VANCOUVER, BC, Oct. 23, 2020 /CNW/ - Filo Mining Corp.
(TSXV: FIL) (Nasdaq First North Growth Market: FIL) ("Filo
Mining", or the "Company") is pleased to announce that it is
mobilizing crews and equipment to the Filo del Sol project site,
and is on track to resume drilling operations in early
November. Planning for the program includes a detailed
COVID-19 protocol which involves a comprehensive testing and
quarantine plan for all personnel prior to travelling to
site. The protocol has been approved by the San Juan
provincial health authority and meets or exceeds all current
government requirements. View PDF
Commenting on the upcoming program, President and CEO
Jamie Beck stated, "Hole FSDH032,
released earlier this year, intercepted 1,009m at 0.95% copper equivalent and confirmed
the enormous potential for resource expansion at Filo del
Sol. Surface mapping, historic shallow drilling, and
our recent 3D geophysical survey suggests this mineralization
continues almost 2km to the north. We are excited about
testing this area to the north, alongside additional high-grade
targets identified by newly interpreted geophysical
anomalies. What really sets Filo apart is the
optionality that exists at the deposit – our current focus on
exploring the sulphide mineralization is backstopped by a PFS on
the oxide reserves with strong economics, enhanced further by
today's metals prices."
The upcoming drill program will follow up on last season's
outstanding results, which confirmed that the ultimate size of the
mineralized system is far larger than what has been defined to
date, and that the system is characterized by the presence of
significant zones of high-grade copper, gold and silver
mineralization within the overall mineralized envelope. The
drilling, surface geological mapping and geophysical surveys
completed last year have provided both the knowledge and the
encouragement to allow us to continue to effectively test both
these concepts.
HIGH-GRADE TARGETS
The Filo del Sol deposit includes several high-grade zones
including the distinct breccia-hosted zone of copper-gold
mineralization intersected by FSDH038 last season (73 m at 2.04% CuEq (1.19% Cu, 1.06 g/t
Au)). This style of mineralization has a distinctive
geophysical signature characterized by high chargeability and low
resistivity, and there is a clear anomaly roughly centred on
FSDH038 with dimensions of about 500 metres north-south by 500
metres east-west. Holes FSDH032 and FSDH034 lie on the
northern and southern boundaries of this feature.
Drill holes planned to test the core of this feature will also
tighten the drill spacing in order to collect the data necessary to
enable us to add this area to the mineral resource
estimate.
RESOURCE EXPANSION POTENTIAL
The overall size of the system was clearly demonstrated by two
of last season's drill holes, FSDH032 and FSDH034, both of which
ended in mineralization after intersecting long intervals of
copper-gold mineralization (see Filo News Release dated
April 20, 2020):
- FSDH032: 1,009 m at
0.95% CuEq (0.57% Cu, 0.39g/t Au, 11.1g/t Ag)
- FSDH034: 1,034 m at
0.68% CuEq (0.42% Cu, 0.32g/t Au, 3.4g/t Ag)
In June 2020, the Company
developed an exploration target using predicted volumes based on
approximate east-west extents of the resource, depths below surface
drilled by the deeper diamond drill holes and the north-south
extent drilled by these holes (see Filo News Release dated
June 25, 2020). This
led to an estimated target size of 1.2 to 1.6 billion tonnes with
estimated grades ranging between 0.7% and 1.0% CuEq. The
potential quantity and grade of this exploration target is
conceptual in nature, and there has been insufficient exploration
to define a mineral resource in this area. It is uncertain if
further exploration will result in the target being delineated as a
mineral resource.
The intersection in FSDH032 is completely open to the north, and
several lines of evidence, as summarized below, suggest that there
is a high potential for this mineralization to continue for at
least another 1,700 metres, to a mineralized intersection in hole
VRC093. Drilling success in this area would
dramatically increase the size of the previously announced
exploration target.
- Surface geological mapping and sampling indicate that the same
alteration which overlies the Filo del Sol deposit (including
FSDH032) extends and strengthens to the north and that FSDH032,
although on the northern edge of the known mineralization, is
actually located in the centre of the mineralized system.
