Maiden Mineral Resource Estimate Webinar and Presentation
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Released
Announcement PDF
ASX ANNOUNCEMENT
29 July 2021
ASX: TSO | ACN 106 854 175
El Zorro Gold Project Maiden Resource Estimate - Webinar
Tesoro Resources Limited (Tesoro or the Company) advises that Managing Director, Mr Zeff Reeves,
will deliver a Mineral Resource Estimate (MRE) briefing presentation and update via a webinar at
1:30pm AEDT Thursday, 29 July 2021.
Mr Reeves will discuss the MRE, its implications for the growing El Zorro Gold Project, the ongoing drill
program and outlook for the project.
The Company invites shareholders to attend via the login link below:
https://us02web.zoom.us/webinar/register/WN_DmdEN3JuRhyaUhI5tAKEMQ
Authorised by the Board of Tesoro Resources Limited.
For more information:
Company:
Zeff Reeves Managing Director,
Tesoro Resources Limited
+61 8 9322 1587
Investors:
Peter Taylor
NWR Communications
+61 (0) 412 036 231
peter@nwrcommunications.com.au
About Tesoro
Tesoro Resources 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 in-country 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.
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+61 8 9322 1587 | info@tesororesources.com.au | Suite 5, 62 Ord Street, West Perth WA 6005 | www.tesororesources.com.au
Aerial View of the Ternera Prospect Looking North
El Zorro Gold Project Presentation, July 2021
ASX:TSO
Tesoro Resources Limited ACN 106 854 175
DISCLAIMER
This presentation and any accompanying verbal presentation (together the Presentation) are confidential and have been prepared by Tesoro Resources Limited (Tesoro or the Company) and approved by the Board of the Company. The information contained in
the Presentation (Information) is summary only and should be read in conjunction with any other documents provided to you by the Company. The Information is current as at 29 July 2021 and the Company does not undertake to provide any additional or update
information, whether as a result of new information, future events or results or otherwise. By receiving the Presentation, you acknowledge and represent to the Company that you have read, understood and accepted the terms of this disclaimer.
The Company has prepared the Presentation based on information available to it at the time of preparation. No representation or warranty, express or implied, is made as to the currency, accuracy, reliability, completeness or fairness of the information, opinions and
conclusions contained in this Presentation. Tesoro, or related bodies corporate, shareholders or affiliates, nor any of their respective officers, directors, employees, affiliates, agents or advisers (Agents) guarantee or make any representations or warranties, express or
implied, as to or take responsibility for, the currency, accuracy, reliability, completeness or fairness of the information, opinions and conclusions contained in this Presentation. Tesoro does not represent or warrant that this Presentation is complete or that it contains all
material information about Tesoro or which a prospective investor or purchaser may require in evaluating a possible investment in Tesoro or acquisition of shares. To the maximum extent permitted by law, Tesoro and its Agents expressly disclaim any and all liability,
including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of information contained in this Presentation, or otherwise arising in connection with it.
Any forward-looking statements in this Presentation, 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 Tesoro and which are subject to change without notice and could cause the actual results, performance or achievements of Tesoro 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 recipients of this Presentation are cautioned not to place undue reliance on such
forward-looking statements.
The information contained in this Presentation is for information purposes only, does not constitute investment or financial product advice (nor taxation, accounting or legal advice) and is not intended to be used as the basis for making an investment decision. In
providing this Presentation, Tesoro has not considered the objectives, financial position or needs of any particular recipients. Before making an investment decision prospective investors should consider the appropriateness of the information in this Presentation having
regard to their own objectives, financial situation and needs, and seek legal, taxation and financial advice appropriate to their jurisdiction and circumstances.
This Presentation is not a prospectus, product disclosure statement or other offer document under Australian law or any other law (and will not be lodged with the Australian Securities and Investments Commission or any other foreign regulator) and is not, and does
not constitute, an invitation or offer of securities for subscription, purchase or sale in any jurisdiction. In particular, this Presentation does not constitute an invitation or offer of securities for subscription, purchase or sale in the United States or any other jurisdiction in
which such an offer would be illegal. The securities referred to in this Presentation have not been, and will not be, registered under the U.S. Securities Act of 1933 as amended or the securities laws of any state or other jurisdiction of the United States and may not be
offered or sold, directly or indirectly in the United States.
The information in this Presentation is strictly confidential. It may not be disclosed, reproduced, disseminated, quoted or referred to, in whole or in part, without the express consent of Tesoro.
