Terraco Gold Corp. (TSX.V TEN | US: TCEGF), has a mix of advanced and early-stage gold-silver projects in Idaho and Nevada, USA.
The 100% owned Almaden Project is located 12 miles east of Weiser and 78 miles north of Boise, Idaho. The project hosts a National Instrument 43-101 compliant measured plus indicated resource of 864,000 ounces of gold and an inferred resource of 84,000 ounces of gold within 300 feet of surface. The advanced- stage Almaden project has excellent access with good infrastructure and includes over 199,000 feet of historic drilling in 887 drill holes. Terraco has completed a drill program to explore the extension of the near surface mineralization that is open to the north and south, as well as test for high-grade, bonanza-style structurally controlled gold mineralization at depth. Project comparisons for Almaden are The Ken Snyder "Midas Mine" (Newmont) and the Hollister Mine (Great Basin Gold) located in northeast Nevada.
The 100% owned Moonlight Project is located 21 miles northeast of Lovelock, Nevada and about five miles north of the Coeur d'Alene Rochester silver-gold mine. The Rochester Mine has produced over 127 million ounces of silver and 1.5 million ounces of gold in its 24 year history and has recently returned to production. Additionally, the Moonlight Property adjoins the north side of the Barrick Gold Corp./ Midway Gold Corp Spring Valley joint venture. Spring Valley, operated by Barrick, hosts a National Instrument 43-101 measured, indicated and inferred resource of 4,100,000 ounces of gold. Barrick's 2009 and 2010 drilling confirms the gold mineralization is open to the north (towards Moonlight) and at depth.
Terraco has executed a definitive agreement with Seymork Investments Ltd., a British Columbia company, for the acquisition of a significant land package and the option to acquire an additional 2,287 acres of net surface rights and 6,187 acres of net mineral rights at and in the area of Terraco's Moonlight property. The Transaction provides Terraco with 100% ownership of a larger strategic land package and a better overall exploration opportunity for its Moonlight Property.
Terraco has also enhanced its presence in the Humboldt trend by entering into a three-way transaction, whereby Terraco arranged for a US$5,000,000 (non-dilutive) cash infusion and acquired an option on a mineral production royalty of up to 2.5% (on a sliding scale net smelter returns basis) on claims covering part of the Barrick-led Spring Valley Project.
Terraco Gold Corp. has initiated the restructuring of its subsidiaries in order to consolidate its Humboldt Range, Nevada, asset holdings. The streamlining of Terraco's United States subsidiaries allows the company to separate and hold its Spring Valley royalty assets, along with its northerly adjoining 35-square-kilometre Moonlight exploration project landholdings, within a single wholly owned U.S. subsidiary. Its non-Humboldt Range assets will be held in a separate U.S. subsidiary.
- In light of recent joint venture activity at Barrick's Spring Valley project in Nevada, Terraco has opted to consolidate its Spring Valley asset portfolio into a single subsidiary focussed on this district.
- Barrick recently completed the earn-in of a 70-per-cent interest in the Spring Valley joint venture from Midway Gold Corp.
- Terraco owns various royalty and royalty options at Spring Valley, as well as strategic land positions to the north and to the east of the project
The southern Humboldt Range is home to several major mining companies and projects, including the Rochester mine, operated and owned by Coeur d'Alene Mines. Rochester has produced 134 million ounces of silver and 1.47 million ounces of gold since 1986 and centres this district. Adjoining the Rochester mine to the north is the Spring Valley gold project, which is operated by Barrick Gold Corp. and is a joint venture with Midway Gold. Terraco holds gold royalties and royalty options of up to 3-per-cent net-smelter-return royalties on claims covering the vast majority of the currently outlined Spring Valley gold deposit. Adjoining Spring Valley to the north is Terraco's Moonlight project, which encompasses 35 square kilometres of early-stage exploration potential along strike with the Rochester mine and Spring Valley deposit.
"As this district continues to develop following completion of Barrick's $38-million earn-in on the Spring Valley project, we felt it was necessary to segregate our respective gold assets. The consolidation of our Spring Valley assets will afford Terraco a clear and efficient structure in order to aid in the evaluation of any corporate activity to come," said president and chief executive officer Todd Hilditch.
Terraco's royalty assets and regional map
For a description of Terraco's royalty assets, including a royalty map of the Spring Valley deposit, please visit the company's website.
More information on the Spring Valley project can be accessed through SEDAR (further to Midway Gold) or Midway's website.