VANCOUVER, May 31, 2018 /CNW/ - Filo Mining Corp
(TSX-V, Nasdaq First North: FIL) ("Filo Mining", "Filo", or the
"Company") is pleased to announce the final assay results from the
recently completed 2017/18 drill program at the Filo del Sol
project in San Juan Province, Argentina and Region III, Chile. A total
of 9,411 metres was drilled during the program, which was completed
at the end of March, 2018. In total, 31 reverse circulation
holes and 9 diamond drill holes were completed. Assay results
for the 9 diamond drill holes are presented here. Results of
the reverse circulation holes are contained in previous news
releases dated April 27 and
May 16, 2018.
Highlights of Field Program:
- Infill drilling is expected to convert a portion of the
inferred oxide mineral resource to indicated
- Step out drilling has extended mineralization beyond the
current resource limits and it still remains open for
expansion
- Over 4.5 tonnes of material was collected for metallurgical,
geotechnical and environmental testing in support of the
Pre-Feasibility Study ("PFS") currently underway
- Geotechnical drilling has been completed
A full table of the drill hole intersections, collar information
and a plan map showing the locations of the drill holes are
included within this release.
Highlights from this second batch of drill holes include:
• FSDH016:
|
4m @ 0.22% Cu,
0.19 g/t Au, 1,001.0 g/t Ag
|
• FSDH017A:
|
88m @ 0.95%
Cu, 0.19 g/t Au, 43.4 g/t Ag
|
• FSDH020:
|
40m @ 0.02%
Cu, 1.50 g/t Au, 3.0 g/t Ag
|
• FSDH021:
|
141m @
0.98% Cu, 0.30 g/t Au, 56.7 g/t Ag
|
• FSDH022:
|
130m @
1.25% Cu, 0.28 g/t Au, 1.5 g/t A
|
|
• Including
|
26m @ 4.98%
Cu, 0.30 g/t Au, 0.7 g/t Ag
|
• FSDH023:
|
72m @ 1.02%
Cu, 0.26 g/t Au, 108.5 g/t Ag
|
|
• Including
|
12m @ 1.24%
Cu, 0.36 g/t Au, 628.8 g/t Ag
|
Commenting on today's results, Adam
Lundin, CEO of Filo Mining stated, ""We are very pleased
with the final drill results revealed from our 2017/18 field
program at Filo del Sol. The results released today along with
the first two sets of program results released in April and
May of this year, respectively validate the Company's
confidence in moving forward to complete an updated
mineral resource estimate, and its in-progress efforts to
release a Pre-Feasibility Study ("PFS") in early 2019."
Filo del Sol is a large high-sulphidation epithermal
copper-gold-silver deposit. The upper portion of the deposit
is oxidized and includes from top to bottom, a gold oxide zone, a
copper-gold oxide zone and a silver-rich zone. The oxide
portion of the deposit is underlain by copper-gold sulphide
mineralization. The drill holes reported here tested all of
the oxide zones.
One of the main goals of the 2017/18 drill program was to
convert a part of the inferred oxide mineral resource to the
indicated category. Diamond drilling was used in order to
collect coarse sample material for column leach metallurgical
testwork, as well as for resource infill. The mineral
resource remains open laterally and to depth. The holes in
this release span a distance of 730 metres from FSDH021 in the
south to FSDH022 in the north.
The Filo gold oxide zone was intersected by the upper part of
FSDH017A (58m @ 1.09 g/t gold) and
FSDH020 (122m @ 0.67 g/t Au) 140
metres to the north.
Drill holes FSDH021 and FSDH023 intersected the southern
high-grade copper zone within the indicated mineral resource,
confirming the size and tenor of this zone and providing material
for metallurgical testwork. Hole FSDH017A intersected the
northern high-grade copper zone, 400 metres northwest of FSDH021
and hole FSDH022 intersected a shallower high-grade zone 400 metres
north of FSDH017A. The intersection in FSDH022 included a
very high-grade section of 8 metres that returned 12.8% Cu.
This zone remains open to the north. Hole FSDH019 was
abandoned just above the copper
zone.
Four of the holes intersected the silver zone, including another
broad zone of near-surface mineralization starting at 30 metres
down the hole in FSDH016 (62m @ 103.1
g/t silver). The silver zone intersections included some very
high silver values (4m @ 1,001.0 g/t
Ag in FSDH016; 6m @ 798.7 g/t Ag in
FSDH021 and 4m @ 1,498.0 g/t Ag in
FSDH023) as is typical within this zone. The silver zone
intersections in holes FSDH021 and 023 are within the indicated
mineral resource while those in FSDH016 and 017A are within the
inferred mineral resource.
