Tesoro Gold has completed its 80-hole infill drilling at the Ternera Gold Deposit, delivering multiple wide, high-grade gold intercepts that underpin an imminent resource upgrade and maiden Ore Reserve.
- Final 17 infill holes return thick, high-grade gold intercepts
- Over 27,000m drilled in total infill programme completed
- Results support upgrade to Indicated Mineral Resource classification
- Three rigs active on near-deposit extensional drilling
- District-scale discovery drilling to commence at La Brea
Final Infill Drilling Confirms Grade and Continuity at Ternera
Tesoro Gold (ASX:TSO) has wrapped up its extensive infill drilling programme at the Ternera Gold Deposit within the El Zorro Project in Chile, reporting multiple thick, high-grade gold intercepts from the last 17 holes. This completes an 80-hole, more than 27,000-metre diamond drilling campaign designed to upgrade the resource classification and pave the way for a maiden Ore Reserve.
Noteworthy intercepts include 10 metres at 6.14 grams per tonne (g/t) gold from 14 metres depth, including 3.25 metres at 15.96 g/t; and a striking 96.4 metres at 0.86 g/t from 351 metres, with a higher-grade segment of 37.54 metres at 1.5 g/t. Other significant hits extend to over 100 metres in length at grades above 1 g/t, underscoring the deposit’s substantial scale and consistent mineralisation.
Resource Upgrade and Maiden Ore Reserve on the Horizon
With all assay results now received, Tesoro is incorporating the data into an updated Mineral Resource Estimate (MRE). The company anticipates upgrading a significant portion of the resource to the Indicated category, which is crucial for declaring a maiden Ore Reserve and advancing Definitive Feasibility Study (DFS) level mine planning.
The existing MRE, constrained by an optimised pit shell at a US$3000/oz gold price, currently holds approximately 1.82 million ounces of gold across indicated and inferred categories. The infill drilling results reinforce the geological model’s robustness, with all holes intercepting mineralisation at predicted locations, validating Tesoro’s resource block model.
Drilling Focus Shifts to Growth and Discovery Targets
Following the resource definition phase, Tesoro has redirected its drilling efforts towards near-deposit extensional targets within one kilometre of the current pit shell. Three diamond rigs are actively testing areas like Ternera East and Drone Hill, aiming to expand the resource base.
Simultaneously, the company is preparing for district-scale exploration along the highly prospective 40-kilometre El Zorro gold corridor. New discovery drilling is scheduled to commence imminently at La Brea and other priority targets such as Pena Blanca, signalling a strategic pivot towards unlocking further mineralisation beyond the current deposit footprint.
Managing Director Zeff Reeves emphasised the deposit’s consistent widths and grades, highlighting the transition from resource definition to growth and discovery. He noted the exceptional opportunity presented by both near-deposit extensions and the broader land package, framing the current phase as a critical step in realising El Zorro’s full potential.
Technical Rigor and Compliance
The infill drilling employed HQ diamond core methods with half-core sampling and rigorous QAQC protocols, including certified reference materials and blanks. Assays were conducted at ALS Santiago, using fire assay fusion with gravimetric finish, ensuring high data quality. The geological interpretation aligns with an intrusive-related gold system, characterised by sheeted vein deposits and low sulphide content, consistent with the deposit’s mineralisation style.
Tesoro’s competent persons, including independent consultant Lynn Widenbar and Managing Director Zeff Reeves, have verified the data and confirm that all material assumptions and parameters remain consistent with previous resource disclosures.
Bottom Line?
As Tesoro finalises its resource upgrade and prepares for maiden Ore Reserve declaration, the shift to aggressive growth and discovery drilling could redefine El Zorro’s scale and value proposition.
Questions in the middle?
- How will the upcoming maiden Ore Reserve impact project financing and development timelines?
- What potential does the 40km El Zorro corridor hold beyond Ternera and La Brea discoveries?
- Will near-deposit extensional drilling deliver meaningful resource expansions in the short term?