Anomalous Gold And Silver In Six Of Eight Holes

VANCOUVER, BC - Terraco Gold Corp. reported that anomalous gold and silver mineralization was encountered in six of eight rotary reverse circulation ("R-C") holes drilled at the Middlegate Project, Mineral County, Nevada. In addition, intervals selected and resubmitted from the R-C drilling for additional screen fire assays returned higher grade gold of up to 116 times the original gold value (up to 25.227 grams per tonne ("gpt") (0.736 Troy ounces per short ton ("opt").
Ken Snyder, PhD, P. Geo. and consulting geologist to Terraco, stated that "The occurrence of coarse gold, once identified, can significantly enhance a project in terms of its upside for increased grade and size of a deposit. I have been personally involved in projects, including Newmont's Ken Snyder Mine (also known as the "Midas Mine"), where the presence of coarse gold, albeit challenging at first, played an important role in identifying and creating this world-class deposit and mine. The initial drilling at the Middlegate Project is particularly exciting because of the width of alteration and depth to which the zones are mineralized."
Six out of the first eight rotary R-C holes drilled at Middlegate Project intersected several intervals of anomalous gold and silver mineralization to 295 meters or 970 feet.
Highlights of the drilling include:
MD-01 encountered a large altered zone from surface to 75 meters ("m") or 245 feet ("ft") containing anomalous gold. Within this large altered zone, intercepts greater than Terraco's tabulation cut-off grades of 0.250 gpt (0.007 opt) gold include:
- 7.6 m of 0.426 gpt gold, including 3 m of 0.698 gpt gold (25 ft of 0.012 opt gold including 10 ft of 0.020 opt gold); and,
- 13.7 m averaging 0.251 gpt gold including 4.6 m of 0.349 gpt and 1.5 m at 0.436 gpt gold (45 ft averaging 0.007 opt including 15 ft at 0.010 opt and 5 ft of 0.013 opt gold).
MD-05 intersected 3 m of 0.606 gpt including 1.5 m of 0.952 gpt (10 ft of 0.018 opt including 5 ft of 0.028 opt) gold.
One example of a successful mine where sampling issues were solved and where relatively coarse, free gold comprised a significant portion of production was the Paradise Peak Mine, approximately 30 miles south of Middlegate, that had production of more than 1.6 million ounces of gold and 24 million ounces of silver between 1986 and 1994. Other important mines or deposits with coarse gold include the Ken Snyder Mine, Round Mountain Mine, Sleeper Mine and the Barrick / Midway Spring Valley joint venture announced October 20, 2008.
Since representative sampling is critical in this environment, Terraco is reviewing drill types, sample collection methods, and assay techniques to be used in future exploration at Middlegate. These may include collection and submission of all material recovered during rotary R-C drilling, HQ or larger diameter core drilling and whole core sampling, or other methods designed to better define the nature of gold mineralization at Middlegate. Drilling at Middlegate will begin upon completion of the above review and upon management's decision on timing.
The company's address is 960-1055 W. Hastings Street, Vancouver, BC V6E 2E9, 604-443-3830, fax: 604-682-3860, email: [email protected].