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Headwater Gold Inc. (CSE: HWG) (OTCQB: HWAUF) (the "Company" or "Headwater") is pleased to announce the results of a gravity geophysics survey completed on both its Spring Peak project and adjoining Lodestar project in western Nevada. Exploration programs on both projects were funded through earn-in agreements with Newmont Corporation ("Newmont") (NYSE: NEM, ASX: NEM, PNGX: NEM), originally announced on August 16, 2022 and May 9, 2023, respectively
Highlights:
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Untested Potential: In the southern Spring Peak project area, a mapped fault known as the Bear Fault hosts high-grade epithermal veins discovered by Headwater at the Disco Zone. Beyond the drilled extend of the Disco Zone, the Bear Fault corridor remains untested by drilling, offering opportunities for potential blind discoveries akin to Nevada's most recent tier-one discovery at AngloGold Ashanti's Arthur Project.
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Bear Fault Corridor Revealed: Based on the gravity survey, Headwater geologists interpret the Bear Fault as a major extensional structure spanning over 12 km—far beyond the previously known 1 km strike—much of it under thin, post-mineral volcanic cover.
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Priority Targets Advanced: The Zodiac target on the Lodestar project and the Doug target at Spring Peak show strong structural alignment in the gravity data, with the Doug target showing a potential linkage with the Bear Fault itself.
Caleb Stroup, President and CEO of the Company, states: " This gravity survey transforms our view of the Bear Fault corridor, expanding it to district-scale proportions and highlighting kilometres of untested potential under shallow post-mineral cover. We've gained critical insights into the 3D structure that controls known gold mineralization in the camp and have targets identified for potential future exploration activities. This prospective corridor stands out across multiple datasets, boosting our confidence in pursuing blind targets to make the next big Nevada discovery."
Spring Peak-Lodestar Gravity Survey:
The gravity survey covers approximately 200 square km with 2,336 ground stations at a nominal 400-metre spacing with 200-metre spacing over the core target area, successfully outlined major faults and basement blocks across the entire district. The survey was conducted by McGee Geophysical and MWH Geosurveys of Reno, Nevada and incorporated reprocessed USGS data using a 2.40 g/cc density model for the complete Bouguer anomaly.
The survey was effective at detecting density contrasts to map hidden geology beneath post-mineral volcanic flows. The key finding, which the Company considers highly significant, is a deep-seated fault system along the Bear Fault corridor marked by sharp northeast-trending breaks in the total horizontal gradient (Figure 1) with the structure extending from the Disco Zone in the southwest to the Doug area in the northeast. Gravity data reveals the persistence of the fault system beneath thin post-mineral volcanic flows, allowing Headwater to prioritize potential exploration activities for potential vein-hosting structures through cover.
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Figure 1: Total horizontal gradient map of the Spring Peak/Lodestar area, highlighting the Bear Fault corridor as a sharp northeast-trending density contrast extending 12 km in length under thin volcanic cover.
Bear Fault Corridor in Gravity Data:
The Bear Fault is expressed as northeast-trending breaks bounding and dissecting kilometre-scale highs which are interpreted as basement blocks. Major gravity breaks are visually emphasized on the total horizontal gradient map (Figure 1), showing denser basement rocks northwest of the Bear Fault versus less dense rhyolite domes on the southeast side. The NE trend highlighted by the gravity survey is aligned with both the dominant vein orientation in the district and strong lineaments at surface, but the deep contrast indicates a major older structure reactivated beneath young cover, a geological setting widely viewed as prospective for epithermal systems.
Drilling to-date has been limited to the southern end of the Bear Fault corridor at the Disco Zone (Figures 1 and 2), where high-grade veins occupy one fault zone that is revealed to be one among many defined by the gravity survey. The Doug target, with outcropping high-grade veins (announced March 15, 2025), is similarly situated, only on the northern end of Bear Fault corridor. The Doug target is on a gravity break inboard of the edge of a major gravity high (Figure 2). Headwater interprets this setting as a subsidiary fault strand adjacent to a major fault bounding the basement gravity high on its southeast side.
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Figure 2: Residual complete Bouguer anomaly map of the Spring Peak/Lodestar area, showing gravity highs correlated with fault-bounded basement blocks and host rocks, dissected by the Bear Fault corridor.
