VANCOUVER, BC, June 25, 2020 /CNW/ - Filo Mining Corp.
(TSXV: FIL) (Nasdaq First North Growth Market: FIL) ("Filo
Mining", or the "Company") is pleased to provide a summary of the
results of the recently completed 2019/2020 field program at the
Filo del Sol project, and to discuss the implications of these
results for the ultimate size of this impressive mineral system.
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Commenting on the recent results, President and CEO Jamie Beck stated, "Our latest drill program
has transformed our understanding of the size and scale of the Filo
system. Standout results include two of the best copper-gold
exploration holes drilled globally in the past
year1. We are encouraged by both the length of the
intercepts and their high copper and gold grades. This season's
drilling confirms the enormous potential for resource expansion
that exists at Filo. We now know that there is a very large
sulphide deposit underlying the substantial oxide resource.
The results of the drilling completed to date, combined with
information from surface mapping and recently completed geophysical
surveys, have given us a better idea of the potential size and
grade of the sulphide mineralization. We are just beginning
to see the true scope of the mineralized system and the ultimate
potential size of the deposit."
The most important holes from this season were FSDH032
(1,009 m at 0.95% CuEq (0.57% Cu,
0.39g/t Au, 11.1g/t Ag)) and FSDH034 (1,034 m at 0.68% CuEq (0.42% Cu, 0.32g/t Au,
3.4g/t Ag)) (see Filo News Release dated April 20, 2020). These holes
demonstrate that good grade copper-gold-silver mineralization
extends at least 700 vertical metres below the bottom of the
resource, or 1,200 metres below surface, and remains open to
expansion below this. Mineralization also remains completely
open to the north, as well as to the south, of the resource (see
attached map).
The oxide portion of the deposit, and the very uppermost part of
the sulphide portion, are defined by the current project resource
shown in the table below:
Category
|
Tonnes
|
Cu
|
Au
|
Ag
|
lbs
Cu
|
Ounces
Au
|
Ounces
Ag
|
(millions)
|
(%)
|
(g/t)
|
(g/t)
|
(millions)
|
(thousands)
|
(thousands)
|
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
|
All of the holes which define this resource ended in
mineralization, and it was clear that there was considerable
potential to expand it by drilling deeper. This concept was
encouraged by our interpretation of Filo del Sol as a telescoped
high-sulphidation epithermal / porphyry copper-gold system, an
interpretation which continues to be supported by the geological
details in recent drill holes, and originally led us to expect that
mineralization should be present over a considerable vertical
extent, well beyond what had been drilled to date.
Following up on these concepts, several holes were drilled below
the resource in 2019 and 2020. The table below shows
composited assay results from only those sections of the holes
which are below the current resource. Our interpretation
is that these deeper holes drilled through a transition between
shallow epithermal and deeper porphyry mineralization and ended in
the uppermost part of a porphyry system, which suggests that
mineralization could still continue for a considerable distance
beneath them.
Hole
ID
|
From
(m)
|
To
(m)
|
Length
(m)
|
CuEq
%
|
Cu
%
|
Au
g/t
|
Ag
g/t
|
FSDH025
|
280.0
|
1025.0
|
745.0
|
0.50
|
0.32
|
0.22
|
2.0
|
FSDH026
|
240.0
|
613.9
|
373.9
|
0.62
|
0.34
|
0.37
|
1.6
|
FSDH027
|
70.0
|
545.4
|
475.4
|
0.46
|
0.23
|
0.29
|
2.0
|
FSDH028
|
410.0
|
563.5
|
153.5
|
1.07
|
0.55
|
0.54
|
14.8
|
FSDH029
|
180.0
|
800.1
|
620.1
|
0.43
|
0.22
|
0.27
|
1.8
|
FSDH030
|
450.0
|
512.0
|
62.0
|
0.86
|
0.56
|
0.40
|
1.5
|
FSDH032
|
400.0
|
1141.0
|
741.0
|
1.09
|
0.68
|
0.43
|
11.7
|
FSDH033
|
370.0
|
552.0
|
182.0
|
0.80
|
0.48
|
0.31
|
11.5
|
FSDH034
|
330.0
|
1106.0
|
776.0
|
0.71
|
0.45
|
0.31
|
3.9
|
None of these intervals are included in the current resource
estimate and additional drilling will be required in order to
capture this mineralization in the resource, however these
intersections clearly demonstrate that, as expected, substantial
mineralization occurs below the resource, and that this
mineralization remains completely open to depth as all these holes
ended in mineralization.