- A series of shallow reverse circulation (RC) holes in this gap
area intersected scattered mineralization within a zone of intense
silica alteration, which is consistent with the upper parts of the
system and is similar to the alteration which occurs above the main
deposit.
- The 3D induced polarization (IP) survey completed during the
past season shows a continuation of the geophysical signature (low
chargeability, low resistivity) which defines the deposit area. Of
note are two distinct anomalies with the same signature as the
FSDH038 breccia that lie 700 metres and 1,700 metres north of
FSDH038, within the alteration zone, and are important drill
targets.
Stepping out to the north of FSDH032 into this area is a
priority for the upcoming drill program.
The program will start with two diamond drills with plans to add
two more towards the end of the year. We anticipate the
completion of approximately 8,000 metres of drilling, subject to
being able to operate safely and effectively in accordance with our
COVID-19 protocols.
Jamie Beck
President and
CEO
Qualified Persons and Technical Notes
The scientific and technical disclosure for the Filo del Sol
Project included in this news release have been reviewed and
approved by Bob Carmichael, B.A.Sc.,
P.Eng. who is the Qualified Person as defined by NI 43-101.
Mr. Carmichael is Vice President, Exploration for the Company and
has reviewed and approved the technical information contained in
this news release. Samples were cut at Filo Mining's Batidero
camp near the project site by Company personnel. Diamond
drill core was sampled in 2 metre intervals (except where shortened
by geological contacts) using a rock saw for sulphide
mineralization. Oxide mineralization was cut with a core
splitter in order to prevent dissolution of water-soluble copper
minerals during the wet sawing process. Core diameter is a
mix of PQ, HQ and NQ depending on the depth of the drill
hole. Samples were bagged and tagged at camp, and packaged
for shipment by truck to Copiapo, Chile. Samples were
delivered to the ALS preparation laboratory in Copiapo where they
were crushed and a 500g split was pulverized to 85% passing 200
mesh. The prepared samples were sent to the ALS assay
laboratory in Santiago, Chile for
copper, gold and silver assays, with a second split sent to the ALS
laboratory in Lima, Peru for
multi-element ICP and sequential copper analyses. ALS is an
accredited laboratory which is independent of the Company.
Gold assays were by fire assay fusion with AAS finish on a 30g
sample. Copper and silver were assayed by atomic absorption
following a 4 acid digestion. Samples were also analyzed for
a suite of 36 elements with ICP-ES and a sequential copper leach
analysis was completed on each sample with copper greater than
500ppm (0.05%). Copper and gold standards as well as blanks
and duplicates (field, preparation and analysis) were randomly
inserted into the sampling sequence for Quality Control. On
average, 9% of the submitted samples are Quality Control
samples. No data quality problems were indicated by the QA/QC
program.
Mineralized zones within the Filo del Sol deposit are typically
flat-lying, or bulk porphyry-style zones and drilled widths are
interpreted to be very close to true widths.
Copper Equivalent (CuEq) for drill intersections is
calculated based on US$ 2.80/lb Cu,
US$ 1,400/oz Au and US$ 16/oz Ag, with 80% metallurgical recoveries
assumed for all metals. The formula is: CuEq % = Cu % +
(0.7292 * Au g/t) + (0.0083 * Ag g/t).
ABOUT FILO MINING
Filo Mining is a Canadian exploration and development company
focused on advancing its 100% owned Filo del Sol copper-gold-silver
deposit located in Chile's Region
III and adjacent San Juan Province, Argentina. Filo Mining is listed on the TSX
Venture Exchange ("TSXV") and Nasdaq First North Growth Market
under the trading symbol "FIL". Filo Mining is a member of the
Lundin Group of Companies.
ADDITIONAL INFORMATION
The Company's certified advisor on Nasdaq First North Growth
Market is Pareto Securities AB, +46 8 402 50 00,
certifiedadviser.se@paretosec.com.
