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

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 U.S. federal initiative designed to streamline approvals for vital infrastructure related to mining projects.

“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 U.S.,” Headwater President and CEO Caleb Stroup said in a release. 

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.

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

Drilling planned

Newmont plans to widen the exploration search and start 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 (47 km) of new access roads, and a comprehensive reclamation plan for all proposed exploration activity disturbance.

Drilling to date has confirmed the presence of high-grade gold mineralization at the Disco zone, including intersections of 2.73 grams gold per tonne over 34.72 metres, 15.92 grams over 2.38 metres and 10.43 grams over 2.01 metres. 

Last month, Newmont completed the earn-in’s first stage by spending $15 million and earning a 51% initial interest. The 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 two 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 Stroup said in a Sept. 26 release. A “significantly expanded drill permit” is undergoing agency review, he added. 

Historical area

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’s (NYSE: HL) past-producing Aurora mine, where existing infrastructure includes a 600-ton-per-day mill, several production water wells and high-voltage three-phase power.

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