Tesoro Gold Uncovers New Gold Zones, Raises A$11.1M to Boost El Zorro Project

Expanding the Ternera Gold Resource

Tesoro Gold Limited (ASX, TSO) has delivered a robust quarterly update for the period ending 30 June 2025, highlighting significant progress at its flagship El Zorro Gold Project in Chile. The company’s ongoing diamond drilling program at the Ternera Deposit continues to yield encouraging results, with new mineralised zones identified both north and south of the existing Mineral Resource Estimate (MRE) boundary.

Notably, follow-up drilling to hole ZDDH00356 confirmed wide zones of gold mineralisation outside the current resource envelope, including intercepts such as 47.6 meters at 1.13 grams per tonne (g/t) gold and higher-grade sections within. Southern extensions have revealed substantial mineralised zones, with holes like ZDDH0378A returning 63.97 meters at 1.26 g/t gold, including a high-grade 9.34 meters at 6.60 g/t. These discoveries suggest a material expansion of the Ternera resource, which currently stands at approximately 1.5 million ounces.

District-Scale Exploration and New Targets

Beyond Ternera, Tesoro’s exploration efforts are gaining momentum with the identification of new near-deposit targets at Drone Hill NW and Falda, both within 2 kilometers of Ternera. A Magneto-Telluric (MT) geophysical survey has further expanded the Intrusive Related Gold System (IRGS) corridor to over 30 kilometers, underscoring the district-scale potential of the El Zorro project.

Additionally, a new high-priority target named Pena Blanca has been identified approximately 6 kilometers south of Ternera, characterized by geochemical anomalies typical of IRGS deposits. These findings reinforce Tesoro’s strategy of systematic, district-wide exploration to underpin future resource growth.

Infrastructure and Environmental Progress

In parallel with exploration, Tesoro has advanced key project development milestones. The company executed a non-binding Memorandum of Understanding (MOU) with Tecnocap S.A., a subsidiary of Compañía de Aceros del Pacífico, to explore power infrastructure options. This partnership aims to secure a reliable electricity supply for El Zorro, potentially reducing permitting costs and eliminating the need for standalone power generation.

Environmental permitting has also commenced with the appointment of Pares&Alvarez Ingenieria y Proyectos to conduct a 12-month baseline Environmental Impact Study (EIA). This study is a critical step toward obtaining the necessary approvals to construct and operate the mine, with an expected completion timeline of around 24 months.

Capital Raising and Financial Position

Tesoro successfully completed an institutional placement raising approximately A$11.1 million, including a A$1.75 million commitment from long-term strategic partner Gold Fields Limited, maintaining their 17.14% shareholding. This capital injection strengthens Tesoro’s balance sheet, with cash on hand reaching A$7.51 million and zero debt as of 30 June 2025. The funds will support ongoing drilling, resource updates, scoping studies, and permitting activities.

Emerging La Brea Target and Next Steps

Post-quarter, Tesoro announced the discovery of a large mineralised target at La Brea, approximately 15 kilometers north of Ternera. Surface sampling has returned high-grade gold assays up to 22.10 g/t, with widespread mineralisation along northwest trending fault zones. Preparations for maiden drilling at La Brea are underway, marking a significant step in expanding the El Zorro project’s footprint.

Looking ahead, Tesoro plans to continue drilling through 2025, focusing on incorporating new mineralised zones into an updated Ternera MRE expected in the coming weeks. The company’s methodical approach to exploration and development positions it well to unlock further value from this emerging gold district.