Terraco Gold Corp.
TSX VENTURE : TEN

Terraco Gold Corp.

April 18, 2011 07:01 ET

Terraco Announces Drilling Underway With Two Core Rigs At the Almaden Project in Idaho

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 18, 2011) - Terraco Gold Corp. ("Terraco" or the "Company") (TSX VENTURE:TEN) wishes to announce that the 2011 exploration program is now underway, beginning with two core rigs drilling at its 100% owned Almaden gold project, located in Washington County, Idaho.

Terraco's Phase I core drill program at the newly acquired Almaden project is planned for 20,000 to 25,000 feet and is designed to confirm higher grade zones of gold near surface (within 300 feet) and to test for high-grade, bonanza-style, structurally-controlled gold mineralization at depth (to 1,800 feet). The core drilling will aid in further understanding local, deeper faulting and alteration and how these important factors may have impacted potential precious metals mineralization at the Almaden project area, where mineralization is open to the north and to the south. The project currently hosts an outcropping ore body with a National Instrument 43-101, Standards of Disclosure for Mineral Projects ("NI 43-101") compliant measured and indicated resource of 864,000 ounces of gold from surface to 300 feet.

"Terraco's initial goals at Almaden, since the acquisition in January, were to review historic drill and exploration data and to prepare for a significantly deeper drill program than previously conducted. Utilizing the existing data, we delineated new drill targets and designed a core program to move Terraco toward confirmation of known, near-surface gold mineralization as well as the discovery of new high-grade gold in veins at depth. The core drilling program currently underway is the first step in realizing the true potential of the Almaden project. Terraco is confident that its geological team led by Charles Sulfrian, Vice President, Exploration, and Dr. Ken Snyder, lead consulting geologist, will be able to accomplish the Company's goals," stated Todd Hilditch, President and CEO.

Project comparisons for Almaden are the Hollister Mine (Great Basin Gold) and The Ken Snyder "Midas Mine" (Newmont) in northeastern Nevada.

Drilling Review

A review of prior drilling at the Almaden project revealed gold intercepts that were much higher grade than the average grade of gold (0.020 ounce per ton ("opt")) contained in the measured plus indicated resource. The gold mineralization in these higher grade intercepts appears to be associated with veins and structurally complex zones, thus supporting the interpretation that high-grade "feeder" veins may be discovered at depth. A few of these historic intercepts include:

Drill HoleInterval (ft)avg grade optFrom (ft)To (ft)Interval (m)avg grade gpTFrom (m)To
(m)
SW-401390.06390.5229.542.42.1727.670.0
incl46.70.134100.3147.014.24.6030.644.8
incl12.30.336100.3112.63.711.5330.634.3
6141550.0681517047.22.324.651.8
incl550.1355010516.84.6215.232.0
incl250.202751007.66.9322.930.5
5621150.075512035.12.571.536.6
incl650.093158019.83.184.624.4

Terraco anticipates that the drill program will continue through to the end of 2011 at the Almaden project.

The core drilling will be carried out by Core One of Montrose, Colorado, and Marcus & Marcus Exploration of Coeur d'Alene, Idaho.

The Almaden Project

The advance- stage Almaden project has excellent access and infrastructure and includes over 199,000 feet of historic drilling in 887 drill holes. The project is host to a low-sulphidation, epithermal gold deposit drilled extensively from 1978 to 1992 by a number of companies including Homestake and Amax Gold.

The Almaden project is an outcropping ore body that, within surface to approximately 300 feet, hosts a NI 43-101 compliant measured resource of 239,000 ounces of gold (10,810,000 tons grading 0.022 opt), an indicated resource of 625,000 ounces of gold (32,240,000 tons grading 0.019 opt) and an inferred resource of 84,000 ounces of gold (5,270,000 tons grading 0.016), at the cut-off grades of 0.008 opt, 0.012opt, and 0.023 opt for the oxide, mixed, and sulfide mineralization, respectively.

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

The Company also announces that it granted today an aggregate total of 380,000 incentive stock options to consultants and an employee of the Company pursuant to its Stock Option Plan and certain vesting provisions. These options will be exercisable at a price of $0.34 per share and will expire on April 17, 2016. The grant of the stock options is subject to regulatory approval.

Terraco is a mineral exploration company focused in the states of Nevada, Arizona and Idaho and listed on the TSX Venture Exchange under the symbol "TEN". Please visit Terraco's website at www.terracogold.com for additional information.

Forward-Looking Statements

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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Terraco Gold Corp.
    Todd Hilditch
    President and CEO
    (604) 443-3831 or Toll free: 1 (877) 792-6688
    (604) 682-3860
    www.terracogold.com