Tesoro Gold: Analyzing the $248M Investment and $663M Net Present Value for El Zorro

Capital Requirements and Scoping Economics

According to the scoping study, developing the Ternera open-pit mine requires an estimated initial capital outlay of 247.9 million US dollars, which includes approximately 40.1 million US dollars for pre-stripping work. Based on a gold price assumption of 2,750 US dollars per ounce and a discount rate of 7.5 %, the after-tax net present value reaches 663 million US dollars. The model indicates an after-tax internal rate of return of 51.3 %, with a projected payback period of roughly 20 months.

These projections stem from an early-stage technical and economic assessment. According to the company’s disclosures, the cost estimates do not yet carry the precision of a construction bid, and the production target relies on a combination of indicated and inferred resources. A definitive feasibility study must determine whether the projected capital intensity holds up under detailed engineering plans.

Comparing Industry Scale: Barrick Mining and Rio2

To contextualize the capital intensity of gold development, major producers operate on a vastly different scale. According to financial results, Barrick Mining (ISIN: CA06849F1080) produced 796,000 ounces of gold in the second quarter of 2026 alone, generating 1.70 billion US dollars in operating cash flow while guiding for full-year attributable capital expenditures between 3.8 and 4.2 billion US dollars. Even for major miners, advancing projects requires multi-year preparation; Barrick deployed 20 drill rigs at its Fourmile project in Nevada by mid-2026 while scheduling its pre-feasibility study for 2028.

For a closer regional comparison in Chile, smaller producer Rio2 (ISIN: CA7672171021) developed the Fenix gold mine in the Atacama region with a total capital expenditure of approximately 235 million US dollars, according to company reports. The Fenix project holds 4.8 million ounces in measured and indicated categories alongside 1.8 million ounces in proven and probable reserves, giving it a larger resource base than Ternera. Rio2 announced its first official gold pour in January 2026 after completing major construction within 14 months and on budget, though the company faced regulatory hurdles when Chilean authorities initially rejected its environmental impact assessment in 2022 before granting approval in March 2024 following an appeal.

Infrastructure and Resource Status at El Zorro

The Ternera deposit is designed as a single open-pit operation utilizing a conventional carbon-in-pulp processing plant with an annual throughput capacity of 3 million tonnes and an assumed gold recovery rate of approximately 95%, according to project data. Situated roughly 13 kilometers from the Pacific coast and 57 road kilometers from the port of Caldera at an elevation of about 600 meters, the project avoids the severe logistical and climatic hurdles associated with high-altitude Andean mines. Tesoro is advancing planning for a 21-megawatt grid connection, water supply, and a dry-stacked tailings facility.

An updated mineral resource estimate published in August 2026 places the total Ternera resource at 1.82 million ounces of gold, with 1.47 million ounces—or 78 %—sitting in the higher-confidence measured and indicated categories. While this upgrade establishes the geological foundation for upcoming reserve estimates, the 663 million US dollar net present value remains tied to the 2025 scoping study. To advance the project, Tesoro reported holding 15.29 million Australian dollars in liquid assets and no debt at the end of June 2026, and the company has engaged BurnVoir to formulate a financing strategy and arrange potential debt facilities to bridge the gap toward construction funding.