VANCOUVER, Jan. 13, 2019 /CNW/ - Filo Mining Corp.
(TSX-V, Nasdaq First North: FIL) ("Filo Mining", or the
"Company") is pleased to announce the results of a positive
Pre-Feasibility Study ("PFS") at its 100% owned Filo del Sol
project located on the border of Region III, Chile and San Juan Province, Argentina. A
conference call and webcast to discuss these results will be held
on Tuesday, January 15, 2018 at 09:00
h Eastern Standard Time. All values in this release are reported in
US dollars.
Please view PDF version of News Release
Commenting on the results, CEO Adam
Lundin stated, "The PFS confirmed and improved on our
initial work at Filo del Sol and highlights the incredible
potential of the project. We remain excited about our ongoing field
season that will continue to enhance the project and in tandem
explore the sulphide portion of the deposit which, to date, has not
been included in any study or economics."
Filo del Sol PFS Highlights:
- A $1.28 billion after-tax NPV
using an 8% discount rate and an IRR of 23% at $3.00/lb copper, $1300/oz gold and $20/oz silver;
- Average annual production of approximately 67,000 tonnes of
copper (including copper as copper precipitate), 159,000 ounces of
gold, and 8,653,000 ounces of silver at a C1 cost of $1.23/lb CuEq.;
- An Initial Probable Mineral Reserve of 259 Mt of 0.39% copper, 0.33 g/t gold, and 15 g/t
silver;
- Pre-production capital cost of $1.27
billion (excluding costs prior to a construction
decision);
- 14 year mine life (including pre-stripping) producing almost
1.75 billion pounds (lbs) of copper as cathode, and 1.92 million
ounces (oz) of gold and 104 million oz of silver as doré over the
13 year leach feed schedule. Additional copper is also recovered as
a high-grade copper precipitate.
- Low strip ratio of 1.5:1 (waste:ore)
- Excellent metallurgy producing LME grade copper cathodes and
gold and silver doré.
- Incorporates planning for a fully autonomous haul truck fleet
and recovery of additional copper as sulphide precipitate with
coincident regeneration of a portion of the cyanide, which drives
the low estimated operating costs;
- Potential opportunities to further improve the project
include:
-
- Increasing metallurgical recoveries with additional test work
and optimization of process parameters;
- Delineating more or higher-grade material through continued
exploration on the Company's extensive land package; and
- Future exploitation of copper-gold sulphide material underlying
the identified oxide deposit.
Project Description
Filo del Sol hosts a
high-sulphidation epithermal copper-gold-silver deposit associated
with a large porphyry copper-gold system. The project is located in
the Andes Mountains on the border of Chile and Argentina, approximately 140 km southeast of
the city of Copiapó. The project 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.
The PFS contemplates that Filo del Sol would be mined using
conventional open pit methods. From the open pit, ore would be
trucked to a conventional two-stage crusher, designed to process
60,000 tonnes per day of ore. Crushed ore would be treated by
sequential heap leaching, to extract copper and subsequently gold
and silver from the ore followed by hydrometallurgical processing
to produce copper cathodes and gold-silver doré. Groundwater for
the process plant would be supplied from nearby aquifers to the
plant site, and power would be supplied via 127 km of power line
construction to connect to the Chilean national grid. Copper
cathode and gold-silver doré would be transported by truck to
Puerto Caldera which is located
approximately 245 km by road from the plant site. Approximately 60
km of the existing road between site and port would require upgrade
to accommodate the truck traffic; the remaining distance comprises
public highway.
Summary of Filo del Sol PFS Economic Results:
Pre-Tax NPV (8%)
& IRR
|
$1.86 billion
NPV
27% IRR
|
After-Tax NPV (8%)
& IRR
|
$1.28 billion
NPV
23% IRR
|
Undiscounted
After-Tax Cash Flow (LOM)
|
$3.23
billion
|
Payback Period from
start of processing
(undiscounted,
after-tax cash flow)
|
3.4 Years
|
Metals Prices
Assumed
|
$3.00/lb
Cu*
$1,300/oz
Au
$20/oz Ag
|
Initial Capital
Expenditures (rounded)
|
$1.27
billion
|
LOM Sustaining
Capital Expenditure (excluding closure)
|
$217
million
|
LOM C-1 Cash Costs
(Co-Product)
|
$1.23/lb
CuEq.
