Maiden 1.82Moz Ore Reserve at Ternera
Released
Released
Announcement PDF
ASX ANNOUNCEMENT
18 SEPTEMBER 2026
ASX: TSO OTCQX: TSORF FSE: 5D7
31 Cliff Street, Fremantle WA 6160 | +61 8 6383 7883 | info@tesorogold.com.au | tesorogold.com.au
MAIDEN 1.28MOZ ORE RESERVE AT TERNERA
SINGLE-PIT ORE RESERVE PROVIDES A
13+ YEAR DEVELOPMENT BASE
Tesoro Gold Limited (Tesoro, or the Company) (ASX: TSO, OTCQX: TSORF, FSE: 5D7) is
pleased to report a maiden Ore Reserve comprising 1.28Moz of contained gold for the Ternera
Gold Deposit (Ternera), part of the El Zorro Gold Project in Chile (El Zorro, or the Project).
The Ore Reserve is contained entirely within a single open pit and represents approximately 87%
of the 1.47Moz of gold contained within the Measured and Indicated components of the
August 2026 Mineral Resource Estimate (MRE), demonstrating a high conversion of the Ternera
MRE base into Ore Reserves (see Table 1 and 3 and Figure 4).
The Ore Reserve supports a substantial, long-life development at the planned 3.0Mtpa
process rate. The Reserve pit was designed based on a US$3,000/oz gold price optimal pit
shell. It is underpinned by Pre-Feasibility (PFS) mine designs and schedules and the application of
Modifying Factors informed by work completed across mining, geotechnical, metallurgy, processing,
infrastructure, environmental and cost workstreams.
The ultimate Reserve pit is based on a shell selected from pit optimisation using a US$3,000/oz gold
price. This work provides a robust foundation for the Definitive Feasibility Study (DFS), through which
Tesoro will evaluate further opportunities to optimise the Project as the technical and
development workstreams are refined.
HIGHLIGHTS
• Maiden Ore Reserve of 42.8Mt at 0.93g/t Au for 1.28Moz of contained gold, entirely within
a single open pit at Ternera.
• High Mineral Resource conversion, with the Ore Reserve representing approximately
87% of the 1.47Moz of Measured and Indicated Resource ounces.
• Ore Reserve supports a project production life of more than 13 years at an average
grade of 1.16 g/t Au for first 10 years of production.
• Mining via a conventional single open pit mining and a 3.0Mtpa crushing, grinding,
gravity and CIP processing flowsheet.
• The ultimate Reserve pit is based on a pit shell selected from optimisation using a
US$3,000/oz gold price, approximately 30% below the spot gold price at the time of
optimisation.
• The Ore Reserve supporting PFS-level work provides a robust foundation for the DFS,
targeted for completion during CY2026. The DFS will refine the project design, economics
and assumptions and evaluate opportunities to further optimise the Project.
• Ternera benefits from being located in a low-altitude coastal setting, 13km inland from
the Pacific Ocean and approximately 57km by road from the port of Caldera, with
established regional road, power and water infrastructure.
• Further growth potential is being tested through ongoing drilling of extensions to Ternera and
a broader portfolio of priority discovery targets across the El Zorro Gold District.
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Table 1: Ternera Deposit Ore Reserves Summary as at 16 September 20261
PROVED PROBABLE TOTAL
Deposit Type Cut-off Tonnes Au Gold Tonnes Au Gold Tonnes Au Gold
g/t Au Mt g/t koz Mt g/t koz Mt g/t koz
Ternera Open Pit 0.30 2.8 1.05 93 40.1 0.92 1,190 42.8 0.93 1,283
Tesoro Managing Director, Zeff Reeves, commented:
“The Ternera Gold Deposit represents a rare, single open pit development opportunity in a world-
class mining friendly country. Establishing this initial 1.28Moz Ore Reserve is a significant step for
our El Zorro Gold Project.
The Reserve is supported by more than 160km of diamond drilling completed at Ternera since its
initial discovery and the recent significant upgrade to geological confidence of the Mineral Resource
base. Importantly, this Reserve contains approximately 87% of the gold currently classified within
the Measured and Indicated Mineral Resource. That is a strong conversion outcome and is reflective
of the consistency of mineralisation at Ternera.