Competent Person’s Statements
The information in this Presentation that relates to Exploration Results 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 Managing 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 Presentation 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 Daniel Saunders, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Saunders is a full-time employee of Cube
Consulting Pty Ltd, acting as independent consultants to Tesoro Resources Limited. Mr Saunders 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 it is not aware of any new information or data that materially affects the Mineral
Resource information included in the original announcement on 28 July 2021 and that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. The Company confirms that the form and
context in which the applicable Competent Persons’ findings are presented have not been materially modified from the original announcement.
The Company has released all material information that relates to Exploration Results for the El Zorro Gold Project, on a continuous basis to the ASX and in compliance with JORC 2012. The Company confirms that it is not aware of any new information that materially
affects the content of this ASX release. A list of all Material ASX releases referred to in this announcement are listed at Appendix 3 of this release.
Tesoro Resources Corporate Presentation July 2021
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18 MONTHS ON THE ASX
MANAGEMENT FOCUSED ON RAPIDLY ADVANCING THE EL ZORRO GOLD PROJECT
▪ A$31.6M Raised Since March 2020 ASX Listing
▪ >87% of Capital deployed into El Zorro
▪ >61km of Diamond Drilling
▪ 6 Rigs Drilling 24/7
▪ 660koz Maiden Resource Estimate at Ternera
▪ Deposit remains open in all directions
▪ Low Discovery cost of $21 per ounce
▪ Multiple Untested Mineralised Targets
▪ Clear Development Pathway
▪ Funded with Material Exploration Upside
Tesoro Resources Corporate Presentation July 2021
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EL ZORRO GOLD PROJECT MAIDEN MINERAL RESOURCE
Indicated
Cut-off Au g/t
0.3
0.4
0.5
0.6
0.7
0.8
Mt
Au g/t
2.7
2.1
1.7
1.4
1.2
0.9
0.88
1.03
1.17
1.28
1.40
1.64
Ternera Gold Deposit Maiden Resource Table *
Inferred
Total
koz
Au g/t
75
68
63
58
54
45
Mt
Au g/t
22.4
17.4
13.7
11.1
8.9
6.0
0.81
0.95
1.08
1.21
1.34
1.61
koz
586
529
476
430
385
312
Mt
25.1
19.4
15.4
12.5
10.1
6.9
0.82
0.96
1.09
1.22
1.35
1.62
koz
661
597
539
488
439
357
▪ Resource only uses 148 holes of 204 holes drilled
▪ Does not included drilling at Ternera South or Ternera East
▪ Modelling has defined approx. 250koz at 0.5g/t cut-off as unclassified meaning rapid resource upgrade
▪ Pit optimisation** uses 0.30g/t cut off grade
▪ Vertical ounces per metre ranging from 2,000 ovm to 3,200 ovm
▪ Low discovery cost of $21/oz.
*Refer ASX Announcement 28/07/2021. Full List of material announcements is presented in Appendix 3
**Refer Notes in Appendix 4
Tesoro Resources Corporate Presentation July 2021
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TERNERA LARGE SCALE OPEN PIT BULK MINING POTENTIAL
▪ Mineralised from Surface
▪ No Overburden
▪ Multiple Outcropping High Grade Lodes
▪ Strike & Depth Continuity
▪ Continuity maintained at higher cut-off grades
▪ Reduce strip via conversion of mineralised waste
▪ Ternera East could significantly change open pit
economics
▪ Good metallurgy, high gravity & high recovery means
lower cut-off
Ternera Block Model – looking North showing classified resource blocks >0.60g/t Au within pit shell. Demonstrating grade continuity at higher gold grade.