|
Nominal Process
Capacity
|
60,000 t/d
ore
|
Mine Life (including
pre-stripping)
|
14 years
|
Average Annual Metal
Production (rounded)
(note – based on 12
years of leaching, excluding final partial year of leach
pad operation)
|
67,000 t
Cu
159,000 oz
Au
8,653,000 oz
Ag
|
LOM Average Process
Recovery
|
80% Cu
70% Au
82% Ag
|
*All figures reported
are in 2018 US dollars and on a 100% Project and 100% equity basis
valuation. Copper price shown excludes a 1.5% cathode premium
which was included in the economics. Argentine revenue includes a
3% provincial mining royalty and 25% corporate tax
rate. Chilean revenue includes a 1.5% private NSR royalty, a
27% corporate tax rate, and the Chilean Mining Tax. The estimated
overall effective corporate tax rate for the project is
26.4%.
|
The PFS was prepared and managed by Ausenco Engineering Canada
Inc. ("Ausenco"), with input from AGP Mining Consultants
(Canada), BGC Engineering
(Canada), Knight Piésold
(Canada), Advantage Geoservices
Limited, Merlin Geosciences Inc., and SRK Consulting (Canada).
A NI43-101 Technical Report that summarizes the results of the
PFS and incorporates the initial reserve statement for Filo del Sol
will be filed within 45 days on SEDAR and on the Company's
website.
Project Economic Sensitivity to Metals Prices
A cash
flow valuation model for the project has been developed based on
the PFS. The model was developed using a long-term copper price of
$3.00/lb, gold price of $1,300/oz, and silver price of $20/oz. The following figure shows the
sensitivity of estimated NPV for the Project's cash flow at various
changes to metal prices at 8% discount rate.
Image 1 - Metal Price Sensitivity
Capital & Operating Cost Estimates
Capital costs
were derived from a variety of sources including derivation from
first principles, equipment quotes and factoring from other costs
contained within the PFS study. Costs are estimated to an
accuracy of +/- 25% which is equivalent to an AACE International,
Class 4 Estimate.
Estimated Capital
Costs
|
(US$
million)
|
Mine
Pre-strip
|
59
|
Mining
|
121
|
Crushing
|
67
|
Processing
|
325
|
On-Site
Infrastructure
|
94
|
Off-Site
Infrastructure
|
124
|
Total Direct
Costs
|
789
|
Indirect
Costs
|
132
|
Project
Delivery
|
101
|
Owner's
Costs
|
50
|
Contingency
|
194
|
TOTAL INITIAL
CAPEX
|
1,266
|
LOM Sustaining
Capital
|
217
|
Closure
|
51
|
Total Life of
Mine Capital
|
1,534
|
The PFS estimates that the C1 cash costs (co-product basis) over
the life of mine will average $1.23/lb CuEq. C1 cash costs include at-mine cash
operating costs, treatment and refining charges, royalties, selling
costs, and transportation costs and are reported on a $/equivalent
payable unit of the primary metal.
Operating
Costs
|
(US$/t
processed)
|
Mining
|
3.86
|
Processing
|
8.90
|
Site
G&A
|
1.44
|
TOTAL
|
14.19
|
Initial Filo del Sol Mineral Reserve Statement
The
Initial Mineral Reserve estimate for Fil
del Sol, shown below, is based on the Mineral Resource
Statement with an effective date of June 11,
2018 (see the news release titled "Filo Mining
Reports Updated Mineral Resource Estimate for the Filo del Sol
Project" dated August 8, 2018 and
available under the Company's profile on SEDAR). The Mineral
Resources are inclusive of Mineral Reserves.
Filo del Sol
Mineral Reserve Statement (@ 0.01 $/t NVPT cut-off)
|
|
Tonnage
|
Grade
|
Contained
Metal
|
Category
(all
domains)
|
(Mt)
|
Cu
(%)
|
Au
(g/t)
|
Ag
(g/t)
|
NVPT
($/t)
|
Cu
(M
lbs)
|
Au
(K
oz)
|
Ag
(K
oz)
|
Proven
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Probable
|
259.1
|
0.39
|
0.33
|
15.1
|
25.30
|
2,226
|
2,764
|
126,028
|
Total Proven
and
Probable
|
259.1
|
0.39
|
0.33
|
15.1
|
25.30
|
2,226
|
2,764
|
126,028
|
Notes to accompany
Filo del Sol Mineral Reserves table:
|
1.
