Terraco Gold Corp.

Terraco Gold Corp.

May 08, 2008 07:00 ET

Terraco Acquires Option on Silverthorne Property

Silverthorne Assay Values up to 17,635 grams per tonne (514.41 opt) Silver

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 8, 2008) - Terraco Gold Corp. ("Terraco") (TSX VENTURE:TEN) is pleased to announce it has entered into an Exploration and Option to Purchase Agreement ("EA") with MSM Resource, L.L.C. ("MSM"), a Nevada corporation, on the Silverthorne property consisting of certain unpatented mining claims (the "Silverthorne Property"). The Silverthorne Property is located in Mineral County, Nevada, within the Walker Lane Trend of western Nevada, approximately 20 miles north of the town of Hawthorne.

Charles Sulfrian, Vice President, Exploration, said, "Based on our review and rock samples returning high grade silver values, we are excited about the opportunity to explore the Silverthorne Property. Our samples returned assay values from 27.8 grams per tonne ("gpt") (0.81 troy ounces per ton ("opt")) silver, up to 3,130 gpt (91.30 opt) silver and 1.474 gpt (0.043 opt) gold. Assay results for rock samples previously taken by MSM include values from trace up to 17,635 gpt (514.41 opt) silver. Exploration planning on the Silverthorne Property is underway."

Property Overview

The Silverthorne Property is located in Mineral County, Nevada, within the Walker Lane Trend which has yielded many multi-million ounce gold and silver deposits including Round Mountain, the Comstock, Tonopah and Goldfield.

The general geology of the Silverthorne Property consists of a structurally-controlled, silver-dominant, poly-metallic system with the potential to host very high grade silver and silver-gold deposits. MSM had 62 samples taken throughout the Silverthorne Property in March and April 2006. From their sampling and mapping, there appear to be three principal areas of alteration and metallization. The first target area is a silver-lead enriched zone where silver assays of rock samples taken by MSM included values from trace to as high as 17,635 gpt (514.41 opt) silver and 0.664 gpt (0.0194 opt) gold. Rock samples collected from a second area (a gold-copper enriched zone) returned gold values from trace to a high of 0.939 gpt (0.0274 opt) gold. The third target area sampled yielded gold assays from trace levels up to 0.893 gpt (0.026 opt), together with silver values to highs of 74.9 gpt (2.18 opt) and 91 gpt (2.65 opt) silver (analyses were performed for MSM by ALS Chemex of Sparks, Nevada). Terraco's initial sampling, conducted by Charles Sulfrian in the Area 1 target, returned values from 27.8 gpt (0.81 opt) silver and trace gold to as high as 3,130 gpt (91.29 opt) silver and 1.474 gpt (0.043 opt) gold (analyses by American Assay Labs of Sparks, Nevada).

Terraco's assay determinations for gold and silver were by 60 gram Fire Assay (detection limit of 0.003 opt Au and 0.1 opt Ag). All assays, repeats and check assays were provided by American Assay Laboratories of Sparks, Nevada.

Terms of the EA

Pursuant to the terms of the EA, Terraco has the right to lease and the option to earn an undivided 100% interest in the Silverthorne Property by paying an aggregate of US$485,000 in lease payments to MSM over a 10-year term on the Silverthorne Property. The lease payments are structured as follows: US$20,000 upon execution of the EA; US$25,000 on the first anniversary of the EA; US$40,000 on the second anniversary of the EA; and US$50,000 on each anniversary of the EA and thereafter up to and including the tenth anniversary. The commitment and timing for exploration expenditures is structured as follows: US$20,000 by the first anniversary of the EA; an additional US$50,000 by the second anniversary of the EA; an additional US$100,000 by the third anniversary of the EA; and US$250,000 by each of the fourth to tenth anniversaries of the EA, inclusive. All annual excess expenditures can be applied to the commitment for the following year. The first US$20,000 lease payment, the first year's US$20,000 in exploration expenditures and the issuance to MSM of 30,000 common shares of Terraco are firm commitments. The EA is subject to regulatory approval.

The EA allows for MSM to hold a 3% net smelter return royalty ("NSR") on the Silverthorne Property, which can be reduced to 1% by Terraco buying down the NSR for a total of US$350,000 structured as follows: purchase the first 1% by paying US$100,000 and the second 1% by paying US$250,000.

Qualified Persons

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

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

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