations, authorizing core drilling to start immediately.
• Program Scope: Up to 3,500 m total depth, comprising 10–15 drill holes.
• Funding Commitment: Newmont has committed a minimum US$2 M expenditure, fully financing the planned program.
• Target Focus: First hole(s) will test beneath the Zodiac target’s prominent silica‑sinter ridge, believed to overlie untested high‑grade feeder structures.
• Project Context: Lodestar lies in Nevada’s Walker Lane 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 Highlights: Prior shallow drilling intersected anomalous gold but did not reach deeper feeder zones; recent Spring Peak results included 15.92 g/t Au over 2.38 m and 10.43 g/t Au over 2.01 m.
• Earn‑in Structure: Headwater holds an option to acquire 100% of Lodestar from a private vendor, with Newmont holding an option for up to 75% upon meeting spend thresholds and delivering a Pre‑Feasibility Study.
• Qualified Person: Dr. Gregory Dering, P.Geo (Vice President of Exploration), reviewed and approved the technical information.

Notable Quotes

“We are very pleased to have this much‑anticipated permit in place… The upcoming program is particularly exciting, as it will be the first‑ever test of what we consider to be a very high‑priority untested high‑grade vein target.” – Caleb Stroup, President and CEO

Materiality Assessment: Material – Positive (the approval enables a funded exploration program with significant discovery potential).