Announcement PDF Sign up HERE to our Investor Hub ASX ANNOUNCEMENT 9 MARCH 2023 ASX: TSO OTCQB: TSORF TERNERA MINERAL RESOURCE UPDATE AND INITIAL EXPLORATION TARGET TERNERA MINERAL RESOURCE INCREASES TO 1.3 Moz AT 1.18 g/t (63% INDICATED) TERNERA MINERAL RESOURCE ESTIMATE INCREASED AND UPGRADED • Ternera Gold Deposit (Ternera) constrained Mineral Resource Estimate (MRE) increases by 17% to 1.28 Moz (at 1.18 g/t Au). • Substantial upgrade to MRE confidence with 63% now Indicated (previously 46%). • Ternera unconstrained MRE grows to 1.46 Moz (at 1.07 g/t Au). • Low discovery cost of less than A$21/oz. TERNERA EXPLORATION TARGET DEFINED • Initial Ternera constrained Exploration Target of 48.5 Mt to 101.0 Mt at 0.91 g/t Au to 1.45 g/t Au (inclusive of updated unconstrained MRE). • Indicates Ternera could potentially contain between 1.6 Moz and 3.0 Moz gold. • Exploration Target constrained to the extent of the current drill footprint; Ternera Deposit remains open in all directions (refer Figure 1). Cautionary Statement: The Exploration Target has been prepared and reported in accordance with the 2012 edition of the JORC Code. The potential quantity and grade are conceptual in nature and there has been insufficient exploration to estimate a Mineral Resource. It is uncertain if further exploration will result in the estimation of a JORC-compliant Mineral Resource. TERNERA PHASE 1 SCOPING STUDY IN FINAL STAGES • Ternera Phase 1 Scoping Study completion is expected in the coming weeks. Tesoro Managing Director, Zeff Reeves, commented: “The exciting potential of the Ternera Gold Deposit is evident from today’s news. Our team has achieved a meaningful increase in size, and upgrade in classification, of the Ternera MRE with only a modest amount of drilling. In addition, we have estimated a significant Exploration Target for Ternera from data constrained within the existing drilled footprint. The MRE and Exploration Target, in combination with numerous existing and emerging district targets, demonstrate the significant upside that is on offer at the El Zorro Gold Project.” ASX ANNOUNCEMENT 9 MARCH 2023 Tesoro Gold Limited (Tesoro or the Company) (ASX:TSO, OTCQB:TSORF) is pleased to report a significant MRE update and initial Exploration Target for Ternera at the Company’s El Zorro Gold Project (El Zorro) in Chile. Ternera MRE Increased and Upgraded The constrained Ternera MRE now stands at 33.7 Mt at 1.18 g/t Au for 1.28 Moz with 802 koz (63%) of the resource classified as Indicated (refer Table 1). The updated MRE has been constrained to a US$1,800/oz optimised pit shell, with the underground resource reported at a 1.50 g/t Au cut off. The underground resource is reported at a cut off where gold mineralisation is consistently well developed below the optimised pit shell. Au g/t Area Open Pit Resource Underground Resource Total Resources Indicated Inferred Total cut off Mt Au g/t Koz Mt Au g/t Koz Mt Au g/t Koz 0.30 22.5 1.10 795 10.0 1.18 379 32.5 1.13 1,175 1.50 0.1 2.64 7 1.2 2.64 100 1.3 2.64 107 22.6 1.11 802 11.2 1.34 479 33.7 1.18 1,282 Table 1: Constrained Ternera MRE. On an unconstrained basis, the Ternera MRE grows to 42.6 Mt at 1.07 g/t Au for 1.46 Moz (refer Table 2). The Ternera MRE update was undertaken utilising data from 310 diamond drillholes for approximately 105km drilling, completed between June 2022 and December 2022. A detailed geological reinterpretation and 3D modelling program of Ternera demonstrated a substantial improvement in gold grade and continuity throughout the deposit. The increased and upgraded MRE has been achieved in a capital efficient manner with a low discovery cost of less than A$21/oz (US$14/oz), well below the global average greenfield discovery cost of US$45/oz. Indicated Inferred Total Au g/t cut off 2.00 Mt 2.6 Au g/t 3.75 Koz 317 Mt 2.0 Au g/t 3.71 Koz 241 Mt 4.7 Au g/t 3.73 Koz 558 1.00 7.2 2.25 523 5.6 2.24 400 12.8 2.24 923 0.50 16.3 1.39 727 12.8 1.37 561 29.1 1.38 1,288 0.30 23.2 1.09 815 19.4 1.03 645 42.6 1.07 1,459 Table 2: Unconstrained Ternera MRE reported at various cut offs to the 200mRL. TESOROGOLD.COM.AU 2 ASX ANNOUNCEMENT 9 MARCH 2023 Figure 1: Ternera MRE boundary within USD1800 Optimised Pit and Exploration Target constrained outline showing mineralisation open in multiple directions. TESOROGOLD.COM.AU 3 ASX ANNOUNCEMENT 9 MARCH 2023 Figure 2: Ternera Gold Deposit Block Model Section 7036175N (looking north) showing MRE block model and USD1,800/oz optimised open pit shell. Red = indicated classification, green= inferred