Terraco Gold Corp.

Terraco Gold Corp.

November 06, 2006 07:00 ET

Terraco Reports on Moonlight Exploration Including Geophysical Surveys

Terraco Also Files Technical Report on Moonlight

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 6, 2006) - Terraco Gold Corp. ("Terraco") (TSX VENTURE:TEN) is pleased to announce that it has completed a preliminary Gradient Array Resistivity (GAR) / Spontaneous Potential Gradient (SPG) Survey on the Moonlight Property, located in Pershing County, Nevada. Additionally, an Aeromagnetic (airborne) geophysical survey has just been completed, with results and a report expected by the end of November, 2006. Terraco has also filed a technical report on the Moonlight Property.


GAR is a proven method for mapping high-angle faults and host rock alteration commonly associated with centers of gold mineralization. Anomalously high and anomalously low resistivity values measured in a given search area are associated with silicification and argillization, respectively. Linear patterns in the contoured resistivity values are associated with high-angle faults. SPG, a derivative of the more common self-potential measurement (SP), is measured simultaneously with resistivity. In SPG, a sulfide-mineralized structure or vein is represented by a positive/negative pair of anomalies, where the cross-over from positive to negative occurs over the axis of the structure.

At Moonlight, as at Coeur Rochester and Spring Valley, structures such as the Black Ridge Fault zone (which is interpreted to cut through the property from the south and is reportedly the structural control to deposits at Coeur Rochester and Spring Valley), exert significant influence or control on precious metals mineralization.

The GAR and SPG, combined with the existing ground magnetic survey, have defined exciting, preliminary drill targets. These results will augment the recent geologic mapping and sampling program. As well, the anticipated aeromagnetic survey results will also help to further define / confirm preliminary targets and to identify additional new drill targets.

Results of the Aeromagnetic survey recently completed by Edcon-PRJ, of Denver, CO, will be announced upon Terraco receiving a complete survey report.

Moonlight Technical Report

Terraco is pleased to report that the technical report entitled 'Technical Report on the Moonlight Property - Indian Mining District, Pershing County' dated October 3, 2006 ("Moonlight Technical Report"), has been filed with the TSX Venture Exchange. The full report will be available on SEDAR as well through Terraco's website www.terracogold.com.

N.C. Carter, PhD., P. Eng is the qualified person, as defined in NI 43-101, responsible for the preparation of the Moonlight Technical Report.

The Moonlight Property, in the central part of the Humboldt Range northeast of Lovelock, is underlain by a Late Paleozoic to Early Mesozoic sequence of intermediate to felsic metavolcanic rocks known to host nearby, significant silver and gold deposits and prospects. These include the Coeur Rochester mine, which has produced 107 million ounces of silver and 1.3 million ounces of gold to date, and the Spring Valley gold prospect which is currently the focus of a major exploration program. These, and other mineral properties and deposits in the central part of the Humboldt Range, are spatially related to a regional fault structure that extends through the Moonlight property.

Recently identified gold mineralization on the Spring Valley property, immediately south of Moonlight, is associated with volcanic vent breccias which may be associated with a larger diatreme complex. Spring Valley was a blind discovery beneath significant thicknesses of alluvium within an intermontane basin. The central part of the Moonlight Property features a similar alluvium-filled basin marginal to which are two precious metals prospects including the Moonlight mine, which was reportedly one of Nevada's highest grade silver producers.

N.C. Carter, the author of the Moonlight Technical Report, collected two chip samples from the Moonlight Basin which returned 1840 grams per ton (g/t)(53.3 ounce per ton "opt") silver and 228 g/t (6.7 opt) silver. Both samples were taken over a continuous distance of 6 feet. The first sample was near the portal of an adit a short distance south of the main historic silver Moonlight shaft and the second sample east of the portal. Both samples consisted of altered, bleached, well fractured volcanic rock containing some quartz veining. These samples were personally delivered by N.C. Carter to the independent laboratory, ALS Chemex in Sparks, Nevada, for sample preparation following which sample pulps were forwarded to the ALS Chemex facility in North Vancouver, British Columbia. for aqua regia sample digestion and subsequent multi-element (50 major and trace elements) by ICP-MS.

Terraco's exploration efforts at Moonlight will be focused on gold, similar to that of the Spring Valley property to the south.

The technical information in this release has been reviewed and approved by Charles Sulfrian, P.Geo., Vice-President, Exploration of Terraco and a 'qualified person', as defined by NI 43-101. The technical information relating to the Moonlight Technical Report has been reviewed and approved by the author N.C. Carter, Ph.D., P. Eng., a 'qualified person' as defined by NI 43-101. The Moonlight Technical Report and Consent of Author will also be filed on SEDAR.

The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company.

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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