We now have a substantial Ore Reserve contained entirely within a single open pit which supports
more than 13 years of production at the planned 3.0Mtpa processing rate.
This gives us a strong development base at Ternera, which still has significant upside to be unlocked
from further drilling.
We will continue advancing the technical and development workstreams for El Zorro in parallel with
drilling as multiple rigs pursue extensions to the existing Ternera Resource and high-priority
discovery targets across the broader El Zorro Gold District."
Cautionary Statement
The PFS (or the Study) referred to in this announcement has been undertaken by Tesoro in conjunction with
various independent consultants, to determine the viability of a standalone development, including open pit
mining and processing at the El Zorro Gold Project (comprising of the Ternera Gold Deposit) in Chile.
The total Life of Mine Production Target (and forecast financial information derived from the Production Target)
referred to in this announcement is underpinned entirely by Proved and Probable Ore Reserves.
The Company confirms that the Ore Reserves estimates and Mineral Resources estimates have been
prepared by Competent Persons in accordance with the requirements of the JORC Code.
This announcement has been prepared in compliance with the JORC Code 2012 Edition (JORC 2012) and
the ASX Listing Rules. All material assumptions on which Life of Mine Production Target and the forecast
financial information is based have been provided in this announcement and are also outlined in the attached
JORC 2012 Table 1 disclosures.
While the Company considers all the material assumptions to be based on reasonable grounds, there is no
certainty that they will prove to be correct or that the production target or estimated outcomes indicated by the
PFS (such as the financial forecasts) will be achieved.
The production target and estimated outcomes indicated by the PFS (such as the financial forecasts) are also
subject to various risk factors. See the Cautionary Statements and Forward Looking Statements disclaimer at
the end of this announcement.
Given the uncertainties involved and detailed in this announcement, investors should not make any investment
decision based solely on the results of the PFS.
1
Ore Reserves reported in accordance with the JORC Code (2012 Edition) and are a subset of Mineral Resources. Ternera Ore Reserves are estimated
based on pit designs guided by pit shell selected from optimisations using a gold price of US$3,000/oz and using a cut-off grade over 0.3g/t Au. Figures have
been rounded to the nearest 100,000 tonnes and 1,000 ounces and may not sum perfectly.
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Figure 1: Ternera Deposit Ore Reserve Final Pit – Plan View
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Figure 2: Ternera Deposit Ore Reserve Pit Section 7036200N (looking north)
Figure 3: Ternera Deposit Open Ore Reserve Pit Section 341800E (looking west)
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TERNERA MAIDEN ORE RESERVE
The maiden Ternera Ore Reserve totals 42.8Mt at 0.93g/t Au for 1.28Moz of contained gold and
is contained within a single open pit, reported above an economic cut-off grade of 0.3g/t Au.
The Ore Reserve has been calculated using the August 2026 Ternera Mineral Resource Estimate
and includes only Measured and Indicated material. No Inferred Mineral Resources have been
included in the Ore Reserve.
The economic cut-off grade for the Ore Reserve has been calculated based on PFS modifying factors
for the project. The cut-off grade is estimated by the following formula:
Cut-off Grade =
((mining cost + processing operating cost + G&A cost) x (1 + dilution))
(recovery x (metal price - selling cost) x payability)
The economic cut-off grade for the Ternera Ore Reserve based on PFS modifying factors over a
range of gold priced is shown in the table below.
Table 2: Ternera Ore Reserve Economic Cut-off scenarios
GOLD PRICE US�3,000/OZ US�3,250/OZ US�3,500/OZ US�3,750/OZ US�4,000/OZ US�4,250/OZ
Estimated Cut-off
Grade (g/t Au)
0.30g/t 0.28g/t 0.26g/t 0.24g/t 0.23g/t 0.22g/t
The El Zorro Ore Reserves are stated as the economically mineable part of the Measured and
Indicated portion of the August 2026 Ternera Mineral Resource contained within the Reserve pit
design above the cut-off grade for the selected gold price.
