Tesoro Gold

Thanks, Kyle. Good morning, everybody, and welcome to Tesoro Gold. Tesoro is an Australian company. We have an ASX listing and a secondary listing on the OTC and the Frankfurt Stock Exchange. I invite you to read our disclaimer and cautionary statement that's online associated with this presentation, so you can read that at your leisure.

Our project is called the El Zorro Gold Development Project, and the project is located in the Atacama region in Chile. It's a new gold development in that region, and we believe it's going to be the next major gold development project in Chile. The project's only 13 kilometers from the coast and the Pan-Pacific Highway. And of incredible importance to us is its low altitude. So the project is only 500 meters above sea level, so we don't have to deal with any of the high altitude issues that other companies may have to deal with. The project is pure gold. There's no other metals associated with it, and we have a 1.28 million ounce reserve in a single open pit on the project.

Of equal importance to the altitude piece, the project is only 20 to 25 kilometers from grid power and a desalination plant. And we have MOUs in place with the owners of both of those facilities, and we're currently doing engineering design and costings for them to deliver power and water to the mine gate for the project. We have an extensive land position. We've got about 450 square kilometers of land here, and there are no people or communities on any of our tenements. It's government land and therefore our tenure is secure.

Just this quick snapshot on the corporate side. We have a very strong institutional shareholder base, predominantly in Australia, but also in Europe and North America. We have Goldfields on our register at just under 13%. We have a very, very experienced board, and our experience extends into developing projects internationally, including South America. We have about $10 million in the bank at the moment, and that's gonna get us through completion of our DFS study and submission of our permitting documentation to the government early next year. With a 1.28 million ounce reserve and our extensive land package that we have and the prospectivity, with the market cap where we are, we are significantly undervalued in comparison to our peers.

Just a timeline on where we've got to. The company was formed in around about 2017. And in 2020, we had the Ternera deposit discovery. We issued a maiden resource on that deposit in July 2021. And since then, we've been progressively and continuously drilling this project to build up the critical mass to the point where we believe that it's ready to be moved into a development project status. In July 2025, we released an updated resource, which was a 1.8 million ounce resource contained in a constrained pit. And we believed at that point that we had reached that point of inflection.

So we spent the next twelve months doing infill drilling. We put a hundred and twenty thousand meters of infill drilling into the project, and that then culminated into releasing our maiden reserve this month of 1.2 million ounces in a single open pit. We're on schedule to deliver a DFS on the project by the end of this calendar year. We will make a final investment decision in quarter one next year, and we're targeting first gold production late 2029.

This basically shows the growth of the resource over time. The really important part about this graph is the two bars that are at the end inside the square. So the first bar on the left is the July 2025 resource estimate of 1.8 million ounces. The one on the right is the resource estimate after the 20,000 meters of infill drilling. And you can see that those numbers are basically similar. So the infill drilling did exactly what we had aimed it to do, and it converted the category of the mineralization that we already knew at Ternera and upgraded that categorization until it got to the point where we could use it in a feasibility study and an ore reserve. And I think the key thing out of this is this demonstrates that we fully understand this mineral deposit, and it underpins the robustness of our resource estimates. If you look at the tables on the right, you can see that there's measured and indicated of around about 1.47 million ounces, and we're converting 1.28 million ounces of that in a single open pit, which for a moderate-grade deposit is a very, very good outcome.

So the reserve was estimated based off the back of PFS studies. The PFS considers a very simple generic 3 million ton per annum processing rate and other project infrastructure. This is a really simple gold project, very, very similar to what you would see in Western Australia or other parts of the world. It's known technology, it's proven technology, and we're gonna apply it to this project. The current project produces around about 1.2 million ounces over a 13-year mine life. And for the first nine years of production, we produce at a rate of around about 105,000 to 110,000 ounces per annum at an all-in sustaining cost of just under $1,600 US an ounce. The upfront capital is in the order of $275 million to $300 million US, including pre-strip. And the project has a post-tax NPV at $3,500 an ounce of around about $1 billion US. The internal rate of return is around about 57%. So we've got the basis of a very good project.

