The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from Marketwire

Terraco Gold Intersects 68.4 Meters of 1.3 gpt Gold and Reports the First Results From its 2012 Drilling at its Idaho Project

Terraco also reports metallurgical test work underway

Wednesday, June 27, 2012

Terraco Gold Intersects 68.4 Meters of 1.3 gpt Gold and Reports the First Results From its 2012 Drilling at its Idaho Project07:44 EDT Wednesday, June 27, 2012VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 27, 2012) -Terraco Gold Corp. ("Terraco" or the "Company") (TSX VENTURE:TEN) is pleased to announce assay results from the first 10 core holes of the 2012 drill program completed at its Almaden (Nutmeg Mountain Gold) Project in Washington County, Idaho. In-fill core drilling continues to encounter significant intercepts, including some longer intervals of higher grade gold mineralization than the average resource grade, from surface to 91 meters ("m") or (300 feet ("ft")). Drill Highlights include: Hole MET-1 intersected 68.4 maveraging 1.301 grams per tonne ("gpt") gold from 1.4 to 69.8 m (224.5 ft averaging 0.038 Troy ounces per short ton ("opt") gold from 4.5 to 229.0 ft), including 27.4 m averaging 1.820 gpt gold to 35.4 m (90 ft of 0.053 opt gold to 116.0 ft) and 3.2 m averaging 1.905 gpt gold to 63.6 m (10.5 ft of 0.056 opt gold to 208.5 ft); Hole TAL-775C intersected 61.6 m averaging 1.223 gpt gold from surface to 61.6 m (202 ft of 0.036 opt gold from surface to 202 ft), including: 39.7 m averaging 1.503 gpt gold to 48.8 m (130 ft of 0.044 opt gold to 160 ft); A drill table summarizing results to date may be found at the conclusion of this release.The 2012 drill program includes close-spaced in-fill core drilling designed to better define resources in areas of older conventional or rotary air blast ("RAB") and reverse circulation ("RC") drilling and to continue to test the hypothesis that new core drilling may increase the average grade of the resource over the historical RAB and RC drill results. Additionally, large diameter core drilling was conducted to obtain sufficient material for metallurgical testwork. The first metallurgical hole (MET-1) of large diameter core returned the best intercept. Todd Hilditch, President and CEO of Terraco, said: "We are very pleased with this first set of 2012 drill results and believe the program we designed for the Almaden (Nutmeg Mountain Gold) Project is on the right track. We look forward to the remaining results in the weeks to come." Drill and Program Summary The 2012 exploration program was designed to accomplish three goals:Continue to increase the grade of the deposit internally by obtaining better, more representative samples through the use of core drilling instead of reverse circulation drilling; Obtain large diameter core samples for metallurgical testwork that will address specific questions unanswered in prior metallurgical studies; and Explore for high grade feeder zones below and laterally away from the known resource. In 2012, much of Terraco's core drilling is targeted at improving grade within the resource, by using close-spaced HQ3 core drilling in four different areas of the deposit in the attempt to quantify the degree to which there may be a beneficiation of average resource grade. Shallow core holes in these areas will replace older RAB and RC drilling in deposit modeling to measure the difference in grades between the various drill techniques. MET-1 and TAL-775C are good examples. (A table of all the drill intercepts returned to date for the 2011-2012 Almaden (Nutmeg Mountain Gold) programs can be found on Terraco's website.)So far in this year's program, Terraco has drilled 28 HQ3 holes for a total of 2,462.3 m (8,078 ft) and 4 large diameter (4 inch) core holes amounting to 298.7 m (980 ft) for metallurgical purposes. Most of the HQ3 holes were drilled to target depths of 90 m (300 ft) or less. A few holes, drilled as deep as 610 m (2,002 ft), tested for gold mineralization down dip along structures, and explored for deeper feeder zones. Metallurgical Test Work Underway Terraco has engaged McClelland Laboratories in Sparks, Nevada to complete multiple column leach and other metallurgical testwork. Large diameter core was used to provide larger particle size fractions to McClelland for column testwork. Testing will