High Grade Intersected @ Eagleville..at last
Terraco Gold Corp.: Eagleville Drilling Returns 1.2 OPT (39.5 GPT) Gold
5/20/04
VANCOUVER, BRITISH COLUMBIA, May 20, 2004 (CCNMatthews via COMTEX) --
(TSX VENTURE: TEN) Terraco Gold Corp. ('Terraco') is pleased to announce positive results from recently completed diamond drill core drilling conducted on the Eagleville property, Mineral County, Nevada. Highlights of the drill program include
a 1.3 foot (0.4 metre) interval of 1.15 ounces per ton ('opt') (39.52 grams per tonne, 'gpt') gold in hole E04-3 and a .66 foot (0.2 metre) interval of 0.71 opt (24.18 gpt) gold in hole E04-4.
The drill targets in this program were designed to test anomalous resistive features identified in the CSAMT geophysical survey completed earlier this spring. The positive drill results, with high grade vein structures that were intersected, provide Terraco with confirmation that the CSAMT survey is a useful tool for further exploration of this target type. Gold values were associated with all four target locations drilled, including E04-3 and E04-4 (1.15 opt and 0.71 opt respectively). These two holes were drilled on opposite sides of Eagle Hill and intersected separate vein structures that may coalesce at depth. Numerous similar geophysical targets were identified by the survey across its 1.4 mile (2.3 km) width that require further follow-up.
Concurrent with the drill program, surface rock sampling of vein exposures was conducted. Complete analyses have not yet been received, however gold values from the initial samples have returned a high of 0.458 opt (15.74 gpt) gold, confirming the high grade nature of mineralization encountered in the historic workings at Eagleville. Complete analytical results for both the surface samples and drill core are forthcoming.
Drilling
The Phase I drilling at Eagleville was conducted between April 1 and 24, 2004. To date, a total of four HQ-sized core holes totalling 1657 feet (505.2 metres) have been completed. All drill core was systematically logged, split and sampled. Samples were submitted to BSi Inspectorate of Reno, NV for analysis. Gold analyses for all samples has been received with trace element geochemistry results still pending.
Drill hole E04-1 was collared on the northwest edge of Eagle Hill and drilled to a depth of 506 feet (154.3 metres) to test the down dip continuation of gold mineralization in an argillically altered quartz breccia shear zone exposed on surface. This structural target hole intersected a thick sequence of plagioclase phyric andesite cut by two quartz breccia shear zones at 188 to 230 feet (57.4 to 70.0 metres) and 431 to 490 feet (131.4 to 149.4 metres). Three mineralized intervals were returned from hole E04-1 as follows:
From To Length(m) GPT Au OPT Au
66 68 2 (6.6 feet) 3.37 .098
136 137 1 (3.3 feet) 1.02 .030
142 144 2 (6.6 feet) 2.72 .079
Drill hole E04-2 was drilled to test the extension of the Eagle and Summit quartz veins on the west side of Eagle Hill. The hole was lost at 82 feet (25 metres) due to drilling conditions, including fractured ground. Samples collected from the hole, above the target zone, returned a high of 0.47 gpt gold.
Drill hole E04-3 was drilled at a shallower angle from the same set-up as E04-2. This hole was drilled to a depth of 468.2 feet (142.7 metres) and intersected a thick sequence of andesite intruded by mafic dykes. A 1-centimetre quartz vein with native gold was intersected at 156 feet (47.4 metres). Siliceously altered quartz breccia shear zone was intersected at 225 to 234 feet (68.6 to 71.4 metres), with underground workings encountered from 234 to 239 feet (71.4 to 72.9 metres). A 1.3 foot (0.4 metre) sample from 155.2 to 156.5 feet (47.3 to 47.7 metres) over the quartz vein returned 1.15 opt (39.5 gpt) gold.
Drill hole E04-4 was drilled to test the down dip extension of a quartz-barite vein system on the north side of Eagle Hill. This hole intersected quartz monzonite from surface to 295 feet (89.9 metres) followed by variable volcanic sequence of rhyolite and andesite to a depth of 601 feet (183.2 metres). Moderate argillic alteration and minor quartz veins were intersected. A quartz vein sampled from 582.02 to 582.68 feet (177.4 to 177.6 metres) returned 0.71 opt (24.18 gpt) gold.
Drilling at Eagleville was successful in identifying extensions to the known zones of mineralization on the west and northern portions of Eagle Hill. Due to high topographic relief, drill testing access of the mineralized systems on the southwestern and eastern portions of the hill will be difficult to undertake from surface. Mapping and sampling of the underground workings is also required. Further drill testing from accessible sites within the main area of the historic workings and testing geophysical anomalies is required to determine the extent of the mineralized systems in this area.
The Qualified Person for the contents of this release and exploration activities at Eagleville is Geoffrey Goodall, P.Geo. of Global Geological Consultants Ltd.
Information regarding the Company can also be accessed through the corporate web site www.terracogold.com, including technical reports on the Tuscarora and Eagleville properties. Terraco maintains a photo gallery on the web site as well with regular updates.
On behalf of the Board of Directors of
TERRACO GOLD CORP.
Todd Hilditch, President