classification. Note classified resources under the optimised pit shell. Grid is 100m x 100m. 0.30-1.00 1.00-2.00 >2.00 Figure 3: Ternera Gold Deposit Block Model Section 7036175N (looking north) showing MRE block model and US$1,800/oz optimised open pit shell. Block model coloured to gold grade. Grid is 100m x 100m. TESOROGOLD.COM.AU 4 ASX ANNOUNCEMENT 9 MARCH 2023 0.30-1.00 1.00-2.00 >2.00 Figure 4: Flitch plan (looking down) of the 450mRL showing the Ternera Gold Deposit block model and US$ 1,800/oz optimised open pit shell outline. TESOROGOLD.COM.AU 5 ASX ANNOUNCEMENT 9 MARCH 2023 1.50-2.50 2.50-5.00 >5.00 Figure 5: Ternera Gold Deposit isometric view looking north east showing high grade resources (>1.50g/t Au) below the US$1,800 optimised pit shell The revised MRE, summarised in Table 1, has been independently estimated by Mr Lynn Widenbar, a consultant to the Company (see Competent Person statement). Mr Widenbar is a highly credentialled and experienced resource consultant having completed MRE’s for companies including Saracen Mineral Holdings Ltd (ASX:NST), Calidus Resources Ltd (ASX:CAI) and Aurelia Metals Ltd (ASX:AMI). The estimate has been produced by 3D modelling the host lithology and mineralised fault systems and interpreted to control gold deposition within Ternera. The 3D geological framework was utilised to produce a block model grade estimation using Ordinary Kriging (OK). A full summary of the MRE methodology and validation is included in Appendix 1 JORC Tables. The Ternera MRE has been classified as Indicated or Inferred based on current drill spacing, and drilling has been verified using the Company’s QAQC program which is undertaken to normal industry standards. TESOROGOLD.COM.AU 6 ASX ANNOUNCEMENT 9 MARCH 2023 Ternera Exploration Target Defined An initial Exploration Target has been estimated for Ternera of between 48.50Mt and 101.00Mt at between 0.91 g/t Au and 1.45 g/t Au. The Exploration Target is restricted to the area constrained by existing drilling at Ternera (refer Figure 7) and indicates the drilled footprint could contain between 1.6Moz to 3.0 Moz of gold (refer Table 3). Tonnage (Mt) Lower 48.5 Au Grade (g/t) Upper 101.0 Lower 0.91 Contained Au (Moz) Upper 1.45 Lower 1.6 Upper 3.0 Table 3: Ternera Exploration Target. Drilled metres 120,000 Resource (kOz Au) Tenera constrained MRE 3,500 3,000 100,000 3,000 2,500 80,000 2,000 60,000 1,096 40,000 20,000 661 586 0 75 July 2021 MRE 1,460 1,281 1,600 645 479 1,500 1,000 593 503 May 2022 MRE Drilled metres 815 802 March 2023 MRE March 2023 Tenera Gold Deposit unconstrained MRE Exploration Target Indicated Resource 500 0 Inferred Resource Figure 6: Ternera MRE growth updates and initial Exploration Target highlighting improved classification and consistent resource growth with efficient drilling. The Exploration Target Estimate (ETE) utilised all drilling information from drilling undertaken by the Company at the Ternera Gold Deposit since 2017, which is the same dataset as utilised for calculation of the updated MRE - 105,489.10m of drill information from 310 HQ diamond drillholes. Refer to Appendix 1 for information on drilling and estimation methodology. The ETE has been constrained to within the current drilled footprint of the Ternera Gold Deposit. A similar methodology was used to calculate the ETE as the MRE with modification of certain estimation inputs being sample search ellipse size and additional 3D geological TESOROGOLD.COM.AU 7 ASX ANNOUNCEMENT 9 MARCH 2023 interpretation to extrapolate gold mineralisation between widely spaced drilling that does not meet JORC resource classification criteria. The MRE classification criteria used is Indicated material is confined to areas where resource definition drilling is typically <25m spacing. Inferred material is confined to areas where drill spacing is generally <50m. The ETE considers drill spacing >50m and up to 200m spacing on the peripheries of the current drill footprint. All other estimation criteria used for the ETE were the same as the MRE. Additional drilling is required to test, assess, and potentially calculate a JORC compliant classified MRE for the Exploration Target area where drill spacing remains too sparse to be included in the current MRE. Ternera MRE Material Information The following is a summary of material information used to estimate the Mineral Resource, as required by Listing Rule 5.8.1 and JORC 2012 Reporting Guidelines. Details of historic drill results and Tesoro’s exploration drilling at Ternera, including all collar