Terraco Gold Corp.
TSX VENTURE : TEN

Terraco Gold Corp.

January 18, 2012 09:00 ET

Terraco Gold Reports Final Drill Results at Its Almaden Project (Idaho)

Terraco's Successful 2011 Drill Program at the Almaden Project Leads to Planning for Exploration Advancement in 2012

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 18, 2012) - Terraco Gold Corp. (TSX VENTURE:TEN) ("Terraco" or the "Company") is pleased to announce assay results from the last 6 core holes of the 2011 drill program completed at its Almaden Project in Washington County, Idaho. Core drilling at Almaden for these and other holes in the 2011 season continued to encounter significant gold mineralization from surface to 91 metres (300 feet), including drill holes in the main resource area that showed improvement over the average gold grade of the Almaden deposit. The 2012 exploration planning for advancement of the Almaden project is currently underway.

Todd Hilditch, President and CEO of Terraco, said: "These results and the previously announced results at Almaden are very encouraging. Terraco is on the right track in growing the gold resource and has shown in several holes an improvement in grade thickness of up to 28% compared to nearby historic drilling. Terraco is currently planning its 2012 exploration program and is excited to move the Almaden project forward."

Final Drill Results Include:

  • Hole TAL-763C intersected 54.9 metres ("m") averaging 0.778 grams per tonne ("gpt") gold from 15.2 m to 70.1 m (180 feet averaging 0.023 Troy ounces per short ton ("opt") gold from 50 to 230 feet), including 21.3 m averaging 1.068 gpt gold to 38.1 m (70 feet of 0.031 opt gold to 125 feet).
  • Hole TAL-765C intersected 22.9 m averaging 0.936 gpt gold from surface (75 feet of 0.027 opt gold), including: 7.6 m averaging 1.586 gpt gold to 16.8 m (25 feet of 0.046 opt gold to 55 feet).
  • Hole TAL-761C intersected 33.5 m averaging 0.786 gpt gold from 27.4 m to 60.9 m (110 feet of 0.023 opt gold from 90 to 200 feet), including: 7.6 m averaging 1.161 gpt gold to 53.3 m (25 feet of 0.034 opt gold to 175 feet).
  • Hole TAL-762C intersected 35.1 m averaging 0.797 gpt gold from 3.0 to 38.1 m (115 ft of 0.023 opt from 10 to 125 feet) including 1.5 m of 1.250 gpt gold to 4.6 m (5 feet of 0.036 opt to 15 ft).

A drill table for these 6 holes can be found at the conclusion of this release.

2011 Drill Highlights and Program Summary

  • Hole TAL-751C intersected 53.3 m averaging 1.083 gpt gold from surface (175 feet averaging 0.032 opt gold). This intercept includes the following:
    • 27.4 m averaging 1.595 gpt gold to 33.5 m (90 feet of 0.047 opt gold to 110 feet); and
    • 12.2 m averaging 2.225 gpt gold to 19.8 m (40 feet of 0.065 opt gold to 65 feet).
  • Hole TAL-752C intersected 85.4 m averaging 0.840 gpt gold from 9.1 m to 94.5 m (280 feet of 0.025 opt gold from 30 to 310 feet).
  • Hole TAL-759C intersected 50.9 m averaging 1.09 gpt gold from 10.7 m to 61.6 m (167 feet averaging 0.032 opt gold from 35 to 202 feet), including:
    • 4.6 m averaging 1.824 gpt gold to 61.6 m (15 feet of 0.053 opt gold to 202 feet);
    • 10.7 m averaging 1.163 gpt gold to 30.5 m (35 feet of 0.034 opt gold to 100 feet), with 4.6 m averaging 2.198 gpt gold to 30.5 m (15 feet of 0.064 opt gold to 100 feet);
    • 13.7 m averaging 1.118 gpt gold to 50.3 m (45 feet of 0.033 opt gold to 165 feet);
    • 8.3 m averaging 1.954 gpt gold to 61.6 m (27 feet of 0.057 opt gold to 202feet), with 1.5 m averaging 5.27 gpt gold to 56.4 m (5 feet of .0154 opt gold to 185 feet).
  • Hole TAL-754C intersected 67.1 m averaging 0.812 gpt gold from 15.2 m to 82.3 m (220 feet of 0.024 opt gold from 50 feet to 270 feet), including:
    • 25.9 m averaging 1.043 gpt gold to 54.9 m (85 feet of 0.031 opt gold to 180 feet);
    • 15.2 m averaging 1.056 gpt gold to 79.2 m (50 feet of 0.031 opt gold to 260 feet).

The 2011 exploration program was designed to accomplish 3 goals:

  1. increase the grade of the deposit internally by obtaining better, more representative samples through the use of core instead of reverse-circulation drilling;
  2. expand the size of the deposit by drilling below the known resource in areas of shallow drilling and in areas peripheral to the known resource; and
  3. explore for high grade feeder zones below and laterally away from the known resource.

