VANCOUVER, Aug. 8, 2019 /CNW/ - Filo Mining Corp.
(TSX-V, Nasdaq First North: FIL) ("Filo Mining", or the
"Company") is pleased to announce plans for the upcoming field
season at its 100% owned Filo del Sol project located on the border
of Region III, Chile and San Juan
Province, Argentina.
Expected to kick off in early November of 2019, the Company
is planning an approximately 15,000m
diamond drill campaign and a full 3D induced polarization (IP)
geophysical survey at the Filo del Sol Project in order to better
understand the high-grade gold mineralization encountered during
the 2018/2019 drill campaign and to continue to explore the
extensive gold-copper-silver mineralized system which hosts the
Filo del Sol deposit. The mineral resource at Filo spans a
north-south distance of almost 3 kilometres and appears open in
both directions. Refer to the attached plan map outlining
proposed targeted areas for the 2019/2020 program.
Please view PDF version of News Release.
Commenting on the upcoming program, President and CEO
Adam Lundin stated, "The
successful exploration results arising out of the 2018/2019 drill
program highlighted the potentially transformative upside for our
flagship asset's size, scope and economic potential. The
upcoming season will follow up on what we believe are the two most
important results of the past season – confirmation of high-grade,
structurally-controlled gold zones within the Filo del Sol deposit,
and extension of the known mineralization to a depth of more than
1,000 metres below surface. We will also test the new Tamberias
West area located southwest of the current mineral resource for
additional oxide mineralization. With the support of Lundin
Family Trusts, who are our largest shareholders we are looking
forward to another exciting season of drilling at Filo del Sol as
we pursue these opportunities and continue to deliver shareholder
value."
The Tamberias West area is a previously unexplored, recently
permitted area to the southwest of the Filo del Sol deposit which
has been identified with surface indications of epithermal style
gold-copper mineralization.
The field program will be supported by a better understanding of
effective diamond drilling strategies and the collection of a
comprehensive geophysical dataset over the project area including
drone magnetometer and state of the art 3D IP
surveys.
A summary of the proposed 2019/2020 drill targets is discussed
below and the Company continues to review all financing options
with respect to the planned field program.
High-Grade Gold Zones
Previous reverse-circulation (RC) drilling at Filo intersected
high-grade gold zones that have, to date, been difficult to
characterize geologically as RC drilling produces only small chips,
making it difficult to recognize geological features. Two of
the diamond holes drilled last year also intersected these zones,
returned some of the highest-grade gold intercepts at the project
to date, and the diamond core provided more detailed information
about them. These new holes showed that the high-grade gold
zones are controlled by steeply-dipping structures which would make
them difficult to identify and interpret from the previous RC
holes, most of which were drilled vertically. Angled diamond
drill holes will target these zones in order to better understand
their geometry and grade distribution, with a potential to
significantly increase the importance of these high-grade
structures to the economics defined in the Pre-Feasibility
Study. Structurally controlled high-grade zones like this are
important to the economics of similar high sulfidation gold-silver
deposits like Veladero, Pierina, and Yanacocha.
Intersections of these structures within the distinct,
stratiform high-grade silver zone (M Zone) may be particularly
important and will be a focus of this portion of the drilling
program. Select intervals from the M Zone are shown in the
tables below, illustrating the high-grade nature of this zone.
High-Grade Gold Intervals
HOLE-ID
|
Year
|
From
(m)
|
To
(m)
|
Width
(m)
|
Au
g/t
|
Ag
g/t
|
FSDH009
|
2013
|
60.0
|
62.0
|
2.0
|
17.5
|
1.3
|
FSDH017
|
2018
|
158.0
|
162.0
|
4.0
|
7.1
|
1.5
|
FSDH020
|
2018
|
158.0
|
160.0
|
2.0
|
19.1
|
1.0
|
FSDH028
|
2019
|
155.0
|
164.0
|
9.0
|
22.0
|
15.2
|
FSDH030
|
2019
|
262.0
|
274.0
|
12.0
|
12.6
|
260.1
|
VRC047
|
2008
|
68.0
|
70.0
|
2.0
|
21.7
|
3.7
|
VRC054
|
2008
|
132.0
|
134.0
|
2.0
|
13.7
|
1.3
|
VRC060
|
2014
|
308.0
|
310.0
|
2.0
|
11.3
|
116.1
|
VRC070
|
2014
|
120.0
|
128.0
|
8.0
|
10.1
|
4.2
|
VRC076
|
2014
|
106.0
|
110.0
|
4.0
|
7.2
|
1.1
|
High Grade Silver Intervals
HOLE-ID
|
Year
|
From
(m)
|
To
(m)
|
Length
(m)
|
Au
g/t
|
Ag
g/t
|
FSDH002
|
2012
|
230.0
|
266.0
|
36.0
|
0.4
|
393.7
|
VRC063
|
2014
|
262.0
|
274.0
|
12.0
|
0.4
|
663.3
|
VRC064
|
2014
|
266.0
|
278.0
|
12.0
|
0.9
|
314.5
|
VRC072
|
2014
|
166.0
|
188.0
|
22.0
|
0.7
|
507.2
|
VRC079
|
2014
|
206.0
|
214.0
|
8.0
|
0.2
|
394.8
|
VRC081
|
2015
|
280.0
|
288.0
|
8.0
|
0.8
|
565.0
|
VRC086
|
2015
|
256.0
|
328.0
|
72.0
|
0.3
|
338.8
|
VRC132
|
2017
|
352.0
|
368.0
|
16.0
|
0.2
|
565.1
|
The above tables represent select intervals from drilling
campaigns previously announced by Filo Mining (or its predecessor
companies) between 2008 and 2019 and complete drilling results are
available for review on SEDAR at www.sedar.com.
