The Tesoro Resources Ltd (ASX: TSO) share price is tumbling today, down 31% in late morning trade having earlier posted losses of 35%.
Below we take a look at the ASX gold share’s resource update that looks to be driving some of the selling action.
What resource update did Tesoro report?
The Tesoro Resources share price is falling hard after the company announced its maiden Mineral Resource Estimate (MRE) for the Ternera Deposit at its El Zorro Gold Project in Chile.
It reported a maiden MRE of 25.1 million tonnes at 0.8 grams per tonne for 660,000 ounces of gold. It used 0.3 grams per tonne of gold as a cut-off.
The highlights included 15.4Mt @ 1.09 g/t for 540,000 ounces, using a 0.5g/t Au cut-off. But that wasn’t enough to keep the Tesoro Resources share price from sliding today.
Commenting on the “significant, but incremental MRE” at the project, Tesoro’s managing director Zeff Reeves said:
We see this as just the start for El Zorro, we are committed to significantly increasing this Mineral Resource via our ongoing drilling programs with the deposit at Ternera open in all directions. We are also seeing significant potential for additional resources to be added over the coming months from other targets, particularly the adjoining Ternera East and Drone Hill targets, which is not included in the MRE.
Reeves added that a range of project studies are proceeding to help determine the company’s potential to develop a gold mine at El Zorro.
Tesoro has drilled 201 diamond drill holes at the project since starting work there in 2017. Its maiden MRE is derived from 148 of those holes totalling 46,937 metres.
The diamond drill exploration program will continue through 2021. The company has 6 drill rigs operating around the clock at El Zorro.
Tesoro Resources share price snapshot
The Tesoro Resources share price, currently at 11 cents, has been all over the map this past year, hitting a high of 50 cents per share on 15 October 2020. Over the past full year shares are down 18%, compared to a gain of 25% on the All Ordinaries Index (ASX: XAO).
Year-to-date the Tesoro Resources share price is down 64%.