The share price of Chile-focused gold explorer Tesoro Resources Ltd [ASX:TSO] has risen 3.57% today, trading at 29 cents per share on the potential discovery of more high-grade gold.
TSO shares have been in a steady decline since hitting their 52-week high of 52.5 cents per share in mid-October.
The share price has fallen in tandem with the gold price, as investors begin to regain confidence in equities markets.
Although, year-on-year, TSO shares have returned an impressive ~2,600% thanks to exploration at their El Zorro Gold Project.
Tesoro Resources reckon they have a repeat
Today the gold explorer announced that recent surveying at their El Zorro project has returned results that might indicate a ‘repeat’ of the high-grade Ternera prospect.
TSO managing Director Zeff Reeves explains:
‘Extending the GAIP survey area has provided valuable information in identifying a number of undrilled targets at El Zorro.
‘The processed GAIP data has highlighted several new target trends, and in particular, a Ternera lookalike anomaly pattern located approximately 300m east. This obviously provides significant scope for repeats of Ternera style of mineralisation, within the project area and supports our view that El Zorro is an emerging major gold system.’
They survey has expanded previously completed results by 700m to the northwest and 700m to southeast.
Source: Tesoro Resources
According to TSO, they have identified potential for Ternera-style repeats to the east-southeast of Ternera.
So, the big question is, what does Ternera look like?
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For the most part, El Zorro was looking like a low-grade, high-tonnage project but the Ternera prospect may have changed that outlook slightly.
Source: Tesoro Resources
Drill results released in November include:
- 50m at 1.25 grams of gold per tonne (g/t) from 124.00m, including 58.00m at 2.04g/t from 124.00m
- 00m at 0.46g/t from 91.00m, including 4.00m at 1.48g/t from 104.00m
- 20m at 1.07g/t from 36.00m and 6.70m at 1.10g/t from 196.30m
What’s the outlook for the TSO share price?
TSO’s announcement is obviously welcome news but remember, it’s all part of growing the resource — this isn’t just a nice little bonus they’ve received.
If the mineralisation in the newly surveyed areas is consistent with what we’ve already seen from Ternera, then we might see some vigour return to the share price.
TSO said that the survey program has highlighted additional undrilled targets outside of the immediate Ternera area at Drone Hill and immediately east of Ternera.
Initial detailed surface mapping and sampling are currently underway with a goal to drill the target zone in early 2021, should field inspection results be positive.
The TSO share price will also be influenced by the gold price and while it has waned since the beginning of the year, it is still trading at historic highs — which will help the economics of projects like El Zorro.
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