Filo Deep
Holes FSDH025 and FSDH029 drilled during the past season both
ended in mineralization at depths of 1,025 metres and 800 metres
respectively, indicating that the Filo del Sol deposit is entirely
open to expansion at depth. The mineral resource at Filo
spans a north-south distance of almost 3 kilometres, and appears
open in both directions. Several holes are planned to test
the area beneath the deposit in a similar manner in order to begin
to understand the deeper portion of the system and test for
underlying porphyry mineralization which is known to have driven
the epithermal system which makes up the deposit.
This deep drilling will be guided by the results of a 3D IP
survey which will be completed during the early part of the field
season. Previous IP surveys at Filo have shown that this is
an effective technique to outline key geological features,
including mineralization, however the depth penetration of earlier
two dimensional (2D) surveys was limited, and 2D surveys are highly
influenced by the direction of the survey lines, making it very
difficult to identify geological features that are
irregularly-shaped or not perpendicular to the line
direction. Modern IP surveys collect data in a true 3D grid,
allowing for much improved depth resolution and characterization of
geological features independent of their orientation. A
high-resolution drone magnetic survey is also planned in order to
take advantage of several benefits of this survey type and provide
good quality magnetic data.
Filo North
The area to the north of the Filo deposit is characterized by
strong alteration typical of shallow levels of epithermal
deposits. Widely-spaced drilling in this area in previous
seasons intersected sporadic mineralization indicating that the
hydrothermal system continues well beyond the northern boundary of
the mineral resource. Additional holes in this area will be
guided by the results of the IP and mag surveys and will test the
system at depth. RC hole VRC093, drilled in 2015 and the most
northerly hole in the project, intersected 166 metres grading 0.24
g/t gold, 12 g/t silver and 0.15% copper. This hole is
located almost two kilometres north of the northern edge of the
mineral resource.
Detailed interpretation of alteration mineral zonation guided by
short-wave infrared (SWIR) data suggests that the hottest part of
the Filo del Sol alteration system occurs in the Filo North area,
possibly indicating the location of a deep feeder zone to the known
mineralization and representing a high-priority drill target.
Tamberias West
One of the most important outcomes of the 2018/2019 field
program was the recognition of steam-heated alteration and
silicification, typical of the upper levels of the Filo epithermal
system, in a new area of flat topography and limited outcrop to the
southwest of the Filo del Sol deposit. The Company recently
received drilling permits for this area and plans to drill it
during the upcoming season in order to evaluate the potential for
Filo epithermal style gold mineralization beneath this shallow
alteration zone. The Company believes that success in this
area would have the potential to significantly increase the oxide
mineral resource.
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, P. Eng.
(BC) and/or James Beck, B.A.Sc.,
P.Eng. Mr. Carmichael is Filo Mining's Vice-President of
Exploration and a Qualified Person under National Instrument 43-101
Standards of Disclosure for Mineral Projects ("NI43-101").
Mr. Beck is Filo Mining's Vice-President of Corporate Development
and Projects and is also a Qualified Person under NI43-101.
Diamond drill holes are indicated by "DH" in the Hole ID and
reverse circulation holes by "RC". RC samples were collected at the
drill site by Company personnel with splitting carried out at the
Company's Batidero field camp near the drill sites.
Individual samples represent final splits from 2 metre intervals
down the hole. Samples were delivered to the ALS preparation
laboratory in Copiapo, Chile. Diamond drill core 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. 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 San Juan,
Argentina. Samples were delivered to the ALS preparation
laboratory in Mendoza, Argentina. All samples were crushed
and a 500g split was pulverized to 85% passing 200 mesh. The
prepared samples were analyzed by ALS which is an accredited
laboratory which is independent of the Company. Gold analyses
were by fire assay fusion with AAS finish on a 30g sample.
