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Tesoro share price jumps 16% as sampling identifies major gold-bearing vein system

The Tesoro Resources Ltd (ASX: TSO) share price is storming higher today as investors react to promising assay results.

At the time of writing, Tesoro shares have jumped 15.87% to 7.3 cents apiece after surging by as much as 26.98% in early morning trade.

Tesoro Resources is a gold explorer with a strategy of acquiring, exploring and developing mining projects in the Coastal Cordillera region of Chile.

Tesoro’s cornerstone project is its 70%-owned El Zorro Gold Project. The project covers more than 10,000 hectares and is located in northern Chile. Tesoro has the rights to acquire up to 80% of the El Zorro project.

What’s moving the Tesoro share price?

This morning, Tesoro announced it has received surface assay results for controlled outcrop channel sampling conducted at the Buzzard Prospect at El Zorro.

According to the release, the sampling has identified a large gold-bearing vein system over an area approximately 1,100 metres long and 750 metres wide. Individual veins exhibit gold mineralisation for over 250 metres of strike.

Significant results include:

  • 3 metres at 5.23 grams per tonne (g/t) gold;
  • 6 metres at 7.06g/t gold;
  • 1 metre at 2.55g/t gold; and
  • 3 metres at 1.16g/t gold.

“The early stage results from Buzzard further demonstrate the potential of the El Zorro gold system with gold now identified over 5km of strike at multiple prospects,” said managing director, Zeff Reeves.

“The Buzzard vein system is extensive, and these results have highlighted large-scale potential, which will require additional work to further understand,” Mr Reeves added.

Tesoro has now received final assays for 200 samples related to first pass channel and rock chip sampling from the Buzzard Prospect. 

The company advised that additional work is required to further delineate surface gold mineralisation at Buzzard. This will involve follow up mapping, sampling, and trenching in order to delineate potential drill targets.

Ternera drilling

The Buzzard Prospect is located around 2 kilometres south of the main Ternera Prospect.

Tesoro noted today it has nearly completed the drill planning and preparation for an infill and extensional drill program at Ternera. Accordingly, two drill rigs are being mobilised and drill pads are currently being installed.

The program, scheduled to commence in July, is designed to further define and expand the Ternera deposit. 

With a share price of 7.3 at the time of writing, Tesoro’s market capitalisation currently stands at around $32 million. If you’d rather stick to investing in larger and more liquid shares, check out the top ASX growth shares in the report below.

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Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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