 |
| OceanaGold Gold Exploration Project |
Strategic Deal Sets Stage for $65M Investment in U.S. Gold Projects
OceanaGold has entered a definitive exploration agreement with Headwater Gold to jointly develop three key gold exploration projects in Nevada. The deal allows OceanaGold to earn up to a 75% interest through staged investments totaling $65 million. This includes the TJ, Jake Creek, and Hot Creek projects, all situated on federal Bureau of Land Management (BLM) land.
Focused Investment Across Three Epithermal Gold Systems
Under the agreement, OceanaGold will commit a minimum of $2.5 million in exploration across all three sites over the next two years. In return, the company can earn a 65% interest by investing $25 million each in TJ and Jake Creek, and $15 million in Hot Creek. Upon completing pre-feasibility studies (PFS), OceanaGold may acquire an additional 10% stake in each project. In parallel, Headwater Gold will retain a 1% net smelter return (NSR) royalty, ensuring long-term upside potential.
The TJ project, located 25 km southeast of Jackpot, is already undergoing drill mobilisation. Meanwhile, the Jake Creek project spans 189 unpatented claims in Humboldt County, 8 km east of Nevada Gold Mines' Turquoise Ridge complex. The Hot Creek project, royalty-free and fully owned by Headwater, covers 52 unpatented claims in the Tuscarora District, a historically significant mining zone.
Operational Management and Strategic Outlook
Headwater Gold will oversee the initial operations and receive a 10% management fee under the agreement. According to Caleb Stroup, Headwater President and CEO, the TJ site offers a robust epithermal system with high-priority drill targets identified in 2024. The partner-funded drilling aims to validate and unlock TJ’s geological potential in 2025.
This collaboration underscores OceanaGold’s strategic shift toward North American exploration, diversifying its portfolio while leveraging Headwater’s technical footprint in Nevada. The involvement of two technically capable operators signals a potentially significant addition to the U.S. gold development pipeline.
ScrapInsight Commentary
The Headwater–OceanaGold alliance marks a notable pivot toward upstream asset development in stable jurisdictions like Nevada. If drill results at TJ and Jake Creek meet expectations, this deal could impact mid-tier gold supply forecasts post-2027. Furthermore, the structured earn-in model reflects a broader trend in capital-efficient exploration partnerships within the mining industry.