|
Mineral Reserves have
an effective date of 13 January 2019. The Qualified Person
for the estimate is Mr. Jay Melnyk, P.Eng. of AGP Mining
Consultants, Inc.
|
2.
|
The Mineral Reserves
were estimated in accordance with the CIM Definition Standards for
Mineral Resources and Reserves;
|
3.
|
The Mineral Reserves
are supported by a mine plan, based on a pit design, guided by a
Lerchs Grossmann (LG) pit shell. Inputs to that process
are:
|
|
- Metal prices of Cu $3.00/lb, Ag $20/oz, Au
$1300/oz;
- Mining cost of $2.00/t;
- An average processing cost of $9.73/t;
- General and administration cost of $2.02/t
processed;
- Pit slope angles varying from 29 to 45
degrees, inclusive of geotechnical berms and ramp allowances;
- Process recoveries were based on rocktype.
The average recoveries applied were 83% for Cu, 73% for Au and 80%
for Ag, which exclude the adjustments for operational efficiency
and copper recovered as precipitate which were included in the
financial evaluation;
|
|
|
|
|
|
4.
|
Dilution and Mining
Loss adjustments were applied at ore/waste contacts using a mixing
zone approach. The volumes of dilution gain and ore loss were
equal, resulting reductions in grades of 1.0%, 1.3% and 1.0% for
Cu, Au and Ag respectively;
|
5.
|
Ore/Waste delineation
was based on a Net Value Per Tonne (NVPT) breakeven cut-off
considering metal prices, recoveries, royalties, process and
G&A costs as per LG shell parameters stated above;
|
6.
|
The life-of-mine
(LOM) stripping ratio in tonnes is 1.52:1;
|
7.
|
All figures are
rounded to reflect the relative accuracy of the estimate. Totals
may not sum due to rounding as required by reporting
guidelines.
|
Mining & Processing
The study contemplates open
pit mining methods, with conventional drilling, blasting and
loading performed on 12m benches.
Autonomous haulage was incorporated to take advantage of the
technology's proven productivity improvements and operating cost
savings. The open pit would have a mine life of 14 years, including
pre-stripping, with a life of mine strip ratio of 1.5:1. A
maximum mining rate of approximately 65 Mt per year (including
waste) is required to provide the nominal 60,000 tonnes per day of
ore to the process facility. A total of 259
Mt of ore is expected to be processed over the life of the
mine.
Ore would be trucked from the mine and either stockpiled or
direct tipped into the primary crusher. The ore would be further
crushed through a closed-circuit secondary crushing system to a
stockpile.
Crushed ore would be processed at an on/off heap leach pad where
the copper would be leached in acid and then recovered from the
leach solution by solvent extraction and electrowinning to produce
LME grade copper cathodes. Metal leaching is expected to span over
13 years. Once the copper is leached, the ore would be
rinsed, neutralized and removed from the on/off leach pad by a
bucket wheel reclaimer. The material would then be agglomerated
using cement, and subsequently stacked on a permanent heap leach
pad where gold and silver would be leached in a cyanide solution.
Gold and silver would be recovered from the pregnant gold leach
solution by a Merrill-Crowe zinc precipitation process. Gold and
silver would then be smelted to produce doré. A portion of the
barren leach solution, following zinc precipitation, would be
treated to avoid a build-up of recirculating copper and cyanide
through the gold circuit. This treatment is based on the SART
process which produces a copper sulphide precipitate (which grades
approximately 65% copper) and recovers cyanide for use in the heap
leach.
The proposed PFS production schedule and metal production
profile is shown in the attached figures. Note: the
project assumes a 24-month construction period.
Image 2 - Cu Production Schedule
Image 3 - Au and Ag Production Schedule
Metallurgy
In 2016 and 2017, comprehensive metallurgical test programs were
carried out at SGS Lakefield on selected samples from the Filo del
Sol deposit. These focussed mostly on assessing the feasibility of
using heap leaching to recover the copper, gold and silver from the
various mineralization types identified.
To confirm these results a sampling campaign was carried out in
early 2018 to collect surface samples, RC chips and diamond drill
core samples. A total of more than 3,500 kg of sample was shipped
to the SGS facility in Lakefield,
Ontario. Samples were submitted to various physical,
chemical and detailed mineralogical characterisation tests.