In order to better understand the potential, an exploration
target was developed by modelling 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. Copper, gold and silver grades
for these volumes were estimated by taking the average of all drill
hole samples within them, a total of between 1,169 and 2,561
samples representing between 2,197 and 4,914 metres of
drilling. This analysis results in an exploration target with
dimensions of between 1,400 and 2,000 metres north-south, 450
metres east-west and 700 metres vertical, underlying the resource.
This target remains completely open to the north and south,
and to depth, and is shown in the following table. It is
consistent with the geological model and the drill results to
expect that there could be smaller zones of considerably
higher-grade mineralization within this overall target.
Tonnes
|
CuEq%
|
Cu
%
|
Au
g/t
|
Ag
g/t
|
1.2 – 1.6
billion
|
0.7 – 1.0
|
0.4 – 0.6
|
0.3 – 0.4
|
6 – 10
|
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. This target is in addition to the current
resource at Filo del Sol and does not include prospective areas to
the north and south of the deposit yet to be drilled.
To the north of this target, surface mapping has demonstrated
that the same intense hydrothermal alteration that overlies the
deposit, stretches for an additional 1,700 metres to a reverse
circulation drill hole (VRC093) which ended with 166.0 m (from 284 m
depth) at 0.42% CuEq (0.15% Cu, 0.24 g/t Au, 11.9 g/t Ag) including
42.0 m of 0.57% CuEq (0.40% Cu, 0.17
g/t Au, 6.1 g/t Ag) at the bottom of the hole. Additional
drilling is required to characterize the mineralization, if any, in
this gap area but it has the potential to add substantially to the
current exploration target if successful.
Shallow drilling to the south of this target has intersected
mineralization over an 800 metre distance towards holes VRC111
(102m from 6m depth at 1.04% CuEq (0.77% Cu, 0.35g/t Au,
1.5g/t Ag) and VRC143 (118m
from surface at 1.02% CuEq (0.68% Cu, 0.45g/t Au, 1.4g/t
Ag). Holes in this area all ended in mineralization,
again indicating that the deposit is open to depth here.
Current work is focused on processing and interpretation of the
extensive geophysical data collected during the past season, and
integrating it with the updated geological model, including input
from the deep drilling, in order to produce a comprehensive 3
dimensional geology-based geophysical model which will help to
guide further drilling into the areas north and south of the
resource area. We are working towards initiating this
drilling during the upcoming exploration season, expected to begin
this fall. The global situation with respect to
the covid-19 pandemic represents a potential challenge to
exploration, however we are confident that we can safely and
effectively carry out this program as our geological & support
staff and contractors are based entirely in Argentina. This
expectation will be continuously evaluated as the situation in
South America develops.
On behalf of Filo Mining,
Jamie Beck
President and
CEO
QUALIFIED PERSONS AND TECHNICAL NOTES
The field program was carried out under the supervision of
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. The formula is: CuEq %
= Cu % + (0.7292 * Au g/t) + (0.0083 * Ag g/t).
Details of the methodology and assumptions used to estimate the
resource estimate can be found in the Technical Report 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.
1Source: SNL Metals &
Mining, Drill Results – Copper, filtered by period for the last
year, as of April 2020
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 June 25, 2020 at
01:00 Eastern Time.
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.
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.
FIL Plan Map
FIL Vertical Section 8500
SOURCE Filo Mining Corp.