Terraco Gold Corp.
TSX VENTURE : TEN

Terraco Gold Corp.

August 23, 2012 07:30 ET

Terraco Gold Announces Additional Results From Its Idaho Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 23, 2012) - Terraco Gold Corp. ("Terraco" or the "Company") (TSX VENTURE:TEN) is pleased to report additional assay results from the 2012 drill program completed at its Almaden (Nutmeg Mountain) Project located in Washington County, Idaho. The Company is reporting 8 drill holes in this release and has now reported 26 of the 32 core holes drilled this year. In-fill and metallurgical core drilling continues to encounter significant intercepts from surface to 90.8 metres ("m") or 250 feet ("ft"). Multiple holes have long intercepts with gold grades that exceed the average grade of the deposit and include shorter sections with higher gold grades of up to 4.91 grams per tonne ("gpt").

Drill Highlights Include:

  • Hole MET-4 intersected 81.4 m averaging 0.754 gpt gold, including 26.7 m averaging 1.020 gpt gold with 13.0 m of 1.229 gpt gold;
  • Hole TAL-779C intersected 38.7 m averaging 0.998 gpt gold, including 4.6 m averaging 2.123 gpt gold and 3.0 m averaging 2.023 gpt gold;
  • Hole TAL-780C intersected 21.3 m averaging 1.189 gpt gold, including 1.5 m averaging 4.910 gpt gold and 1.5 m averaging 4.760 gpt gold;
  • Hole TAL-789C intersected 39.6 m averaging 1.034 gpt gold, including 4.6 m averaging 1.942 gpt gold and 17.4 m of 0.935 gpt gold; and
  • Hole TAL-790C intersected 38.1 m averaging 1.114 gpt gold, including 6.1 m averaging 2.454 gpt gold.

A table summarizing this round of drill results can be found at the conclusion of this news release.

Charles Sulfrian, Vice President, Exploration of Terraco stated: "Drill results continue to meet or exceed expectations at our Almaden (Nutmeg Mountain Gold) Project. Upon receipt of the last batch of assays (expected shortly) from the spring 2012 drill program, emphasis will be shifting to metallurgical testing and initial project economic review and evaluation."

Metallurgical Testing

Four large diameter core holes were completed to provide sample material for metallurgical testwork. Sample compositing and testwork are currently underway. Testing will focus on leach recoveries by ore type and size fractions and should be completed in calendar Q3/4.

Terraco, for the 2012 program to date, has drilled 28 HQ3 holes for a total of 2,462.3 m (8,078 ft) and 4 large diameter (4 inch) core holes for metallurgical purposes amounting to 298.7 m (980 ft). The majority of the HQ3 holes were drilled to target depths of 90 m (300 ft) or less. A few holes, drilled as deep as 610 m (2,002 ft), tested for gold mineralization down dip along structures, and explored for deeper feeder zones.

Drill Program Summary

The 2012 exploration program was designed to accomplish three goals:

  1. continue to test continuity and confirm the grade of the deposit internally by obtaining better, more representative, samples through the use of core drilling instead of reverse-circulation ("RC") drilling;
  1. obtain large diameter core samples for metallurgical testwork that will address specific questions unanswered in prior metallurgical studies; and
  1. explore for high grade feeder zones below and laterally away from the known resource.

Terraco's 2012 drill program utilized HQ3 core drilling in mostly shallow holes in 4 different areas of the deposit aimed at:

  • better defining resources in the areas of older conventional rotary and RC drilling; and
  • compare grades between various drilling techniques.

Assay results are summarized in the table below.

