Tesoro Gold Extends Ternera Deposit Depths with High-Grade Drilling, Advances DFS

Deep Ternera Drilling Uncovers Significant Extensions

Tesoro Gold (ASX:TSO) has pushed the boundaries of its Ternera Deposit in Chile, delivering high-grade gold intercepts from diamond drilling nearly 400 metres down plunge of the 2025 open pit shell. Notably, hole ZDDH0411 returned 8.84 metres at 3.54g/t gold from 576 metres, including a 1-metre section grading 27.7g/t. Another hole, ZDDH0411, intercepted 7.09 metres at 1.31g/t from 670 metres, featuring a 0.54-metre interval at 9.89g/t. These results confirm the deposit remains open at depth, substantially expanding the potential resource beyond current estimates.

Additional extensional drilling to the north of the resource also yielded 4.26 metres at 3.4g/t gold, with a high-grade 0.68-metre section at 19.45g/t. These findings underscore the deposit’s growth prospects and support ongoing development plans.

Infill Drilling Nears Completion, Backing Resource Confidence

The company’s infill drilling program, aimed at upgrading resource classification within the proposed open pit area, is now approximately 80% complete. Results from 38 holes returned consistent grades, including standout intercepts such as 2.94 metres at 17.74g/t and 26 metres at 2.27g/t gold. This program is critical to underpinning the upcoming Definitive Feasibility Study (DFS) by improving confidence in grade continuity and deposit geometry.

As the infill drilling wraps up in April, Tesoro plans to redeploy its rigs to a 12,000-metre new discovery drilling campaign targeting high-priority prospects across the extensive El Zorro concession. This move follows recent work that extended the known gold corridor to over 40 kilometres, a development detailed in a recent report highlighting the discovery of multiple new intrusive bodies and structural features across the district-scale project.

El Zorro Project Advances Directly to Definitive Feasibility Study

Following a comprehensive suite of technical trade-off studies, Tesoro has opted to bypass a Pre-Feasibility Study and proceed directly to DFS, targeting completion by the end of 2026. The studies confirmed an optimised project configuration centred on a single open pit mine feeding a 3 million tonnes per annum processing plant, capable of producing over 110,000 ounces of gold annually.

DFS workstreams are well underway, including metallurgical and geotechnical drilling, detailed mining studies with a South American contractor, and engineering design for power, water, and infrastructure. The company has also completed a dry stack tailings storage facility design and is progressing environmental baseline studies in preparation for permitting.

Permitting and Corporate Developments

Tesoro’s environmental baseline programs are scheduled for completion in September 2026, supporting the submission of an Environmental Impact Assessment to Chilean authorities. The permitting process is expected to extend into 2027, aligning with typical timelines in the jurisdiction.

On the corporate front, Tesoro maintains a robust balance sheet with A$22.58 million in cash and zero debt as of 31 March 2026. The company recently completed an unmarketable parcel share sale facility, streamlining its shareholder register and reducing administrative costs.

These developments build on Tesoro’s recent new gold corridor extension, which expanded the El Zorro project’s prospective strike length and enhanced the district-scale exploration potential.

Looking Ahead to Final Investment Decision

With the DFS on track for completion by year-end and permitting progressing in parallel, Tesoro is targeting a Final Investment Decision (FID) in late 2026. The company’s Managing Director, Zeff Reeves, emphasised the strategic advantage of advancing directly to DFS, which shortens the project timeline without compromising technical rigour. The coming months will also see the transition to discovery drilling across multiple new targets, potentially adding further value to the El Zorro portfolio.