tables and all significant intersections that have been previously released to the market are included in the announcements listed at Appendix 3. Mineral Tenement and Land Tenure Status The Ternera Gold Deposit occurs within Tesoro’s El Zorro Gold Project (El Zorro or The Project) which covers a total concession holding area of approximately 570km2, located approximately 130km north of Copiapo City, in Region III (Atacama) in northern Chile. The Ternera Deposit is 13km inland from the Pacific Ocean, 57 km by road from the port of Caldera and is well supported by existing road, power, and water infrastructure. A full list of the El Zorro Concessions is presented in Appendix 2. Tesoro’s 95% owned Chilean subsidiary, Tesoro Mining Chile Ltda, currently owns 85% of the El Zorro Gold Project within a fully diluting joint venture structure. TESOROGOLD.COM.AU 8 ASX ANNOUNCEMENT 9 MARCH 2023 Figure 7: El Zorro Gold Project Location Map, showing operating mines in the region and supporting infrastructure. Geology The Project is located within the Coastal Cordillera of Chile. At Ternera, gold mineralisation is predominately hosted within numerous intermediate intrusions and associated quartz and sulphide veins, veinlets, and alteration within faulted and strongly altered tonalitic intrusions (El Zorro Tonalite or EZT). The EZT intrusions have intruded Permian aged basement sedimentary sequences. Gold mineralisation at Ternera has been classified as an Intrusive Related Gold System (IRGS) and Tesoro has discovered additional gold targets in the El Zorro District which exhibit similar styles of gold mineralisation. Gold mineralisation is interpreted to be related to regional scale north-south striking fault zones and associated local north-west striking strike slip faults. Mineralisation is interpreted to occur as discontinuous shoots, controlled by a combination of the intersection of the structures with the preferred host rock tonalite, and locally developed intersections of fracture populations that developed during strike-slip deformation. Drilling Techniques and Hole Spacing Drilling completed at the El Zorro Project and results used to support the MRE includes 310 diamond HQ drill holes for 105,489.1m (Figure 8). All diamond holes are drilled from surface with most holes drilled towards the south-west with a dip of 60 degrees. Earlier holes were drilled in various orientations to define the main mineralised trends. Drilling used a HQ (~63.5 TESOROGOLD.COM.AU 9 ASX ANNOUNCEMENT 9 MARCH 2023 mm diameter) drill size. Drill core was collected from a core barrel and placed in appropriately marked core trays. Down hole core run depths were measured and marked with core blocks, and orientation marks were routinely placed onto the core. Core was measured for core loss and core photography and geological and geotechnical logging completed. Figure 8: Ternera Gold Deposit drill collar plan showing USD1800/oz optimised pit shell outline and outline of updated MRE. Datum PSAD56 19S Sampling Sample lengths were determined by geological and significant mineralisation boundaries with a maximum sample length of 1 metre. Core was cut in half longitudinally with an electric core saw. Core was cut such that the orientation line remained in the core tray, and the same half of the core was collected for sampling. Quarter core was submitted to ALS Santiago for chemical analysis using industry standard sample preparation and analytical techniques. Certified Reference Materials (CRM) at a rate of 1 in 20, and analytical blanks (1:50) were used as part of the QAQC procedures. Field duplicates were generated from coarse reject material from the laboratory and targeted mineralised zones at a rate of 1 in 20. TESOROGOLD.COM.AU 10 ASX ANNOUNCEMENT 9 MARCH 2023 Sample Analysis All DDH samples were dispatched to ALS Copiapo Chile for sample preparation. Sample preparation included whole sample crushing to 70% less than 2mm, Boyd rotary slitting to generate a 1 kg sub-sample, and pulverising to achieve better than 85% passing 75 microns (ALS code PREP-31B). Sample pulps were dispatched to ALS Santiago Chile for analysis using 50 g fire assay with atomic adsorption finish (ALS code Au-AA26). This method is considered a total analysis. Estimation Methodology 3-dimensional (3D) modelling of the geology was carried out to generate domains for further analysis and resource estimation. Statistical analysis was based on these 3D tonalite and fault domains, to determine the capping (top cuts) to be applied to the gold assay