Vancouver, British Columbia, December 12, 2022: Headwater Gold Inc. (CSE: HWG) (OTCQB: HWAUF) (the “Company” or “Headwater”) announces that it has re-acquired a 100% interest in the Flint epithermal gold-silver project (the “Project”), located in southern Idaho.
- The Flint project is located in a historic high-grade silver mining district with potential for new precious metal discoveries;
- The Project occurs in an analogous geologic setting to the adjacent to Integra Resources DeLamar project1; and,
- The Project is 100% owned and royalty-free.
Caleb Stroup, Headwater’s President and CEO, commented: “We are happy to have the Flint project back in the Headwater portfolio as it is located in a rapidly developing and highly prospective epithermal gold-silver belt in southern Idaho. Flint was one of the early projects staked by Headwater and the prospectivity of the Project remains very high. We will immediately begin work re-evaluating the near-term exploration potential at Flint and prioritizing further work in the context of our 100% owned asset portfolio”.
Figure 1: Location of the Flint project relative to Integra Resources’ DeLamar project2.
About the Flint Project:
Flint is 100% owned by Headwater and royalty free, consisting of 130 claims totalling 1,020 hectares. The Project is located on BLM land approximately 7 kilometres southwest of Integra Resources’ DeLamar and Florida Mountain deposits (Figure 1).
Preserved high-level epithermal alteration occurs in the target Silver City Rhyolite package which is the ore host at the historic DeLamar and Florida Mountain mines.
More than 1.5 M oz of silver was reportedly produced from the Flint District at bonanza grades (20-30 oz/ton Ag) from veins emplaced in late Cretaceous plutonic rocks of the Silver City granite3. The same pre-volcanic basement rocks are interpreted to host silver-gold veins at Florida Mountain that comprise an analogous high grade low-sulfidation gold-silver system.
Potential for gold-silver mineralization at Flint in a geologic setting analogous to the adjacent DeLamar deposit has been recognized but never drill tested1. Tertiary volcanic rocks overlying the Flint vein system are preserved in the hanging wall of the Flint Creek fault and host widespread silica and clay alteration (Figure 2). The volcanic package includes rhyolitic flows, vent facies and basalts that are equivalent to the major ore-hosting units at DeLamar.
Huntsman Exploration (“Huntsman”) acquired the Flint project from Headwater in December 2020 for a cash payment of US$100,000 and 8,450,000 common shares. Huntsman elected to relinquish the Project without conducting any exploration work and pursuant to the original agreement, relinquished the claims to Headwater for a nominal cost of US $130.
Figure 2: Highly altered and flow banded Silver City Rhyolite in hanging wall of Flint Creek Fault.
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 comprised of experienced geologists with diverse capital markets, junior company and major mining company experience. The Company is systematically drill testing several projects in Nevada, Idaho, and Oregon and has recently announced a significant transaction with Newcrest Mining Limited where Newcrest acquired a 9.9% strategic equity interest in the Company and entered into earn-in agreements on four of Headwater’s projects.
For more information, please visit the Company’s website at www.headwatergold.com.
On Behalf of the Board of Directors
President and CEO
+1 (775) 409-3197
For further information, please contact:
Investor Relations Manager
+1 (778) 867-5016
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.
1The Silver City Rhyolite target owned by the Company is an exploration target with no resources or reserves. Gold-silver mineralization on Integra Resources’ DeLamar and Florida Mountain projects does not indicate similar mineralization is present on the Company’s Flint project.
2Ivosevic, Stanley W., 1980, Flint District Map, Owyhee County, Idaho, prepared for Santa Fe Mining Inc., 1:6000 scale, 1 sheet.
3Bonnichsen, W., 1983, Epithermal Gold and Silver Deposits Silver City-DeLamar District, Idaho, Idaho Geological Survey, Technical Report 83-4, 34 p.
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, Newcrest’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 Newcrest will not elect to obtain any additional interest in the 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.sedar.com.
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.