Johnston-Sequoia Capital Corporation is engaged in the business of assisting small cap corporations with research, development, capital raising & funding. The model is tailored specifically to companies with: Strong Management, Strong Balance Sheets,100% ownership & Potential World Class Discoveries.
Terraco Gold Reports Final Results of 2011 Drilling Campaign at Almaden
After a Successful 2011 Drill Program at the Almaden Project Terraco Plans for Exploration Advancement in 2012
January 18th, 2012 Terraco Gold Corp Press Release
Terraco Gold Corp. (TSX.V: TEN | US: TCEGF) announced assay results from the last 6 core holes of the 2011 drill program completed at its Almaden Project in Washington County, Idaho. Core drilling at Almaden for these and other holes in the 2011 season continued to encounter significant gold mineralization from surface to 91 metres (300 feet), including drill holes in the main resource area that showed improvement over the average gold grade of the Almaden deposit.
Highlights Include:
-
Hole TAL-763C intersected 54.9 metres (“m”) averaging 0.778 grams per tonne (“gpt”) gold from 15.2 m to 70.1 m (180 feet averaging 0.023 Troy ounces per short ton (“opt”) gold from 50 to 230 feet), including 21.3 m averaging 1.068 gpt gold to 38.1 m (70 feet of 0.031 opt gold to 125 feet).
-
Hole TAL-765C intersected 22.9 m averaging 0.936 gpt gold from surface (75 feet of 0.027 opt gold), including: 7.6 m averaging 1.586 gpt gold to 16.8 m (25 feet of 0.046 opt gold to 55 feet).
-
Hole TAL-761C intersected 33.5 m averaging 0.786 gpt gold from 27.4 m to 60.9 m (110 feet of 0.023 opt gold from 90 to 200 feet), including: 7.6 m averaging 1.161 gpt gold to 53.3 m (25 feet of 0.034 opt gold to 175 feet).
-
Hole TAL-762C intersected 35.1 m averaging 0.797 gpt gold from 3.0 to 38.1 m (115 ft of 0.023 opt from 10 to 125 feet) including 1.5 m of 1.250 gpt gold to 4.6 m (5 feet of 0.036 opt to 15 ft).
2011 Drill Highlights and Program Summary
-
Hole TAL-751C intersected 53.3 m averaging 1.083 gpt gold from surface (175 feet averaging 0.032 opt gold). This intercept includes the following: 27.4 m averaging 1.595 gpt gold to 33.5 m (90 feet of 0.047 opt gold to 110 feet); and 12.2 m averaging 2.225 gpt gold to 19.8 m (40 feet of 0.065 opt gold to 65 feet).
-
Hole TAL-752C intersected 85.4 m averaging 0.840 gpt gold from 9.1 m to 94.5 m (280 feet of 0.025 opt gold from 30 to 310 feet).
-
Hole TAL-759C intersected 50.9 m averaging 1.09 gpt gold from 10.7 m to 61.6 m (167 feet averaging 0.032 opt gold from 35 to 202 feet), including:4.6 m averaging 1.824 gpt gold to 61.6 m (15 feet of 0.053 opt gold to 202 feet); 10.7 m averaging 1.163 gpt gold to 30.5 m (35 feet of 0.034 opt gold to 100 feet), with 4.6 m averaging 2.198 gpt gold to 30.5 m (15 feet of 0.064 opt gold to 100 feet); 13.7 m averaging 1.118 gpt gold to 50.3 m (45 feet of 0.033 opt gold to 165 feet); 8.3 m averaging 1.954 gpt gold to 61.6 m (27 feet of 0.057 opt gold to 202feet), with 1.5 m averaging 5.27 gpt gold to 56.4 m (5 feet of .0154 opt gold to 185 feet).
Map of drilling collars to date are contained in the link below:
Almaden Gold Resource
The National Instrument 43-101 compliant resource for Almaden is summarized below.
- Measured resource of 239,000 ounces of gold (10,810,000 tons grading 0.022 opt);
- Indicated resource of 625,000 ounces of gold (32,240,000 tons grading 0.019 opt);
- Inferred resource of 84,000 ounces of gold (5,270,000 tons grading 0.016 opt); and
- Total gold resource of 948,000 ounces (48,320,000 tons grading 0.020 opt).
Johnston-Sequoia Commentary:
Terraco's geological management team led by Charlie Sulfrian, Ken Snyder and Bill Snoddy continue to deliver on their objectives at the Almaden Project. This $37 million market cap company hosts a geological roster which includes; Charlie Sulfrian's wealth of experience at Barrick's flagship mine (as Chief Chemist & Chief Geologist during his 19 years at Goldstrike), Ken Snyder's experience with Franco-Nevada & Newmont at the Ken Snyder "Midas" Mine (which also happens to be similar type geological system to the Almaden Project) and Bill Snoddy's experience with Phelp's Dodge. Terraco may hold the top geological management team in the junior gold exploration space (we welcome & encourage a debate on this statement).
The 2011 exploration program was a successful one. Utilizing exclusively core drilling at the Almaden Project has proven valuable as the grade has continued to improve in holes proximal to historic drilling. Terraco is now taking the appropriate steps to bring the Almaden Project into a production decision. In addition, Terraco tacked on a non-dilutive $5 million cash infusion as part of their blockbuster deal on the royalty option at Spring Valley. Furthermore, the deal included a first right of refusal (by the private equity firm) on financing the Alamden Project to commercial production.
The Terraco project portfolio out the gate in 2012 includes:
- An NI 43-101 measured plus indicated and inferred resource of 948,000 ounces of gold within 91 m of surface at the Almaden Project (before 2011 drilling has been incorporated).
- An option to purchase up to 2.5% net smelter royalty on Spring Valley (a Barrick Gold led gold project) in Nevada - which grew by 186% in 2011 to 3,450,000 ounces of gold (still open to the north towards Terraco's Moonlight Project and at depth).
- The Moonlight Project which has returned assay's up to 211 gpt silver on a project that has previously never been tested. Moonlight remains the last untested area along the "string of pearls" contained in the Humboldt range just off of the I-80 in Northwestern Nevada. 2012 will begin to reveal what exists north of Spring Valley.
 |
| Drill Rig test's a Target along the Black-ridge Fault |
Terraco's Chief, Todd Hilditch has put together one of the strongest combination's of management and asset's we have seen in the gold exploration space. As always - please do your own due diligence. We are advisor's of Terraco and own share's in the company.
Register here to be notified of future Johnston-Sequoia Capital Corp. articles.