Tesoro Resources Corporate Presentation July 2021
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EL ZORRO – MORE VALUE TO COME
▪ New Intrusive Related Gold District
▪ Rapid & Cost-Effective resource delineation – 65 holes to be add to model prior to year end
▪ Convert Unclassified Material (approx. 250koz @ 0.5g/t Au cut-off) to JORC
▪ Significant Future Resource Upgrades
▪ Major Extensions at Ternera South & Ternera East to be included in resource upgrade
▪ Material Exploration Upside outside of Ternera
TERNERA EAST
Drill Section 140. red blocks >0.30g/t, Grey = unclassified potential resource, Pink = pit outline. Pink circles show areas
of high potential resource growth
Tesoro Resources Corporate Presentation July 2021
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TESORO – FOCUS FOR 2021
Ternera
Regional Exploration
El Zorro District
Studies & Development
▪
Resource Definition Drilling to
Extend & Upgrade resources
▪
Define resources at
Ternera East & Drone Hill
▪
Regional Targeting to find
Ternera Analogues
▪
Detailed Metallurgical
Testwork underway
▪
Continue to Expand Ternera
remains open in all directions
▪
Initial drill testing of Toro
Blanco & Buzzard
▪
Identify Causative Intrusions
from Mapping & Geochemistry
▪
Commenced
Environmental Studies
▪
Potential for additional
higher grade north south
faults to be identified
▪
Continue to identify
mineralised tonalite
intrusions
▪
First Mover Advantage
▪
Infrastructure Studies to
Optimise Power & H2O
▪
▪
IRGS Potential for
Multiple Deposits
Mining & Processing
Studies for Scoping & PFS
Tesoro Resources Corporate Presentation July 2021
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EL ZORRO WILL CONTINUE TO GROW
▪ Continue to grow resources at El Zorro with additional low cost drilling
▪ Identify new targets within the El Zorro concessions
▪ Build organisational capability & progress El Zorro to production
Tesoro aims to become a low cost gold producer in Chile
El Zorro access road looking west to Pacific Ocean & Pan American Hwy
Tesoro Resources Corporate Presentation July 2021
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APPENDIX 2
TESORO RESOURCES – AN EXPERIENCED TEAM
BOARD & MANAGMENT
John Toll - Chairman
John is a Partner at Azure Capital Limited with >15 years of experience in corporate advisory, focusing mainly on equity financing transactions across a range of
industries including mining, technology, general industrials, biotech & infrastructure.
Zeffron Reeves - Managing Director
Geologist with >20 years of experience in the resources sector on resource projects from greenfields exploration, discovery, definition & feasibility, construction,
production to closure. Zeff previously Managing Director of ASX listed Metallum Ltd which had a number of development & operational projects in Chile. He has also
held senior management positions with companies developing projects in Brazil. He has had previous exploration success identifying & delineating new gold districts in
Brazil and Chile.
Geoff McNamara - Non-Executive Director
>25 years of international resource sector experience as a Geologist, Project Manager & Fund Manager. Previously worked in Private Equity (FUM USD800 million) & as a
Director of Societe General’s Mining Finance Team in New York. Operational roles include Project Manager, Senior Mine Geologist & Mine Geologist for Ivanhoe Mines,
Lion Ore International & Western Mining Corporation.
Sergio Uribe - Country Manager, Chile
Administrative, management & development professional with experience in Chile. He has worked on numerous resource projects from greenfields exploration,
discovery, production, closure, retreatment & tailings reclamation. Part of the development team with Fortescue Metals Group during development of its Pilbara mining
operations, he has 10 years of resource sector experience. Sergio has represented numerous foreign companies investing into resource projects in Chile & was
Commercial Manager of Metallum Chile Ltd. where he was involved in the acquisition & development of their operation in Chile. Prior to this he was General Manager
of Acorn Mining Chile Ltd & Country Manager for Cleveland Mining Chile Ltd. Sergio has a Business Management degree from Universidad del Desarrollo & is a member
of the civil police & a military reserve officer.
Shannon Coates - Company Secretary
Qualified lawyer with >20 years’ experience in corporate law & compliance. She is currently Non-Executive Director of ASX listed companies Vmoto Limited, Bellevue
Gold Limited & Company Secretary to a number of public unlisted & listed companies.
Tesoro Resources Corporate Presentation July 2021
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APPENDIX 3 – MATERIAL ASX ANNOUNCEMENTS
ASX:TSO
Date
Announcement Title
Date
Announcement Title
28/07/2021
Maiden Mineral Resource Estimate sets foundation at El Zorro
23/10/2020
Infill drilling continues to intercept gold bearing zones
6/07/2021
New Discovery expands Ternera Gold System 500m to the East
9/10/2020
Wide gold zones defined at El Zorro
25/06/2021
Bonanza Gold Grades Continue to Expand Ternera
1/10/2020
Annual Report to shareholders
11/06/2021
Ternera Step Out Hole Extends Mineralisation 150m East
23/09/2020
Tesoro increases El Zorro land position by 500%
25/05/2021
