Tesoro Resources assays show Chile prospect’s potential for gold mineralisation from surface to depth

Assays from another seven holes completed by Tesoro Resources (ASX: TSO) at its El Zorro project in Chile have added more evidence of a fast-growing gold resource.

The company also said additional sampling from an earlier hole at the Ternera prospect has revealed an increased mineralised zone measuring 213.5m long, demonstrating the potential for Ternera to be continuously mineralised from surface to depth.

The best assays from the latest drilling results at Ternera include 87.5m at 0.72 grams per tonne gold from a depth of 194.5m, including 34.6m at 1.29g/t and 5.6m at 4.37g/t gold.

Hole 63 returned 166m at 0.57g/t gold, with the intercept including three higher grade sections — 39m at 1.22g/t, 16m at 2.96g/t, and 5m at 9.09g/t.

In addition, hole 66 went through 137m of mineralisation at an average 0.51g/t gold.

It, too, has three higher grade sections: 47m at 1g/t, 23m at 1.09g/t and 19m at 1.24g/t gold.

Another set of solid result’

Meanwhile, additional sampling completed on hole 29 has extended the previously reported mineralised zone by a further 37m.

Starting at 29.5m down hole, the intersection is now reported as 213.5m at 0.73g/t gold, including 63.5m at 1.81g/t.

Tesoro managing director Zeff Reeves said this 213.5m intersection “demonstrates the potential for Ternera to be continually mineralised from surface to depth”.

He termed the latest assays as “another set of solid results from Ternera”.

These results have demonstrated the continuity of the broad mineralised zone extending to the south as well as a “significant” new zone northeast of the known deposit.

Well-financed to advance project

Earlier this month, Tesoro locked in a $21 million capital raising with firm placement commitments of $18 million with another $3 million to be raised through a share purchase plan.

Investors were offered shares at $0.27 each, which was a 9.3% discount to the previous closing price and a 14.6% discount to the five-day trading and 15-day trading volume weighted average price.

Tesoro’s existing major shareholder, fund manager Tribeca Investment Partners, took $5 million of the placement.

Combined with existing reserves, Tesoro will have more than $24 million in funds to advance El Zorro.

The El Zorro project is located 140km by road from the city of Copiapo in northern Chile.

Tesoro has been focusing on the coastal Cordillera region in Chile, host to multiple large copper and gold mines.

In all, 52 holes have now been completed at El Zorro with assays for 15 of those still outstanding.