Terraco Gold Corp.

Terraco Gold Corp.

July 13, 2005 12:08 ET

Terraco to Commence Geophysical Survey at Bonanza; Terraco Also Files Bonanza Technical Report

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 13, 2005) - Terraco Gold Corp. ("Terraco") (TSX VENTURE:TEN) is pleased to announce that it will be commencing an Induced Polarization/Resistivity ("IP") geophysical survey at the Bonanza Project, La Paz County, Arizona within the week. As well, Terraco is pleased to announce the filing of a Technical Report on the Bonanza Project, Arizona.

IP/Resistivity Survey

Terraco has contracted Gradient Geology and Geophysics, of Missoula, Montana to conduct an IP/Resistivity survey of the Bonanza Project in La Paz County, Arizona. Crews will mobilize and the survey will commence within a week with interpreted results expected approximately four weeks later. Results of the survey will be incorporated into drill targeting.

The IP portion of the survey will test for potential high-grade, sulfide-type gold mineralization in the project area. Two target models will be tested: 1) sulfide-associated gold mineralization down-dip from known oxide mineralization and historic workings and 2) "blind", pediment-covered sulfide-related gold deposits in prospective basinal areas of the property. Although not a Carlin-type system, the blind target model for Bonanza is similar in geometry to a Meikle-style deposit.

Terraco expects that the resistivity portion of the survey will provide indications of silicification and other alteration associated with gold mineralization at Bonanza.

The IP/Resistivity survey is being undertaken due to the presence of gold-mineralized, sulfide-rich rock observed on the dumps of both the Golden Eagle and Harquahala-Bonanza mines and elsewhere. One sample of sulfidic quartzite and granite from the Golden Eagle dump returned an assay of 3.570 gms/tonne (0.104 troy oz/ton) gold (as released January 28, 2005 and assayed by ALS Chemex). Sulfide-related gold mineralization likely remains in the area due to the inability of historic mining operations at the Harquahala Mine to process refractory (sulfidic) ores. This common problem of late-19th and early-20th Century ore processing usually forced a halt to mining when underground workings reached sulfides at or below the water table. Down-dip continuation of historically mined oxide ore and blind, structurally-controlled, sediment- hosted refractory gold deposits are the principal target models. Terraco will be testing below the water table as well as above.

"In addition to undiscovered oxide gold mineralization either as new deposits or peripheral to past workings, we feel the potential for sizeable, sulfide-gold deposits is excellent at the Bonanza Project" noted Charles Sulfrian, Vice President - Exploration for Terraco.

Bonanza Technical Report

Terraco has filed a technical report in accordance with NI 43-101, on the Bonanza Project, Ernest L. Hunsaker III, P. Geol., of Hunsaker Inc. is the qualified person, as defined in NI 43-101, responsible for the preparation of the technical report. The report is entitled "Technical Report on the Bonanza Project, La Paz County, Arizona" and is dated June 3, 2005.

Bonanza is located within the Harquahala Mining District, in La Paz County, Arizona and comprised of 95 unpatented and 9 patented lode mining claims. The property is eight miles south of Salome, Arizona and approximately 55 miles southwest of Wickenburg, Arizona. The Bonanza project includes the historic Harquahala and Golden Eagle Mines. Most of the production came from the Harquahala Mine with grades estimated to be greater than one ( greater than1) ounce per ton ("opt"). Significant exploration since 1909 has been limited to surface and underground rock sampling and seven holes drilled in the early 1980's.

Gold was initially discovered in 1888 and within the 21 years until 1909, the total gold value of gold produced reportedly reached $3,631,000. Several examinations occurred during the years 1911 to 1937. The reports include descriptions of extensive underground workings, the presence of gold values in the tailings, the potential for an economic bulk tonnage setting and the likelihood of favorable economics of using cyanidation to process historic mill tails. It does not appear that any of the recommendations to conduct exploration were ever acted upon until now.

The Cambrian Bolsa quartzite is the main gold bearing formation. Faulting within the project area consists of low angle faults separating the Precambrian granite from an overlying Paleozoic Sedimentary package and pronounced high angle faults comprised of the north-trending gold bearing set, or northeast and northwest faults.

Seven rotary reverse circulation holes were drilled by Cave Creek mining in 1982. Some positive results as well as enigmas resulted from this program. The majority of the drilling was not assayed, including most of hole RCB #7 of 302.5 feet, that yielded 30 feet of 0.167 opt gold from 237.5 to 267.5 (including 2.5 feet of 0.40 opt at 237.5 to 240 feet, 5 feet of 0.335 opt at 247.5 -253.5 feet and 2.5 feet of 0.60 opt at 257.5-260 feet). Assays in this hole started at 237.5 feet (the 0.40 opt intercept), 190 feet below the altered sediment/intrusive contact.

Terraco collected 73 surface and underground rock samples, assayed by ALS Chemex and announced January 28, 2005, with gold values ranging from 0.005 to 271 ppm (part per million) (7.9 opt). The samples were taken from outcrop, prospects, and old workings intermittently along approximately 2.5 miles of strike within the Bonanza property package of 1,740 acres. Anomalous silver, arsenic copper, lead, molybdenum and zinc were also returned. Samples were collected by Charles Sulfrian, P. Geo and E. L. Hunsaker III, P. Geo.

The Technical Report on the Bonanza Project, La Paz County, Arizona can be accessed through www.sedar.com or through the Company's website at www.terracogold.com.

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

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

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

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