Tesoro Resources Hits Visible Gold. What This Means for the Share Price?
The share price of Tesoro Resources Ltd [ASX:TSO] is on the move again today after the company announced some promising results at its El Zorro Gold Project in Chile.
TSO has backed up results earlier in the month with the announcement that it has found visible gold during step-out drilling.
At the time of writing, TSO shares are up 2.08% to trade at 24.5 cents per share.
The TSO share price is up 48% from the beginning of September, spurred on by the large-scale potential at El Zorro.
Grades not as low as expected
When we last covered TSO, I discussed how the first round of drilling results barely moved the share price.
And it wasn’t for lack of good results.
As investors chasing high-grade gold have left, and those willing to accept a low-grade, granite-infused, micro-particle tonnage play have entered, the share price has shot up.
Drilling thus far has indicated a potentially large but low-grade project.
Though today’s results could stir up rumours of better than expected grades.
In today’s result release, TSO said that a drill core from step-out drilling encountered a wide zone of sporadic visible gold.
This assay is still pending, so we do not know the actual grading.
Although, visible gold was observed over 61 metres of drill core within a wider zone of 117 metres.
Only one assay was reported today. Its results are:
- 15 metres at 0.68 grams of gold per tonne (g/t) from 115 metres, including one metre at 5.64 g/t from 126 metres.
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A bit of a mixed bag really.
On one hand, hitting visible gold has extended the high-grade zone approximately 120 metres to the south, according to TSO.
On the other hand, the assays received display mineralisation representative of El Zorro’s previous results.
What this means going forward
According to managing director Zeff Reeves, the two holes discussed today are ‘game changing’ for El Zorro.
‘Together these holes more than double the existing drilled gold footprint of Ternera (gold deposit) and further demonstrate the potential for Ternera to become a significant gold deposit.’
Clearly TSO is excited by these results.
Doubling the gold footprint is certainly a positive step.
Keep in mind it is still early days.
Source: Tesoro Resources
TSO’s footprint has now grown to 600 metres — an expansion of 300 metres does sound less impressive than ‘doubled’.
However, with mineralisation still open to the north and south, there is still potential to continue to grow El Zorro.
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For The Daily Reckoning Australia