Outcropping High-Grade Veins Identified At New Doug Target On Spring Peak Property

VANCOUVER - Headwater Gold Inc. reported the identification of outcropping high-grade epithermal veins at the newly identified Doug target, part of its expanding Spring Peak project located in Nevada. Exploration at Spring Peak is fully funded through an earn-in agreement with Newmont Corporation.  The newly recognized veins at the Doug target were found through a recently completed surface exploration program.

The Doug target lies approximately 9 kilometres (km) north of the high-grade Disco Zone and is situated along the trend of the Bear Fault, a regionally significant structure which also hosts the Disco Zone mineralization to the south. The Bear Fault projects under thin post-mineral cover to the north from Disco to a small erosional window at Doug where prospective host rocks are again exposed. The occurrence of gold-bearing veins at surface in this area highlights the broader potential of the covered portions of the trend.

New High-Grade Veins at Doug Target: Outcropping epithermal quartz veins have been sampled at the Doug target area, returning exceptional gold grades including 21.8 g/t Au, 9.52 g/t Au and 7.82 g/t Au. Bear Fault Corridor Emerging as a District-Scale Structure: The Bear Fault hosts Headwater’s high-grade Disco Zone 9 km to the south of Doug and remains open and untested by drilling under shallow cover between the two target areas. Preserved Epithermal System: Vein textures and geochemistry at Doug indicate a high-level position within an epithermal system, suggesting potential for a preserved high-grade vein target at depth.

Caleb Stroup, President and CEO, said, "The newly identified outcropping epithermal quartz veins with high-grade gold values at the Doug target provide a compelling indication of the scale and preservation of the mineral system along the Bear Fault corridor within the expanded Spring Peak project.  This sampling marks the first confirmation of in-situ epithermal veins at the Doug target, following previously reported widespread mineralized vein float along the northern extension of the Bear Fault corridor.  The Bear Fault corridor hosts our high-grade Disco Zone discovery and is interpreted as a district-scale structure that extends beneath cover for several kilometres before daylighting in a limited area at Doug.  The high-grade gold values sampled here reinforce our view that this corridor and the entire area between the Aurora and Borealis mines, has the potential to host multiple significant mineralized zones. Headwater now controls over 12 km of strike extent in this well renowned epithermal district and looks forward to advancing these targets along with our partner Newmont to further uncover the full potential of the Spring Peak project.”