ORIGINAL: Headwater Gold Acquires the Whiskey Project in Nevada and Reports 19.2 g/t Au in Rock Samples at Surface

Apr 10, 2025

2025-04-10 06:30 ET – News Release

(via TheNewswire)

Vancouver, British Columbia – TheNewswire – April 10, 2025 : Headwater Gold Inc. (CSE: HWG) (OTCQB: HWAUF) (the “Company” or “Headwater”) is pleased to announce the acquisition of the Whiskey gold project located in Mineral County, Nevada. Whiskey is an epithermal gold project situated in the highly endowed Walker Lane belt near Headwater’s Spring Peak and Lodestar projects, which are being advanced through earn-in agreements with Newmont Corporation (“Newmont”).

Highlights:

Strategic Location: The Whiskey project is positioned in heart of the Walker Lane gold belt, 20 kilometres east of the Borealis Mine and the Company’s Spring Peak project;
High-Grade Surface Mineralization: Recent rock chip sampling by Headwater returned gold grades of 19.2 g/t Au, 18.5 g/t Au and 14.6 g/t Au from the High Proof target with no known drilling ever completed in the area; and,
Positive Historical Drilling: Historical shallow drilling at the East Rye and West Rye targets intercepted broad zones of epithermal gold mineralization, including 59.7 metres grading 0.85 g/t Au (RS-6) and 10.7 metres grading 0.52 g/t Au (W-83-5).

Caleb Stroup, the President and CEO of the Company, states: “Whiskey is a high-quality addition to our portfolio of 100% controlled Nevada gold projects, giving our shareholders direct leverage to any exploration success we generate. Strategically located near our Spring Peak and Lodestar projects, where we are advancing major earn-in agreements with Newmont, Whiskey covers a large, well-preserved epithermal system with multiple distinct target types ranging from high-grade gold in basement structures to classic low-sulfidation epithermal targets developed in rhyolite domes. The combination of known high-grade surface mineralization, encouraging historical drill results and large areas of untested potential under shallow cover makes Whiskey a very exciting exploration opportunity. We look forward to systematically advancing the project with a focus on defining and testing high-priority targets.”

Project Overview:

Whiskey was acquired through a combination of two option agreements to acquire a 100% interest in pre-existing claims held by private parties and the staking of additional mining claims by Headwater, resulting in the consolidation of a land package covering 216 unpatented lode claims on Bureau of Land Management (BLM) land. The project covers a preserved epithermal system exposed in an erosional window beneath a thin veneer of post-mineral basalt cover. Surface mapping and sampling have identified three primary target areas:

High Proof Target: High-grade, fault-hosted gold mineralization hosted in basement rocks, where recent rock sampling by Headwater returned values up to 19.2 g/t Au. No known historical drilling has been completed in the area.
East Rye and West Rye Targets: Broad zones of chalcedonic silica alteration developed above rhyolite flow domes, with highly anomalous epithermal pathfinder elements (mercury, arsenic and gold) at surface. Historic shallow drilling returned gold intercepts in both areas, including 59.7 m grading 0.85 g/t Au from 48.77 m (including 12.2 m at 1.79 g/t Au) in RS-6 and 10.7 m grading 0.52 g/t Au from 33.53 m in W-83-5.

The project area exhibits excellent district scale potential with large zones of preserved alteration extending beyond the historical drill-tested areas. The broader mineralized system remains largely open in terms of prospectivity to the north, east and south under shallow post-mineral basalt and to the west under alluvial cover.

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Figure 1: Whiskey project location in relation to Headwater’s Spring Peak and Lodestar properties which are under earn-in agreements with Newmont.

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Figure 2: Simplified geological map of the Whiskey project showing primary target areas.

Previous Exploration

Intermittent exploration has taken place on the Whiskey property since 1971, with operators including Conoco, US Minerals Exploration, Homestake, Combined Metals Reduction, Santa Fe Minerals and Newmont. In addition to surface sampling and geologic mapping, 48 shallow exploration holes have been drilled on the property, of which Headwater has assay and collar location data for 41 of these holes. Drilling was focused on the outcropping exposures of silicified rhyolite in the eastern and western portions of the property, with very little exploration completed on trend under post-mineral cover rocks, or following-up other known anomalies on the property. The average hole depth of historic drilling is 97 metres, with a maximum depth of 191 metres. Historical surface sampling includes 801 soil and 614 rock samples 1 . The historic surface sampling and mapping also focused on the exposures of silicified rhyolite, with only scattered sampling of the intrusion-hosted veins and other altered rocks on the property. In December of 2024 and January of 2025, Headwater collected 74 rock samples on the property, targeting silica alteration and veining. At the High Proof target, selective sampling of fracture zones and historic workings confirmed the presence of high-grade gold mineralization in granitic basement rocks. Gold mineralization is associated with quartz-sulfide alteration in northwest-striking fracture corridors.

Headwater Exploration Plans:

Headwater recently completed a reconnaissance rock sampling program and has completed property-wide gravity, airborne magnetic and radiometric geophysical surveys, the results of which are currently being interpreted. The next steps at Whiskey will include upgrading the geological map, integrating new geophysical and geochemical datasets and prioritizing drill targets for initial testing of high-grade zones. The project location on BLM land facilitates streamlined permitting and year-round access to the project.

