The Moonlight project area was identified by Cordilleran Exploration Company ("Cordex"), on behalf of Metallic Ventues (U.S.) Inc ("Metallic"), prior to the time of Terraco entering the Exploration Agreement with Metallic. The Cordex principals are John Livermore, who is credited with the discovery of the Carlin deposit in Nevada and the discovery and development of the Pinson and Dee mines, and Andy Wallace, who is credited with a major role in the discoveries of the Marigold and Stonehouse/Lone Tree gold deposits as well as the Daisy (Secret Pass) mine.

Gold and silver mineralization occurs along a north-northeast trending structure at the original Moonlight Mine. The high angle structure cuts Permo-Triassic Rochester Rhyolite and Limerick Greenstone of the Koipato Group. According to the Midway Gold website, these are the same sequence of rocks that host gold mineralization discovered at Midway's Spring Valley Project, which adjoins the Moonlight property on the south. Similarly to Spring Valley, alluvial gravels cover the projection of the Moonlight structure and the Permo-Triassic host rock package south of the original Moonlight and Bluebird mines. The projection of the Moonlight structure is generally parallel in strike with the north-northeast-trending Black Ridge Fault Zone that extends from the Coeur Rochester mine northerly through the Midway Spring Valley discovery. The Moonlight structure may be the northerly extension of the Black Ridge Fault Zone, as minor offsets of the district-scale Black Ridge structure may have occurred across west-northwesterly striking cross faults. High-grade silver ore was produced from the Moonlight mine during the 1860's. The targets at Moonlight consist of breccia hosted and stockwork-related gold-silver mineralization hosted by the Rochester Rhyolite. Cordex conducted ground magnetometer and soil geochemical surveys across part of the gravel covered zone. Terraco has completed additional geophysics, including aero-magnetics and will review all data in order to define the best drill targets. The target model is similar to that of Midway's Spring Valley Project.