VANCOUVER, BC, May 4, 2022
Filo Mining Corp. (TSX: FIL) (Nasdaq First North Growth
Market: FIL) (OTCQX: FLMMF) ("Filo Mining" or the "Company")
announces its results for the three months ended March 31, 2022. PDF version.
HIGHLIGHTS AND OUTLOOK
Ongoing 2021/2022 campaign continues to deliver
exploration success, extending one of the high-grade breccias, and
defining continuity of strong mineralization in the Aurora
Zone
Jamie Beck, President & CEO,
commented, "To date, the 2021/2022 program at Filo del Sol has
already returned the best silver intersection ever at the project,
extended the high-grade Breccia 41 zone, and demonstrated
continuity of strong mineralization within the Aurora Zone. Several
holes are currently underway, and four holes have now been
completed with assays pending. The completed holes include holes
55C, 57 and 59 which will look to extend the high-grade Breccia 41
mineralization to the north by up to 200m, while hole 60 tests the sparsely drilled
area north of Hole 37, potentially expanding the north-south
expanse of the deposit significantly. With the closing of the
$100 million, non-brokered private
placement to BHP earlier this year, the Company is well funded to
ramp up our exploration efforts, and we are excited to embark on
our first ever drill program throughout the upcoming South American
winter months."
On March 11, 2022, the Company
closed the sale of 6,270,000 common shares to BHP Western Mining
Resources International Pty Ltd, a wholly owned subsidiary of BHP
Group Limited (collectively, "BHP"), by way of a non-brokered
private placement, at a price of $15.95 per common share for total gross proceeds
of $100 million (the "Private
Placement") (see news releases dated February 28, 2022 and
March 11, 2022). Share issuance costs
related to the Private Placement totaled $0.3 million, and comprised of professional fees
and regulatory fees. No finder's fee or commissions were payable in
connection with the Private Placement.
The closing of the Private Placement has provided Filo Mining
with valuable operational flexibility as it seeks to expediently
and efficiently define the Filo del Sol deposit, which has the
potential to be a generational discovery and significant asset in
an emerging copper-gold-silver district.
As of the date of this News Release, the Company's 2021/2022
drill campaign has been expanded to seven diamond rigs, with an
additional reverse circulation ("RC") rig. The RC rig is being used
to pre-collar holes in the challenging, intensely altered rock
overlying Breccia 41 in order to improve drill productivity and
hole completion rates. The Company intends to have these rigs
turning through the winter season in South America, thereby operating year-round
for the first time in the history of Filo del Sol. In addition, the
Company is also reviewing the possibility of adding additional rigs
to the program following the South American winter to further
expedite advancement of the Filo del Sol project.
To date, assays results have been received for five completed
holes from the ongoing program, which has already extended the
high-grade mineralization of Breccia 41, confirmed the continuity
of strong mineralization within the broader Aurora Zone, and served
as a reminder of the remarkable metal content of the deposit, which
provides optionality for future development and project financing
scenarios. Select highlights from the program so far include:
- FSDH054 intersecting 172m at
3.22% CuEq (1.51% Cu; 1.42g/t Au; 75.9g/t Ag) from a depth of
830m within a broader interval of
1,224m at 1.26% CuEq (0.71% Cu;
0.54g/t Au; 18.0g/t Ag) from a depth of 146m. This hole was collared 60m east of, and drilled parallel to, FSDH041 and
the mineralization intersected is completely outside of the current
Mineral Resource, successfully extending Breccia 41;
- FSDH055A, which returned the best precious metal intersections
on the project to date, with 64m at
1,213.8g/t Ag and 0.49g/t Au from a depth of 362m;
- FSDH056, which intersected 502m
at 0.89% CuEq (0.50% Cu; 0.40g/t Au; 11.4g/t Ag) from a depth of
168m, ending in over 1% CuEq
mineralization at a depth of 670m,
where it was abandoned due to poor ground conditions; and
- FSDH058 returning 1,252m at 0.91%
CuEq (0.56% Cu; 0.41g/t Au; 6.6g/t Ag) from a depth of 100m, including 310m at 1.40% CuEq (0.87% Cu; 0.62g/t Au; 8.2g/t
Ag) from a depth of 600m. This hole
confirmed continuity of strong mineralization within the Aurora
Zone, particularly connecting to hole FSDH048 which is 160m to the southeast. This hole was drilled to a
final depth of 1,352m and is outside
of the resource shell below a depth of 380m.
