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. is providing a Humboldt Range update, including activity on its Spring Valley assets.
Terraco Humboldt Range Background
Terraco holds net smelter return ("NSR") royalty assets of up to 3% on claims covering the vast majority of the currently outlined Spring Valley gold deposit. The Spring Valley gold project is operated by Barrick Gold Corp. ("Barrick") and is a joint venture with Midway Gold Corp. ("Midway") whereby Barrick is the 70% partner. Terraco's royalty assets include direct NSR ownership, options to purchase NSR royalties and a right of first refusal to purchase a 1.0% NSR on an area of interest within a half-mile of the core claim block. Terraco's holds its Spring Valley royalty assets and its northerly adjoining 35 km2 Moonlight exploration project land holdings within one Nevada domiciled subsidiary (collectively, the "Spring Valley Assets").
Spring Valley Activity - Barrick
Activity on the Spring Valley gold project is continuing aggressively with Barrick advancing the project to a pre-feasibility stage and confirming production potential for the project (see Barrick's April 30, 2014 announcement Barrick Reports First Quarter 2014 Results(1) and Midway's May 16, 2014 announcement, Midway Reports Barrick Advances to Pre-Feasibility Spring Valley Gold Project, Nevada(2)). In addition, Midway announced that it had received Barrick's 2014 budget regarding the Spring Valley gold project and that it included USD$8,300,000 for project development and USD$5,000,000 for exploration work. The total budget of USD$13,300,000 announced was to advance the project (see Midway's announcement May 16, 2014, Midway Announces Barrick's $13.3 Million Planned 2014 Expenditures for Spring Valley, Nevada(2)).
Southern Humboldt Range New Entrant - Sumitomo
Regional Southern Humboldt Range activity, in addition to the above noted Spring Valley developments, includes a new entrant along trend adjoining Terraco's Moonlight Project to the North. Renaissance Gold Inc. ("Renaissance") has signed an exploration agreement with Sumitomo Corporation's U.S. subsidiary, Summit Mining Exploration II, Inc., to earn up to a 70% interest in the Fourth of July project that is along strike (to the north) from the Rochester Mine, Barrick's Spring Valley and Terraco's Moonlight Project. Terraco's Moonlight Project now sits between two major mining companies in Barrick and Sumitomo.
"With the completion of Barrick's USD$38,000,000 earn-in on the Spring Valley gold project (in February 2014) and the subsequent announcements made by Midway that Barrick has moved to prefeasibility and is spending USD$13,300,000 in 2014 on the project, we are feeling confident that the Spring Valley gold project will become the mine we had hoped for when we acquired our Spring Valley royalty assets. In addition, there is more activity district wide in the Southern Humboldt trend with other majors like Sumitomo coming into the mix," said President and CEO Todd Hilditch.
For a description of Terraco's Spring Valley Assets, including a narrated video presentation and a royalty map of Spring Valley deposit, please follow the below link to our website, further to the Spring Valley Asset Presentation (bottom right of Home Page): www.terracogold.com.
More information on the Spring Valley project can be accessed through Sedar (further to Midway Gold) or Midway's website.
Shareholders and investors that currently receive news releases or corporate updates from Terraco will be receiving a direct email within a week whereby your consent to receive future Company news releases and updates will be required. In keeping up with Canada's new anti-spam law, which comes into effect on July 1, 2014, Terraco is required to request and receive your consent prior to sending news releases and corporate updates. Your action to our email request is required on or before July 1, 2014.
The Company also announces the grant of an aggregate total of 5,051,000 incentive stock options to directors, officers, employees and consultants of Terraco pursuant to its Stock Option Plan with certain vesting provisions. These options will be exercisable at a price of CAN$0.16 per share and will expire on June 9, 2019. The grant of the incentive stock options is subject to regulatory approval.