Importantly, the Ore Reserve contained in the US$3,000/oz pit design represents
approximately 87% of the 1.47Moz of gold contained within the Measured and Indicated
Mineral Resource, demonstrating a high level of conversion of the Ternera Resource base into
mineable Ore Reserves.
The mine schedule, based purely on the Ore Reserve, supports a project production life of more
than 13 years at the planned 3.0Mtpa processing rate, with a life-of-mine waste-to-ore stripping ratio
of 6.3:1.
The supporting modifying factors have been informed by PFS-level studies undertaken by Tesoro
and specialist Australian and Chilean consultants.
Table 3: Ternera Deposit August 2026 Mineral Resource Estimate Summary2
MEASURED INDICATED INFERRED TOTAL
Cut-off Tonnes Au Gold Tonnes Au Gold Tonnes Au Gold Tonnes Au Gold
g/t Au Mt g/t koz Mt g/t Koz Mt g/t koz Mt g/t Koz
0.30 2.4 1.24 95 37.9 1.13 1,371 11.3 0.98 356 51.6 1.10 1,822
2
Open Pit Mineral Resources were estimated using a gold price of US$3,500/ounce and estimated using a cut-off grade of 0.3g/t Au. Figures have been
rounded to the nearest 100,000 tonnes and 1,000 ounces and may not sum perfectly.
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Table 4: Ternera Deposit Ore Reserves Summary as at 16 September 20263
PROVED PROBABLE TOTAL
Deposit Type Cut-off Tonnes Au Gold Tonnes Au Gold Tonnes Au Gold
g/t Au Mt g/t koz Mt g/t koz Mt g/t Koz
Ternera Open Pit 0.30 2.8 1.05 93 40.1 0.92 1,190 42.8 0.93 1,283
A summary is provided below of information material to understanding the reported Ore Reserve
estimate. This announcement has been compiled in compliance with the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code – 2012
Edition) (JORC Code) and the ASX Listing Rules (including ASX Listing Rule 5.9).
Classification – Ore Reserve Estimate
The main basis of classification of Ore Reserves is the underlying Mineral Resource classification.
All Proved Reserves are derived from Measured Mineral Resources, and all Probable Ore Reserves
derive from Indicated Mineral Resources in accordance with JORC (2012). The results of the Ore
Reserve estimate reflect the Competent Person’s view of the deposit. No Inferred Mineral Resources
are included in the Ore Reserves.
Figure 4: Ternera Ore Reserve’s High Conversion from Measured and Indicated Resources Establishes a
13+ Year Single-pit Development Base
3
Ore Reserves reported in accordance with the JORC Code (2012 Edition) and are a subset of Mineral Resources. Ternera Ore Reserves are estimated
based on pit designs completed on selected pit shells from pit optimisations using a gold price of US$3,000/oz and using a cut-off grade over 0.3g/t Au.
Figures have been rounded to the nearest 100,000 tonnes and 1,000 ounces and may not sum perfectly.
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EL ZORRO GOLD PROJECT
Location and Infrastructure
The El Zorro Gold Project covers approximately 570km2 within Chile’s mining-friendly Atacama
Region, approximately 130km north of Copiapó within the Coastal Cordillera.
Ternera is located 13km inland from the Pacific Ocean and 57km by road from the port of Caldera.
The Project benefits from its low-altitude coastal setting and proximity to established regional
infrastructure, including sealed road access together with grid power and water supply options.
Chile is recognised as one of the world’s premier mining jurisdictions, with a well-established
regulatory framework and strong Government and investment support for responsible mine
development.
Tesoro's 95%-owned Chilean subsidiary, Tesoro Mining Chile SpA, currently holds a 94.5% interest
in the El Zorro Gold Project within a fully diluting joint venture structure.
Figure 5: El Zorro Gold Project – Regional Location Map
(red outline showing El Zorro Concessions, with the Ternera Gold Deposit located at blue circle)
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SUPPORTING TECHNICAL INFORMATION
Ore Reserve and Mineral Resource Basis
The updated MRE announced in August 2026 is based on 153,180m of diamond drilling from
474 holes, uses a 0.30g/t Au cut-off, with the open pit portion constrained within a US$3,500/oz open
pit shell.
