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TSX Venture Symbol
: TEN
Terraco Gold Corp.
Suite 960
1055 West
Hastings Street
Vancouver, B.C. V6E 2E9
Tel: 604.443-3830
Fax: 604.682-3860
Toll free: 1.877.792.6688
www.terracogold.com
NR 2008-03
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Terraco Acquires Option on Silverthorne Property
Silverthorne Assay Values up to 17,635 grams per tonne (514.41 opt) Silver
NEWS RELEASE
Vancouver, BC, May 8, 2008 ??? (TSX.V: TEN) Terraco
Gold Corp. (???Terraco???) is
pleased to announce it has entered into an Exploration
and Option to Purchase Agreement (???EA???) with MSM Resource, L.L.C. (???MSM???), a
Nevada corporation, on the Silverthorne property consisting of certain
unpatented mining claims (the ???Silverthorne Property???). The Silverthorne
Property is located in Mineral County, Nevada, within the Walker Lane Trend of western Nevada, approximately 20 miles north of the town of Hawthorne.
Charles Sulfrian, Vice
President, Exploration, said, ???Based on our review and rock samples returning
high grade silver values, we are excited about the opportunity to explore the
Silverthorne Property. Our samples returned assay values from 27.8 grams
per tonne (???gpt???) (0.81 troy ounces per ton (???opt???)) silver, up to 3,130 gpt
(91.30 opt) silver and 1.474 gpt (0.043 opt) gold. Assay results for rock
samples previously taken by MSM include values from trace up to 17,635 gpt
(514.41 opt) silver. Exploration planning on the Silverthorne Property is
underway.???
Property Overview
The Silverthorne Property is located
in Mineral County, Nevada,
within the Walker Lane Trend which has yielded many multi???million ounce gold
and silver deposits including Round
Mountain, the Comstock,
Tonopah and Goldfield.
The general geology of the
Silverthorne Property consists of a structurally???controlled, silver???dominant,
poly???metallic system with the potential to host very high grade silver and
silver-gold deposits. MSM had 62 samples taken throughout the
Silverthorne Property in March and April 2006. From their sampling and
mapping, there appear to be three principal areas of alteration and
metallization. The first target area is
a silver-lead enriched zone where silver assays of rock samples taken by MSM
included values from trace to as high as 17,635 gpt (514.41 opt) silver
and 0.664 gpt (0.0194 opt) gold. Rock samples collected
from a second area (a gold-copper enriched zone) returned gold values from
trace to a high of 0.939 gpt (0.0274 opt) gold. The third target area
sampled yielded gold assays from trace levels up to 0.893 gpt (0.026 opt),
together with silver values to highs of 74.9 gpt (2.18 opt) and 91 gpt (2.65
opt) silver (analyses were performed for MSM by ALS Chemex of Sparks, Nevada).
Terraco???s initial sampling, conducted
by Charles Sulfrian in the Area 1 target, returned values from 27.8 gpt (0.81
opt) silver and trace gold to as high as 3,130 gpt (91.29 opt) silver and 1.474
gpt (0.043 opt) gold (analyses by American Assay Labs of Sparks, Nevada).
Terraco???s assay determinations for
gold and silver were by 60 gram Fire Assay [detection limit of 0.003 opt Au and
0.1 opt Ag]. All assays, repeats and check assays were provided by
American Assay Laboratories of Sparks, Nevada.
Terms of the EA
Pursuant to the terms of
the EA, Terraco has the right to lease and the option to earn an undivided 100%
interest in the Silverthorne Property by paying an aggregate of US$485,000 in
lease payments to MSM over a 10???year term on the Silverthorne Property.
The lease payments are structured as follows: US$20,000 upon execution of the
EA; US$25,000 on the first anniversary of the EA; US$40,000 on the second
anniversary of the EA; and US$50,000 on each anniversary of the EA and
thereafter up to and including the tenth anniversary. The commitment and
timing for exploration expenditures is structured as follows: US$20,000
by the first anniversary of the EA; an additional US$50,000 by the second
anniversary of the EA; an additional US$100,000 by the third anniversary of the
EA; and US$250,000 by each of the fourth to tenth anniversaries of the EA,
inclusive. All annual excess expenditures can be applied to the
commitment for the following year. The first US$20,000 lease payment, the
first year???s US$20,000 in exploration expenditures and the issuance to MSM of
30,000 common shares of Terraco are firm commitments. The EA is
subject to regulatory approval.
The EA allows for MSM to hold a 3%
net smelter return royalty (???NSR???) on the Silverthorne Property, which can be
reduced to 1% by Terraco buying down the NSR for a total of US$350,000
structured as follows: purchase the first 1% by paying US$100,000 and the
second 1% by paying US$250,000.
Qualified Persons
The technical information
in this release has been reviewed and approved by Charles Sulfrian, P.Geo.,
Vice President, Exploration of Terraco and a ???qualified person???, as defined by
NI 43-101, Standards for Disclosure of Mineral Projects.
Terraco Gold Corp. 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.
ON BEHALF OF THE BOARD
"Todd
Hilditch"
______________________________
Todd
Hilditch, President and CEO
FOR FURTHER INFORMATION
PLEASE CONTACT:
Terraco Gold Corp.
Todd
Hilditch, President and CEO
Toll Free: 1-877-792-6688
Tel: (604) 443-3830
Fax: (604) 682-3860
Email: info@terracogold.com
Website: www.terracogold.com
The TSX Venture
Exchange has not reviewed and does not accept responsibility for the adequacy
or accuracy of this release.