Tesoro Gold (ASX: TSO) has announced significant high-grade gold intercepts 400m down-plunge of its existing open-pit resource at the Ternera Deposit, confirming substantial depth extensions and bolstering the potential for a near-term Mineral Resource upgrade.
These significant extensions sit approximately 200m vertically below the 2025 Scoping Study Open Pit Shell.
Notable results include a deep southern extension intercept of 8.84m @ 3.54 g/t Au from 576.00m, which featured a high-grade sub-interval of 1.00m @ 27.70 g/t Au from 576.00m.
A further deep intercept returned 7.09m @ 1.31 g/t Au from 670.45m, including 0.54m @ 9.89 g/t Au from 677.00m.
The company also reported a north extension intercept of 4.26m @ 3.40 g/t Au from 217.45m, including 0.68m @ 19.45 g/t Au.
Ongoing Drilling and Resource Upgrade Focus
These results are part of an extensive 38,000m drilling campaign that is currently underway.
Tesoro Gold has five rigs operating on site, indicating a sustained exploration effort.
In this latest batch, 15 holes were reported, with assays pending for another 23 holes, suggesting continued news flow for investors.
The company is targeting an updated Mineral Resource Estimate for the Ternera Deposit by end-Q1 2026.
The current open-pit MRE (at a 0.30 g/t cut-off) stands at a total of 51.2 Mt @ 1.10 g/t for 1,816 koz, comprising 31.8 Mt @ 1.10 g/t for 1,123 koz Indicated and 19.5 Mt @ 1.11 g/t for 692 koz Inferred resources.
Broader El Zorro Project Context
The El Zorro project in Chile remains the central focus for Tesoro Gold's exploration and resource development efforts.
The project’s potential was further reinforced by maiden drilling at the La Brea target, located approximately 15 km north of Ternera.
Previous results from La Brea confirmed a significant gold system, with intercepts mirroring the early geological signatures observed at Ternera.
Tesoro Gold’s Chilean subsidiary, Tesoro Mining Chile SpA, holds 95.4% ownership of the El Zorro concessions.
Financial Position and Funding
Tesoro Gold's recent quarterly reports highlight ongoing cash burn due to significant exploration expenditure.
The company’s estimated funding runway was approximately 4.37 quarters as of the Q4 2025 report.
To fund its ambitious El Zorro project through to Final Investment Decision (FID), the company has secured firm commitments to raise up to A$34 million.
A 15-for-1 share consolidation was proposed, subject to shareholder approval at the 26 November 2025 Extraordinary General Meeting, aimed at streamlining its capital structure.
Tesoro Gold's Growing Resource Potential
Tesoro Gold's latest drilling results at Ternera provide strong evidence of significant down-plunge extensions, supporting a near-term resource upgrade.
While the company faces ongoing funding and execution risks typical for its stage, the growing gold system at El Zorro offers substantial exploration upside.
- High-grade gold discovered 400m below Ternera open pit.
- Drilling campaign continuing with resource upgrade targeted soon.
- Funding and share consolidation remain key near-term considerations.