Most of the metallurgical program was devoted to the leaching
stage of the process, more particularly heap leaching. Heap
leaching was simulated by conducting column leaching tests on
material ranging from 0.5 to 2.5 inch crush size and using 50
to 250 kg of sample per column test. Cyanide column leaching was
tested for the gold oxide ore types (a total of 11 column tests),
while sequential column leaching (acid leaching followed by
washing/neutralization and cyanide leaching) was used for the
copper-gold oxide ore types (a total of 18 sequential column
tests).
Variability and process optimization testing were carried out
using bottle roll tests on minus 10 mesh material. Both cyanide
leaching (a total of 21 bottle roll tests) and sequential leaching
(a total of 72 sequential leach bottle roll tests) were conducted
during the 2018 program.
The results of the test program were used to determine the
optimal leach program together with expected leach recoveries for
copper, gold and silver. Additionally, deductions to the testwork
extractions were applied to expected copper, gold, and silver
recoveries to simulate scale-up to a commercial production
facility.
Infrastructure
The major infrastructure items
considered and costed in the PFS are:
- Water Supply: Water would be supplied from
aquifers in Argentina, located
near the proposed plant site. The industrial water make-up
requirement is estimated to be 75 L/s and is expected to be fully
supported by the aquifers.
- Power Supply: The site would be supplied with
electricity through a 127 km long, 110 kV, single circuit power
transmission line connected to the Los Loros substation in
Chile. Average electrical demand is estimated to be 52
MW. A price of $0.075/kWh was
used for long-term power supply.
- Product Transport: Copper cathode would be
transported by truck to Puerto
Caldera, a port near the city of Caldera which is located 77
km by road northwest of Copiapó. The approximate trucking distance
from the plant site is 245 km, of which roughly 60 km of existing
road will require upgrade to accommodate the truck traffic.
Doré would be transported approximately 175 km to Aeropuerto
Desierto de Atacama for ongoing airfreight.
Social & Environmental
Knight Piésold completed
the environmental baseline work for the Company in 2017 and 2018 in
addition to reviewing the historical work from other independent
consultants who assisted in the preparation of the environmental
work. This work will be used to support the preparation of the
respective Environmental Impact Assessments ("EIA").
Baseline studies to date include geosciences, air & water,
terrestrial biota, the human environment, and natural &
cultural heritage. The list of environmental components to be
studied was derived from the Chilean national environmental
assessment regulations, the Argentine national mining environmental
law and from the International Finance Corporation's Sustainability
Performance Standards (IFC 2012). Baseline studies are
ongoing and will continue into the upcoming field season.
Communication with the local community, private land owners, and
other interested parties is also ongoing.
Mineral Resource
The Filo del Sol Resource remains
unchanged from the Mineral Resource estimate reported by the
Company on August 8, 2018 and is
based on a total of 44,600 metres of drilling in 188 holes, of
which 158 holes are reverse circulation (RC) and 30 holes are core
holes. The resource estimate presented below is the total Indicated
and Inferred Resource, divided between oxide and sulphide
mineralization.
The Mineral Resource estimate as of the effective date of
June 11, 2018 is shown in the table
below. The Mineral Resources are inclusive of Mineral Reserves.
Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability.
Filo del Sol Mineral Resource Estimate
Zone
|
Cutoff
|
Category
|
Tonnes
|
Cu
|
Au
|
Ag
|
lbs
Cu
|
Ounces
Au
|
Ounces
Ag
|
(millions)
|
(%)
|
(g/t)
|
(g/t)
|
(millions)
|
(thousands)
|
(thousands)
|
Oxide
|
* see
notes
|
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
|
0.30 %
CuEq
|
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:
|
1.
|
Mineral Resources
have an effective date of 11 June 2018;
|
2.
|
The Qualified Person
for the resource estimate is James N. Gray, P.Geo. of Advantage
Geoservices Ltd.;
|
3.
|
The Mineral Resources
were estimated in accordance with the CIM Definition Standards for
Mineral Resources and Reserves;
|
4.
|
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;
|
5.
|
All figures are
rounded to reflect the relative accuracy of the
estimate;
|
6.
|
Mineral Resources are
not Mineral Reserves and do not have demonstrated economic
viability;
|
7.
|
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;
|
8.
|
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.
|
Qualified Persons
The following Qualified Persons will
co-author the technical report that will be based on the PFS.
