Terraco Gold Corp.

Terraco Gold Corp.

July 21, 2005 08:00 ET

Terraco Mobilizes Drill Rig to Tuscarora

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 21, 2005) - Terraco Gold Corp. ("Terraco") (TSX VENTURE:TEN) is pleased to announce that a drill rig has been mobilized for exploration drilling at the Tuscarora property located in Elko County, Nevada.

Drilling to commence

The Terraco drilling will test geophysical targets produced in a CSAMT (Controlled Source Audio Magneto Tellurics) geophysics program previously completed.

The drill program will be overseen by Terraco's VP Exploration, Mr. Charles Sulfrian, P. Geo and Terraco consulting geologist Mr. Ken Snyder, P.Geo. The drill targeting was designed by Terraco and its consulting geologists, including Ken Snyder, as well as with input from geophysicist Jim Wright (of Wright Geophysical), in order to test the geophysical anomalies and resistive features present in the CSAMT survey for continuity of mineralization beneath the alluvial cover at Tuscarora.

The reverse circulation (RC) drill program, using a track-mounted drill rig contracted from Lang Exploratory drilling will test, in particular, an approximately 600 metre by 200 metre resistive anomaly. This sub-surface feature lies beneath approximately 50 metres of cover and appears to come near surface at one location. Resistivity is demonstrated by a "Mushroom" or "T" like formation that persists over several survey lines. The anomaly could represent an altered, silicified body within tuffaceous sediments or underlying porphyritic dacite volcanic rocks. Ground inspection of this site does not provide geological features, on surface, that would indicate the area as a target.

The CSAMT geophysical survey was completed by Zonge Geosciences Inc. The survey consisted of a total of 24 line kilometers on 12 grid lines spaced 150 metres apart. This spacing is optimal for 3D projection of the prospective veins and host rocks in this area. Newmont had previously completed several lines of CSAMT through known areas of mineralization, confirming that the CSAMT geophysical technique is an effective exploration tool for the geology of the Tuscarora district.

Terraco, as a result of being able to secure a rig within the last few business days, has re-scheduled its previously announced (July, 13, 2005) IP ("Induced Polarization") geophysical program on the Bonanza Property, La Paz County, Arizona until August 10, 2005. Management of both programs simultaneously by Charles Sulfrian, VP Exploration, would not have been optimal.

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.


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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