Spring Peak

Spring Peak
Headwater Gold Inc.
Nevada, U.S.

Up to 1.0% NSR royalty + cash payments and exploration expenditures

Spring Peak location map


 Headwater Gold Inc https://headwatergold.com/

Project Overview and History

The Spring Peak project features a low-sulfidation epithermal gold system with hydrothermal breccias and banded epithermal quartz veins exposed at surface. Rock sampling returned up to 35.7 grams per tonne gold with anomalous pathfinder elements that coincide with a soil geochemical anomaly. The epithermal gold system is fully preserved from surface sinters to the basement and contains classic banded veins and quartz after calcite boiling textures, all of which indicate exploration potential at depth.

Transaction Summary

On July 13, 2021, Orogen announced it has signed an option agreement with Headwater Gold Inc. (“Headwater”) for the Spring Peak gold project in Nevada, USA. To earn a 100% interest in the Spring Peak project, Headwater will provide a cash payment of US$10,000, a cash or share payment totaling US$250,000 (subject to receipt of certain permits from the United States Forest Service), incur exploration expenditures of US$250,000 within 24 months of signing the agreement, and maintain all required underlying vendor payments and royalties. Orogen will retain a 0.5% net smelter NSR royalty and an option to purchase an additional 0.5% NSR royalty for US$1.0 million.

Recent Exploration Activities

In  2021, Headwater announced the discovery of a new blind gold discovery with drill hole SP 21-03 returning 38.1 metres grading 1 g/t gold including 9.2 m grading 2.49 g/t gold.

In 2022, Headwater announced an Earn-In Exploration Agreement with Newcrest with a minimum of US$ 5 million expenditure on Spring Peak within 36 months of Execution. Newcrest can spend US$60 million to earn a 75% interest in the project and commenced a 3200-metre drill program. Highlights from that drill program include:

  • Drill hole SP22-11 intercepted 43.7 g/t Au over 0.63 metres (“m”) within a broader interval of 40.63 m grading 1.86 g/t Au;
  • Drill hole SP22-12 intercepted 23.5 g/t Au over 0.33 m within a broader interval of 42.61 m grading 0.94 g/t Au;
  • Drill hole SP22-13 intercepted 34.72 m grading 2.73 g/t Au, including 15.92 g/t Au over 2.38 m and 10.43 g/t Au over 2.01 m.

In 2023, Headwater completed 25 drill holes totaling 8,475 metres on the Spring Peak property1. Drilling focused on the discovery at the Disco vein, expanding the gold mineralization to the northeast and southwest over a strike length of 350 metres and to a depth of 300 metres. Multiple drill holes also intersected a region of shallower mineralization, 130 metres above the main Disco Zone structure, possibly representing a parallel mineralized structure (drill hole SP23-17). Highlight holes from the Disco Zone drilling include:

  • SP23-17 with 20.46 metres grading 2.59 grams per tonne (“g/t”) gold including 1.21 metres grading 13 g/t gold and 3.11 metres grading 9.00 g/t gold
  • SP23-28 with 25.54 metres grading 1.75 g/t gold including 8.04 g/t gold over 1.19 metres and 5.35 g/t gold over 2.59 metres
  • SP23-33 with 37.01 metres grading 1.28 g/t gold including 6.53 g/t gold over 1.68 metres and 6.27 g/t gold over 1.19 metres

The Disco vein remains open along strike and to depth with a step out hole (SP 23-37) drilled along strike 400 metres to the northeast of the Disco Zone, at the “Pioneer Zone”, encountering a 2.5 metre wide structure-hosted epithermal vein (assay results pending).

A scout drilling program tested regions of epithermal alteration across the property and returned multiple prospective intersections for 2024 follow up including SP23-23 grading 0.54 g/t gold over 9.17 metres and 0.40 g/t gold over 35.05 metres.

Headwater have confirmed a 7000-metre drill program for 2024 funded by Newmont. The estimated twenty to twenty five hole program is expected to start in early summer 2024.

April 2024: https://headwatergold.com/2024/headwater-gold-announces-planned-2024-drill-programs-on-spring-peak-and-lodestar-projects-nevada/

December 2023: https://headwatergold.com/2023/headwater-gold-provides-exploration-update-including-additional-high-grade-gold-results-from-spring-peak/

October 2023: https://headwatergold.com/2023/headwater-gold-announces-high-grade-gold-in-initial-results-from-the-2023-spring-peak-drill-program-nevada/

September 2023: https://headwatergold.com/2023/headwater-gold-provides-update-on-2023-drilling-activities/

March 2023: https://headwatergold.com/2023/headwater-gold-announces-additional-high-grade-assays-from-spring-peak/

January 2023: https://headwatergold.com/2023/headwater-gold-reports-high-grade-gold-from-multiple-veins-in-initial-assays-from-drill-hole-sp22-13-spring-peak-project-nevada/

December 2022: https://headwatergold.com/2022/headwater-gold-announces-completion-of-2022-drilling-campaigns-at-the-spring-peak-and-agate-point-projects-nevada/

September 2022: https://headwatergold.com/2022/headwater-gold-commences-multi-rig-drill-program-at-the-spring-peak-project-nevada-to-follow-up-epithermal-vein-discoveries/

August 2022: https://headwatergold.com/2022/headwater-gold-and-newcrest-mining-sign-four-earn-in-exploration-agreements-and-newcrest-subscribes-to-strategic-equity-investment/

July 2022: https://www.orogenroyalties.com/news/orogen-options-the-spring-peak-project-to-headwater-gold

November 2021: https://headwatergold.com/headwater-gold-announces-new-blind-epithermal-gold-discovery-at-spring-peak-nevada-and-triples-size-of-land-position/

September 2021: https://headwatergold.com/headwater-gold-completes-drill-program-at-spring-peak-project-nevada/

August 2021: https://headwatergold.com/headwater-gold-commences-drilling-at-spring-peak-project-nevada/