These QPs have approved the information in this news release that
pertain to the sections of the PFS technical report that they are
responsible for.
- Geology: Fionnuala Devine,
P.Geo., of Merlin Geosciences Inc.
- Metallurgy: Robin Kalanchey,
P.Eng., of Ausenco Engineering Canada Inc.
- Mineral Resource: James N. Gray,
P.Geo., of Advantage Geoservices
- Mining & Mineral Reserve: Jay
Melnyk, P.Eng., of AGP Mining Consultants, Inc.
(Canada)
- Processing: Robin Kalanchey,
P.Eng, of Ausenco Engineering Canada Inc.
- Infrastructure: Scott Elfen,
P.Eng, of Ausenco Engineering Canada Inc.
- Economic Evaluation: Neil
Winkelmann, B.E. (Mining), MBA (FAusIMM), of SRK Consulting
(Canada)
- Environmental & Social: Bruno
Borntraeger, P.Eng., of Knight Piésold (Vancouver)
Each of the individuals above are independent QP's for the
purposes of NI 43-101. All scientific and technical
information in this press release in respect of the Filo del Sol
project or the PFS is based on information prepared by or under the
supervision of those individuals.
Conference Call and Webcast
A conference call and webcast to discuss the PFS results will be
held on Tuesday, January
15th, 2018 at 09:00 Toronto time, 14:00 UK time, or 15:00 Swedish
time.
Please call in 10 minutes before the conference call starts and
stay on the line (an operator will be available to assist you).
Conference
ID:
|
61732355
|
Toll-Free North
America:
|
+1 888 390
0605
|
Local
Toronto:
|
+1 416 764
8609
|
Local
Vancouver:
|
+1 778 383
7417
|
Toll-Free
London:
|
08006
522435
|
Toll-Free
Sweden:
|
0200899189
|
To view the live webcast presentation, please log on using this
direct
link: https://event.on24.com/wcc/r/1915571/1004D7901F9768AFD48F90110288D03F
The presentation slideshow will also be available in PDF format
for download from the Filo website www.filo-mining.com before the
conference call.
A replay of the telephone conference will be available
approximately 2 hours after the completion of the conference call
until February 15, 2019 at
11:59 PM EST.
Replay number (Toll Free North America): +1-888-390-0541
Replay number (International): +1-416-764-8677
The pass code for the replay is: 732355#
Increase and Extension of Credit Facility
Effective as of January 12, 2019,
the Company has entered into a US$5,000,000 credit facility (the
"Facility"), which will be evidenced by a debenture (the
"Debenture"), to provide additional financial flexibility to
fund the Company's ongoing work programs and provide general
working capital. The Facility has a term of 18 months ending
July 12, 2020 (the "Maturity
Date"). No interest is payable during the term of the
Debenture, however, any amount of the Facility remaining unpaid and
outstanding on or after the Maturity Date shall bear interest at a
rate of 5.00% per annum until repaid in full.
The Facility has been issued by Zebra Holdings and Investments
S.à.r.l. (the "Lender"), a company controlled by a trust
settled by the late Adolf H. Lundin,
and an insider of the Company. The terms of the Facility include
the Company issuing to the Lender, 300 Common Shares per month for
each US$50,000 of the Facility
outstanding from time to time up to the Maturity Date. All
securities issued in conjunction with the Facility will be subject
to a four-month hold period under applicable securities law.
The Facility replaces a previous US$2,000,000 credit facility provided by the
Lender, and which matured on January
12, 2019. The outstanding balance owing to the Lender
under the previous facility, as of the maturity date, has been
transferred and forms part of the amount owing under the new
Facility.
The Common Shares to be issued pursuant to the terms of the
Debenture will be issued at a deemed price of CA$2.20 per
share.
The issuance of Common Shares to an insider and the entering
into of the Debenture each constitute a "related party
transaction", as defined under Multilateral Instrument 61-101
("MI 61-101"). The transactions will be exempt from the
formal valuation and minority shareholder approval requirements of
MI 61-101 as neither the fair market value of any shares issued to,
or the consideration paid for, the Debenture will exceed 25% of the
Company's market capitalization.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy the securities described herein in
the U.S., or in any jurisdiction in which such an offer or sale
would be unlawful. The securities described herein have not been
and will not be registered under the U.S. Securities Act of 1933,
as amended, or any U.S. state securities laws and may not be
offered or sold in the U.S. or to the account or benefit of a U.S.
person or a person in the U.S. absent registration or an applicable
exemption from the registration requirements.