Assay results to date from the 2021/2022 drill program are
summarized in the table below:
Hole-ID
|
From
(m)
|
To
(m)
|
Length
(m)
|
Cu
(%)
|
Au
(g/t)
|
Ag
(g/t)
|
CuEq
(%)
|
FSDH054
|
146.0
|
1,369.5
|
1,223.5
|
0.71
|
0.54
|
18.0
|
1.26
|
incl.
|
435.9
|
442.0
|
6.1
|
0.59
|
0.24
|
127.5
|
1.89
|
incl.
|
498.0
|
1,090.0
|
592.0
|
1.15
|
0.84
|
31.9
|
2.04
|
incl.
|
830.0
|
1,001.5
|
171.5
|
1.51
|
1.42
|
75.9
|
3.22
|
FSDH055A
|
362.0
|
426.0
|
64.0
|
0.01
|
0.49
|
1,213.8
|
|
incl.
|
374.4
|
402.0
|
27.6
|
0.01
|
0.50
|
2,439.2
|
|
incl.
|
380.0
|
388.0
|
8.0
|
0.01
|
0.45
|
5,280.0
|
|
FSDH055B
|
366.0
|
428.0
|
62.0
|
0.01
|
0.61
|
280.5
|
|
FSDH056
|
168.0
|
670.2
|
502.2
|
0.50
|
0.40
|
11.4
|
0.89
|
incl.
|
388.0
|
670.2
|
282.2
|
0.68
|
0.39
|
17.9
|
1.13
|
and incl.
|
420.0
|
432.5
|
12.5
|
0.39
|
0.93
|
135.8
|
|
FSDH058
|
100.0
|
1,351.5
|
1,251.5
|
0.56
|
0.41
|
6.6
|
0.91
|
incl.
|
500.0
|
1,004.0
|
504.0
|
0.77
|
0.54
|
7.4
|
1.23
|
and incl.
|
600.0
|
910.0
|
310.0
|
0.87
|
0.62
|
8.2
|
1.40
|
and incl.
|
232.0
|
238.0
|
6.0
|
0.24
|
0.24
|
398.3
|
|
Four additional holes have been completed with assays pending.
Holes FSDH055C, FSDH059 and FSDH057 are respectively 50m, 100m and
200m step-outs from FSDH041 and have
the potential to extend the high-grade mineralization of Breccia 41
to the north. The fourth hole, FSDH060, was completed to a final
depth of 1,070m, approximately 2km
north of FSDH041, and tests the north-south expanse of the Filo del
Sol deposit. Assay results for these holes will be released as they
are received, analyzed and confirmed by the Company.
As part of its ongoing work programs, the Company has also
initiated preliminary metallurgical testwork on the sulphide
mineralization, as well as the continuation of environmental and
social baseline data collection in support of future project
permitting.
FINANCIAL RESULTS
(In thousands of
Canadian dollars, except per share amounts)
|
|
|
Three months
ended
March
31,
|
|
|
2022
|
2021
|
Exploration and project
investigation
|
|
14,869
|
12,519
|
General and
administration ("G&A")
|
|
2,066
|
695
|
Net loss
|
|
14,400
|
10,431
|
Basic and diluted loss
per share
|
|
0.12
|
0.09
|
|
The financial
information in this table were selected from the Company's
condensed interim consolidated financial statements for the three
months ended March 31, 2022 (the "Financial Statements"),
which are available on SEDAR at www.sedar.com and the
Company's website www.filo-mining.com.
|
SELECTED FINANCIAL INFORMATION
(In thousands of
Canadian dollars)
|
|
March
31,
|
December
31,
|
|
|
2022
|
|
2021
|
Cash
|
|
111,425
|
|
19,417
|
Working
capital
|
|
100,112
|
|
13,052
|
Mineral
properties
|
|
8,391
|
|
8,063
|
Total assets
|
|
122,872
|
|
30,660
|
|
The financial
information in this table were selected from the Financial
Statements, which are available on SEDAR at
www.sedar.com and the Company's website
www.filo-mining.com.
