Wide high-grade gold sets up Tesoro for resource growth at El Zorro

• TSO spots up to 12.63g/t gold outside current resource at El Zorro Project
• The new zone is beyond and below the Ternera Deposit resource boundary
• Diamond drilling is ongoing to target this resource growth potential

Special Report: Tesoro Gold says assays from the ongoing infill and extensional drilling program at its El Zorro Project in Chile has revealed a new wide, high-grade gold zone below the existing resource at the Ternera Deposit.

Ternera already boasts 1.3Moz of gold at a US$1800/oz pit shell, well below current spot levels of close to US$2700/oz, containing open pit resources of 32.5Mt at 1.13g/t (1.175Moz) and underground resources of 1.3Mt at 2.64g/t Au (107,000oz).

The new zone is around 50m below the current resource boundary, with drilling from Tesoro Gold (ASX:TSO) returning 132.18m at 1.28g/t gold from 363m, including 32.2m at 3.28g/t from 371.30m and 3.25m @ 12.639g/t from 371.30m.

The results continue beyond the currently defined limits of the resource into previously untested zones, which the company says highlights the growth potential of the Deposit. 

Key intercepts from within the existing boundary include:

• 153.9m at 1.61g/t from 83.1m, including 25.82m at 3.96g/t from 93m, and 44.25m at 1.99g/t from 161m; and
• 58.7m at 2.1g/t from 264.3m, including 7.5m at 12.42g/t from 286.5m, and 2m at 29.45g/t from 279m.

Huge latent growth potential

Tesoro Managing Director, Zeff Reeves said the results continue to highlight “the huge latent growth potential of the Ternera Gold Deposit.”

“The discovery of this significant new gold zone, located outside the existing MRE, open to the south and at depth, reinforces our confidence in both our geological model and the development potential of the broader project,” he said.

“Additional drilling is planned as part of the current program to further define and expand this exciting new zone.

“These results, coupled with recent intercepts from the north, demonstrate that Ternera remains open in all directions, offering an exceptional opportunity to significantly expand the resource base.”

Drilling is ongoing, with a focus on resource expansion, targeting high-priority zones, within a 1.5km radius at the shallow northern and southern ends of the Deposit.

This article was developed in collaboration with Tesoro Gold, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.