The results of the 2017/18 drilling will be incorporated into an
updated mineral resource estimate to support the PFS which is
currently underway. The PFS follows the completion of a
Preliminary Economic Assessment ("PEA") of the project, the results
of which were released by the Company on November 28, 2017. The PEA incorporated
open-pit mining and heap leach processing of only the oxide
portions of the deposit. The results of the PEA demonstrate a
robust project with strong economics, highlighted by an estimated
after-tax NPV of US$ 705 million
using a discount rate of 8% and an IRR of 23%, with an average
estimated annual life of mine production of approximately 50,000
tonnes of copper, 115,000 ounces of gold, and over 5 million ounces
of silver.
Diamond drill holes completed during the 2017/2018 program will
contribute data for the mineral resource update and will also
provide samples for metallurgical testwork forming an important
part of the PFS. Metallurgical sample material was also
collected from surface trenches during the field program. The
PFS metallurgical testwork program is being carried out at SGS
Minerals lab in Lakefield, Ontario
and commenced in early April, 2018. Ongoing environmental and
social programs continue in support of the PFS and to lay the
groundwork for future environmental assessments and project
permitting.
HOLE-ID
|
From
(m)
|
To
(m)
|
Length
(m)
|
Cu
%
|
Au
g/t
|
Ag
g/t
|
Zone
|
Purpose
|
FSDH016
|
30
|
92
|
62
|
0.21
|
0.18
|
103.1
|
Filo
|
Resource
Conversion
and Addition
|
incl
|
68
|
88
|
20
|
0.20
|
0.16
|
293.5
|
incl
|
82
|
86
|
4
|
0.22
|
0.19
|
1001.0
|
FSDH017A
|
108
|
218
|
110
|
0.02
|
0.72
|
6.8
|
Filo
|
Resource
Conversion
and Addition
|
incl
|
128
|
186
|
58
|
0.02
|
1.09
|
1.2
|
incl
|
160
|
162
|
2
|
0.03
|
11.70
|
1.0
|
incl
|
214
|
218
|
4
|
0.53
|
0.02
|
108.5
|
plus
|
248
|
336
|
88
|
0.95
|
0.19
|
43.4
|
incl
|
272
|
292
|
20
|
1.07
|
0.17
|
131.2
|
and incl
|
288
|
314
|
26
|
1.51
|
0.25
|
47.9
|
FSDH018A
|
2
|
20
|
18
|
0.04
|
0.81
|
0.8
|
Filo
|
Infill and
Metallurgy
|
incl
|
4
|
8
|
4
|
0.00
|
2.92
|
0.5
|
plus
|
142
|
162
|
20
|
0.02
|
0.92
|
1.0
|
incl
|
160
|
162
|
2
|
0.02
|
5.46
|
2.0
|
FSDH019
|
188
|
205
|
17
|
0.01
|
0.49
|
14.0
|
Filo
|
Infill
|
FSDH020
|
68
|
190
|
122
|
0.02
|
0.67
|
2.0
|
Filo
|
Infill and
Metallurgy
|
incl
|
138
|
178
|
40
|
0.02
|
1.50
|
3.0
|
incl
|
158
|
160
|
2
|
0.03
|
19.10
|
1.0
|
FSDH021
|
12
|
46
|
34
|
0.10
|
0.32
|
0.7
|
Filo
|
Infill and
Metallurgy
|
plus
|
84
|
90
|
6
|
0.07
|
0.86
|
2.0
|
plus
|
90
|
231
|
141
|
0.98
|
0.30
|
56.7
|
incl
|
90
|
166
|
76
|
1.39
|
0.31
|
87.2
|
incl
|
146
|
182
|
36
|
0.94
|
0.31
|
209.2
|
FSDH022
|
6
|
10
|
4
|
0.01
|
1.25
|
4.8
|
Filo
|
Infill and
Geotechnical
|
plus
|
98
|
228
|
130
|
1.25
|
0.28
|
1.5
|
incl
|
98
|
124
|
26
|
4.98
|
0.30
|
0.7
|
incl
|
108
|
116
|
8
|
12.84
|
0.36
|
0.9
|
FSDH023
|
70
|
96
|
26
|
0.07
|
1.08
|
2.2
|
Filo
|
Infill and
Metallurgy
|
plus
|
96
|
251
|
155
|
0.61
|
0.25
|
54.6
|
incl
|
96
|
168
|
72
|
1.02
|
0.26
|
108.5
|
incl
|
156
|
174
|
18
|
0.99
|
0.38
|
432.6
|
FSDH024
|
92
|
128
|
36
|
0.04
|
0.41
|
2.4
|
Filo
|
Resource
Conversion
|
plus
|
130
|
164
|
34
|
0.44
|
0.13
|
1.2
|
Mineralized zones within the Filo del Sol deposit are
flat-lying, and drilled widths are interpreted to be greater than
95% of true widths.
