Tesoro Gold Accelerates DFS and Forms STRACON Alliance for El Zorro

Definitive Feasibility Study Progressing at Pace

Tesoro Gold Limited (ASX:TSO) is pushing hard to meet its year-end target for the Definitive Feasibility Study (DFS) on the Ternera Gold Deposit within its El Zorro Gold Project in Chile. The company reports that all core DFS workstreams, including engineering, mining, processing, infrastructure, permitting, financing, and execution planning, are now materially advanced, marking a significant step towards project development.

GR Engineering Services has kicked off detailed process design for a proposed 3.0Mtpa gold processing plant, while Knight Piésold is handling the engineering design for a dry-stack tailings storage facility, reflecting a comprehensive approach to site infrastructure. Power and water infrastructure designs are also well underway, with Tesoro submitting a 21MW electrical connection request to Chile's National Electricity Coordinator, signaling readiness for construction.

STRACON Alliance and Expanded Chilean Presence

In a move to strengthen its execution platform, Tesoro has formed a strategic alliance with STRACON Chile SpA, a respected mining and construction contractor with a solid track record across South America. This alliance, formalised through a non-binding Letter of Intent, positions STRACON as Tesoro’s preferred contractor for pre-construction, construction, and operational phases of El Zorro.

Supporting this partnership, Tesoro has expanded its in-country team and opened a new office in Chile. This enhanced local presence aims to improve project coordination, permitting, stakeholder engagement, and pre-construction planning, critical functions as the project transitions from study to development readiness.

Financing and Environmental Milestones

BurnVoir Corporate Finance Limited has been appointed as financial adviser to craft an optimal financing structure and secure key debt facilities. BurnVoir brings over 25 years of experience and a strong track record in arranging project financing for mining companies, including recent deals for ASX-listed gold firms.

Environmental baseline studies are approximately 75% complete, with full delivery expected by August 2026. This groundwork precedes the preparation and submission of Environmental Impact Study documentation scheduled for late 2026 to early 2027, a vital step for securing construction and operational permits.

Resource Definition and Exploration Drilling

Infill drilling at Ternera is complete, underpinning an upcoming Mineral Resource update and the maiden Ore Reserve expected in August 2026. The drilling program has confirmed strong continuity and grade, supporting confidence in the deposit’s development potential. Following this, Tesoro is shifting focus to expansion and regional discovery drilling, targeting near-deposit extensions and new district-scale prospects along the >40km El Zorro gold corridor.

This strategic drilling campaign aims to unlock further resource growth opportunities and new discoveries, complementing the near-term development agenda. The company’s approach balances advancing the Ternera deposit towards a final investment decision while maintaining exploration momentum across the broader project area.

Upcoming Catalysts and Development Pathway

Key milestones loom large for Tesoro in the coming months: an updated Mineral Resource Estimate is expected between late July and early August 2026, followed by publication of the maiden Ore Reserve. The DFS is targeted for completion by the end of 2026, with environmental permitting documentation to be submitted shortly thereafter.

These steps are designed to de-risk the project and establish a clear pathway towards a final investment decision and eventual development of the Ternera Gold Deposit, subject to DFS outcomes, regulatory approvals, and financing arrangements. The alliance with STRACON and appointment of BurnVoir provide essential commercial and financial frameworks to support this trajectory.