Drill Hole
Number
Area Interval
(m)
Gold
(gpt)
From
(m)
To
(m)
Interval
(ft)
Gold
(opt)
From
(ft)
To
(ft)
MET-4 Main Zone 81.4 0.754 9.4 90.8 267 0.022 31 298
Including 26.7 1.020 26.2 52.9 87.5 0.030 86 173.5
TAL-777C North Zone 1.5 0.477 0.0 1.5 5 0.014 0 5
1.5 0.420 4.6 6.1 5 0.012 15 20
9.1 0.485 19.8 29.0 30 0.014 65 95
Including 1.5 0.719 21.3 22.9 5 0.021 70 75
1.5 0.432 32.0 33.5 5 0.013 105 110
3.0 0.607 39.6 42.7 10 0.018 130 140
Including 1.5 0.775 41.1 42.7 5 0.023 135 140
TAL-778C North Zone 3.0 1.179 1.5 4.6 10 0.034 5 15
Including 1.5 1.495 3.0 4.6 5 0.044 10 15
6.1 0.397 9.1 15.2 20 0.012 30 50
6.1 0.522 19.8 25.9 20 0.015 65 85
Including 1.5 0.784 22.9 24.4 5 0.023 75 80
1.5 0.513 35.1 36.6 5 0.015 115 120
TAL-779C Main Zone 12.2 0.608 6.1 18.3 40 0.018 20 60
Including 1.5 1.380 12.2 13.7 5 0.040 40 45
Including 1.5 1.060 16.8 18.3 5 0.031 55 60
38.7 0.998 22.9 61.6 127 0.029 75 202
Including 4.6 2.123 22.9 27.4 15 0.062 75 90
Including 3.0 2.023 41.1 44.2 10 0.059 135 145
TAL-780C North Zone 21.3 1.189 0.0 21.3 70 0.035 0 70
Including 3.0 2.465 4.6 7.6 10 0.072 15 25
Including 1.5 4.910 9.1 10.7 5 0.143 30 35
4.6 0.795 24.4 29.0 15 0.023 80 95
6.1 1.498 32.0 38.1 20 0.044 105 125
Including 1.5 4.760 32.0 33.5 5 0.139 105 110
1.5 0.495 50.3 51.8 5 0.014 165 170
TAL-789C South Pit 39.6 1.034 0.0 39.6 130 0.030 0 130
Including 1.5 1.860 0.0 1.5 5 0.054 0 5
Including 1.5 1.530 13.7 15.2 5 0.045 45 50
Including 4.6 1.942 16.8 21.3 15 0.057 55 70
Including 17.4 0.935 44.2 61.6 57 0.027 145 202
With 1.5 1.615 56.4 57.9 5 0.047 185 190
TAL-790C South Pit 38.1 1.114 1.5 39.6 125 0.033 5 130
Including 1.5 1.780 15.2 16.8 5 0.052 50 55
Including 6.1 2.454 21.3 27.4 20 0.072 70 90
15.2 0.517 42.7 57.9 50 0.015 140 190
Including 1.5 0.921 44.2 45.7 5 0.027 145 150
Including 1.5 0.782 47.2 48.8 5 0.023 155 160
TAL-791C Main Zone 7.6 0.535 0.0 7.6 25 0.016 0 25
3.0 0.810 10.7 13.7 10 0.024 35 45
1.5 0.680 24.4 25.9 5 0.020 80 85
4.6 0.571 32.0 36.6 15 0.017 105 120
Including 1.5 0.853 33.5 35.1 5 0.025 110 115
3.0 0.402 48.8 51.8 10 0.012 160 170
12.8 0.610 64.0 76.8 42 0.018 210 252
Including 2.1 1.096 74.7 76.8 7 0.032 245 252

The table above shows only those assay results greater than or equal to 1.5 m of ≥ 0.0340 gpt gold or 5 ft of ≥ 0.010 Troy ounces per ton ("opt") gold. Intervals were calculated using a 0.34 gpt (0.010 opt) gold cut-off and may include short intervals of values below the cut-off grade. Intervals are converted from ft to m. Rounding to metres may affect interval values.

Assay determinations for gold were made by 50 gram fire assay, using an AA finish. Analyses were performed by ALS Minerals USA, Inc. of Reno Nevada.

Please click on the link below for a map of the 2012 drilling released to date, which will also be available on Terraco's website at www.terracogold.com.

www.TerracoGold.com/i/projects/27aug2012_dh_pr_all_dh.jpg

Almaden Gold Resource

The National Instrument 43-101, Standards of Disclosure for Mineral Projects ("NI 43-101"), compliant resource has an average grade of 0.02 opt (0.7 gpt) in the near surface flat-lying tabular resource. The majority of previous drilling was completed using conventional rotary (RAB) and reverse-circulation drilling. The NI 43-101 compliant resource is based on cut-off grades of 0.008 opt, 0.012 opt and 0.023 opt for the oxide, mixed and sulfide mineralization, respectively:

  • Measured resource of 239,000 ounces of gold (10,810,000 tons grading 0.022 opt);
  • Indicated resource of 625,000 ounces of gold (32,240,000 tons grading 0.019 opt);
  • Inferred resource of 84,000 ounces of gold (5,270,000 tons grading 0.016 opt); and
  • Total gold resource of 948,000 ounces (48,320,000 tons grading 0.020 opt).

Drilling during 2012 at the Almaden (Nutmeg Mountain) Project was conducted by Marcus and Marcus Exploration of Coeur d'Alene, Idaho, and National EWP, Inc. of Hayden, Idaho.

The exploration and drill program at Terraco's Almaden (Nutmeg Mountain) Project was designed by Charles Sulfrian, CPG, Vice President, Exploration, for Terraco and William Snoddy, Almaden Project Manager. Unless otherwise noted, the technical information in this release has been reviewed and approved by Charles Sulfrian, CPG., Vice President, Exploration, of Terraco and a 'qualified person', as defined by National Instrument 43-101,Standards of Disclosure for Mineral Projects.

Terraco is a mineral exploration company, listed on the TSX Venture Exchange under the symbol "TEN".

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 TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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