Terraco Gold Corp. (TSX.V TEN | US: TCEGF) (“Terraco”) is a royalty company with a gold royalty portfolio on (and adjacent) to the Spring Valley Gold Project (“Spring Valley Project”)(Nevada). Terraco’s business model provides investors with gold price and exploration optionality while limiting exposure to many of the risks of operating mining companies.
The Spring Valley Project is 100% owned and operated by Waterton Global Resource Management, Inc. (through subsidiaries). Terraco’s net smelter returns (“NSR”) royalty coverage includesup to a 3.0% NSR royalty on claims covering the majority of the Spring Valley deposit as well as additional NSR coverage on other parts of the Spring Valley Project and peripheral lands.
Terraco owns a 2% NSR royalty on the Moonlight Project which covers 35 square kilometers (13 square miles) and is located along trend and contiguous to the north side of Spring ValleyProject.
The Spring Valley Project and Moonlight Projects are part of the Humboldt trend in Pershing County, Nevada and are located approximately 200 kilometres (125 miles) northeast of Reno,Nevada and adjoin the Coeur Mining Rochester silver-gold mine. The Rochester Mine has produced over 139,000,000 ounces of silver and 1,500,000 ounces of gold in its 28 year history and is the most prominent mining operation in the Humboldt trend but the trenddoes include several other noteable gold past producing and current development projects such as Relief Canyon (Americas Silver acquiring Pershing Gold), Florida Canyon (acquired by Alio Gold) and the Lincoln Hill and Wilco projects (recently acquired by CoeurMining).
Terraco holds a 100% interest in the Almaden (Nutmeg Mountain) Project which is located 126 kilometres (78 miles) northwest of Boise, Idaho in Washington County. The project hostsa National Instrument 43-101 compliant gold resource of near 1 million ounces of gold within 90m of surface (see Almaden overview under ‘Our Assets’). Almaden (Nutmeg Mountain) is a shallow, epithermal, hot springs related system where gold mineralizationoccurs in near surface, flat-lying, tabular bodies. As with other such systems, there is the potential for discovery of high grade, bonanza style, structurally controlled “feeder veins” at depth. Similar systems include the Ken Snyder “Midas Mine” (Newmont)and the Hollister Mine (Hecla acquired from Klondex) located in northeast Nevada.