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Figure 3: Brecciated volcanic rocks with silica and iron oxide alteration at the Whiskey project.

Acquisition Terms:

Headwater consolidated the Whiskey project through two exploration lease and option to purchase agreements (each, an “Agreement”) with separate private arm’s length vendors, securing the right to acquire 100% interests in pre-existing project claims (the “Vendor Claims”). Each Agreement provides for an initial payment of US$4,000 and, beginning on the third anniversary, annual minimum payments of US$10,000. Annual payments increase by US$5,000 per year until US$30,000 is payable on the seventh and each succeeding anniversary over a twenty-year term. These minimum payments may be credited towards the purchase price of US$1,500,000 under each Agreement should the Company elect to exercise its option to purchase a 100% interest in the Vendor Claims. The Vendor Claims under each Agreement are subject to a 2.0% net smelter return (“NSR”) royalty, of which the Company may purchase 1.5% of the NSR for US$2,000,000 and reduce the royalty to 0.5%.

Headwater has also located an additional 134 100% owned unpatented mining claims contiguous to the Vendor Claims, consolidating the district.

About Headwater Gold:

Headwater Gold Inc. (CSE: HWG, OTCQB: HWAUF) is a technically driven mineral exploration company focused on the exploration and discovery of high-grade precious metal deposits in the Western USA. Headwater is aggressively exploring one of the most well-endowed and mining-friendly jurisdictions in the world with a goal of making world-class precious metal discoveries. Headwater has a large portfolio of epithermal vein exploration projects and a technical team of experienced geologists with diverse capital markets, junior and major mining company backgrounds. The Company is systematically drill testing several projects in Nevada and in August 2022 and May 2023 announced significant transactions with Newmont where it acquired a 9.9% strategic equity interest in the Company and entered into earn-in agreements on several of Headwater’s projects , including Spring Peak and Lodestar. In September of 2024, Centerra Gold Inc. acquired a strategic 9.9% interest in the Company through a non-brokered private placement at a premium to market.

Headwater is part of the NewQuest Capital Group which is a discovery-driven investment enterprise that builds value through the incubation and financing of mineral projects and companies. Further information about NewQuest can be found on the company website at www.nqcapitalgroup.com .

For more information, please visit the Company’s website at www.headwatergold.com .

On Behalf of the Board of Directors

Caleb Stroup

President and CEO

+1 (775) 409-3197

[email protected]

For further information, please contact:

Brennan Zerb

Investor Relations Manager

+1 (778) 867-5016

[email protected]

Qualified Person:

The technical information contained in this news release has been reviewed and approved by Scott Close, P.Geo (158157), a “Qualified Person” (“QP”) as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

1 Historical drill intercepts and historical surface geochemistry included in this release were sourced from drill logs, assay certificates and internal company reports generated by previous operators. These results have not been independently verified by Headwater and are treated by the Company as historical in nature and not current or NI 43-101 compliant.

Analytical Methods:

Headwater rock samples were delivered to Bureau Veritas (“BV”) facilities in Sparks, Nevada. Samples were prepared by crushing and grinding via BV method PRP70-500 to obtain a 500g sub-sample. Geochemical analyses including fire assay were carried out at ISO 17025:2017 accredited Bureau Veritas laboratories in Vancouver, British Columbia. Pulps were assayed for 59 elements via method MA250 using a 25g sample after a four acid near total digest with an ICP-MS finish. Gold was assayed by fire assay using BV method FA330 with a 30g sample charge and ICP-ME finish. For samples containing greater than 10 g/t gold, the overlimit protocol is to determine gold concentration by gravimetric finish. Results of the laboratory’s quality control program which includes reference materials, analytical blanks, and analytical replicates are monitored by Headwater.

Forward-Looking Statements:

This news release includes certain forward-looking statements and forward-looking information (collectively, “forward-looking statements”) within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding future capital expenditures, exploration activities and the specifications, targets, results, analyses, interpretations, benefits, costs and timing of them, Newmont’s anticipated funding of the earn-in projects and the timing thereof, and the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Often, but not always, forward looking information can be identified by words such as “pro forma”, “plans”, “expects”, “may”, “should”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes”, “potential” or variations of such words including negative variations thereof, and phrases that refer to certain actions, events or results that may, could, would, might or will occur or be taken or achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and other factors include, among others, risks related to the anticipated business plans and timing of future activities of the Company, including the Company’s exploration plans and the proposed expenditures for exploration work thereon, the ability of the Company to obtain sufficient financing to fund its business activities and plans, the risk that Newmont will not elect to obtain any additional interest in the earn-in projects in excess of the minimum commitment, the ability of the Company to obtain the required permits, changes in laws, regulations and policies affecting mining operations, the Company’s limited operating history, currency fluctuations, title disputes or claims, environmental issues and liabilities, as well as those factors discussed under the heading “Risk Factors” in the Company’s prospectus dated May 26, 2021 and other filings of the Company with the Canadian Securities Authorities, copies of which can be found under the Company’s profile on the SEDAR+ website at www.sedarplus.ca.

Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to update any of the forward-looking statements, except as otherwise required by law.

https://headwatergold.com/