La Brea Gold Discovery by Tesoro Gold Ltd Confirms New Mineralisation

Tesoro Gold Strikes Gold at La Brea: Maiden Drilling Confirms New Discovery at El Zorro

Tesoro Gold Limited (ASX: TSO) has delivered impressive maiden drilling results from its La Brea gold discovery, marking what could be the company's next major discovery within the El Zorro Gold Project in Chile. All five holes from the 1,117-metre drilling program returned positive results, with standout intercepts including 0.60m @ 4.19g/t Au and multiple zones of anomalous gold mineralisation that mirror the early drilling signatures observed at the company's flagship 2.0Moz Ternera Gold Deposit.

Located just 15 kilometres north of Ternera, La Brea gold discovery by Tesoro Gold Ltd represents a compelling new target that demonstrates the district-scale potential of El Zorro's gold corridor. Furthermore, the geological characteristics and alteration patterns observed closely mirror those found in Ternera's early drilling phases, suggesting Tesoro may have discovered the margin of another significant mineralised system.

Key Drilling Results Highlight Gold System Potential

The maiden drilling programme at La Brea delivered consistent gold mineralisation across all five holes, with several high-grade intercepts standing out. However, the most significant results demonstrate the systematic nature of the mineralisation:

Beyond the discrete higher-grade zones, the drilling revealed extensive alteration envelopes with broad intervals of anomalous gold, including 37.90m @ 0.19g/t Au in ZDDH0402. In addition, this geological signature is particularly encouraging, as it closely matches the patterns observed during Ternera's early exploration phases.

"These results from the first ever holes drilled at La Brea represent an exciting start. All holes intersected favourable host rock, with extensive alteration and wide zones of anomalous gold mineralisation, including discrete higher-grade intercepts. This is strongly reminiscent of the earliest drilling at Ternera," said Zeff Reeves, Managing Director.

Understanding Intrusive Related Gold Systems: What Makes La Brea Special?

The La Brea gold discovery by Tesoro Gold Ltd exhibits characteristics consistent with Intrusive Related Gold Systems (IRGS), the same deposit type that hosts Ternera's 2.0Moz gold resource. Understanding these systems is crucial for investors evaluating the discovery's potential.

IRGS deposits form when hot fluids from cooling magma chambers carry dissolved metals through surrounding rocks. These systems typically display several key characteristics that make them attractive exploration targets.

Key Characteristics of IRGS Deposits

Low Sulphide Content: IRGS deposits contain less than 5% sulphide minerals, creating a reduced mineral environment that preserves gold in economically viable concentrations.

Sheeted Vein Networks: Gold occurs in networks of parallel or intersecting veins, often containing elevated levels of bismuth, tungsten, arsenic, molybdenum, tellurium, or antimony alongside the primary gold mineralisation.

Restricted Alteration Zones: Unlike other deposit types, IRGS show limited but distinctive alteration around intermediate to felsic intrusions, creating focused zones of mineralisation.

Large Tonnage Potential: These systems often host substantial tonnages with consistent grade distribution, making them attractive for bulk mining operations.

The La Brea target sits adjacent to the La Isla granodiorite intrusion, which geologists believe is related to the El Zorro Tonalite intrusions that host much of Ternera's gold mineralisation. The 200-metre wide alteration envelope and multiple sub-parallel northwest trending fault zones create an ideal structural setting for significant gold accumulation.

This geological understanding is crucial for investors, as IRGS deposits often occur in clusters within the same district, supporting Tesoro's thesis that El Zorro has the geological endowment to host multiple deposits.

Aggressive Drilling Campaign Targets Multiple Discoveries

Tesoro is currently operating an ambitious 38,000-metre drilling campaign across three concurrent programmes, positioning the company to simultaneously advance multiple objectives. This strategic approach maximises the potential for discovery success while advancing the flagship Ternera deposit.

Current Drilling Programmes

The company maintains five drill rigs operating 24 hours a day at Ternera, while advancing detailed mapping and sampling programmes at the Drone Hill and Pena Blanca targets. A geophysical contractor has been engaged for helimagnetic and radiometric surveys across the broader project area to enhance target generation capabilities.

