Vancouver, British Columbia - TheNewswire - October 14, 2025: Headwater Gold Inc. (CSE: HWG) (OTCQB: HWAUF) (the "Company" or "Headwater") is pleased to announce the commencement of drilling on the Lodestar project, located in the Walker Lane mineral belt of western Nevada. The program will total up to 3,500 metres of combined core and reverse circulation (“RC”) drilling, fully funded through an earn-in agreement with Newmont Corporation (“Newmont”) (NYSE: NEM, ASX: NEM, PNGX: NEM) announced on May 9, 2023.

Highlights:

• Up to 3,500 metres of core and RC drilling: Program to consist of 10 to 15 holes testing multiple gold targets on the Lodestar property. 

• Fully Funded Program:The planned drill program is fully funded through a US$2M minimum expenditure commitment by Newmont.  

• Priority focus on the Zodiac sinter ridge target: First systematic test of epithermal vein targets at depths greater than 100 metres below silica sinter and adjacent intensely altered breccias at the Zodiac target. 

• Additional drilling to target major structures concealed under thin volcanic cover: Structural targets supported by a combination of CSAMT resistivity, induced polarization and detailed gravity will be tested with RC scout drilling. 

Caleb Stroup, President and CEO of the Company, states: “The start of drilling at Lodestar marks an exciting step for Headwater. The initial focus of this much anticipated program will be the Zodiac sinter target, where the geology and geophysics point to a well-preserved epithermal system with significant discovery potential. The program is designed to test both the structural feeders beneath the sinter and a series of geophysical anomalies elsewhere on the property for high-grade epithermal veins at depth. The endowment of the greater Aurora district, together with the intensity and character of the surface alteration at Lodestar, give our geologists a high degree of optimism as we kick this drilling off.  With strong support in place from our funding partner, we are well positioned to advance Lodestar aggressively and test multiple high-priority targets in one of Nevada’s most prospective gold districts.”

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Figure 1:  Map of the Headwater Spring Peak and Lodestar land positions within the Aurora trend showing area of the Spring Peak 2024 drill program. [1]Vikre and others (2015); [2]Borealis Mine NI43-101 report dated February 16, 2024; [3]Long and others (1998).

2025 Lodestar Drill Program

The 2025 program represents the first modern drill test of the Lodestar property and is designed to evaluate the Zodiac target structural corridor which currently has approximately 700 metres of exposed strike length and has the potential to extend farther in both directions under volcanic cover (Figure 2). Core drilling will initially focus on testing structural feeder zone targets beneath the silicified fault breccia and sinter ridge on the Zodiac target. A three-hole fence is planned beneath the silicified breccia to be followed by at least one hole 175 metres north, beneath thick sinter blocks. Each hole is designed to intersect the west-dipping structural zone. The holes are targeting an inferred boiling horizon 150 to 250 metres below surface where gold-silver deposition can occur in low-sulfidation vein systems. The location of subsequent core holes will be prioritized based on the structure and alteration encountered in the initial drilling. The drill program design allows flexibility to adapt drilling based on geology and field-based analytical results, including pre-collared RC/core tails along strike if mineralized structures are confirmed.

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Figure 2:  Map of the planned Lodestar drilling which is centered on the Zodiac target and also includes concealed geophysical targets.

RC drilling will test several concealed targets, guided by CSAMT resistivity, IP, and gravity data that delineate steep gradients consistent with faulted basement blocks. The targets include an inferred footwall structure parallel to the main Zodiac target and a major ENE-trending gravity break that lies parallel to the main mineralized trend of Hecla’s adjacent Aurora mine. Additional drilling is planned north and south along strike from the Zodiac target where gravity and resistivity anomalies suggest a continuation of the Zodiac structure beneath thin volcanic cover.

 

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Figure 3:  A) Looking east at core rig drilling on the Zodiac target with silica sinter in the foreground and silica ribs forming resistant ridge above the drill road; B) Alternating laminated, palisades, and clotted silica sinter textures; and C) Cross-cutting banded quartz veins in silicified rhyolite tuff.

About the Lodestar Project

The Lodestar project is located in the Aurora Mining District in the Walker Lane belt, west-central Nevada, approximately 10 km north of Headwater’s Spring Peak project and adjacent to Hecla Mining Company’s past-producing Aurora mine complex, which hosts existing infrastructure including a 600 ton per day mill, several production water wells and high-voltage three-phase power. The project features a prominent silicified and brecciated ridgeline capped by a silica sinter, similar in scale to the sinter overlying the Disco Zone at Spring Peak, where Headwater intersected high-grade gold mineralization, including 15.92 g/t Au over 2.38 m and 10.43 g/t Au over 2.01 m. The Zodiac sinter shows evidence of dynamic fluid flow and volatile transport of far greater intensity than at Spring Peak, including widespread oxidation after sulfides, cross-cutting fluidized breccias, and vent features. The structurally aligned breccia bodies on the adjacent ridgeline are similarly characteristic of a particularly high energy vent environment, with intense silica flooding, oxidation, and host cross-cutting high level silica veins. The conceptual model guiding the Lodestar drill program builds on the successful exploration model at Spring Peak. The preserved silica sinter represents a fossil hot-spring apron at the paleosurface, while high-grade mineralization is expected to occur in steeply dipping feeder faults at depth. By drilling beneath the sinter and adjacent outcropping breccia at Lodestar, the Company aims to identify epithermal veins within the fault zone at depth.

Historic shallow drilling at Lodestar encountered anomalous gold but did not test deeper feeder structures, leaving exploration potential untested. 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 delivery 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 exploring for and discovering high-grade precious metal deposits in the Western USA.  Headwater is actively exploring one of the world’s most well-endowed, mining-friendly jurisdictions, with a goal of making world-class precious metal discoveries.  The Company has a large portfolio of epithermal vein exploration projects and a technical team with diverse experience in capital markets and major mining companies.  Headwater is systematically drill-testing several projects in Nevada and has strategic earn-in agreements with Newmont on its Spring Peak and Lodestar projects.  In August 2022 and September 2024, Newmont and Centerra Gold Inc. acquired strategic equity interests in the Company, further strengthening Headwater’s exploration capabilities.

For more information about Headwater, please visit the Company's website at www.headwatergold.com.

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.

On Behalf of the Board of Directors

Caleb Stroup

President and CEO

+1 (775) 409-3197

cstroup@headwatergold.com

For further information, please contact:

Brennan Zerb

Investor Relations Manager

+1 (778) 867-5016

bzerb@headwatergold.com

References:

 

Vikre, P.G., John, D.A., du Bray, E.A., and Fleck, R.J., 2015, Gold-silver mining districts, alteration zones, and paleolandforms in the Miocene Bodie Hills volcanic field, California and Nevada: U.S. Geological Survey Scientific Investigations Report 2015–5012, 160 p.

Borealis Mining Company Limited, 2024, NI 43-101 Technical Report, Project Status Report Borealis Mine Nevada USA: Prepared by Douglas Reid. Effective Date: October 10, 2023; Report Date: February 16, 2024.

Long, K.R., DeYoung, J.H., and Ludington, S.D., 1998, Database of significant deposits of gold, silver, copper, lead, and zinc in the United States: U.S. Geological Survey Open-File Report 98-206 A, B, 33 p.

Qualified Person

The technical information contained in this news release has been reviewed and approved by Dr. Gregory Dering, 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.

References

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 prognostic 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.