Ternera Project’s Direct DFS Push Raises Questions on Resource and Permitting Risks

Project Leapfrogs to Definitive Feasibility

Tesoro Gold Limited has announced a decisive step forward for its Ternera Gold Deposit at the El Zorro Gold Project in Chile. Following extensive technical trade-off studies, the company has opted to bypass the traditional Pre-Feasibility Study stage and proceed directly to a Definitive Feasibility Study (DFS). This move underscores the project's technical maturity and Tesoro's confidence in the development pathway.

The DFS aims to deliver a comprehensive evaluation of the project’s economics and engineering by the end of calendar year 2026, setting the stage for a Final Investment Decision shortly thereafter. This accelerated timeline reflects a strategic effort to shorten the path to production while maintaining rigorous technical standards.

Optimised Development Blueprint

Central to the DFS is a streamlined project design featuring a single open pit mine feeding a 3 million tonnes per annum processing plant. This configuration emerged from a detailed programme of trade-off studies that addressed key engineering and operational factors such as process flowsheet selection, site layout, tailings disposal methods, and seismic risk assessments.

According to Managing Director Zeff Reeves, the project is positioned to deliver over 110,000 ounces of gold annually, a figure that, while based on a mix of Indicated and Inferred Mineral Resources, highlights the deposit’s significant potential. The company is advancing multiple DFS workstreams in parallel, including metallurgical testing, geotechnical drilling, mining design, and infrastructure engineering, all aimed at refining cost estimates and construction schedules.

Permitting and Environmental Progress

Permitting efforts are progressing alongside technical studies, with baseline environmental fieldwork more than halfway complete. These studies support the preparation of an Environmental Impact Study (EIA), a critical step for securing the necessary approvals to build and operate the mine. The EIA submission is expected following the completion of baseline data collection in August 2026, with the review process extending into 2027.

This integrated approach ensures that environmental considerations are embedded in project design, reducing the risk of delays and aligning with regulatory expectations in Chile’s Coastal Cordillera region, a well-established mining hub.

Resource Growth and Financing on the Horizon

Complementing the DFS work, Tesoro is conducting a 38,000-metre diamond drilling campaign, with over half of the infill drilling completed. An updated Mineral Resource Estimate is scheduled for release in the second quarter of 2026, which will underpin the final mine plan and initial Ore Reserve for Ternera.

Meanwhile, discussions around project financing are ongoing, reflecting the company’s intent to secure capital aligned with the accelerated development timeline. The Board’s decision to advance directly to DFS signals a disciplined capital allocation strategy, leveraging the substantial technical groundwork already completed.

As Tesoro Gold moves swiftly towards a potential production milestone, the market will be watching closely for the DFS outcomes and permitting progress that will ultimately determine the project’s viability and value creation potential.