Terraco Gold Corp.
TSX VENTURE : TEN

Terraco Gold Corp.

September 23, 2005 10:16 ET

Terraco Mobilizes Drill Rig for Bonanza Property; IP Survey Completed on Bonanza

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 23, 2005) - Terraco Gold Corp. ("Terraco") (TSX VENTURE:TEN) is pleased to announce that it has contracted a core drill rig to begin the Phase I drilling in early October on its Bonanza Property in La Paz County, Arizona. The Bonanza Induced Polarization/Resistivity ("IP") Survey has recently been completed and Terraco is awaiting interpretation of the survey.

Drilling to Commence

Terraco expects to begin Phase I drilling at Bonanza in early October. The program will test known targets as well as those chargeability anomalies and resistive features identified through the interpretation of the IP/Resistivity survey data.

IP Survey

The IP survey, which covered approximately 3.6 sq kilometres (approximately 26 line kilometres) was designed to test the extent of disseminated and structurally-controlled sulphides down-dip and laterally away from areas of historic gold production. Also tested was the extent of resistivity anomalies due to either the presence of silicification and/or Cambrian Bolsa quartzite (the primary sedimentary host for gold at Bonanza), or argillization associated with perceived ore-controlling structures. Sulphide-related gold and base-metal mineralization is well documented in historical reports and summaries of the Harquahala Mining District. Assays from a previous sample of sulphidic granite and quartzite from the Golden Eagle dumps returned greater than 3.5 gm/tonne (ppm or greater than 0.100 Troy ounce per ton) gold.

The survey was completed by Gradient Geophysics ("Gradient"), of Missoula, Montana. Interpretation of the compiled survey data is being prepared by Gradient's President and Professional Geophysicist, Gary Carlson, and is expected within 10 days.

The drill program will be overseen by Terraco's VP Exploration, Mr. Charles Sulfrian, P. Geo.

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.

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.

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