Tesoro Resources expands highly prospective El Zorro gold project by pegging up substantial ground

Tesoro Resources ASX TSO El Zorro increase land position gold Chile
Tesoro Resources managing director Zeff Reeves said he believes the new ground is prospective for gold mineralisation similar to that found at Ternera.

Chile-focused explorer Tesoro Resources (ASX: TSO) has expanded its flagship El Zorro gold project by 360% after applying for 156 new prospect concessions.

The concessions cover about 285 square kilometres and host similar prospective geology to El Zorro.

Once granted, Tesoro expects the El Zorro project will increase to 395sq km of concessions hosting 55km of strike.

Tesoro managing director Zeff Reeves said the company had submitted all the required documentation to begin registration of the new concessions, adding the application for the 285sq km of concessions was made after a regional review of the belt hosting El Zorro.

“We have identified additional areas that we believe to be prospective for gold mineralisation similar to the style we are currently delineating at the Ternera prospect, where drilling is ongoing.”

“With the benefit of our understanding of gold mineralisation at Ternera, the Tesoro team has identified over 55km of strike immediately north and south of the existing El Zorro concession holdings.”

Mr Reeves added the additional concessions would place the majority of the prospective belt under Tesoro’s control.

“[It also places] the company in a sound position for any potential future discoveries similar to Ternera within the region.”

Mr Reeves noted that Tesoro would be notified within 40 days if any prior competing claims to the concessions had been lodged.

“If no prior third party applications have been made, Tesoro will gain the mineral rights to those areas and the concession will be granted.”

Ternera gold prospect

Drilling is currently underway at the Ternera prospect within El Zorro.

The program is following up on previous broad mineralised intersections that included numerous intervals hosting more than 100 grams per metre of gold.

Mr Reeves said the program comprises two diamond drill rigs focused on infill and extensional holes at Ternera.

Highlight assays from prior drilling were 86.45m at 2.29g/t gold (198g/m gold), including 23m 7.2g/t gold; 98.3m at 1.58g/t gold (155g/m), including 30.3m at 3.03g/t gold; and 84.3m at 1.3g/t gold (110g/m), including 4m at 8.5g/t gold.

Metallurgical testwork on Ternera ore samples achieved up to 99% gold recoveries, with initial results showing the ore is free milling and amenable to standard cyanide leaching processes.