|
The Company incurred a net loss of $14.4
million during the three months ended March 31, 2022, comprised primarily of
$14.9 million in exploration and
project investigation costs and $2.1
million in G&A costs, which were partially offset by a
gain of approximately $2.0 million
resulting from the use of marketable securities for the purposes of
facilitating intragroup funding transfers (a "Funding Gain"). For
the 2021 comparative period, the Company reported a net loss of
$10.4 million, consisting mainly of
$12.5 million in exploration and
project investigation costs and $0.7
million in G&A costs, which were partially offset by a
Funding Gain of $2.6 million.
LIQUIDITY AND CAPITAL RESOURCES
As at March 31, 2022, the Company
had cash of $111.4 million and net
working capital of $100.1 million,
compared to cash of $19.4 million and
net working capital of $13.1 million
as at December 31, 2021. The increase
in the Company's cash and net working capital is due to
$99.7 million in net proceeds
generated by the Private Placement and $0.5
million in gross proceeds received by the Company in
relation to the exercise of stock options during the three months
ended March 31, 2022. These cash
inflows have been partially offset by funds used in operations,
including amounts used in the acquisition of equipment and
facilities for the Filo del Sol project, and for general corporate
purposes.
The Company will continue to deploy the majority of its treasury
to fund ongoing exploration and advancement of the Filo del Sol
project, and for working capital and general corporate
purposes.
About Filo Mining
Filo Mining is a Canadian exploration and development company
focused on advancing its 100% owned Filo del Sol copper-gold-silver
deposit located in Chile's Region
III and adjacent San Juan Province, Argentina. The Company's
shares are listed on the TSX and Nasdaq First North Growth Market
under the trading symbol "FIL", and on the OTCQX under the symbol
"FLMMF". Filo Mining is a member of the Lundin Group of
Companies.
Technical Information
Copper Equivalent is calculated based on US$ 3.00/lb Cu, US$
1,500/oz Au and US$ 18/oz Ag,
with 80% metallurgical recoveries assumed for all metals. The
formula is: CuEq % = Cu % + (0.7292 * Au g/t) + (0.0088 * Ag
g/t).
Details on assay procedures and the drill intersections provided
above can be found in the Company's news releases dated
January 12, 2022, January 19, 2022, and April 19, 2022.
Qualified Persons
The scientific and technical disclosure for the Filo del Sol
Project included in this news release have been reviewed and
approved by Bob Carmichael, P.Eng.
and Jamie Beck, P. Eng. Mr.
Carmichael is Filo Mining's Vice President of Exploration and a
Qualified Person under National Instrument 43-101 Standards of
Disclosure of Mineral Projects ("NI 43-101"). Mr. Beck is Filo
Mining's President and CEO and is also a Qualified Person under NI
43-101.
Additional information
The Company's condensed interim consolidated financial
statements for the three months ended March
31, 2022 and related management's discussion and analysis
are available on the Company's website at www.filo-mining.com or
under its profile on SEDAR at www.sedar.com.
The Company's certified adviser on the Nasdaq First North Growth
Market is Aktieinvest FK AB, +46 8 506 51703,
rutger.ahlerup@aktieinvest.se.
The information contained in this news release was accurate at
the time of dissemination, but may be superseded by subsequent news
release(s). The Company is under no obligation nor does it
intend to update or revise the forward-looking information, whether
as a result of new information, future events or otherwise.
This information was submitted by Filo Mining Corp. for
publication, through the agency of the contact person set out
below, on May 4, 2022 at 7:00 pm EDT.
On behalf of the board of directors of Filo Mining,
Jamie Beck, President and CEO
Filo Mining Corp.
