Guess which ASX mining share just rocketed 31% on a new gold strike

The share has caught a bid today.

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Key points
  • Investors have rallied Tesoro Gold shares after it posted a company update today 
  • The company advised it has received results for the first 2 holes of its drill program at the Ternera Gold Deposit 
  • The Tesoro share price is down 55% in the past 12 months of trade 

The Tesoro Gold Ltd (ASX: TSO) share price is storming higher on Wednesday following the release of a company announcement.

At the time of writing, shares are advancing 30.56% into the green having bounced from yesterday's 52-week lows, and now rest at 4.7 cents apiece.

A woman in a business suit sits at her desk with gold bars in each hand while she kisses one bar with her eyes closed. Her desk has another three gold bars stacked in front of her. symbolising the rising Northern Star share price

Image source: Getty Images

What did Tesoro announce?

The company advised that its new drill program at the El Zorro Gold Project has intersected gold. intercepts of 434.60m at 1.22g/t Au from 15.40m.

Resource was found at the company's Ternera gold deposit that is located at El Zorro. The drill program has revealed multiple high-grade zones within the intercept.

These results could potentially increase the gold grade throughout the deposit as well.

Following the discovery, Tesoro says that it now has numerous potential gold-bearing targets that it intends to explore.

Speaking on the results, Tesoro Managing Director, Zeff Reeves said:

This is a phenomenal result demonstrating the consistency of gold mineralisation within the host El Zorro Tonalite intrusions. Hole ZDDH0297 shows multiple high-grade zones within the broader intercept, potentially increasing gold grade throughout the deposit.

This phase of drilling at Ternera is focussed on improving the classification and expanding the existing 1.1 Moz Resource. We believe Ternera will continue to grow with additional drilling with the Deposit remaining open in all directions.

Drilling continues at the Ternera site. To date, 7 holes for a total depth of 3,275m have been completed. The company is awaiting assays for 5 holes "which will be announced in due course".

After racing to previous highs back in 2021, the Tesoro share price is down 55% in the past 12 months of trade.

Motley Fool contributor Zach Bristow 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 Scott Phillips.

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