Tesoro Resources Ltd (ASX:TSO) has surged up to 70% after receiving the best gold assays to date at El Zorro Gold Project in Chile of up to 46.41 g/t with gold grades increasing at depth.
The company said the latest results from multiple zones of gold mineralisation indicated the potential for a "significant gold deposit" and investors responded positively sending shares as high as 2.9 cents, up from 1.7 cents before a trading halt on March 4.
In line with the company’s geological model, hole ZDDH00017 encountered multiple wide zones of the El Zorro Tonalite (EZT), the main host lithology of gold mineralisation at El Zorro.
From the partial assay results received to date, two zones of gold mineralisation have been encountered in hole ZDDH00017.
Thick, high-grade assays include:
- 23 metres at 7.2 g/t gold from 183.22 metres, including 15 metres at 10.82 g/t from 190 metres;
- 5.3 metres at 25.31 g/t from 197 metres; and
- 2.3 metres at 46.41 g/t from 200 metes.
Assays are pending from 206.22 to 287.65 metres.
El Zorro Gold Project district geology and targets
“Results are exceptional”
Managing director Zeff Reeves said: “These assay results are exceptional and are, to date, the best gold results we have encountered in drilling at EL Zorro.
“The wide, high-grade nature of the results received so far demonstrate the huge potential El Zorro has to host a significant gold deposit and confirms our geological model of multiple stacked gold mineralised zones that are increasing in grade as they go deeper.
“We have now completed three holes of the current program and have stepped to the north in order to extend the current drilled mineralised zone by an additional 250 metres from where we are intersecting the host El Zorro Tonalite.”
Location of drill holes showing completed holes in green and drilling of hole ZDDH00020 (in red) in progress
The current drilling program began on February 7, with an initial 10 diamond drill holes planned to extend the Coquetas drilled mineralised zone from 350 metres of strike to over 800 metres of strike and up to 300 metres depth.
Mineralisation at Coquetas has been identified at surface and to date has been drilled to a depth of 300 metres.
Gold mineralisation is controlled by northwest striking fault systems intersecting the host EZT rock which forms wide (identified to date up to 250 metres wide) sheeted vein complexes, that have been subsequently mineralised with gold-bearing fluids.
To date three drill holes have been completed of the current program at El Zorro.
All holes have encountered zones of altered El Zorro Tonalite and associated sheeted veining and brecciation of between 15 metres and 55 metres.
Currently hole ZDDH00020 is being drilled which is designed to extend the continuation of the El Zorro tonalite to the north by around 250 metres to give an overall strike of drilled gold mineralisation of about 800 metres.
Since listing in early February, Tesoro has traded in a range from 1.7 cents to 3.5 cents.