Tesoro Resources Limited (ASX: TSO) is an Australian public company with exploration stage gold assets in Chile. Founded in 2017 by the members of the Board, Tesoro is focused on acquiring and developing high grade gold assets that have potential to be district scale mining projects.

As the Gold price has recently started to come off a little, the Tesoro share price has also reduced but Tesoro is a well funded company with the ability to ride the bumps in the market. The company has the next 12-18 months well planned out in growing the El Zorro project going forward.

The El Zorro Gold Project is Tesoro’s main focus and covers over 500km2 and is located 140km by road from the city Copiapo in Region III, northern Chile. El Zorro is 100km north of Santiago in one of the best mining regions of Chile. El Zorro is situated on the coast, 15km from the Pan-American highway, 20km from grid power and 20km from the detail plant so has good infrastructure, is not at altitude and is near to a port.

Chile is a great mining jurisdiction and has a long history of mining investment. The country is well supported by excellent infrastructure and it is comparatively easy to complete the permitting process and there is a cost advantage of mining in Chile too. 

Geologically, El Zorro is an intrusive, related Gold system and Tesoro is focused on drilling out the Ternera deposit. They have 5 rigs turning 24/7 and are shortly looking to increase that to 6. They have gone from a 30,000m drill programme to now budgeting for a further 35-40,000m drill programme for infill drilling and resource definition. The step out holes are well mineralised and the aim is to get as many holes into the ground as possible to form the basis of a scoping study and get the maiden resource out by mid-year 2021. 

Tesoro will deliver the resource and start the permitting process for El Zorro and then the market will start to take note and provide a realistic valuation for the company. El Zorro is a new project in a world class destination, located next to a port with good infrastructure and this will be a medium to long term project for Tesoro. 

The fundamentals which underpin this project of scale, grade, operating costs and capex, all together ultimately build a robust project for the company which is planning to build a mine and are not looking for strategic partners at this point. 

Company page: https://www.tesororesources.com.au/ 

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