Tesoro Resources (ASX: TSO) has debuted the much-anticipated maiden resource for its flagship El Zorro project in Chile, with Tesoro managing director Zeff Reeves saying it was only just the beginning.
The resource is for the Ternera deposit and totals 25.1 million tonnes at 0.8 grams per tonne gold for 660,000 ounces of contained metal.
Underpinning the maiden resource is 148 diamond holes for 46,937m of drilling.
Using a 0.5g/t gold cut-off, the resource totals 15.4Mt at 1.09g/t gold for 540,000oz.
Mr Reeves said the company has delivered “a significant, but incremental” resource within 18 months of its ASX re-quotation and at a discovery cost of $21/oz.
“This is an amazing achievement during globally challenging times – full credit to our professional and diligent team in Chile who have not missed a beat in executing the work required to deliver this mineral resource estimate.”
“We see this as just the start for El Zorro. We are committed to significantly increasing this mineral resource via our ongoing drilling programs and with the deposit at Ternera open in all directions.”
Mr Reeves added the company had “significant potential” to build resources at the project from other targets including Ternera East and Drone Hill.
“Project studies including mining, metallurgy, environmental, hydrogeology and infrastructure as all underway to be able to define the project and assess the potential of developing at gold mine at El Zorro.”
El Zorro gold project
Tesoro’s El Zorro project covers about 550 square kilometres of ground in northern Chile’s Atacama region.
It is 13km inland from the Pacific Ocean and the port of Caldera is only 57km by road.
Tesoro noted the project is well supported by existing road, power and water infrastructure.
All up, 203 holes for 61,763m have been completed at Ternera, with diamond drilling continuing throughout 2021.