Terraco Gold Corp.

Terraco Gold Corp.

May 01, 2008 07:00 ET

Terraco Reports Its 2008 Exploration Program Underway, Drilling Begins at Middglegate

Terraco also reports gold values from rock samples at Moonlight of up to 11.86 gpt Gold

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 1, 2008) - Terraco Gold Corp. ("Terraco") (TSX VENTURE:TEN) is pleased to announce that its 2008 exploration program is underway, with drilling beginning at its Middlegate property today. This fully-funded exploration program covers both of Terraco's 100%-owned Nevada properties, Middlegate and Moonlight. Work in progress and planned includes:

Middlegate Property

- The Phase I drill program begins today with the first of 6 planned reverse circulation (R-C) holes. Drilling is being conducted by Eklund Drilling Company, Inc. of Elko, Nevada. Hole depths are expected to vary from 250 to 375 meters (830 to 1,250 feet), for a total initial program of 1,800 to 2,500 meters (6,000 to 8,300 feet).

- A soil sampling program commenced April 14, 2008. To date, 216 soil samples have been delivered to American Assay Labs in Sparks, Nevada.

- Mapping and sampling is ongoing.

Based upon initial observations, alteration and mineralization at Middlegate represent the uppermost levels of a hydrothermal system, at or near paleo-surface. Targets at the Middlegate Property include volcanic-hosted, fault, breccia, stockwork, and/or vein-hosted, high-grade epithermal gold-silver deposits. The initial drilling program will focus on targets generated by preliminary mapping and rock samples as reported in News Release 2007-11 dated December 5, 2007. More than 105 rock samples (including outcrop, dump, float and channel) have been taken to date.

Three mineralized structures on the Middlegate Property, having apparent strike lengths of up to 900 meters (3,000 feet), have been identified. Two of these structures are exposed in the main pit on the property. As previously announced, results of samples cut from the main pit ranged from trace values to highs of 9.2 grams per tonne ("gpt") (0.268 Troy ounce per ton - "opt") gold and 38.5 gpt (1.12 opt) silver. Samples taken nearly 300 meters (1,000 feet) east of the main pit, along strike of one of the same fault/breccia zones, returned values of up to 5 gpt (0.146 opt) gold and up to 39.7 gpt (1.16 opt) silver. Outcrop samples taken more than 360 meters (1,200 feet) west of the main pit assayed as high as 4 gpt (0.117 opt) gold and 114 gpt (3.33 opt) silver. In addition, results of up to 6.44 gpt (0.188 opt) gold were obtained from samples more than 900 meters (3,000 feet) from the main pit. These samples were taken at a prospect along a different structural zone in brecciated hot springs sinter.

Additional targets are expected to be generated from the results of the soil sampling program and will be drilled in a Phase II program.

The Middlegate Property is located in Churchill County, Nevada, approximately 5 miles southwest of Middlegate Junction. This region is known for historic mining success, including notable districts such as Fairview, Rawhide, and Paradise Peak.

Moonlight Property

- Permitting is currently underway for a Phase II drill program.

- Total budget for the Phase II drill program includes 22 to 25 drill holes ranging in target depths from 150 to 450 meters (500 to 1,500 feet), for a total of 9,000 meters (nearly 30,000 feet).

- Drilling at Moonlight is to follow drilling at Middlegate and is expected to start in late spring or early summer.

- Rock samples have been taken on property added to the Moonlight Project package in the Fall of 2007. Two samples taken from a dump returned values of 11.86 gpt (0.346 opt) gold and 139 gpt (4.05 opt) silver as well as 5.42 gpt (0.158 opt) gold and 17.7 gpt (0.52 opt) silver. Additionally, a 5 foot chip sample taken across an outcrop returned 4.77 gpt (0.139 opt) gold and 74.1 gpt (2.16 opt) silver. This additional property is located within the Moonlight Project boundary and east of the Phase I drilling. The Moonlight Property comprises over 5,900 acres.

Terraco completed 15 holes for a total of 3,000 meters (9,980 feet) of reverse circulation drilling in its Phase I program on December 12, 2007. Results were announced in News Release 2008-01 dated January 31, 2008. This Phase I program was designed to test geophysical anomalies and several structural targets in the alluvium-covered Moonlight Basin and adjacent areas with no outcrop.

Highlights of the drill results included anomalous silver in 8 of the 15 holes drilled, to a high of 15.54 gpt silver over 1.5 meters in TML-04 and 1.018 gpt silver over 16 meters in TML-07. Gold was assayed in 2 of the 8 mineralized holes to a high of 0.155 gpt over 1.5 meters.

This first drilling ever conducted on the Moonlight Property was within an area of approximately 170 hectares (420 acres), which constitutes less than 10% of the entire Moonlight Property. The information obtained from this drill program greatly improved the understanding of this grassroots project and the underlying geology in the Basin. Based on the interpretation of the Phase I drill data, Terraco generated new and enhanced targets for the Phase II drill program.

The Moonlight Property is located 21 miles northeast of Lovelock, Nevada in the Humboldt Range, 5 miles north of Coeur d'Alene Mining Company's Rochester Mine.

Assay determinations for gold were by 60 gram Fire Assay (detection limit of 0.003 gpt Au). Assay determinations for silver were by specific analyses (0.5 gram sample, 2 acid digest/ICP finish; detection limit of 0.1 gpt Ag). All assays, repeats, and check assays were provided by American Assay Laboratories of Sparks, Nevada.

The exploration and drill programs for Moonlight and Middlegate were designed by Charles Sulfrian, P.Geo., Vice President, Exploration for Terraco and Ken Snyder, P.Geo., consulting geologist.

The technical information in this release has been reviewed and approved by Charles Sulfrian, P.Geo., Vice President, Exploration of Terraco and a 'qualified person', as defined by NI 43-101, Standards for Disclosure of Mineral Projects.

Terraco Gold Corp. is a mineral exploration company, listed on the TSX Venture Exchange under the symbol "TEN". Please visit Terraco's website at www.terracogold.com for additional information.


Todd Hilditch, President and CEO

Certain of the statements made and information contained herein are "forward-looking statements" within the meaning of Canadian securities legislation or "forward-looking information" within the meaning of the Ontario Securities Act and the Alberta Securities Act. This includes statements concerning the Company's plans at its mineral properties, which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or forward-looking information. Forward-looking statements and forward-looking information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or forward-looking information, including, without limitation, the availability of financing for activities, risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, metal price fluctuations, environmental and regulatory requirements, availability of permits, escalating costs of remediation and mitigation, risk of title loss, the effects of accidents, equipment breakdowns, labour disputes or other unanticipated difficulties with or interruptions in exploration or development, the potential for delays in exploration or development activities, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, expectations and beliefs of management and other risks and uncertainties. In addition, forward-looking statements and forward-looking information is based on various assumptions. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information or forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements or forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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