Lodestar Targets in Gravity Data:
The top priority drill target on the Lodestar property is the Zodiac target, which features a prominent silicified and brecciated ridgeline capped by a silica sinter. The gravity survey reveals the Zodiac target is situated on a prominent northwest-trending gravity break (Figure 2) which Headwater interprets as a significant deep-seated extensional fault. Veins and breccias mapped on surface at the Zodiac target are aligned with the gravity break and are similarly northwest- trending. The interpreted fault represents a potential conduit and host for high-grade vein mineralization in an inferred boiling zone beneath the Zodiac sinter in a setting analogous to the Disco Zone discovered by Headwater beneath the Spring Peak sinter 10 km to the south. An initial drill program totaling up to 3,500 m comprising 10 to 15 holes to test the Zodiac target and other Lodestar targets is underway (see Headwater October 14, 2025 news release).
Implications for Exploration:
Residual complete Bouguer anomalies tie the Disco, Doug and Zodiac targets to bounding faults at the margins of major gravity highs, typical of epithermal districts globally where mineralization is commonly focused along the edges of fault-bounded bedrock uplifts. This survey refines regional targeting along the Bear Fault, illuminating blind opportunities under cover and guiding efficient, high-potential drilling in this prolific Nevada trend. Additional exploration programs are in progress to further resolve vein targets within the major structural corridors identified by the gravity survey. These follow-up programs continue to leverage the industry-leading technical expertise within Newmont to deploy deep-sensing geochemistry and high-resolution ground-based geophysical techniques to explore through cover.
About the Spring Peak Project:
The Spring Peak project is located in the Aurora Mining District in the Walker Lane belt, west-central Nevada, approximately 50 km southwest of the town of Hawthorne. The project adjoins Hecla Mining Company's past-producing Aurora Mine complex, where existing infrastructure includes a 600 ton per day mill, several production water wells and high-voltage three-phase power. Recent drilling at the Disco Zone has confirmed the presence of high-grade gold mineralization, including significant intersections such as 15.92 g/t Au over 2.38 m and 10.43 g/t Au over 2.01 m within a broader zone of 2.73 g/t Au over 34.72 m. The Spring Peak project has been selected by the US Federal Government for the FAST-41 permitting program which a federal initiative designed to streamline approvals for vital infrastructure, ensuring that designated mining projects move through an efficient review and authorization process. An exploration Plan of Operations has been submitted to the US Forest Service proposing up to 266 potential additional drill sites to further explore for extensions of known mineralization and test additional targets within the land package. Headwater holds an option to acquire a 100% undivided interest in the Spring Peak project from Orogen Royalties (TSXV: OGN), subject to retained royalties and subject to Newmont's option to acquire up to 75% of the project following certain expenditures and preparation of a Pre-Feasibility Study within a designated time frame. On September 26, 2025 the Company announced that Newmont has elected to advance to Stage 2 of the Spring Peak earn-in agreement, whereby they have the opportunity to increase their interest in the project from 51% to 65% by funding exploration expenditures of US$40,000,000 over a 3-year period.
About the Lodestar Project:
The Lodestar project is located approximately 10 km north of the Company's Spring Peak project in the Aurora Mining District and adjoins Hecla's past-producing Aurora mine complex to the south. Silica sinter exposures and other high-level epithermal alteration features at Lodestar are geologically analogous to the Spring Peak project and suggest the potential for preservation of undiscovered high-grade epithermal veins at depth. Headwater has initiated the first significant exploration program on the property since 1988.
Headwater holds an option to acquire a 100% undivided interest in the Lodestar project from a private vendor, subject to retained royalties and Newmont's option to acquire up to 75% of the project following certain expenditures and preparation of a Pre-Feasibility Study within a designated time frame.
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 which continue under partnership. In September 2024, Centerra Gold Inc. acquired a strategic 9.9% interest in the Company through a non-brokered private placement.
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
For further information, please contact:
Brennan Zerb
Investor Relations Manager
+1 (778) 867-5016
Qualified Person:
The technical information contained in this news release has been reviewed and approved by Gregory Dering, PhD, P.Geo (AIPG CPG-12298), a "Qualified Person" ("QP") as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Dr. Dering is not independent by reason of being the Company's Vice President of Exploration.
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.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.
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