Legal Appeal Looms as Tesoro Advances El Zorro with Strong Capital Raise

Resource Growth and Economic Upside

Tesoro Gold Limited has delivered a compelling quarterly update for the period ending 30 September 2025, highlighted by a 42% increase in the Ternera Mineral Resource to 1.82 million ounces of gold. This substantial uplift, supported by over 126,000 metres of diamond drilling, underpins the company’s confidence in the El Zorro Gold Project’s potential as a major new gold development in Chile’s Coastal Cordillera region.

The updated scoping study for Ternera paints a promising economic picture. Using a conservative gold price of US$2,750 per ounce, the project shows a pre-tax net present value (NPV) of US$917 million and an internal rate of return (IRR) of 60%. At a spot gold price of US$3,300 per ounce, these metrics improve dramatically, with the NPV rising to US$1.33 billion and IRR to 79%. The study envisions a straightforward open pit operation producing an average of 111,000 ounces annually over the first nine years, with a mine life of 13.5 years and all-in sustaining costs forecast at US$1,216 per ounce.

Metallurgy and Processing Advantages

Advanced metallurgical test work confirms that Ternera ore is highly amenable to conventional Carbon-in-Pulp processing, delivering gold recoveries exceeding 95% with notably low cyanide and lime consumption. The ore’s favourable characteristics, including consistent gravity recoverable gold averaging 41%, support a low-cost, efficient processing route. These results provide a solid technical foundation for the upcoming Pre-Feasibility Study (PFS), scheduled for completion in the second quarter of 2026.

Exploration Expansion and Corporate Developments

Beyond Ternera, Tesoro has commenced drilling at the La Brea target, located 15 kilometres north within the El Zorro district. Surface sampling has already identified extensive gold mineralisation trends up to 4 kilometres long, with assays returning high-grade gold values. This exploration momentum complements the company’s broader strategy to unlock district-scale potential.

On the corporate front, Tesoro secured binding commitments for an A$34 million equity placement to accelerate El Zorro’s development through to a positive Final Investment Decision. The placement, partly completed post-quarter, will fund the PFS, permitting, and expanded exploration programs. Additionally, the company appointed Emma Curnow as Chief Financial Officer, bringing seasoned financial expertise to support the next phase of growth. Tesoro maintains a strong balance sheet with A$3.75 million cash and zero debt as of 30 September 2025.

Legal and Ownership Updates

Tesoro also reported a favourable legal development with the dismissal of initial proceedings brought by its joint venture partner Wanaco SpA in Chile, reinforcing the company’s governance and ownership position. Tesoro’s effective ownership of the El Zorro project has increased to approximately 90.6% following a capital contribution to cover project expenditures.

Looking ahead, Tesoro is focused on advancing the PFS, refining mine scheduling, evaluating underground potential, and expanding exploration across the district. The company’s strategic moves and robust technical results position it well to capitalise on current gold market conditions and deliver value for shareholders.