Tesoro Resources (ASX: TSO) has extended known mineralisation at the Ternera deposit within the El Zorro project in Chile, with an upgrade to the 660,000-ounce resource anticipated before the end of the year.
The company has received another assay batch from 11 diamond drill holes that were completed as part of the infill and extensional drilling program at the deposit.
All holes hit gold mineralisation with several intercepting wide zones outside of the resource area.
Notable results from one hole were 225.35m at 0.64 grams per tonne gold from 20m, including 96.15m at 0.98g/t gold from 20m and 12m at 4.78g/t gold from 50.5m.
Another hole intercepted 47m at 0.85g/t gold from 338m, including 4m at 5.22g/t gold from 347m.
Tesoro managing director Zeff Reeves said the company’s confidence in Ternera continues to build, with drilling uncovering wide, well-mineralised gold zones outside of the resource.
“The more we drill, the more Ternera expands, demonstrating the potential of this emerging large-scale deposit at El Zorro and providing confidence that Tesoro is well on the way to providing a material mineral resource upgrade before year end,” he added.
Advancing El Zorro gold project
Tesoro has six rigs operating around-the-clock at El Zorro with extensional and infill drilling underway across Ternera, Ternera East and Drone Hill targets.
The company plans to complete an additional 15,000m at the project in the current program.
Meanwhile, assays are pending for 43 diamond drill holes and will feed into a resource upgrade anticipated in the following quarter.
Additionally, detailed metallurgical testwork is being carried out with results from these expected in the coming weeks.
El Zorro is located in Chile’s coastal Cordillera region which is home to numerous world class copper and gold mines.
The region has well established infrastructure and service providers including an experienced mining workforce.
Tesoro’s 95% owned subsidiary holds 85% of El Zorro.