This multi-pronged approach positions Tesoro to simultaneously advance Ternera toward production studies while pursuing a pipeline of new discoveries across the highly prospective El Zorro District. The La Brea gold discovery by Tesoro Gold Ltd represents just one component of this systematic exploration strategy.

Investment Thesis: District-Scale Discovery Potential

The La Brea drilling results strengthen Tesoro's investment thesis in several key ways. Furthermore, the systematic approach to exploration creates multiple pathways for value creation.

Proven District-Scale Endowment

Multiple targets within the El Zorro gold corridor show similar geological signatures to the established Ternera deposit. The consistent geological model across 15+ kilometres of strike length demonstrates structural continuity between Ternera and La Brea targets, suggesting the presence of a unified mineralising system.

Resource Growth Pipeline

Early-stage signatures at La Brea mirror Ternera's initial drilling phases, when the company first identified what would become a 2.0Moz resource. The extensive alteration zones suggest proximity to larger mineralised systems, while additional targets including Kitsune, Calderillas, and Toro Blanco await maiden drilling programmes.

Strategic Location Advantages

The project benefits from established infrastructure in Chile's proven Coastal Cordillera mining region, with experienced workforce and service providers readily available. In addition, Tesoro maintains 95% ownership of the El Zorro Gold Project through its Chilean subsidiary, providing operational control and maximum exposure to discovery success.

The geological characteristics observed at La Brea gold discovery by Tesoro Gold Ltd, combined with Tesoro's systematic approach to district-scale exploration, support the potential for multiple discoveries. These could significantly enhance the company's resource base beyond Ternera's current 2.0Moz endowment.

Market Context and Commodity Outlook

Gold exploration success at La Brea comes amid a supportive commodity environment. Gold prices have demonstrated resilience throughout 2024, with central bank buying and geopolitical tensions supporting demand fundamentals.

Chile's established mining jurisdiction provides additional confidence for project development, with proven regulatory frameworks and mining-friendly policies. The Chilean Coastal Cordillera region hosts several world-class operations, including major copper and gold mines that demonstrate the region's geological endowment and operational viability.

This established mining environment provides access to skilled labour, service providers, and infrastructure that can accelerate project development timelines. Moreover, the region's mining-friendly regulatory environment reduces development risk for advancing projects.

Why Should Investors Track Tesoro Gold?

Tesoro Gold has positioned itself as a compelling growth story in the gold exploration sector. The La Brea gold discovery by Tesoro Gold Ltd represents just the beginning of what could be a series of discoveries across the El Zorro District.

The company's fully funded exploration programmes, proven geological model, and systematic approach to target generation create multiple catalysts for value creation. However, several key tracking points warrant investor attention:

Key Investment Catalysts

• Follow-up Drilling Results: La Brea results as the company vectors toward higher-grade zones identified in the maiden programme

• Maiden Drilling Programmes: Results from Drone Hill and Pena Blanca targets, which show similar geological signatures to successful discoveries

• Pre-feasibility Study Progress: Advancement of Ternera throughout 2025, moving the flagship project toward production decisions

• Resource Updates: Results from infill and extensional drilling continue at Ternera, potentially expanding the existing 2.0Moz resource

The discovery of consistent gold mineralisation at La Brea, combined with ongoing drilling across multiple targets, reinforces the district-scale potential that initially attracted Tesoro to the El Zorro project. With 38,000 metres of drilling planned and multiple shots at discovery success, Tesoro offers investors exposure to both resource development at Ternera and the exploration upside that could multiply the company's gold endowment.

Tesoro Gold's maiden drilling success at La Brea validates the district-scale potential of the El Zorro Gold Project. With geological signatures mirroring Ternera's early discovery phases and aggressive drilling programmes across multiple targets, the company is well-positioned to deliver a pipeline of discoveries that could significantly expand its 2.0Moz gold resource base.

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