data prior to resource estimation. The top cuts varied by domain from 10 to 30 g/t Au. Analysis of density data was also carried out to determine parameters for density estimation. Variography was carried out on gold and density to generate the parameters required for estimation. Estimation of gold grade and density used an Ordinary Kriging (OK) estimation methodology, with an initial estimation generating mineralised and unmineralised envelopes. A second pass of kriging then used these sub-domains within the major tonalite and fault domains to produce final estimates of gold grade and density. A dynamic search technique was used in the estimation of the tonalites, which allows the search strategy to follow the local variations in dip and strike of the mineralisation. In the fault domains between the tonalite intrusions a vertical, north-search was used. A threepass search strategy was used, with search radii of 20m, 35m and 50m respectively. Resource Classification Resource classification is based on a range of criteria including: • Geological continuity; • Data quality; • Drill hole spacing; • Modelling technique; • Estimation properties including search strategy, number of informing data and average distance of data from blocks. Drill hole location plots have been used to ensure that local drill spacing conforms to the minimum expected for the resource classification. Indicated material is confined to areas where resource definition drilling is typically <25m spacing. Inferred material is confined to areas where drill spacing is generally <50m. Areas of wider spacing are unclassified and not reported as part of the Mineral Resource. Blocks with more widely spaced drill spacing are estimated but are not classified as part of the Mineral Resource. Mining and Metallurgy Development of this Mineral Resource adopts mining standard equipment and methods using a conventional truck and hydraulic excavator and open pit mining at an appropriate bench height. TESOROGOLD.COM.AU 11 ASX ANNOUNCEMENT 9 MARCH 2023 Mineral Resource Statement The mineralised material that has been interpreted to have “reasonable prospects of eventual economic extraction” by open pit mining methods was defined as mineralised material that has a cut-off grade above 0.30 g/t within an optimised pit shell. The assumptions used in to model the optimised open pit shell are presented in Table 4. Item Units Value US$/t mined 2.70 Based on mining cycle time modelling. Includes closure cost provisions. Mining Dilution % 10.00 Industry standard assumption for open pit mining Mining Recovery % 95.00 Industry standard assumption for open pit mining Gold Price US$/oz 1,800 Discount to current spot gold price Metallurgical recovery % Au 94.50 Based on Phase 2 metallurgical test work results announce 10 Dec 2021 Processing cost US$/t milled 11.50 Based on cost modelling from metallurgical tests and database costs General and admin US$/t milled 2.50 Based on cost estimate database Tailings disposal US$/t milled 0.10 Based on cost estimate database Degrees 42.00 Based on Scoping Study geotechnical assessment Average mining cost Overall pit slope angles Justification Table 4: Optimised open pit shell modelling assumptions. Authorised by the Board of Tesoro Gold Ltd. For more information: Company: Zeff Reeves, Managing Director Tesoro Gold Limited info@tesorogold.com.au TESOROGOLD.COM.AU 12 ASX ANNOUNCEMENT 9 MARCH 2023 About Tesoro Future Performance Tesoro Gold Limited was established with a strategy of acquiring, exploring, and developing mining projects in the Coastal Cordillera region of Chile. The Coastal Cordillera region is host to multiple world class copper and gold mines, has well established infrastructure, service providers and an experienced mining workforce. Large areas of the Coastal Cordillera remain unexplored due to the unconsolidated nature of mining concession ownership, but Tesoro, via its incountry network and experience has been able secure rights to a district scale gold project in-line with the Company’s strategy. Tesoro’s 95% owned Chilean subsidiary owns 85% of the El Zorro Gold Project. This announcement may contain certain forwardlooking statements and opinion. Forward-looking statements, including projections, forecasts and estimates, are provided as a general guide only and should not be relied on as an indication or guarantee of future performance and involve known and unknown risks, uncertainties, assumptions, contingencies and other important factors, many of which are outside the control of the Company and which are subject to change without notice and could cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such statements. