Tesoro Resources Share Price Spikes on Land Acquisition (ASX:TSO)
A week after hitting visible gold at its El Zorro Project, Chile-focused gold explorer Tesoro Resources Ltd [ASX:TSO] has significantly increased its land position.
The TSO share price has risen on the news as the explorer further signals the potential at El Zorro.
At time of writing, TSO shares are up 10% to 27.5 cents per share.
Land acquisition a sign of confidence?
In their announcement today, TSO said it had expanded its land position at the El Zorro Gold Project by 500%.
Could that mean they’re anticipating a much larger resource?
This is what Managing Director Zeff Reeves had to say:
‘We are delighted to have secured an additional 188 concessions over 440km2 for the El Zorro Project. The new concessions cover an area we believe is highly prospective for additional gold mineralisation, similar to the style of what we are drilling at Ternera.
‘The addition of this ground firmly places Tesoro as the dominant regional player in the belt and our Chilean team has commenced a full geological review and target generation of the new areas.’
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TSO now own 540km2 of land that covers prospective structural zones identified during a regional review of the belt.
Source: Tesoro Resources
The photo above should help you get a grasp on how big their acquisition is — red is the original tenements and orange the newly acquired holdings.
El Zorro looking like a serious project
TSO has the rights to acquire up to 80% of the project by completion of a feasibility study by 2022.
So far, they have achieved 70%.
And if you ask me, they seem eager to squeeze the most they can out of El Zorro.
TSO believe the strike at El Zorro runs for about 5km and remains open in all directions.
Meaning there could be potential for this to be a huge deposit.
But the speculation is justified.
El Zorro is identified as an Intrusive Related Gold System (IRGS).
Now, these systems have only recently been formally named and characterised.
Not that this is really an issue, but it means that there could be some grey areas in the geological understanding of these systems.
Nevertheless, IRGS are host to large volumes of gold.
For example, the Fort Knox deposit hosts a contained resource of approximately 4Moz of gold, the Pogo approximately 4.8Moz, and Donlin Creek more than 10Moz.
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For The Daily Reckoning Australia