Table 5: Ternera Deposit August 2026 Mineral Resource Estimate Summary4
MEASURED INDICATED INFERRED TOTAL
Cut-off Tonnes Au Gold Tonnes Au Gold Tonnes Au Gold Tonnes Au Gold
g/t Au Mt g/t koz Mt g/t Koz Mt g/t koz Mt g/t Koz
0.30 2.4 1.24 95 37.9 1.13 1,371 11.3 0.98 356 51.6 1.10 1,822
The global August 2026 MRE unconstrained by an optimal pit shell is 1.93Moz at 1.07g/t Au.
The update material increased confidence in the Ternera MRE, adding 252koz, or 44% to the
Indicated classification, and establishing the first 95koz Measured Resource at the Deposit.
Measured and Indicated Resources contain 1.47Moz of gold and represent 78% of the open pit
constrained Mineral Resource.
The increased level of resource confidence provided the basis for estimation of the maiden Ore
Reserve, derived from Measured and Indicated Resources.
Ternera Deposit Geology
The Project is located within the Chile’s Coastal Cordillera. 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 known as the 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),
with Tesoro having successfully identified multiple additional gold targets across the wider El Zorro
District displaying similar geology and styles of gold mineralisation.
Mineralisation is interpreted to be associated with regional scale north-south striking fault zones and
related local north-west striking strike-slip faults. Gold occurs within 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.
Basis of Cut-Off Grade Applied
The Resource has been reported at a 0.3g/t Au cut-off based on the costs and recoveries used in
generating the optimal pit shell for a US$ 3,000 per ounce gold price.
Estimation Methodology
Estimation of gold grade in the tonalite domains is carried out with an Ordinary Kriging methodology
using Micromine 2026.5 software. The initial estimation generates a preliminary block model. This
model is sub-divided into mineralised and unmineralised domains, using a cut-off of 0.2g/t Au.
4
Open Pit Mineral Resources were estimated using a gold price of US$3,500/ounce and estimated using a cut-off grade of 0.3g/t Au. Figures have been
rounded to the nearest 100,000 tonnes and 1,000 ounces and may not sum perfectly.
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A second pass of Kriging uses these sub-domains to produce mineralised and unmineralised block
estimates of gold grade. A third estimation is then carried out within the mineralised tonalite domains
using more restricted search and sample number criteria with a strike of 345⁰ and a vertical dip.
Estimation of gold grade within the metasediments also carried by Ordinary Kriging with a strike of
345⁰ and a vertical dip.
A dynamic search technique is 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-south search was used.
The estimation process was validated by comparing global block grades with the average composite
grades, visual checks comparing block grades with raw assay data and swathe plots. All methods
showed good correlation between drill hole data and block model.
Mining Method, Design and Assumptions
Ternera is planned to be developed as a conventional single open pit mining operation, with ore
processed through the planned 3.0Mtpa processing facility.
Ore Reserves were estimated by generating a series of nested, optimised pit shells using open pit
optimisation software, with selected shells used as the basis for detailed pit designs.
Mine designs and extraction sequences have been completed that reflect the geometry of the
Deposit, incorporate estimated dilution and ore loss, achieve acceptable rates of mining, utilise
planned process plant capacity and optimise free cash generation in a safe manner.
The open pit has been scheduled based on achievable mining productivity and rates and
consistent material movement assumptions, utilising mining equipment commonly used in this
style and scale open pit mining operations. Ore mining will be selective utilising the appropriate
scale mining fleet and flitch heights to suit the geometry of the deposit. This approach has been
incorporated in the mining cost estimates.
Figure 6: Ternera PFS Mining Schedule
Mining costs have been developed based on pit and mining infrastructure designs using an alliance-
style framework between Tesoro and STRACON Chile SpA. As announced to the ASX on 1 July
2026, Tesoro and STRACON have signed a non-binding Letter of Intent (LOI) to establish an
alliance-style framework. Under the LOI it is proposed that Tesoro and STRACON would work within
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an integrated operating framework, with individual phases proceeding under separate Notices to
Proceed at Tesoro's discretion.
Mining Dilution and Ore Loss
Mining dilution, mining recovery and ore loss have been incorporated in the Ore Reserve estimate
using detailed modifying factors designed to reflect practical open pit mining conditions.
