High-Grade Gold Expands Tesoro’s Ternera Deposit in Chile

Tesoro Gold Limited (ASX:TSO) has announced significant new drill results that continue to expand the footprint of its flagship Ternera Gold Deposit in Chile, highlighted by an impressive 68.23m @ 1.18 g/t Au intercept from just 32.77m below surface.

Northern Extension Creates New Resource Potential

The latest diamond drilling program has revealed a previously unidentified gold zone extending beyond the northern boundary of Tesoro's existing 1.3 million ounce Mineral Resource Estimate (MRE). This newly discovered zone remains open to the north and represents a high-priority target for rapidly expanding resources.

Drilling hole ZDDH0370 delivered the standout result with a broad mineralised zone of 68.23m @ 1.18 g/t Au from 32.77m, including a higher-grade section of 11.65m @ 3.05g/t Au from 67.80m. This shallow intercept is particularly significant as it could substantially improve the economics of any future mining operation.

Additional notable intercepts from the northern extension include:

• 26.97m @ 2.00g/t Au from 105.25m (ZDDH0359), including 12.10m @ 3.75g/t Au from 107.10m
• 0.70m @ 47.65g/t Au from 97.30m (ZDDH0365)

The southern extension drilling also yielded promising results, with hole ZDDH0365 returning 4.70m @ 7.95g/t Au from 59.20m, including 1.25m @ 28.91g/t Au from 62.00m.

Why Near-Surface Discoveries Matter

The discovery of shallow mineralisation is particularly valuable for gold projects, as it directly impacts the economics of potential mining operations. Near-surface gold means:

1. Lower stripping ratios – Less waste material needs to be removed to access the gold-bearing ore
2. Reduced mining costs – Shorter distance to transport material from the pit to processing facilities
3. Earlier cash flow – Shallow resources can be accessed sooner in a mine plan, improving project economics

Tesoro's Managing Director, Zeff Reeves, emphasised this point: "Any resource ounces we can delineate at shallow depths in this area are a huge positive given their potential to materially change the stripping ratio of a future open pit mining operation."

Exploration Target Growing Beyond 1.3Moz Resource

Tesoro's El Zorro Gold Project already hosts the 1.3 million ounce Ternera Gold Deposit (802,000oz Indicated and 479,000oz Inferred), with these latest results pointing to significant growth potential.

The current resource is constrained within an optimised pit shell using a US$1,800/oz gold price assumption. When viewed at different cut-off grades, the unconstrained resource demonstrates the robust nature of the deposit:

Navigating mineral market fluctuations remains crucial for companies like Tesoro as they develop their resources in preparation for eventual production decisions.

Understanding Intrusive Related Gold Systems

El Zorro represents the first defined Intrusive Related Gold System (IRGS) in Chile, a deposit type with several distinctive characteristics:

An IRGS typically features:

• Low sulphide content (usually <5%)
• Reduced ore mineral assemblages primarily comprising pyrite
• Mineralisation occurring as sheeted vein deposits or stockwork assemblages
• Gold often associated with elements like Bi, W, As, Mo, Te, and/or Sb
• Limited proximal hydrothermal alteration
• Association with intermediate to felsic intrusions

This deposit style can lead to substantial gold resources, as the mineralisation often follows predictable structural controls. Geological insights into gold deposits show how these intrusive-related systems can develop into economically significant resources when properly identified and explored.

What's Next for Tesoro?

Drilling continues at El Zorro with two diamond drill rigs currently operating, focused on further expanding the Ternera MRE. Assays remain outstanding for seven additional holes, with further drilling planned to target both the northern and southern extensions of the deposit.

The company's near-term focus will be on:

1. Delineating additional resources at the shallow northern extension
2. Further defining the southern extensions of the deposit
3. Updating the Mineral Resource Estimate to incorporate new discoveries

A comprehensive key to informed mining investments involves tracking how companies like Tesoro progress through systematic exploration and resource definition phases, particularly as they report results according to industry standards.

Why Investors Should Follow Tesoro Gold

Tesoro Gold offers several compelling advantages for investors looking for gold exploration exposure:

1. Established Resource Base: With 1.3 million ounces already defined and growing, Tesoro has moved beyond the initial discovery phase risk.

2. High-Grade Potential: Recent drilling consistently delivers high-grade intercepts, including bonanza grades like 47.65g/t gold.

3. Shallow Mineralisation: Near-surface gold improves project economics and reduces capital requirements for potential development.

4. Strategic Location: El Zorro is located in Chile's Coastal Cordillera region, home to world-class copper and gold mines with established infrastructure and an experienced mining workforce.

5. Open Mineralisation: The deposit remains open in multiple directions, suggesting significant resource growth potential.

6. Exploration Leadership: The management team has demonstrated its ability to make and expand significant gold discoveries in a region not previously known for gold systems.

Exploring lithium production advancements may be driving much of the current mining investment narrative, but gold exploration success stories like Tesoro's highlight the continuing importance of precious metals in the mining sector.

Global Context and Market Implications

The ongoing exploration success at El Zorro comes at a time when gold continues to trade near historic highs, boosting the economic potential of new discoveries. Understanding global mining trends reveals that while much attention has shifted to battery metals, gold remains a cornerstone commodity for many mining jurisdictions, including Chile.

As drilling continues to expand the footprint of the Ternera deposit beyond its current 1.3 million ounce resource, Tesoro Gold presents an increasingly compelling case for investors seeking exposure to growing gold assets in a tier-one mining jurisdiction.

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