First-Pass Drill Program On The Mahogany Gold Project

VANCOUVER - Headwater Gold Inc. reported the successful completion of the first-pass core drill program on its 100% owned Mahogany gold project. It also announced that it has commenced drilling on Katey gold project located in Southeast Oregon.

Caleb Stroup, President and CEO, said, “The completion of the Mahogany drill program marks the third successfully executed program since our public listing, approximately five months ago. Initial geologic indications from Mahogany confirm that the Project hosts a significant epithermal system. The breccias and quartz vein textures encountered in the drilling are indicative of the upper portions of the boiling horizon, implying we are targeting the correct level of the system, with additional targets still remaining at depth. Assays are required to better understand the significance of individual drill intercepts, but the presence of quartz veining and favorable alteration combined with detailed structural information collected from the oriented core is enabling the Company to further refine the exploration model and move forward with improved confidence. Drilling has now begun on the nearby Katey Project, where our objective is to test for vein mineralization in structural feeders immediately below mineralization encountered in shallow historic drilling”.