Tesoro Gold Reports Strong Scoping Study Results for El Zorro Project in Chile

Tesoro Gold (ASX: TSO) has released an updated Scoping Study for its El Zorro gold project in Chile, highlighting robust economics and a clear development pathway.

The study outlines a conventional open pit and processing operation producing more than 1.2 million ounces over 15 years.

Based on conservative gold price assumptions, the project generates strong margins, rapid payback and potential for further growth.

2025 Ternera MRE

The latest study builds on the August 2025 Ternera mineral resource estimate (MRE) and assumes throughput of 3 million tonnes per annum, while pointing to a steady production profile of 111,000ozpa for the first nine years of operation.

Tesoro modelled the project against two pricing scenarios: a base case of US$2,750/oz and a spot case of US$3,300/oz.

Under these assumptions, the operation respectively delivers post-tax net present values of US$663 million and US$966m, with 51% and 68% internal rates of return.

With upfront capital estimated at US$248m, the study forecasts a payback period of just 20 months under the base case (16 months under the spot case), supported by life-of-mine all-in sustaining costs of US$1,216/oz.

Pre-Feasibility Work Underway

Tesoro has now advanced to pre-feasibility work, which it expects will run through to the second quarter of 2026.

These studies will refine the mine schedule, evaluate underground options, and continue environmental baseline work.

Tesoro will also continue exploration drilling targeting shallow extensions at Ternera, nearby Ternera East, and across the broader district—growth opportunities the company sees as critical to extending the life of the project.

Subject to approvals and financing, construction will commence in 2028 and Tesoro anticipates first gold production in mid-2029.

Conventional Mining Development

Managing director Zeff Reeves said the results highlight the appeal of El Zorro as a conventional mining development with strong economic returns, noting that the upgraded Ternera resource enabled a larger open pit while retaining flexibility in mine planning.

He described the metallurgical outcomes as equally important, with test work confirming gold recoveries of about 95% through a low-cost carbon-in-pulp process, and identified the use of desalinated seawater from the nearby Totoralillo plant as a further advantage.

Mr Reeves said El Zorro represents the first stage of what he sees as a broader district-scale development opportunity, with potential for additional deposits to be defined over time.

The company expects development to provide significant local employment and regional economic benefits.