The Ternera Mineral Resource block model was first regularised to a 2.5m x 2.5m x 2.5m selective
mining unit (SMU) to better represent the scale at which the Deposit is expected to be mined.
This process very clearly demonstrates the consistency of the Ternera mineralised inventory,
with regularisation resulting in an approximately 12% increase in tonnes above the 0.3g/t Au cut-off
and approximately 11% reduction in grade, for a 3% reduction in contained ounces.
The regularised model was then subject to an assessment for isolated or non-mineable blocks, which
were excluded from the Ore Reserve, resulting in a further 3% reduction in ore tonnes.
Additional mining dilution was then estimated on the SMU block model (excluding isolated ore
blocks) using a geometric skin-depth methodology, with a 0.5m dilution skin applied to mineralised
zones. Adjacent Measured and Indicated material below the economic cut-off retains its estimated
grade, while adjacent Inferred material is conservatively assigned a grade of 0g/t Au for Ore Reserve
purposes.
Estimated dilution from this methodology results in a further increase of 11% on tonnes and a
reduction of 9% of grade above the 0.3g/t Au cut-off in addition to the dilution impact associated with
SMU regularisation.
Total dilution of this process from MRE to ORE results in an additional 23% on tonnes, a reduction
of 20% on grade and a 2% reduction in contained ounces above the 0.3g/t Au cut-off.
These outcomes demonstrate that the contained gold inventory remains highly consistent
through successive practical mining adjustments, providing a high level of confidence in the
conversion of the Mineral Resource in a mineable Ore Reserve.
Table 6: Ternera Ore Reserve Conversion Summary (Measured and Indicated Only)
CONVERSION STEP TONNES GRADE CONTAINED AU TONNES GRADE CONTAINED AU
Mt g/t koz % % %
M&I Mineral Resource
within Reserve Pit
34.7 1.16 1,300 100% 100% 100%
SMU regularisation
(planned dilution and ore
loss)
39.0 1.03 1,258 112% 89% 97%
Isolated-block model
(ore loss)
37.8 1.04 1,270 109% 90% 98%
0.5m Skin dilution
(mining dilution)
42.8 0.93 1,280 123% 80% 98%
Ore Reserve 42.8 0.93 1,280 123% 80% 98%
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Figure 7: Ternera Ore Reserve Cumulative Tonnage Grade Curve (LHS: Cumulative Tonnes (Mt), RHS: Au Grade (g/t)).
Figure 8: Ternera Ore Reserve Tonnage Grade Curve (LHS: Discreet Tonnes (Mt), RHS: Au Grade (g/t)).
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Geotechnical Modelling
Pit wall angles used in the Ore Reserve study were based on a geotechnical assessment completed
by Peter O’Bryan & Associates.
The assessment included a review and inspection of available exploration core, geological and
structural interpretations, laboratory rock-property testing, rock-mass classification, kinematic
stability assessment, limit-equilibrium analysis and empirical assessment of potential slope
performance.
The resulting preliminary base-case pit wall design parameters have been incorporated into the open
pit design.
Table 7: Ternera Geotechnical Study Summary
WALL DESIGN
PARAMETER
SCREE/ GRAVELS
NOMINALLY 0 MBS
TO 5 MBS
WEATHERED AND
FRESH ROCK BELOW
5 MBS
ALTERNATE DESIGN
PARAMETERS 1 FOR WEATHERED
ROCKS 5 MBS TO TOFR
Batter Height 5.0m 10.0m 10.0m
Batter Face Angle 40° 85° 60°
Berm Width 4.0m 10.0m 5.0m
IRA 26.7° 42.6° 42.9°
Bench Stack Berm Width
(at ≤ 100 m vertical
intervals)
N/A 15 m 15 m
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Infrastructure
Planned mine infrastructure includes waste rock dumps, ROM pads, surface-water management
facilities, equipment workshops, explosives magazines, supply facilities and administration facilities.
Figure 9: Proposed El Zorro Gold Project Site Layout.
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Figure 10: Proposed El Zorro Gold Project Water and Power Infrastructure Solution.