Copper and silver were analysed 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. 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, and drilled widths are interpreted to be greater than
90% of true widths. True widths of the high-grade gold zones
are interpreted to be close to drilled widths, pending resolution
of the actual geometry which is one of the goals of the 2019/2020
drill program.
Mineral Resource
Zone
|
Category
|
Tonnes
|
Cu
|
Au
|
Ag
|
lbs
Cu
|
Ounces
Au
|
Ounces
Ag
|
(millions)
|
(%)
|
(g/t)
|
(g/t)
|
(millions)
|
(thousands)
|
(thousands)
|
Oxide
|
Indicated
|
349.6
|
0.34
|
0.32
|
12.6
|
2,656
|
3,623
|
141,364
|
Inferred
|
103.9
|
0.26
|
0.32
|
8.7
|
585
|
1,083
|
29,067
|
Sulphide
|
Indicated
|
75.5
|
0.27
|
0.34
|
2.2
|
451
|
813
|
5,374
|
Inferred
|
71.2
|
0.30
|
0.33
|
2.5
|
469
|
751
|
5,743
|
Total
|
Indicated
|
425.1
|
0.33
|
0.32
|
10.7
|
3,107
|
4,436
|
146,738
|
Inferred
|
175.1
|
0.27
|
0.33
|
6.2
|
1,054
|
1,834
|
34,811
|
Notes to accompany Filo del Sol Mineral Resource
table:
- Mineral Resources have an effective date of 11 June 2018;
- The Qualified Person for the resource estimate is James N. Gray, P.Geo. of Advantage Geoservices
Ltd.;
- The Mineral Resources were estimated in accordance with the CIM
Definition Standards for Mineral Resources and Reserves;
- Sulphide copper equivalent (CuEq) assumes metallurgical
recoveries of 84% for copper, 70% for gold and 77% for silver based
on similar deposits, as no metallurgical testwork has been done the
Sulphide mineralization, and metal prices of US$3/lb copper, US$1300/oz gold, US$20/oz silver. The CuEq formula is:
CuEq=Cu+Ag*0.0089+Au*0.5266;
- All figures are rounded to reflect the relative accuracy of the
estimate;
- Mineral Resources are not Mineral Reserves and do not have
demonstrated economic viability;
- The resource was constrained by a Whittle® pit shell using the
following parameters: Cu $3/lb, Ag
$20/oz, Au $1300/oz, slope of 45°, a mining cost of
$2.50/t and an average process cost
of $13.26/t;
- Cutoff grades are 0.2 g/t Au for the AuOx material, 0.15% CuEq
for the CuAuOx material and 20 g/t Ag for the Ag material. These
three mineralization types have been amalgamated in the Oxide total
above. CuAuOx copper equivalent (CuEq) assumes metallurgical
recoveries of 82% for copper, 55% for gold and 71% for silver based
on preliminary metallurgical testwork, and metal prices of
US$3/lb copper, US$1300/oz gold, US$20/oz silver. The CuEq formula
is: CuEq=Cu+Ag*0.0084+Au*0.4239.
For details of the Mineral Resource Estimate, refer to the
Company's news release titled "Filo Mining Reports Updated Mineral
Resource Estimate for the Filo del Sol Project" dated August 08, 2018 and available on the Company's
website at www.filo-mining.com.
Drill Hole Location Details
HOLE-ID
|
UTM
East
|
UTM
North
|
Elevation
|
Length
(m)
|
Azimuth
|
Dip
|
FSDH002
|
435104
|
6848599
|
5209
|
438.5
|
90.0
|
-90.0
|
FSDH009
|
435018
|
6848720
|
5235
|
157.0
|
0.0
|
-90.0
|
FSDH017
|
434996
|
6848499
|
5256
|
360.8
|
262.6
|
-65.8
|
FSDH020
|
435000
|
6848600
|
5248
|
290.5
|
282.0
|
-87.9
|
FDSH025
|
435244
|
6848002
|
5065
|
1025.0
|
271.9
|
-75.8
|
FSDH028
|
435286
|
6848509
|
5125
|
563.5
|
268.4
|
-65.9
|
FDSH029
|
435036
|
6846992
|
5181
|
800.1
|
90.0
|
-75.0
|
FSDH030
|
435306
|
6848803
|
5156
|
512.0
|
270.0
|
-65.0
|
VRC047
|
434852
|
6847726
|
5169
|
250.0
|
0.0
|
-90.0
|
VRC054
|
435189
|
6848324
|
5158
|
221.0
|
270.0
|
-70.0
|
VRC060
|
434998
|
6847999
|
5133
|
500.0
|
0.0
|
-90.0
|
VRC063
|
435300
|
6848801
|
5157
|
370.0
|
0.0
|
-90.0
|
VRC064
|
435100
|
6848500
|
5217
|
492.0
|
0.0
|
-90.0
|
VRC070
|
434991
|
6848202
|
5176
|
276.0
|
0.0
|
-90.0
|
VRC072
|
435259
|
6848403
|
5140
|
350.0
|
0.0
|
-90.0
|
VRC076
|
435194
|
6848618
|
5167
|
368.0
|
0.0
|
-90.0
|
VRC079
|
435211
|
6848505
|
5162
|
247.0
|
0.0
|
-90.0
|
VRC081
|
434645
|
6848005
|
5162
|
370.0
|
93.8
|
-69.7
|
VRC086
|
434747
|
6848411
|
5260
|
398.0
|
88.4
|
-69.2
|
VRC093
|
435458
|
6850546
|
5032
|
450.0
|
318.8
|
-69.9
|
VRC132
|
434827
|
6848290
|
5287
|
408.0
|
90.0
|
-70.0
|
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 Filo del
Sol project is the subject of a recently completed Pre-Feasibility
Study ("PFS"), and details of the project can be found in the
43-101 Technical Report detailing the results of that study titled
"NI 43-101 Technical Report, Pre-Feasibility Study for the Filo del
Sol Project" dated February 22, 2019
with an effective date of January 13,
2019 (the "Technical Report").
