Tesoro Gold ASX:TSO has accelerated definitive feasibility study (DFS) workstreams and development readiness activities for its 1.82-million-ounce Ternera gold deposit within the El Zorro project in Chile.
The company confirmed that all core activities are now underway or materially advanced across engineering, mining, processing, infrastructure, permitting, financing, and execution planning to support completion of the DFS by year end.
Tesoro has expanded its in-country presence with a strengthened development and execution team and a new Chile office to provide stronger local management of critical workstreams, infrastructure, government and community engagement, consultant co-ordination, and preparation for the start of construction.
The in-country platform is supported by the company’s Australian executive and technical teams, together with specialist consultants and contractors across an array of disciplines.
Development Alliance Framework
Tesoro’s 95%-owned subsidiary Tesoro Mining Chile has secured a non-binding agreement with STRACON Chile to establish an alliance-style framework for the development of El Zorro.
The proposal is intended to support continuity, alignment, and efficient management of the project across key phases.
Each phase is to be initiated at Tesoro’s discretion through separate notices to proceed.
STRACON will assist with mining options, execution strategy and cost inputs including review and confirmation of optimal configurations, fleet selection, pre-construction planning, and the proposed pathway for future construction and operations support.
Plant Design and Engineering
GR Engineering Services has commenced DFS process design and engineering for a proposed 3-million-tonnes-per-annum gold processing plant and associated infrastructure at Ternera, building on metallurgical test work that confirmed strong recoveries from a conventional carbon-in-pulp flowsheet.
Perth-based consultant Knight Piésold is advancing dry-stack tailings storage facility engineering and design for life-of-project requirements, alongside the geotechnical, civil, and site infrastructure inputs required for DFS capital and operating cost estimates.
Engineering designs and estimates are also well-advanced for grid power, process water, site layout and associated infrastructure.
Tesoro recently submitted an application for a 21-megawatt power connection supporting a proposed high-voltage power line from Totoralillo to El Zorro.
Extending Ternera Mineralisation
Results from a recently completed infill drilling program at Ternera are expected to support a planned mineral resource update and maiden ore reserve.
Drilling has now shifted towards further extending the mineralisation and making new regional discoveries, with near-deposit and district-scale targets including Ternera East and Drone Hill to be tested before year end.
New access is also being established at the La Brea and Pena Blanca district targets, which are scheduled to be drill tested in the coming weeks.
Managing director Zeff Reeves said the company had made “significant progress […] across multiple fronts towards delivering the planned DFS by year end, in parallel with key development readiness activities required to move Ternera towards development.”
“With infill drilling now complete and drilling shifting to Ternera expansion and regional discovery targets, Tesoro is advancing both the near-term development pathway for Ternera and the broader discovery opportunity across the El Zorro Gold District,” he added.