focus on leach recoveries by ore type and size fractions. Even though previous metallurgical studies have been performed on a number of samples from the Almaden (Nutmeg Mountain Gold) deposit, few focused on specific mineralization types or left questions about recoveries at larger particle sizes. Metallurgical results are expected in calendar Q3/4.Assay results are summarized in the table below. Drill Hole Table Drill Hole NumberAreaInterval (m)Gold (gpt)From (m)To (m)Interval (ft)Gold (opt)From (ft)To (ft)MET-1Main Zone68.41.3011.469.8224.50.0384.5229Including27.41.8207.935.4900.05326116and3.21.90560.463.610.50.056198208.5TAL-767CMain12.00.82033.545.7400.024110150Including3.01.25035.138.1100.0371151254.50.28159.564.0150.0131952103.00.49267.170.1100.0142202304.50.63382.386.9150.0182702853.00.37497.6100.6100.0113203303.00.365118.9122.0100.011390400TAL-768CNorth Zone3.00.9024.67.6100.02615259.00.78510.620.7300.0233565TAL-769CMain12.20.80264.076.2400.023210250TAL-770CMain3.00.45929.032.0100.01395105TAL-771CMain12.01.12410.722.9400.0333575Including6.01.59516.822.9200.0475575TAL-772CMain45.00.58219.865.61500.017652156.70.67970.176.8220.020230252TAL-773CMain12.20.77621.333.5400.02270110Including4.51.18222.927.4150.03475903.00.54248.851.8100.0161601704.50.95554.959.5150.0281801955.20.62971.676.8170.018235252TAL-774CNorth Zone27.00.8186.133.5900.02420110Including12.01.1917.621.3450.0352570TAL775CMain Zone61.61.2230.061.62020.0360202Including39.71.5039.148.81300.04430160Intersections were composited using a 0.34 gpt (0.010 opt) gold cut-off and may include short intervals of values below the cut-off grade.Assay determinations for gold were made by 50 gram fire assay, using an AA finish. Analyses were performed by ALS Minerals USA, Inc. in Reno, Nevada.Click below for a map of drilling to date which is also available at www.terracogold.com. http://www.terracogold.com/i/misc/25june2012_drill_collars_pr.jpg The 2012 Drilling at the Almaden (Nutmeg Mountain Gold) Project was conducted by Marcus and Marcus Exploration of Coeur d'Alene, Idaho.The exploration and drill program for the Almaden (Nutmeg Mountain Gold) Project was designed by Charles Sulfrian, CPG, Vice President, Exploration for Terraco and William Snoddy, Almaden Project Manager. The technical information in this release has been reviewed and approved by Charles Sulfrian, C.P.G., Vice President, Exploration of Terraco and a 'qualified person', as defined by NI 43-101, unless otherwise noted.Terraco 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. Forward-Looking Statements Certain of the statements made and information contained herein are "forward-looking statements" within the meaning of Canadian securities legislation or "forward-looking information" within the meaning of the Ontario Securities Act and the Alberta Securities Act. This includes statements concerning the Company's plans at its mineral properties, which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or forward-looking information. Forward-looking statements and forward-looking information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or forward-looking information, including, without limitation, the availability of financing for activities, risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, metal price fluctuations, environmental and regulatory requirements, availability of permits, escalating costs of remediation and mitigation, risk of title loss, the effects of accidents, equipment breakdowns, labour disputes or other unanticipated difficulties with or interruptions in exploration or development, the potential for delays in exploration or development activities, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, expectations and beliefs of management and other risks and uncertainties. In addition, forward-looking statements and forward-looking information is based on various assumptions. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information or forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements or forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise.FOR FURTHER INFORMATION PLEASE CONTACT: Todd HilditchTerraco Gold Corp.President and CEOToll Free: 1-877-792-6688 or (604) 443-3831(604) 682-3860 (FAX)info@terracogold.comwww.terracogold.comNeither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.