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.
The Quality Control/Quality Assurance (QA/QC) program for the
Filo del Sol Project is under the management of Diego Charchaflie
MSc., P.Geo (BC), a Qualified Person pursuant to NI 43-101.
Samples were collected at the drill site by Company personnel
with splitting carried out at the Company's 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 where samples were crushed and split and
a 500g split was pulverized to 85% passing 200 mesh. The
prepared samples were sent to the ALS assay laboratory in
Lima, Peru. ALS 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.
About Filo Mining Corp.
Filo Mining's flagship project is its 100% controlled Filo del
Sol Project located on the border between San Juan Province,
Argentina and Region III,
Chile. Filo del Sol is located
between the prolific Maricunga and El Indio Gold Belts, two major
mineralized trends that contain such deposits as Caspiche, La
Coipa, Veladero, and El Indio. The region is mining-friendly and
hosts a number of large scale mining operations. The project
area is covered under the Mining Integration and Complementation
Treaty between Chile and
Argentina, which provides the
framework for the development of cross border mining projects.
HOLE-ID
|
East
|
North
|
Elevation
|
Length
(m)
|
Azimuth
|
Dip
|
FSDH016
|
435204
|
6848107
|
5087
|
100.0
|
142
|
-90
|
FSDH017A
|
434996
|
6848499
|
5256
|
360.8
|
263
|
-66
|
FSDH018A
|
435006
|
6848398
|
5262
|
349.0
|
180
|
-73
|
FSDH019
|
435000
|
6848397
|
5265
|
204.6
|
249
|
-69
|
FSDH020
|
435000
|
6848600
|
5248
|
290.5
|
270
|
-88
|
FSDH021
|
434993
|
6848100
|
5155
|
230.5
|
270
|
-85
|
FSDH022
|
435097
|
6848787
|
5210
|
228.0
|
330
|
-68
|
FSDH023
|
434995
|
6848103
|
5154
|
250.5
|
25
|
-70
|
FSDH024
|
434994
|
6848200
|
5178
|
252.0
|
250
|
-70
|
Additional Information
Filo Mining is listed on the TSX-V and Nasdaq First North
Exchange under the trading symbol "FIL". Pareto Securities AB
is the Company's Certified Adviser on Nasdaq First North.
The PEA study results in this press release are only intended to
provide an initial, high-level summary of the project. The PEA is
preliminary in nature and includes the use of inferred mineral
resources, which are considered too speculative geologically to
have the economic considerations applied to them that would enable
them to be categorized as mineral reserves and there is no
certainty that PEA results will be realized. Mineral resources are
not mineral reserves and do not have demonstrated economic
viability.
The Filo del Sol Project, the Mineral Resource estimate, and the
PEA are described in a Technical Report titled "Independent
Technical Report for a Preliminary Economic Assessment on the Filo
del Sol Project, Region III, Chile
and San Juan Province, Argentina" dated December 18, 2017, with an effective date of
November 6, 2017 (the "Technical
Report"), which was prepared for Filo Mining by SRK Consulting
(Canada) Inc ("SRK"). 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 is information that Filo Mining Corp. is
obliged to make public pursuant to the EU Market Abuse Regulation.
This information was submitted for publication, through the agency
of the contact person set out below, on May
31, 2018 at 1:00 a.m. Pacific
Standard Time.
On behalf of the Board of Directors of Filo Mining,
Adam I. Lundin
President and CEO
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.
Cautionary Note Regarding Forward-Looking Statements
Certain statements made and information contained herein in the
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 and financial
performance and condition of Filo Mining Corp. 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
resource estimates, cost estimates, changes in commodity prices,
currency fluctuation, financing, unanticipated resource grades,
infrastructure, results of exploration activities, cost overruns,
availability of financing, 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 more fully described under "Risk
and Uncertainties" section of the Company's most recent MD&A
and in the Company's most recent Annual Information Form under the
heading "Risk Factors", and elsewhere, which are available under
the Company's profile at www.sedar.com and on the Company's
website. These risks and uncertainties 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. This forward-looking information
speaks as of the date of this press release. Forward-looking
information in this news release includes, but is not limited to,
statements regarding the Company's expectations with respect to
conversion of inferred mineral resources to indicated mineral
resources, timing of an updated mineral resource estimate to
support a PFS, the assumptions used in the mineral resource
estimates for the Filo del Sol project; expected timing with
respect to completion of a PFS, expectations with regard to
potential for adding to mineral resources through exploration;
estimations of commodity prices, mineral resources, and costs.
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.
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 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.
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SOURCE Filo Mining Corp.