Terraco Gold Corp.
TSX VENTURE : TEN

Terraco Gold Corp.

September 22, 2005 08:00 ET

Terraco Intersects 12 Meters of 1 GPT Gold at Tuscarora

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 22, 2005) - Terraco Gold Corp. ("Terraco") (TSX VENTURE:TEN) reports drilling results from its 2900 foot program at the Tuscarora Property, Elko County, NV including encouraging results from hole# TT05-04.

Overview

Phase II Drilling at the Tuscarora Project in Elko County, Nevada has been completed. The four hole program was designed to test a large resistivity anomaly (high) delineated by a Controlled Source Audio Magneto Tellurics ("CSAMT") survey conducted by Zonge Geosciences Inc., Reno, Nevada, and re-interpreted by Wright Geophysics of Elko, Nevada. Drilling revealed the source of the resistivity anomaly to be a combination of variably altered, partially to moderately welded, rhyolitic to dacitic crystal-lithic tuffs. The tuffs are generally silica-rich, thus explaining the resistivity high. The tuffs are locally intercalated with thin dacite porphyry flows or cut by dacite dikes. Alteration consists primarily of variable silicification, argillization, and pyritization. Silicification appears to have contributed to the resistivity anomaly as well. Many localized zones of chlorite and calcite within the volcanics indicate a possibly widespread propylitic alteration event, prior to the later silicification/argillization/pyritization. The main target was a Dexter-type of stockwork gold zone within silicified volcanics and altered volcanic sediments below dacite porphyry flows. Such a deposit would be suited for an open-pit, bulk-mining operation.

Final assay results from the four-hole reverse circulation drill program at Tuscarora have been received from ALS Chemex (Reno, NV). The best intercept occurred in hole TT05-04, from 600 to 640 feet ("ft") (183-195 meters ("m")), with 40 ft (12 m) averaging 0.0292 troy ounce per ton gold ("opt") (1.0 gram per tonne ("g/t")). (The other three holes did not intersect gold values greater than 1 gm/tonne for more than 5 feet.) Gold mineralization in TT05-04 was contained in locally silicified, unoxidized, crystal tuffs containing pyrite and quartz veining. The gold appears to be associated with pyrite in siliceous zones and quartz-adularia veins.



Significant Gold Intercepts

Hole # Width OptAu From-to (ft) Width-m g/tAu

TT05-04 40ft 0.03 600-640 12 1
5ft 0.02 790-795 1.5 0.8


Gold assay determinations by one kilogram Screen-Fire Assays (performed by ALS Chemex) did not deviate significantly from the original 50 gram fire assays of the drill cuttings from this interval. This suggests that the gold is generally dispersed within the pyritic siliceous zone and quartz-adularia veins between 600 and 640 feet.

Both Charles Sulfrian, P. Geo (Terraco's VP of Exploration) and Mr. Ken Snyder, P. Geo (Consulting Geologist) are evaluating the results for possible follow-up including a possible wedge-offset of TT05-04 by core drilling to determine the true nature of the gold mineralization. The hole may also be re-entered and deepened using reverse-circulation drilling, as there was a 0.82 g/t gold intercept at 790 to 795 ft in the 800 ft hole.

Ongoing work could also include previously described testing of deeper, sediment-hosted, Carlin-type gold deposits. This target concept is based on an independent paper comparing the age and geochemistry of the Tuscarora System to Carlin-Type Deposits. A paper in the Special Issue devoted to gold deposits in northern Nevada, published in Economic Geology, a Bulletin of the Society of Economic Geologists, highlighted the Tuscarora District.

The twenty-seven page article entitled "The Tuscarora Au-Ag District: Eocene Volcanic-Hosted Epithermal Deposits in the Carlin Gold Region, Nevada," details the Tuscarora mining district as containing the oldest and only productive Eocene epithermal deposits in Nevada and suggests the Tuscarora deposits being of interest because they formed contemporaneously with nearby, giant Carlin-type gold deposits.

"As noted in previous studies, the hydrothermal fluids that generated the Tuscarora and other epithermal deposits could have evolved from Carlin-type fluids boiling and mixing with meteoric water. If so, the Tuscarora deposit may represent epithermal conditions above Carlin-type deposits and Carlin-type deposits may lie beneath the district." (p.340)(i).

(i) Stephen B. Castor, et al., 2003, "The Tuscarora Au-Ag District: Eocene Volcanic-Hosted Epithermal Deposits in the Carlin Gold Region, Nevada," Economic Geology, v. 98, p. 339-366.

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

Terraco also reports a total of 1,000,000 stock incentive options have been set for Directors and Officers of the Company exercisable at a price of $0.15 for a period of four years.

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.

ON BEHALF OF THE BOARD

Todd Hilditch, President


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

Contact Information