New Gold Zone Identified from Extensional Drilling
17/09/2020
Wide interval of visible gold in drilling at El Zorro
29/04/2021
Ternera Resource Definition Drilling Continues to Deliver
4/09/2020
Intercept confirms large scale potentail at El Zorro
16/04/2021
Geophysics survey expands gold potential at El Zorro
26/08/2020
Drilling results demonstrate wide gold zones at El Zorro
13/04/2021
New Gold Discovery at El Zorr0
10/08/2020
El Zorro geophysical survey highlights gold mineralisation
29/03/2021
Multiple wide shallow gold intercepts at Ternera
4/08/2020
El Zorro exploration update
26/03/2021
EL Zorro Gold Project Update and Outlook Webinar
31/07/2020
Tesoro increases El Zorro land position by 360%
24/03/2021
El Zorro Ownership increased ot 85%
3/07/2020
Infill and extensional drillprogram commences at El Zorro
5/03/2021
First Toro Gordo hole returns gold grades up to 69g/tAU
25/06/2020
Extensive gold breaing vein system identified at Buzzard
1/03/2021
Commencement of fully contributing JV for El Zorro Project
10/06/2020
Drilling results continue to expand scale of El Zorro
19/02/2021
Step out drilling extends Ternera 200m to south
9/06/2020
Excellent metallurgical testwork results from El Zorro
27/01/2021
Drilling continues to extend Ternera deposit
27/05/2020
El Zorro drill results continue to expand mineralisation
11/01/2021
Drilling continues to expand scale at El Zorra
13/05/2020
El Zorro's Coquetas gold system extended 750m south
24/12/2020
El Zorro drilling returns multiple thick gold intercepts
6/05/2020
Further wide high-grade gold intercepts at El Zorro
22/12/2020
300g/m intercept confirms El Zorro large-scale potential
27/04/2020
Wide high-grade gold intercept at El Zorro
10/12/2020
Large surface gold target defined by trenching at Toro Gordo
17/04/2020
Widespread surface gold mineralisation at El Zorro
1/12/2020
Geophysical survey identified potential Terera repeat
12/03/2020
Additional assays extend gold zone at El Zorro
17/11/2020
Drilling success continues at El Zorro
6/03/2020
Exceptional gold assays for first drill hole at El Zorro
4/11/2020
Wide high-grade gold intercept at El Zorro
Tesoro Resources Corporate Presentation July 2021
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APPENDIX 4 – TERNERA RESOURCE ESTIMATION PARAMETERS
Pit Optimisation Parameters
▪ The following parameters were used to generate an
optimised pit shell that reported a 0.30 g/t Au cut-off grade
to match the calculated geological Mineral Resource
Estimate.
Mineral Resource Estimate
▪ 148 HQ diameter diamond drill holes used (46,937m)
▪ Domaining based on 3D modelling of lithology (El Zorro
Tonalite ) and faults
▪ Resource Classification Criteria:
▪ Geological continuity and volume;
▪ Drill spacing and drill data quality;
▪ Modelling technique; and
▪ Estimation properties, including search strategy,
number of informing composites, average distance of
composites from blocks and kriging quality
parameters.
Item
Average Mining Cost
▪ Mineral Resource has been reported above a 0.30 g/t Au
cut-off. Selection of the cut-off has considered results of
metallurgical testing (ASX release 9 June 2020). The applied
cut-off has been reviewed against that reported from peer
projects with similar mineralisation styles and proposed
processing options and is considered comparable.
Value
2.10
Mining Dilution
Mining Recovery
Gold price
Recovery Au
Units
US$/t
mined
%
%
US$ per oz
%
Processing cost
US$/t milled
13.60
General and Administration
Tailings
Closure cost provisions
Overall slope angle
$/t milled
$/t milled
$/t milled
Degree
3.60
0.15
1.00
42.5
10
95
2,500
94
Justification
Based on mining cycle time modelling
Industry Standard assumption for open pit
Industry Standard assumption for open pit
Based on preliminary metallurgical testwork as announced to the
ASX on 9th June 2020
Based on cost modelling from metallurgical testwork and
database costs
Based on previous costs estimates database
Based on previous costs estimates database
Based on previous costs estimates database
Based on geotechnical logging and groundwater measurements
in host rock units.
It must be noted that the optimization pit shell provided was for the purpose of constraining the
Resource model only and is NOT an economic assessment of an open pit mining operation at El
Zorro or indicates the economic gold price required for potential future mining at El Zorro.
The optimization was completed to delineate the portion of the Resource estimate that could
potentially be mined by an open pit at some time in the future. The pit optimization was based on
certain assumptions that are considered at to be preliminary and have a high degree of
uncertainty. The purpose of the optimization is to provide a constraint around the resource with
some explained economic parameters.
The gold price selected for the pit optimization was based on cut-off grade calculations using the
conceptual cost, recovery and dilution inputs as outlined above, to match the geological cut off
grade in the Mineral Resource Estimate. A gold price of US2,500/oz provides an estimated cut off
grade for an optimized pit shell of approximately 0.3g/t Au, in line with the Mineral Resource cut
off grade.
Tesoro Resources Corporate Presentation July 2021
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