Acquisition Of New Epithermal Gold Project

VANCOUVER - Headwater Gold Inc. has acquired the Crane Creek Gold Project in western Idaho through a combination of claim staking, leasing private land, purchasing senior unpatented mining claims, and the award of a minerals lease by the state of Idaho.

Caleb Stroup, President and CEO, said, “The Crane Creek Project is an exceptional exploration opportunity in the increasingly active and mining-friendly jurisdiction of Idaho.  Fragmented land ownership and surface access limitations hindered previous exploration efforts, and the Project has seen essentially no activity since 1996. After well over a year of work, the Company has consolidated the district and secured a long-term surface access agreement. Crane Creek hosts a large gold anomaly at surface with a coincident swarm of outcropping high-level epithermal veins that has seen virtually no targeted exploration for high-grade vein mineralization.  Limited shallow historic drilling points to excellent high-grade potential at depth, in addition to the lower-grade mineralization which may be amenable to open-pit extraction.  It is encouraging that the mercury-rich cap of the epithermal system is located only a few meters topographically above the outcropping veins and surface gold anomaly, suggesting the system is fully preserved.”

The Crane Creek Project is located in western Idaho, approximately 18 km northeast of the town of Weiser and 90 km northwest of the city of Boise, with a paved County road less than 1 km from the southern Property boundary.  The Project encompasses an array of mineralized quartz veins within a broad gold and trace element geochemical anomaly with features characteristic of a fully-preserved low-sulfidation epithermal system, including mercury prospects, widespread opaline silica, and chalcedonic vein fill.  This alteration cell is located 8 km along trend northwest of the Almaden gold project (910,000 oz Au Indicated, 160,000 oz Au Inferred). The Crane Creek Project comprises approximately 1,240 hectares, consisting of 123 unpatented federal mining claims on BLM land, a 640 acre State of Idaho minerals lease, and a private lease.