Terraco's core drilling, targeted at improving grade within the resource, has been largely successful. Gold values in most of the holes announced to date generally continue to show better gold mineralization than the current resource in the Main Zone (either higher grade or better mineralization as indicated by grade times thickness ("GT"). Holes TAL-751C, 754C and 763C noted above are good examples.

Deep drilling has found additional gold intercepts below and in close proximity to the resource. Drill hole TAL-753C intersected 7.6 m averaging 0.984 gpt gold from 112.8 m to 120.4 m (25 feet averaging 0.029 opt gold to 395 feet), which is within 30 m (98 ft) of the known deposit but not included in the resource calculation.

Core holes drilled at Stinking Water in 2011 included TAL-759C, 761C, and 762C. These holes revealed that gold mineralization there is contained predominantly in landslide material. Highlights of TAL-759C, 761C and 762C are given above.

"Expanding the known resource and increasing the grade of the resource will be 2 of Terraco's primary objectives in 2012. Through drilling, Terraco's geologists are gaining a better understanding of Almaden, including its structure, mineralization and genesis. Terraco plans to use this better understanding to gain its objectives," stated Todd Hilditch.

During the 2011 drilling season, Terraco drilled 16 HQ3 holes for a total of 5,492 m (18,020 feet). Several holes achieved depths of up to 610 m.

With the continued success of the program, Terraco is implementing a plan for an upgraded resource calculation and to understand the economics for possible development decisions.

Click below for a map of drilling to date which is also available at www.terracogold.com.

http://www.terracogold.com/i/misc/2011_drill_collars.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).

Assay results for the drill holes announced today are summarized in the table below.

Drill Hole Table
Inter
val
- Gold From To Inter
val
- Gold From To
AREA Drill Hole (m ) (gpt ) (m ) (m ) (feet ) (opt ) (feet ) (feet )
STINKING WATER TAL-761C 1.5 0.417 19.8 21.3 5 0.012 65 70
33.5 0.786 27.4 61.0 110 0.023 90 200
including 7.6 1.161 45.7 53.3 25 0.034 150 175
3.0 0.429 73.2 76.2 10 0.013 240 250
STINKING WATER TAL-762C 35.1 0.797 3.0 38.1 115 0.023 10 125
including 1.5 1.250 3.0 4.6 5 0.036 10 15
including 10.7 1.170 27.4 38.1 35 0.031 90 125
1.5 0.396 41.1 42.7 5 0.012 135 140
MAIN TAL-763C 54.9 0.778 15.2 70.1 180 0.023 50 230
including 21.3 1.068 16.8 38.1 70 0.031 55 125
1.5 0.376 71.6 73.2 5 0.011 235 240
1.5 0.408 77.7 79.2 5 0.012 255 260
3.0 0.399 82.3 85.3 10 0.012 270 280
1.5 0.586 86.9 88.4 5 0.017 285 290
1.5 0.483 125.0 126.5 5 0.014 410 415
1.5 0.421 134.1 135.6 5 0.012 440 445
3.0 0.465 137.2 140.2 10 0.014 450 460
NORTH TAL-764C 10.7 0.694 3.0 13.7 35 0.020 10 45
including 1.5 1.900 12.2 13.7 5 0.055 40 45
1.5 0.416 19.8 21.3 5 0.012 65 70
9.1 0.722 22.9 32.0 30 0.021 75 105
3.0 0.477 39.6 42.7 10 0.014 130 140
1.5 0.413 45.7 47.2 5 0.012 150 155
NORTH TAL-765C 22.9 0.936 0.0 22.9 75 0.027 0 75
including 7.6 1.586 9.2 16.8 25 0.046 30 55
3.0 0.765 29.0 32.0 10 0.022 95 105
1.5 0.452 41.1 42.7 5 0.013 135 140
1.5 0.340 45.7 47.2 5 0.010 150 155
1.5 0.412 56.4 57.9 5 0.012 185 190
1.5 0.378 263.7 265.2 5 0.011 865 870
MAIN TAL-766C 3.0 0.538 18.3 21.3 10 0.016 60 70
3.0 0.595 25.9 29.0 10 0.017 85 95
6.1 0.559 42.7 48.8 20 0.016 140 160
1.5 0.434 51.8 53.3 5 0.013 170 175
1.5 0.442 61.0 62.5 5 0.013 200 205
39.6 0.421 67.1 106.7 130 0.012 220 350
including 13.7 0.624 67.1 80.8 45 0.018 220 265
Intersections were composited using a 0.34 gpt cut-off and may include short intervals of values below the cut-off grade.

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

Drilling during 2011 at Almaden was conducted by Marcus and Marcus Exploration in Coeur d'Alene, Idaho, and by Core One Drilling Inc. in Montrose, Colorado.

Terraco's exploration and drill program for Almaden was designed by Charles Sulfrian, CPG, Vice President, Exploration and Mr. Bill Snoddy, Almaden Project Manager. 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 NI 43-101, unless otherwise noted.

Terraco 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.

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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