Metallurgy and Processing
Three phases of metallurgical test work have demonstrated strong and consistent gold recoveries
from Ternera mineralisation using conventional gravity and cyanide-leach processing.
All metallurgical test work was completed at the ALS Laboratory in Perth, Western Australia, with the
final two phases undertaken under the supervision of GR Engineering Services (GRES).
These results support a simple, conventional 3.0Mtpa crushing, grinding, gravity and (carbon-in-
pulp) CIP process flowsheet.
The selected processing flowsheet comprises:
• multistage crushing;
• ball milling;
• gravity gold recovery;
• cyanide leaching;
• carbon-in-pulp gold recovery;
• conventional elution and electrowinning; and
• smelting to produce gold doré.
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A single-toggle jaw crusher powered by a 200kW motor and secondary and tertiary cone crushers
fitted with 670 kW motors, followed by a single 9.2 MW ball mill grinding circuit has been designed
for a nominal 3.0Mtpa throughput, operating at a design feed rate of 375 t/h and producing a P80
grind size of 125 µm.
Gravity gold will be recovered via two centrifugal gravity concentrators followed by an intensive leach
reactor.
The leach circuit comprises four leach tanks providing 16 hours residence time followed by six CIP
tanks providing a further 6 hours, for a total leach and adsorption residence time of 22 hours.
Gold is recovered by standard elution and electrowinning techniques prior to smelting.
Filtered tailings will be transferred to a dry-stack tailing storage facility where they will be placed in
controlled layers and compacted. The design incorporates a 15m-wide rockfill upstream shell to
mitigate erosion, with the downstream toe positioned on competent rock to reduce seismic risk.
Figure 11: Simplified El Zorro Gold Project Process Flowsheet
Metallurgical Recovery
The test work programme assessed representative lithologies and grade ranges expected within the
Ternera mine plan and demonstrated a highly consistent metallurgical response across the
Deposit, providing the basis for the recovery assumptions and processing flowsheet adopted for the
Ore Reserve.
Testing also assessed the use of waste brine water from the Caldera desalination facility as process
water, with brine water successfully used throughout the relevant gravity and leach test work.
Physical property and comminution parameter testing was completed on the four representative
composites and included SMC testing together with the calculation of Bond Impact Crushing Work
(CWi), Bond Abrasion (Ai), Bond Rod Work (RWi) and Bond Ball Mill Work (BWi) indices.
Outcomes indicate that Ternera ore is hard to very hard, with relatively consistent physical
characteristics across tested samples.
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Table 8: Ternera Gold Deposit Comminution Test Work Results Summary
COMPOSITE ID CWI (KWH/T) JK SMC A*B BOND AI BOND RWI BOND BWI (KWH/T)
Composite 1 6.2 24.9 0.1863 25.5 21.1
Composite 2 3.8 30.8 0.1356 22.8 19.9
Composite 3 4.3 22.0 0.2374 25.2 21.0
Composite 4 4.5 23.0 0.1576 24.0 19.8
Testing across a range of grind sizes returned overall gold extractions of between 92.4% and 97.4%.
A grind size of 125 µm was selected for the process design. At this grind size, the four composites
returned 48-hour gold extractions of approximately 95.1% to 96.0%.
Leach kinetics were rapid, with the majority of gold extraction occurring within the first 8 to 12 hours.
Based on the metallurgical test work results the process designed total gold recovery at the selected
125 μm grind size was 94.5% gold extraction, and was the basis used for Ore Reserve
calculation.
Key outcomes from metallurgical test work include:
• consistent metallurgical performance across the tested composite and master samples;
• approximately 95% or greater overall gravity/leach gold extraction at the selected 125 μm
grind size;
• positive gravity-recoverable gold response;
• no deleterious elements or preg-robbing tendencies identified; and
• Low cyanide consumption of less than 0.2 kg/t NaCN consumed from 0.6 kg/t added reagent;
low variability in metallurgical response across the tested composites.
The ore is siliceous and brittle and fractures readily during crushing. The high BWi values indicate
that the ore is not amenable to autogenous or semi-autogenous grinding and supports the selected
ball-milling flowsheet.
Variability in results across composites is low, providing confidence to support advanced levels of
technical studies.
