El Zorro Drilling Yields 132m at 1.28g/t Au Beyond Resource Boundary

Exploration Breakthroughs at Ternera

Tesoro Gold Limited (ASX, TSO) has reported a quarter of substantial progress at its flagship El Zorro Gold Project in Chile. The company’s diamond drilling program at the Ternera Deposit delivered multiple high-grade gold intercepts, notably extending mineralisation beyond the current Mineral Resource Estimate (MRE) boundaries. Drill hole ZDDH0356, in particular, intersected a new wide zone of mineralisation to the south and below the existing resource, returning 132.18 metres at 1.28 grams per tonne gold from 363 metres depth, including a standout 3.25 metres at 12.639 grams per tonne.

These results not only confirm the continuity of gold mineralisation over an 800-metre down-plunge but also highlight previously untested zones ripe for resource expansion. Additional shallow, high-grade zones were intercepted at the northern edge of the Ternera MRE, with drill hole ZDDH0370 returning 68.23 metres at 1.18 grams per tonne from just 32.77 metres depth, underscoring the deposit’s open-ended potential.

District-Scale Target Generation and Geophysical Insights

Beyond Ternera, Tesoro’s integrated geophysical and geomechanical modelling has identified promising new targets within close proximity to the deposit. The Magneto-Telluric survey expanded the known Intrusive Related Gold System corridor to over 30 kilometres, revealing two high-priority prospects; Drone Hill NW and Falda; within 2 kilometres of Ternera. Meanwhile, the Pena Blanca target, located approximately 6 kilometres south, exhibits geological and geochemical signatures akin to Ternera, suggesting significant district-scale potential.

These findings are the product of a comprehensive exploration approach combining MT surveys, reprocessed airborne magnetic data, satellite imagery, and detailed structural mapping. The geomechanical modelling, which predicts zones of rock failure conducive to gold deposition, has been validated by the location of known mineralisation trends, lending confidence to the prioritisation of these new targets.

Capital Raise and Strategic Partnerships

Post-quarter, Tesoro secured binding commitments for an institutional placement raising approximately A$11.1 million. This capital injection is strongly supported by both domestic and international sophisticated investors, including a notable A$1.75 million commitment from long-term strategic partner Gold Fields Limited, which will maintain its 17.14% shareholding. The funds are earmarked to accelerate drilling, update the Ternera MRE, advance technical studies, and fully fund the permitting process for El Zorro.

The placement was structured in two tranches, with the second tranche subject to shareholder approval expected in June 2025. This financial backing provides Tesoro with a solid runway to advance its exploration and development objectives over the next 12 months.

Environmental Permitting Progress

In parallel with exploration and financing activities, Tesoro has commenced preparations for an Environmental Impact Study (EIA), a critical step towards obtaining the necessary permits to construct and operate a gold mine at El Zorro. The company has engaged Pares&Alvarez Ingenieria y Proyectos, a respected Chilean engineering firm, to conduct a 12-month baseline environmental and social impact assessment. The EIA process is expected to take up to 24 months, culminating in the submission to Chile’s Environmental Impact Assessment System and the pursuit of construction and operational approvals.

Financial Position and Outlook

At the end of March 2025, Tesoro held a cash balance of A$0.77 million with no debt, having invested approximately A$2.62 million in exploration activities during the quarter. The company’s disciplined expenditure focused on diamond drilling, assays, and associated operational costs. With the recent capital raise, Tesoro is well-positioned to maintain momentum in its exploration and permitting programs, aiming to unlock further value from the El Zorro Gold Project.