The Company's shares are listed on the TSX-V and on Nasdaq First
North under the symbol "FIL". Filo Mining Corp. is a member
of the Lundin Group of Companies.
The Company's certified advisor on Nasdaq First North is Pareto
Securities AB, +46 8 402 50 00,
certifiedadviser.se@paretosec.com.
Additional Information
Additional information regarding exploration, drilling, data
verification, and the mineral resource estimate for the Filo del
Sol project can be found in the Technical Report. The
Technical Report was prepared for Filo Mining by Ausenco
Engineering Canada Inc. ("Ausenco"). The Qualified Persons, as
defined under NI 43-101, responsible for the Technical Report are
Scott Elfen, P.E., Ausenco, Robin
Kalanchey, P.Eng., Ausenco, Bruno
Borntraeger, P.Eng., Knight Piesold Ltd., Fionnuala Devine, P.Geo., Merlin Geosciences
Inc., Ian Stillwell, BGC Engineering
Inc., Neil Winkelmann, FAusIMM, SRK
Consulting (Canada) Inc.,
James N. Gray, P.Geo., Advantage
Geoservices Limited, and Jay Melnyk,
P.Eng., AGP Mining Consultants, all of whom are independent of Filo
Mining. The Technical Report is available for review under the
Company's profile on SEDAR at www.sedar.com and on the Company's
website at www.filo-mining.com.
This information was submitted by Filo Mining Corp. for
publication, through the agency of the contact person set out
below, on August 8, 2019 at
5:00 pm Pacific time.
On behalf of the board of directors of Filo Mining,
Adam Lundin, President and
CEO
Filo Mining Corp.
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", "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", "might" or "will be
taken", "occur" or "be achieved" or the negative connotations
thereof. All statements other than statements of historical fact
may be forward-looking statements.
Forward-looking statements contained in this news release
include statements regarding the Company's plans for the upcoming
field season and proposed 2019/2020 drill targets at its 100% owned
Filo del Sol project, planned exploration programs, potential
upside at the Filo del Sol project, surface indications of
epithermal style gold-copper mineralization on the Tamberias West
area and a potential to significantly increase the oxide mineral
resource, the results of the 2018/2019 field program drill program,
and support of Lundin Family Trusts. In addition, this news
release discusses the PFS that would support development of the
Filo del Sol Project. Information concerning mineral
resource/reserve estimates and the economic analysis thereof
contained in the results of the PFS are also forward-looking
information in that they reflect a prediction of the mineralization
that would be encountered, and the results of mining, if a mineral
deposit were developed and mined. Although Filo Mining believes
that the expectations reflected in such forward-looking information
are reasonable, undue reliance should not be placed on
forward-looking information since Filo Mining can give no assurance
that such expectations will prove to be correct. These statements
involve known and unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from
those anticipated in such forward-looking information, including
the risks, uncertainties and other factors identified in Filo's
periodic filings with Canadian securities regulators, including,
without limitation, those referred to in the "Risk and
Uncertainties" sections, and elsewhere, in the Company's MD&A
for the year ended December 31, 2018
and for the interim period ended June 30,
2019, and in the most recent the Company's Annual
Information Form available under the Company's profile at
www.sedar.com. In addition, these statements involve
assumptions made with regard to the Company's ability to develop
the Filo del Sol Project and to achieve the results outlined in the
PFS; the ability to raise the capital required to fund construction
and development of the Filo del Sol Project; and the results and
impact of future exploration at Filo del Sol.
The forward-looking information 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 information, 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 of 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.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
2019/2020 Target Zones (Full Resolution)
SOURCE Filo Mining Corp.