Interview with Zeff Reeves, Managing Director of Tesoro Resources (ASX: TSO)
Our previous interview: https://youtu.be/50_m7ybQw3ASummary of Interview (May 2, 2021) - 6 days ago
Tesoro Resources Limited (ASX: TSO) is an Australian public company with exploration stage gold assets in Chile. Founded in 2017 by the members of the Board, Tesoro is focused on acquiring and developing high grade gold assets that have potential to be district scale mining projects.As the Gold price has recently started to come off a little, the Tesoro share price has also reduced but Tesoro is a well funded company with the ability to ride the bumps in the market. The company has the next 12-18 months well planned out in growing the El Zorro project going forward.The El Zorro Gold Project is Tesoro’s main focus and covers over 500km2 and is located 140km by road from the city Copiapo in Region III, northern Chile. El Zorro is 100km north of Santiago in one of the best mining regions of Chile. El Zorro is situated on the coast, 15km from the Pan-American highway, 20km from grid power and 20km from the detail plant so has good infrastructure, is not at altitude and is near to a port.Chile is a great mining jurisdiction and has a long history of mining investment. The country is well supported by excellent infrastructure and it is comparatively easy to complete the permitting process and there is a cost advantage of mining in Chile too. Geologically, El Zorro is an intrusive, related Gold system and Tesoro is focused on drilling out the Ternera deposit. They have 5 rigs turning 24/7 and are shortly looking to increase that to 6. They have gone from a 30,000m drill programme to now budgeting for a further 35-40,000m drill programme for infill drilling and resource definition. The step out holes are well mineralised and the aim is to get as many holes into the ground as possible to form the basis of a scoping study and get the maiden resource out by mid-year 2021. Tesoro will deliver the resource and start the permitting process for El Zorro and then the market will start to take note and provide a realistic valuation for the company. El Zorro is a new project in a world class destination, located next to a port with good infrastructure and this will be a medium to long term project for Tesoro. The fundamentals which underpin this project of scale, grade, operating costs and capex, all together ultimately build a robust project for the company which is planning to build a mine and are not looking for strategic partners at this point.
My Comment:
TSO could make a profit at even a $1000 gold price whilst many WA explorers would require a gold price of 1500 or even 1800 to churn a profit...
Just imagine TSO with a gold price of $1800 - $2000 
As Bellabena85 put it, "
Zeff laughed at some companies with "high grade" assays which make people think they are highy economical but when scoping study is released "Surpise! Surprise! AISC of $1600-1700!!" -quoted. Zeff is very confident that for us an AISC of below $1200 is highly achievable and TSO would still be making profit even with a $1000 gold price! The interviewer then agreed that some companies with sky high AISC but are still having an unreasonable market cap of ~$1Bn. Zeff confirmed again that cost would never be an issue for TSO!"
* NOW 6 rigs turning 24/7! (And this drilling is constantly expanding Ternera)
* Very close to achieving milestone of
maiden resource mid-year 2021 (At which point I believe a
re-rate will occur when the market has something more substantiate to rely on)
* New Gold Targets
* Currently under 100 MC!!
* Well-funded
And remember, TSO is not a lifestyle company:
That's 87% !!!
And as Zeeves said in his interview, he board will always make decisions in the best interest of shareholders ... Ohhhh, thats right, they are shareholders with a whopping 15% in the company * So much drilling, just one hole could be a "Game Changer"!!
And soooo much to look forward to
I believe 17-18 is the base (demand zone) and from these prices, Onwards and Upwards... (I predicted the base for my other Fave Goldie, and now we are 40 cents) ... Accumulate while you still can (I already have)! - IMO, she is about to TAKE-OFF!! (Almost identical chart to Carnaby)... I suspect we will be seeing a Golden Cross in the weeks to come
Hope you all bought / topped-up at these prices... (Limited Time Only Discounts)!!!
As Bellavena85 so eloquently put it, "
TSO = Ternera + El Zorro + 555km2 of prospective land with deposit like Ternera likely to appear in clusters!"
AGAIN, did someone say we are still under 100 Mil MC??
Not for long !!
