Tesoro (ASX:TSO) share price shoots higher on drill results

The mining company’s shares are going for gold.

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Monadelphous share price rio tintoA happy miner in front of a massive drilling rig, indicating a share price lift for ASX mining companies

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The Tesoro Resources Ltd (ASX: TSO) share price is in the green today after the company revealed exceptional drilling results.

At the time of writing, Tesoro shares are travelling 1.74% higher to 11.7 cents. Earlier today, they hit an intraday high of 12.5 cents, up 8%.

What were the results?

In its release, Tesoro provided assay results from the Ternera Gold Deposit located at the El Zorro Gold Project, Chile.

The assays were collected from a total of 13 exploration diamond drilling holes, highlighting strong mineralisation.

In particular, 8 holes testing the western margin of Ternera, demonstrated the potential of mineral resource expansion. The results returned zones of gold mineralisation including a 67-metre intercept at 3.44 grams per tonne of gold.

At present, there are 6 drill rigs working around the clock, with 4 rigs at Ternera, and the remaining 2 rigs at Ternera East. The company is targeting a resource upgrade to the Indicated category before the end of the calendar year.

So far, Tesoro has completed 207 diamond drill holes at the El Zorro Gold Project, equating to 63,698 metres.

The company is waiting on assays from another 49 diamond drill holes.

Tesoro managing director, Zeff Reeves touched on the findings, saying:

These results confirm our firm belief that the Ternera Gold Deposit will rapidly grow beyond the recently released 660koz gold Mineral Resource already defined.

The 8 holes from along the western margin of the deposit are particularly encouraging as they all fall outside the existing Resource Model and define a new north south fault zone which is well mineralised, particularly to the south.

Infill drilling continues to inform the model as we rapidly move to a Mineral Resource upgrade during 2021, defining what we see as a large-scale open pit gold deposit.

About the Tesoro share price

Over the last 12 months, Tesoro shares have fallen around 36%, with year-to-date down more than 60%. The company’s share price hit a 52-week low of 9.6 cents in late July, before rebounding higher.

Tesoro has a market capitalisation of roughly $57.4 million, with close to 500 million shares outstanding.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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