Terraco Gold Corp.
TSX VENTURE : TEN

Terraco Gold Corp.

August 22, 2006 18:14 ET

Terraco Updates Exploration Efforts at Moonlight

Terraco Grants Advisory Options

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 22, 2006) - Terraco Gold Corp. ("Terraco") (TSX VENTURE:TEN) wishes to announce that exploration efforts are underway on the Moonlight Property ("Moonlight") located in Pershing County, Nevada.

Moonlight Update

Terraco is continuing its exploration efforts at Moonlight, which is located 15 miles northeast of Lovelock, Nevada in the Humboldt Range and 5 miles north of Coeur d'Alene Mining Company's Rochester Mine. Moonlight also adjoins Midway Gold Corp.'s (TSX:MDW) Spring Valley Project to the south, where Midway has reported drill intercepts that include highlights of 105 feet ("ft") of 0.325 ounce per ton ("opt"), 215 ft of 0.137 opt, and 123 ft of 0.169 opt.

Terraco's exploration activities on Moonlight are being conducted by Charles Sulfrian, P. Geo, VP Exploration and Ken Snyder, P. Geo. Terraco has focussed on a detailed mapping and sampling program at Moonlight over the summer. The extensive mapping and sampling effort was designed to augment an existing ground magnetic survey as well as help identify and plan additional types of geophysical surveys that may be helpful in order to further focus on locations for alluvium covered drill targets. Permitting, under a Notice with the Bureau of Land Management, is already in place for drilling and will be subject to amendment by Terraco based on its efforts this summer in regards to specific drill locations.

Corporate Update

Terraco has granted, pursuant to corporate advisory and financial services agreements dated August 17, 2006 and August 21, 2006, a total of 1,000,000 incentive stock options ("Options") under Terraco's Stock Option Plan at a price of $0.50 for a period of five (5) years. The Options are subject to regulatory approval and will be governed by Terraco's Stock Option plan as approved by the shareholders.

Terraco will continue its focus on gold exploration activities on its properties in Nevada and Arizona.

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

  • Terraco Gold Corp.
    Todd Hilditch
    President
    (604) 639-3199
    (604) 639-3197 (FAX)
    www.terracogold.com