Neither the TSXV nor its Regulation Services Provider (as that
term is defined in the policies of the TSXV) accepts responsibility
for the adequacy or accuracy of this news release.
The information contained in each Filo Mining news release was
accurate at the time of dissemination but may be superseded by
subsequent news release(s).
The information in this release is subject to the disclosure
requirements of Filo Mining under the EU Market
Abuse Regulation. This information was submitted for
publication, through the agency of the contact person set out
below, on October 23, 2020 at 00:01.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements made and information contained herein in the
news release constitutes "forward-looking information" and
"forward-looking statements" within the meaning of applicable
securities legislation (collectively, "forward-looking
information"). The forward-looking information contained in this
news release is based on information available to the Company as of
the date of this news release. Except as required under applicable
securities legislation, the Company does not intend, and does not
assume any obligation, to update this forward-looking information.
Generally, this forward-looking information can frequently, but not
always, be identified by use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "projects",
"budgets", "assumes", "strategy", "goals", "objectives",
"potential", "possible", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or statements
that certain actions, events, conditions or results "will", "may",
"could", "would", "should", "might" or "will be taken", "will
occur" or "will be achieved" or the negative connotations thereof.
All statements other than statements of historical fact may be
forward-looking statements.
The Company believes that the expectations reflected in the
forward-looking information included in this news release are
reasonable but no assurance can be given that these expectations
will prove to be correct and such forward-looking information
should not be unduly relied upon. Information contained in
this news release is as of the date of this press release. In
particular, this press release contains forward-looking information
pertaining to assumptions made in the interpretation of drill
results, geology, grade and continuity of mineral deposits;
expectations regarding access and demand for equipment, skilled
labour and services needed for exploration and development of
mineral properties; and that activities will not be adversely
disrupted or impeded by exploration, development, operating,
regulatory, political, community, economic, environmental and/or
healthy and safety risks. In addition, this news release may
contain forward-looking statements or information pertaining to:
potential exploration upside at the Filo del Sol Project, including
the extent and significance of the porphyry copper-gold system
underlying the current Mineral Resource and the prospectivity of
exploration targets; exploration and development plans and
expenditures; the success of future exploration activities;
potential for resource expansion; ability to build shareholder
value; expectations with regard to adding to its Mineral Reserves
or Resources through exploration; expectations with respect to the
conversion of inferred resources to an indicated resources
classification; ability to execute planned work programs;
government regulation of mining activities; environmental risks;
unanticipated reclamation expenses; title disputes or claims;
limitations on insurance coverage; and other risks and
uncertainties.
Statements relating to "mineral resources" are deemed to be
forward-looking information, as they involve the implied
assessment, based on certain estimates and assumptions that the
mineral resources described can be profitably produced in the
future.
The forward-looking statements contained in this news release
are made as at the date of this news release and Filo does not
undertake any obligations to publicly update and/or revise any of
the included forward-looking statements, whether as a result of
additional information, future events and/or otherwise, except as
may be required by applicable securities laws.
Forward-looking information is provided for the purpose of
providing information about management's current expectations and
plans and allowing investors and others to get a better
understanding of the Company's operating environment.
Forward-looking information is based on certain assumptions that
the Company believes are reasonable, including that the current
price of and demand for commodities will be sustained or will
improve, the supply of commodities will remain stable, that the
general business and economic conditions will not change in a
material adverse manner, that financing will be available if and
when needed on reasonable terms and that the Company will not
experience any material labour dispute, accident, or failure of
plant or equipment. These factors are not, and should not be
construed as being, exhaustive. Although the Company has attempted
to identify important factors that would cause actual results to
differ materially from those contained in forward-looking
information, there may be other factors that cause results not to
be as anticipated, estimated, or intended. There can be no
assurance that such statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. All the forward-looking information
contained in this document is qualified by these cautionary
statements. Readers are cautioned not to place undue reliance on
forward-looking information due to the inherent uncertainty
thereof.
SOURCE Filo Mining Corp.