Terraco Gold Corp.

Terraco Gold Corp.

June 29, 2011 07:30 ET

Terraco Intersects 53.3 Metres Averaging 1.08 GPT Gold at its Almaden Project (Idaho)

Terraco Also Confirms Mineralization at Depth

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 29, 2011) - (TSX VENTURE:TEN) Terraco Gold Corp. ("Terraco") is pleased to announce assay results from the first two diamond drill core holes completed at its Almaden Project, Washington County, Idaho. Both HQ3 core holes, TAL-751C and TAL-752C, encountered significant gold mineralization in the upper 91 metres (300 feet) of drilling. In addition, deeper zones of mineralization have been identified.

Drill highlights include:

  • Hole TAL-751C intersected 53.3 m ("metres") averaging 1.083 gpt ("grams per tonne") gold (175 feet averaging 0.032 opt ("Troy ounces per short ton") gold). This intercept includes the following:

- 27.4 m averaging 1.595 gpt gold (90 ft of 0.047 opt gold); and
- 12.2 m averaging 2.225 gpt gold (40 ft of 0.065 opt gold).

  • Hole TAL-752C intersected 85.4 m averaging 0.840 gpt gold (280 ft @ 0.025 opt gold).
  • Additional gold mineralization deeper in Hole TAL-752C of 7.6 m averaging 0.513 gpt gold (25 ft averaging 0.015 opt gold), from 160.0 to 167.6 m (525 to 550 feet deep) supports management's concept of opportunity at depth.

"We are very happy with the widths and near surface gold results in the first two core holes drilled at Almaden. Not only are we seeing better average gold grades than the current NI43-101 compliant resource but we are seeing deeper zones of anomalous gold mineralization beneath the defined resource by drilling much further than previous operators. Terraco is testing to depths (to 600 m or 200 feet) that have never been drilled before in an effort to identify potential feeders," commented Todd Hilditch, President and CEO.

Drill and Program Summary

The first holes of the Phase I program are designed to test for higher grade zones of gold near surface (within 90 m or 300 feet) by utilizing core drilling and to initiate testing for high-grade, bonanza-style, structurally-controlled gold mineralization to depth (to 600 m or 2,000 feet). The core drilling is aiding 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. Drill hole TAL-751-C and TAL-752C terminated at 430 m (1411 feet) and 382 m (1252 feet), respectively.

The near surface gold mineralized intervals are composed, generally, of surficial sinter deposits and sinter breccias grading to silicified, often brecciated, sandstones, cut by chalcedonic quartz and quartz-calcite veins.

Gold values in the first two holes averaged better than the National Instrument 43-101, Standards of Disclosure for Mineral Projects ("NI 43-101") compliant resource average grade of 0.7 gpt through the near surface resource. Grade is often variable within a resource area and, as such, core drilling is being used in order to get the most representative samples compared to those from rotary and reverse circulation drilling (which make up the vast majority of the historic drilling at Almaden). The Almaden project currently 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 opt), at the cut-off grades of 0.008 opt, 0.012 opt, and 0.023 opt for the oxide, mixed, and sulfide mineralization, respectively.

In drill hole 752C, the anomalous gold intercept containing 7.6 m of 0.513 gpt gold, from 160.0 to 167.6 m (25 ft averaging 0.015 opt gold from 525 to 550 feet deep) supports the concept of mineralization occurring at depth, distal to, though possibly associated, with high grade feeder zones. Further deep drilling continues to identify the geological inputs in the area and test for the feeder zones.

To date, five core holes have been drilled at Almaden with core depths as deep as 2,006 feet (611.5 meters).

Assay results are summarized in the table below. The map showing the drill hole locations will be available at www.terracogold.com later today.

Drill Results:

Drill Hole NumberAreaInterval
TAL-751CMain Pit1750.032017553.31.083053.3
Assay determinations for gold were made by 50 gram fire assay, using an AA finish.
Analyses were performed by ALS Minerals USA, Inc. (Chemex), Reno, Nevada.

Drilling at Almaden is being conducted by Marcus and Marcus Exploration, Coeur d'Alene, Idaho and Core One Drilling Inc, Montrose, Colorado.

The exploration and drill program for Almaden was designed by Charles Sulfrian, C.P.G., Vice President, Exploration for Terraco. 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 by NI 43-101, Standards for Disclosure of Mineral Projects unless otherwise noted.

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 and CEO

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.

Contact Information