I think I've lost count of how many times I've seen a slide labeled like this over the last two weeks. However, it's a very important slide for us because it shows our strategic advantage with this project. The projects to the right on this slide are the High Andes projects. You can see Solaris Norte to the north and Rio2 Fenix in the middle. So they're all High Andes projects. Then you've got the Lower Andes copper projects in the middle. And then if you look where our project is, you'll notice one thing, and that is we're sitting there all by ourselves. We've got a mineralized belt, we've got a plus million ounce reserve, and there's nobody else around us.

And the reason for that is this mineralization, as far as we know, has never been found in Chile before. It's an intrusive-related gold system. It's more akin to the Tintina province. And so we're basically first comers in this style of mineralization. What it does is it provides a magnificent opportunity not only for us, but others in Chile, because if we found one of these, surely there must be more. You can also see our proximity to a port. You can see our proximity to a power line, and you can see our proximity to mining services at Copiapó and the other towns.

Being an ASX-listed company based in West Perth, which is probably as far away from Chile as you can possibly get, we're often asked why Chile? Chile is a resource-dominated economy, very, very similar to Western Australia. They have a very structured permitting process. It's well known. It's very structured. And I guess for me, when I go to Santiago, it's a little bit like being in a Spanish-speaking Western Australia. So for us, it's pretty easy. It's a pretty easy decision.

We're currently positioning the project for development. We're building our team in Chile. We're building our team in Australia. We're in the process of signing an alliance agreement with Stracon Chile SPA for the mining and civil works on our project. And that way, we will be able to manage and control our costs, mining costs. We have a Chilean management team. We've got an office over there and building the capability within that team, and that's progressing really well.

We're very well advanced in permitting. We finished all our annual surveys, our seasonal surveys. They've been completed some time ago. We're currently putting together the EIA documentation and doing some other surveys that came out of the seasonals with the aim of submitting our documentation to the Chilean authorities early next year. As we look at the timetable and what we want to do with this project, we've taken the decision to start advancing the project financing. We're talking to banks and other financiers about funding the project as soon as we get approval for permitting.

So at Ternera, we've currently got a 1.8 million ounce reserve. And what we are looking at in the next eighteen months while we're bringing the project into production is how do we enhance that production profile for Ternera? The first nine years produces 105,000 to 110,000 ounces. So our goal is to see whether we can take that production profile and lift it through grade to 120,000 ounces or beyond, and that will be done by these near mine targets in the short term.

Ternera is open in all directions. It's got depth extensions that we've drilled. It's got mineralization to the north and south. It's got East Ternera to the east, and we have this project called Drone Hill to the west. And Drone Hill is gonna be one of our top priority targets because we have a belief that it's possible that Drone Hill could join up with Ternera. It's on the same style of mineralization, and we believe that that's a possibility. If that's the case, then we're gonna have a seriously large pit on this project. But as I said, at the moment, we are targeting grade. We want to displace lower grade material and try and lift the profile of the project, in particular over the first ten years.

Stepping outside of Ternera, during COVID and periods where it was difficult to raise money in the gold industry, we got our exploration team to basically walk the 40-kilometer belt where our project lies. The mineralization on this project outcrops, so it's very, very obvious. So our team walked the full belt. They sampled all the outcrop. We did geochem and geophysical surveys on it, and we identified nine priority targets. The priority one targets are the two target areas that I just spoke about before, and they're the enhancement for the existing project. Lift the grade.

The priority two targets are in the darker blue color. All of those targets, with the exception of Pena Blanca to the south, have drill intercepts in them. The one that we're really excited about is the one to the north. That's La Brea. We've got intercepts in that. We've released those intercepts. But what the geologists are telling us now is that the intercepts that we're getting out of La Brea are very, very similar to the discovery holes that we had at Ternera. So they believe that we may be onto another Ternera at least there. And if that's the case, that's a 2 million ounce resource unconstrained and a 1.28 million ounce reserve. So we can see our business starting to build. We can see the district starting to deliver.

The one that I actually like, as a mining engineer who knows very little about exploration geologists, is the one to the south, Pena Blanca. And I think I like that because it's within 5 kilometers of where we plan to build a processing plant, but it's also a really big anomaly. And we're just in the process of cutting access into Pena Blanca, and we're gonna start drilling down there very, very soon.