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward-looking statements or other forecast. Nothing contained in this announcement, nor any information made available to you is, or and shall be relied upon as, a promise, representation, warranty or guarantee as to the past, present or the future performance of Tesoro. Competent Persons Statements The information in this report that relates to Exploration Results and Exploration Target is based on information compiled by Mr Zeffron Reeves (B App Sc (Hons) Applied Geology) MBA, MAIG). Mr Reeves is a member of the Australian Institute of Geoscientists and a Director and shareholder of the Company. Mr Reeves has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Reeves consents to the inclusion in this report of the matters based on this information in the form and context in which it appears. The information in this report that relates to Mineral Resources is based on information compiled by Mr Lynn Widenbar, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Widenbar is acting as an independent consultant to Tesoro Gold Limited. Mr Widenbar has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration, and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. The Company confirms that Mr Widenbar consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. TESOROGOLD.COM.AU 13 ASX ANNOUNCEMENT 9 MARCH 2023 APPENDIX 1: JORC TABLES JORC CODE, 2012 EDITION | TABLE 1: MINERAL RESOURCE ESTIMATE AND EXPLORATION TARGET Section 1: Sampling Techniques and Data Criteria JORC Code explanation Commentary Sampling techniques • Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as downhole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling. Tesoro has completed 310 diamond drill holes for 105,489.1m in 2017, 2018, 2020, 2021 and 2022 (ZDDH0001 to ZDDH00311) in the area of the MRE. Diamond drill holes were drilled with HQ. Sampling was half core at geologically defined and significant mineralisation boundaries. • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Tesoro Diamond drill holes were drilled with HQ. Sampling was half core at geological and significant mineralisation boundaries. The CP consider this appropriate for the style of mineralisation. • Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done, this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases, more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information. Diamond drilling was used to obtain ½ core samples of various lengths (minimum 0.25m), from which 1kg of material was pulverised passing 200 mesh to produce a 50g charge for fire assay fusion with a gravimetric finish. Multielement assays were completed by 4-acid digest with a 2.5g charge. The CP consider these appropriate assay techniques. Drilling techniques • Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, facesampling bit or other type, whether core is oriented and if so, by what method, etc.). Tesoro has completed 310 diamond drill holes for 105,489.1m in the MRE area. Diamond drill holes were drilled with HQ. Sampling was half core at geological and significant mineralisation boundaries. Standard tube was used. Drill sample recovery • Method of recording and assessing core and chip sample recoveries and results assessed. Core recovery was estimated using the drillers recorded depth marks against the length of the core recovered. Reviewing the core photos, there are occasional shears/faults where core is broken. There is however no significant core loss. • Measures taken to maximise sample recovery and ensure representative nature of the samples. A single tube system was employed and in general core recovery good. The CP considers the sampling methodologies to be appropriate for this style of mineralisation. • Whether a relationship exists between There appears to be no potential sample bias as there sample recovery and grade and was no regular loss of core. whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. Logging • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography. TESOROGOLD.COM.AU Geological core logging to a resolution of 25 cm was undertaken with a record kept of, inter alia, colour, lithology, weathering, grain size, mineralisation, alteration, geotechnical characteristics etc. Diamond core is stored at the Company’s warehouse. Tesoro consider the data to be of an appropriate level of detail to support a future resource estimation. Logging of diamond core was qualitative and diamond core was photographed. 