Tesoro Resources unearths wide shallow gold at Ternera, increases ownership of El Zorro

Tesoro Resources shallow gold Ternera El Zorro ASX TSO
Tesoro’s Chilean subsidiary has contributed an additional $7.6 million in El Zorro to raise its stake in the project to 85%.

Tesoro Resources (ASX: TSO) is continuing to report consistent gold results from infill drilling at the Ternera deposit within its flagship El Zorro project in Chile, with the latest holes returning multiple wide, shallow intercepts.

These latest results follow positive assays from the Drone Hill target, located 350m from Ternera, as well as high-grade gold unearthed at the Toro Gordo target within El Zorro.

The news also comes a few days after Tesoro announced its subsidiary has bumped its stake in the Chilean project up to 85%.

Wide and shallow gold zones

Assays have been received for eight infill drillholes at Ternera – El Zorro’s main deposit where resource definition drilling is ongoing – and all holes returning positive gold results.

Highlights were a 50m intersection grading 1.73 grams per tonne gold from 74m downhole, including 6m at 8.47g/t from 97m; and 25.4m at 1.39g/t from 29.1m, including 1.9m at 10.3g/t gold.

A little deeper at 282m, Tesoro returned 100m at 0.48g/t gold, including 10m at 1.43g/t, while a 48m intercept grading 0.67g/t gold from 298m downhole included 4m at 6.45g/t gold from 319m.

Tesoro said the results validate the continuity of gold mineralisation from the Ternera deposit from surface to over 400m depths.

Tesoro managing director Zeff Reeves said the results continue to add to a potential resource at Ternera.

“It is encouraging to confirm zones of shallow mineralisation which correlate well with surface sampling and the down dip drilling we have completed.”

“The scale and continuity of the Ternera mineralisation is impressive, is well defined from surface to over 400m depth and has a strike extent of over 1km and growing,” Mr Reeves said.

“These results have also identified additional high priority mineralised zones, particularly to the south of the deposit which have the potential to add additional ounces to Ternera,” he added.

In total, Tesoro has completed 128 diamond drill holes at the El Zorro project for 39,579m. Assays remain outstanding for 28 holes.

Tesoro moves to 85% ownership of El Zorro

Last week, Tesoro reported its 95% owned subsidiary Tesoro Mining Chile SpA increased ownership of the El Zorro project to 85% through a $7.6 million capital contribution.

At the start of March, Tesoro advised that the original purchase option agreement had been terminated and the joint venture company that holds the El Zorro concessions, El Zorro SCM, would operate on a fully diluting basis going forward. At the time, Tesoro Mining Chile held 70% of the joint venture.

An additional capital contribution of 4.3 billion pesos (A$7.6 million) was estimated at a shareholders meeting to support El Zorro’s approved work plan and budget. The minority party of the joint venture company elected not to contribute, meaning Tesoro Mining Chile covered the full amount and will therefore boost its ownership to 85%.

Mr Reeves said the funds will be used for resource definition and extensional drill programs at Ternera, initial drilling at the new Ternera East prospect as well as for accelerating conceptual and scoping studies for the development of El Zorro.

“Work is also due to commence on regional exploration activities in the expanded El Zorro concession holdings,” he added.

“Our in-country team continues to execute our plans successfully and the next six months is shaping up to be a very exciting time in Tesoro’s evolution.”

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