Tesoro Resources Share Price Up on 69 g/t Gold Hit (ASX:TSO)
The Tesoro Resources Ltd [ASX:TSO] share price is up at the time of writing, explorer announcing new high-grade gold intercepts from its El Zorro Gold Project.
Currently, the Chile-focused gold explorer is trading at 19.5 cents, with the share price briefly reaching 21 cents per share.
The TSO share price has cooled dramatically since hitting its 52-week high back in mid-October, retracing gains by over 50%.
Now, with exploration progressing well, we could soon see shares find their new floor and await TSO’s next phase.
First holes show promise at Toro Gordo
New assays from the Toro Gordo and Ternera deposits at the El Zorro project were released today.
Assays received from first holes drilled at the Toro Gordo prospect show multiple high-grade intercepts from new high-grade vein-hosted gold mineralisation.
- One metre at 69.70 grams of gold per tonne (g/t) from 180 metres.
- Four metres at 8.04 g/t from 36 metres.
- Two metres at 3.30 g/t from 151 metres.
While the mineralisation at Ternera continues to grow, with TSO returning further consistent drill results. Significant intercepts include:
- 45 metres at 1.57 g/t from 86 metres, including 17 metres at 3.62 g/t from 90 metres.
- 18 metres at 1.05 g/t from 60 metres.
REVEALED: What’s Next for Aussie Gold Stock Prices? Learn More.
So, why no movement in the TSO share price?
Two possible reasons here:
The first: Toro Gordo appears to be situated on a different geology than previously encountered at El Zorro.
Not a huge deal, but it means the explorer’s experience with the ‘prevailing’ geology at El Zorro might not be of the most use at Toro Gordo.
Also, the narrow nature of the gold veining isn’t hugely attractive.
But it’s still early days.
Secondly, the results from Ternera aren’t game-changing.
Don’t get me wrong — they are positive results.
But they’re results we have come to expect.
What’s next for Tesoro Resources share price?
The explorer says that drilling is ongoing, with four rigs operating around the clock, seven days a week, with assays for 22 holes outstanding.
Drilling will continue to focus on the recently defined Ternera eastern extensions after results confirmed good continuity between holes both along strike and down dip.
As for Toro Gordo, TSO did not specify immediate plans for further exploration, saying only that it will review the results and plan for further testing.
We could see a maiden resource estimate at El Zorro sometime this year, with TSO saying June is its current aim.
And whether Toro Gordo will be contributor to that estimate is not yet known.
In my opinion, we could see the TSO share price find its floor soon, with interest poised to build leading up to the expected maiden resource.
It’s also worth paying close attention to movement in the gold price at the moment. Our resident gold expert, Shae Russell, is tipping Australia to become the new gold epicentre.
If Australia knocks China from the top spot, we could see more attention given to Aussie gold stocks. In her free report, Shae details why this could mean big spikes for Aussie gold stocks and what to look out for. If you’re interested, get your free copy of the report here.
For The Daily Reckoning Australia