Cautionary Note Regarding Forward-Looking Statements
Certain statements made and information contained herein in this
press release constitutes "forward-looking information" and
"forward-looking statements" within the meaning of applicable
securities legislation (collectively, "forward-looking
information") concerning the business, operations, financial
performance and condition of Filo Mining. The forward-looking
information contained in this press release is based on information
available to the Company as of the date of this press 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, any statements
that express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions
or future events or performance, (often, but not always, identified
by words or phrases such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "projects" , "estimates", "budgets",
"scheduled", "forecasts", "assumes", "intends", "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 and similar expressions) are not statements of
historical fact and may be forward-looking statements.
All statements other than statements of historical fact may be
forward-looking statements. Forward-looking information is
necessarily based on estimates and assumptions that are inherently
subject to known and unknown risks, uncertainties and other factors
that may cause the actual results, level of activity, performance
or achievements of the Company to be materially different from
those expressed or implied by such forward-looking information,
including but not limited to: risks and uncertainties relating to,
among other things, the inherent uncertainties regarding Mineral
Reserve and Resource estimates, cost estimates, changes in
commodity prices, currency fluctuation, financings, unanticipated
resource grades, infrastructure, results of exploration activities,
cost overruns, availability of materials and equipment, timeliness
of government approvals, taxation, political risk and related
economic risk and unanticipated environmental impact on operations
as well as other risks, and uncertainties and other factors,
including, without limitation, those referred to in the "Risks and
Uncertainties" section of the Company's most recent MD&A and/or
Annual Information Form, under the heading "Risks Factors", and
elsewhere, which may cause the actual results, level of activity,
performance or achievements of the Company to be materially
different from those expressed or implied by such forward-looking
information.
The Company believes that the expectations reflected in the
forward-looking information included in this press 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
press release is as of the date of this press release. In
particular, this press release contains forward-looking information
pertaining to the assumptions used in the PFS for the Filo del Sol
project, the assumptions used in the Mineral Reserves and Resources
estimates for the Filo del Sol project, including, but not limited
to, geological interpretation, grades, metal price assumptions,
metallurgical and mining recovery rates, geotechnical and
hydrogeological conditions, as applicable; ability to develop
infrastructure; 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 and/or environmental
risks. In addition, this press release may contain forward-looking
statements or information pertaining to: the potential exploration
results or anticipated outcomes of infill or step-out drilling
planned at Filo del Sol; exploration and development plans and
expenditures, including, but not limited to, its plans to add
additional rigs, the sequencing or prioritization of drill targets,
the impact of reverse circulation drilling for the purposes of
pre-collaring, and a transition to year-round operations; the
ability of the Company's COVID-19 operating protocol to continue to
meet government mandated health and safety guidelines enabling it
to conduct its field programs as planned; the ultimate size and
scope of its field programs and the Company's ability to achieve
the objectives thereof; the impact of the Company's winterization
efforts at Filo del Sol, and whether such efforts will enable
year-round operations and have adequately anticipated the
challenges of winter operation, including, but not limited to,
weather and potential supply chain disruptions; the anticipated use
of proceeds from the Private Placement; the timing or results of an
upgrade to the Mineral Resources estimate at Filo del Sol,
including the inputs used therein; opportunities to improve project
economics; the success of future exploration activities; potential
for resource expansion; potential for the discovery of new mineral
deposits; 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; estimation of commodity
prices, Mineral Reserves and Resources, estimations of costs, and
permitting time lines; ability to obtain surface rights and
property interests; currency exchange rate fluctuations;
requirements for additional capital; government regulation of
mining activities; environmental risks; unanticipated reclamation
expenses; title disputes or claims; limitations on insurance
coverage; and other risks and uncertainties.
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 the Company's actual results and future
events could differ materially from those anticipated in such
statements, as a result of the factors discussed in the "Risk and
Uncertainties" section of the Company's most recent management's
discussion and analysis and elsewhere and in the "Risk Factors"
section in the Company's most recent Annual Information Form, which
are available under the Company's profile on SEDAR at
www.sedar.com. 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.
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.
Follow Us
Twitter:
https://twitter.com/filo_mining
LinkedIn:
https://www.linkedin.com/company/filo-mining-corp
Instagram:
https://www.instagram.com/filo_mining/
Facebook:
https://www.facebook.com/Filo.Mining.Corp
SOURCE Filo Mining Corp.