I think one other thing that I forgot to mention with the resource modeling on this project is at Ternera, we have drilled 160 kilometers of drilling, and every single meter of that drilling is diamond. And that's probably why when you looked on that graph where you compared the two resources where we do the infill, and it perfectly converts into the higher categories, that's why that's happened. We just have a really strong understanding of this mineralization and how the system works.

So just looking forward, where are we going? What are we doing? We're gonna finish a feasibility study by the end of the year. We've been working on the feasibility study since January this year. Our environmental baseline studies are completed, and we're doing all the associated work related to that to put the EIA documentation into the government for approval. That'll go in early next year. We're targeting EIA approval or project approval in early 2028, and that'll allow us to then start construction on the project.

As I said, this is a really simple, straightforward 3 million ton per annum gold plant. We've got engineering groups who have built these plants all over the world working on this project, and they think that Chile is actually a fantastic place to do it because you have all the engineering services and you're not having to bring them in-country. So we're looking at constructing over eighteen months, and the target is first gold late 2029. In order to facilitate that, we've actually started, as I said, talking to banking and financial institutions to make sure that we are fully funded at the time at which the permitting is approved.

So just to highlight, we've got a very simple, straightforward, generic greenfields gold development project. It's gonna be the next major gold development project in Chile as far as we can see. The project's underpinned by a 1.28 million ounce reserve and a 13-year mine life. We have a really extensive land package on this project where we've got surface sampling and gold anomalism all the way through. We have drill-ready targets, and we have drilled holes into some of our targets, and they've provided mineralized intercepts. So the upside for us and the future for us is looking really, really good, and we look forward to building a new gold business in Chile. Thanks for your attention. [audience applauding]

Thanks, Linton. Do we have any questions from the floor? Yeah.

What are you doing for water?

Yeah, good question. Critical inputs are power and water. So we have an MoU and an agreement with Aguas Cap. They're part of the Cap Group. We're gonna take the wastewater from their desalination plant. So that's around about twice as salty as seawater. But for a Western Australian gold mining company, that's really good water. It's also high-quality water because the only impurities in it is salt. It's been through the pre-filtration, so all of the organics have been removed. We've done our last series of metallurgical test work, actually our last two phases of test work, using that water. We get a better response metallurgically out of that water than we do out of seawater. So that's the plan with that. We'll have a closed circuit on site, so we'll contain all the water. But Aguas Cap are currently doing all the engineering design and costing to actually deliver that water to the mine gate. So they're prepared to build the pipelines, the pumping systems, and get the water to us.

Thank you, Linton, for the presentation. Two very quick questions. First of all, what's the typical duration of time to issue an EIA in Chile? And second of all, how do you foresee the structure of the CapEx of funding will come about?

Good questions. I would have to say that permitting is the most commonly asked question whenever we present or we talk to people. There was a huge backlog of permits in the system in Chile. There's no doubt at all that the new government has moved very quickly to try and release that backlog, and there's been a lot of projects that have been stalled in the process that have now come through. The indications to us that the quickest we could get a project approved, depending on how we go and making sure that we do all the surveys and more, they believe twelve to fourteen months you could get a project through as long as you don't get into this cycle of bounce back of things that the government want to ask.

So we've taken a strategy with that. We've got a very experienced team in Chile. They've permitted a lot of projects. So we've said to them, “Go out, look at the projects that you've permitted, and go and talk to all your colleagues in the industry. Come back and tell us and give us a list of all the things that the government are hitting.” And what they've come back with is a series of things that the government's hitting, and one of them is a flora survey for a plant that only exists in a very, very small portion of Chile. So people automatically assume that you don't need to do the survey because it doesn't exist in your environment, but then they ask you to do it anyway, and then you get into that ninety-day cycle. So we've simply said, “We're gonna take the time, we're gonna spend the money. We're just gonna cover every single thing that the government's asking for right now so that when we submit the permit, we get the greatest opportunity to go through.”

We also are very well connected within the business in the government with several of the senior ministers. So we're optimistic or hopeful that we can get it through in the shorter period of time, but that's gonna be the work that we're gonna have to do. Capital structure will be pretty traditional. It'll be like a 70 debt, 30 equity is the way that we're reading it at the moment.

Awesome. Thank you, mate. Cheers.

Cheers. Thanks very much.