14 ASX ANNOUNCEMENT 9 MARCH 2023 Criteria Subsampling techniques and sample preparation Quality of assay data and laboratory tests JORC Code explanation Commentary • The total length and percentage of the relevant intersections logged. All drilled intervals are logged and recorded. • If core, whether cut or sawn and whether quarter, half or all core taken. Drill core was cut, and half core was collected for analysis • If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry. Tesoro has not completed any percussion drilling. • For all sample types, the nature, quality and appropriateness of the sample preparation technique. Collection of half core ensured the nature, quality and appropriateness of the collected sample. The sample preparation of crushing half core at the lab to mm size prior to splitting off a 50g charge (either by cone/quarter or riffle) for pulverisation provides an appropriate and representative sample for analysis. • Quality control procedures adopted for all subsampling stages to maximise representivity of samples. Half core was collected for the entirety of the Tesoro drilling, as such there was consistency throughout the drilling. Core was logged by a qualified geoscientist. Each subsample is considered to be representative of the interval. • Measures taken to ensure that the sampling is representative of the in-situ material collected, including for instance results for field duplicate/second-half sampling. Sampling of half core is representative of the in-situ material. There are field duplicate samples collected from the diamond core with irregular results. Field drill core duplicates are irregular by nature and it has been recommended by Tesoro’s consultants to use coarse reject material to monitor the sample preparation. • Whether sample sizes are appropriate to the grain size of the material being sampled. Sample sizes collected were considered appropriate to reasonably represent the material being tested. • The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. Assays reported in this report were undertaken at the accredited laboratory of ALS Santiago, which is fully certified. Core samples of various lengths were assayed (minimum 0.25m) from which 1kg of material was pulverized passing 200 mesh to produce a 50 g charge for fire assay fusion with gravimetric finish. Multielement assays were completed by 4-acid digest with a 2.5 g charge. All techniques are appropriate for the element being determined. Verification of sampling and assaying • For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Standard chemical analyses were used for grade determination. There was no reliance on determination of analysis by geophysical tools. • Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established. QAQC procedures included the insertion of Certified Reference Materials (CRMs) (5%) and blank material (2%), Check samples (5%) and check assaying (5%) Cube Consulting Pty Ltd manage the database for Tesoro. The laboratories used have generally demonstrated analytical accuracy at an acceptable level within 95% confidence limits. • The verification of significant intersections A number of independent consulting geoscientists by either independent or alternative (Cube Consulting, Oliver, and Cooley) external to company personnel. Tesoro have verified the intersections for holes ZDDH0001 to ZDDH0080. Holes ZDDH0081 onwards have been verified by multiple appropriately qualified Company personnel. • The use of twinned holes. No twinned holes have been completed Tesoro drilling is digitally entered and stored following • Documentation of primary data, data entry procedures, data verification, data documented core handling protocols. The protocols are considered adequate. storage (physical and electronic) protocols. No adjustments were made to Tesoro Drilling • Discuss any adjustment to assay data. TESOROGOLD.COM.AU 15 ASX ANNOUNCEMENT 9 MARCH 2023 Criteria JORC Code explanation Location of data • Accuracy and quality of surveys used to points locate drillholes (collar and downhole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. • Specification of the grid system used. Commentary Tesoro drill hole collars have been surveyed accurately using differential GPS for all holes. The grid system used PSAD56 19S • Quality and adequacy of topographic control. Data spacing and distribution Orientation of data in relation to geological structure Sample security The topography genera