Newmont-funded Nevada gold project selected for FAST-41 permitting

[Redator]

Headwater Gold (CSE: HWG) says its exploration permit on the Spring Peak project in Nevada has been selected as part of the FAST-41 program, a US federal initiative designed to streamline approvals for vital infrastructure related to mining projects.

In a press release on Monday, the Canadian-listed gold junior confirmed that the exploration project, referred to as the Burnt Rock Plan of Operations, will now appear on the FAST-41 project dashboard. This inclusion would provide for “transparent and efficient regulatory review and predictable permitting timelines” for the Spring Peak gold exploration project, Headwater said.

Shares of Headwater Gold rose by nearly 5% on Tuesday following the announcement, giving the Vancouver-based company a market capitalization of C$47.4 million ($33.8 million).

Newmont-funded exploration

Exploration at Spring Peak is being funded by Newmont (NYSE, ASX: NEM), the world’s leading gold miner, as part of an earn-in agreement entered into in August 2022. Under that agreement, Newmont can acquire up to 75% of the Spring Peak project by spending $55 million in exploration in two stages and completing a prefeasibility study in the third and final stage.

Last month, it completed the first stage by spending $15 million, thereby earning a 51% initial interest. The currently contemplated exploration program pertains to the second stage, where the Colorado-based miner can spend another $40 million within three years for an additional 14% interest. The remaining 10% will be contingent on the PFS completion.

Newmont’s decision to proceed to Stage 2 follows its “discovery of the high-grade Disco zone, encouraging drill results from the Shadow target, and an expanding set of additional property scale targets,” Headwater’s president and CEO Caleb Stroup said in a press release dated Sept. 26, noting that a “significantly expanded drill permit” is currently undergoing agency review.

Under the plan of operations, Newmont will increase the exploration search space on the project and opens up exploration drilling along the interpreted projection of mineralized trends under thin volcanic cover. This includes the potential construction of up to 266 drill sites, 29 miles of new access roads, and a comprehensive reclamation plan for all proposed exploration activity disturbance.

Commenting on the FAST-41 inclusion, Stroup said: The continued support of the federal government for mining and exploration projects underscores the growing recognition of the importance of a domestic mineral supply chain. FAST-41 is the track that high-quality, federally recognized projects are placed on, providing the transparency and predictability that are so critical to advancing exploration in the US.”

High-grade gold in Nevada

The Spring Peak project is located in western Nevada’s Walker Lane belt, a region with over 170 years of gold and silver production history and home to major mining operations. The property sits next to Hecla Mining Company’s past-producing Aurora mine, where existing infrastructure includes a 600-ton-per-day mill, several production water wells and high-voltage three-phase power.

Drilling to date has confirmed the presence of high-grade gold mineralization at the Disco zone, including intersections such as 15.92 grams per tonne (g/t) gold over 2.38 metres and 10.43 g/t gold over 2.01 metres, within a broader zone of 2.73 g/t gold over 34.72 metres.

Headwater currently holds an option to acquire a 100% undivided interest in the Spring Peak project from Orogen Royalties (TSXV: OGN), subject to retained royalties and Newmont’s earn-in option.