Table 9: Composite Sample Gravity/Leach Results at Various Grind Sizes
GRAVITY/LEACH TEST WORK AND THE INFLUENCE OF GRIND
Composite ID
Leach
Regrind
P80 (μm)
Au Extraction (%) at Various Increments (hours)
% (Grav) 2 4 8 24 48
Composite 1
150 43.1 72.8 83.7 88.4 92.0 93.4
125 44.6 74.9 87.3 92.6 95.2 95.9
106 43.9 74.9 87.2 92.8 94.2 95.6
90 44.2 81.9 90.0 94.5 95.6 96.3
75 44.7 81.5 92.4 95.4 96.9 97.3
Composite 2
150 34.8 82.7 88.3 91.2 94.0 95.5
125 35.1 76.0 88.0 92.2 94.7 95.9
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GRAVITY/LEACH TEST WORK AND THE INFLUENCE OF GRIND
Composite ID
Leach
Regrind
P80 (μm)
Au Extraction (%) at Various Increments (hours)
% (Grav) 2 4 8 24 48
106 34.8 82.8 89.7 93.9 96.1 96.7
90 35.0 83.8 90.4 94.3 96.2 97.1
75 35.0 80.7 91.6 94.9 97.4 97.4
Composite 3
150 52.1 77.3 85.4 90.5 93.3 94.2
125 48.0 71.3 81.6 89.5 93.5 96.0
106 44.6 60.1 71.0 79.8 89.8 96.6
90 52.2 73.5 86.6 94.0 96.5 97.4
75 52.4 82.1 90.4 95.5 97.4 97.4
Composite 4
150 34.8 73.4 83.1 89.4 91.4 92.4
125 35.8 78.9 85.6 92.0 94.1 95.1
106 33.9 74.7 87.2 93.3 96.3 96.3
90 33.3 72.4 85.8 90.8 92.7 93.7
75 35.0 74.9 87.9 94.2 95.2 96.2
Table 10: Master Composite Bulk Gravity/Leach Summary Result
BULK GRAVITY/LEACH TEST WORK: MASTER COMPOSITE
Test # Grind
P80 (μm)
Head Au
(g/t)
Leach
Residue Au
Consumption
(kg/t)
Assay Calc g/t NaCN Lime
AT1735 125 2.08 1.90 0.10 0.46 2.65
Table 11: Master Composite Au Extraction at Various Increments
BULK GRAVITY/LEACH TEST WORK: MASTER COMPOSITE
Test # Grind P80 (μm) Au Extraction (%) at Various Increments (hours)
0 (Grav) 2 4 8 12 48
AT1735 125 26.7 68.3 79.6 89.5 93.2 95.0
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Figure 12: Annual Mill Throughput and Head Grade (average 1.16 g/t Au for first 10 years of production).
Figure 13: Annual Mill Head Grade and Gold Production Ounces (average 1.16 g/t Au for first 10 years of production).
Regional and Project Infrastructure
El Zorro is a Greenfield development with no existing project-specific infrastructure onsite.
Grid power alternatives have been assessed, with the preferred concept involving connection to the
Totoralillo substation owned by Compania Acero Pacifico approximately 21.6km in a straight line
south-east of the Project.
Tesoro has entered into a Memorandum of Understanding (MoU) with TECNOCAP S.A to investigate
the transmission and supply of electricity to El Zorro using existing 220kV regional infrastructure.
Tesoro has also entered a MOU to investigate the provision of wastewater (brine) to be pumped from
the AguasCap Totoralillo desalination plant to the Project to be used as process water.
The study also provides for construction and operation of an 800-man accommodation camp at the
Project.
ASX Announcement
18 September 2026
Tesoro Gold 19
Cost and Economic Assumptions
Capital and operating cost estimates have been developed to a PFS-level by Tesoro in conjunction
with specialist mining, engineering and infrastructure consultants and are currently stated at an
accuracy of ± 25%.
Capital costs have been estimated on a first-principals basis for the principal Project components.
Pre-production capital is estimated to be US$276.5M, which includes the processing plant, some
infrastructure, owners’ costs, mobilisation and establishment of the open pit mining
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