About Filo Mining
Filo Mining is a Canadian mineral mining company focussed on
advancing the Company's key project, Filo del Sol. The Company's
shares are listed on the TSX-V and on Nasdaq First North under the
symbol "FIL". Filo Mining is a member of the Lundin Group of
Companies.
The Company's focus is advancing development of its 100% owned
Filo del Sol copper/gold deposit located in Chile's Region III and adjacent San Juan
Province, Argentina.
Additional Information
This information is information that Filo Mining Corp. is
obliged to make public pursuant to the EU Market Abuse Regulation.
The information was submitted for publication, through the agency
of the contact person set out below, on January 13, 2018 at 9:00
p.m. Pacific Time.
On behalf of the board
Adam Lundin,
President and CEO
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 results of the PFS and the
anticipated capital and operating costs, sustaining costs, net
present value, internal rate of return, payback period, process
capacity, average annual metal production, average process
recoveries, anticipated mining and processing methods, proposed PFS
production schedule and metal production profile, anticipated
construction period, anticipated mine life, expected recoveries and
grades, expected SART recovery and cost savings, anticipated
production rates, infrastructure, social and environmental impact
studies, availability of labour, tax rates and commodity prices
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 statements 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 statements and/or information are reasonable, undue
reliance should not be placed on forward-looking statements since
Filo Mining can give no assurance that such expectations will prove
to be correct. Additionally, this press release contains
forward-looking statements or information with respect to the
anticipated use of proceed from the Facility, the ability of the
Company to satisfy the conditions of the Debenture including
repayment of the Facility upon its maturity and the issuance of
shares thereunder, and the timing and success in obtaining
requisite regulatory approvals. 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 statements, including the
risks, uncertainties and other factors identified in Filo's
periodic filings with Canadian securities regulators, including 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.
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 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.
Estimates of Mineral Reserves and Mineral Resources
Information regarding reserve and resource estimates has been
prepared in accordance with Canadian standards under applicable
Canadian securities laws, and may not be comparable to similar
information for United States
companies. The terms "Mineral Resource", "Measured Mineral
Resource", "Indicated Mineral Resource" and "Inferred Mineral
Resource" used in this news release are Canadian mining terms as
defined in accordance with NI 43-101 under guidelines set out in
the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM")
Standards on Mineral Resources and Mineral Reserves adopted by the
CIM Council on May 10, 2014. While
the terms "Mineral Resource", "Measured Mineral Resource",
"Indicated Mineral Resource" and "Inferred Mineral Resource" are
recognized and required by Canadian regulations, they are not
defined terms under standards of the United States Securities and
Exchange Commission. Under United
States standards, mineralization may not be classified as a
"reserve" unless the determination has been made that the
mineralization could be economically and legally produced or
extracted at the time the reserve calculation is made. As such,
certain information contained in this news release concerning
descriptions of mineralization and resources under Canadian
standards is not comparable to similar information made public by
United States companies subject to
the reporting and disclosure requirements of the United States
Securities and Exchange Commission. An "Inferred Mineral Resource"
has a great amount of uncertainty as to its existence and as to its
economic and legal feasibility. It cannot be assumed that all or
any part of an "Inferred Mineral Resource" will ever be upgraded to
a higher category. Under Canadian rules, estimates of Inferred
Mineral Resources may not form the basis of feasibility or other
economic studies. Readers are cautioned not to assume that all or
any part of Measured or Indicated Resources will ever be converted
into Mineral Reserves. Readers are also cautioned not to assume
that all or any part of an "Inferred Mineral Resource" exists or is
economically or legally mineable. In addition, the definitions of
"Proven Mineral Reserves" and "Probable Mineral Reserves" under CIM
standards differ in certain respects from the standards of the
United States Securities and Exchange Commission.
Non-IFRS Measures
This news release refers to certain financial measures, such as
pre-production capital costs, initial capital expenditures,
sustaining capital expenditure, closure costs, C1 cash costs,
payback period, undiscounted after-tax cash flow, and net present
value, and other financial metrics which are not measures
recognized under IFRS and do not have a standardized meaning
prescribed by IFRS. In the mining industry, these are common
performance measures but may not be comparable to similar measures
presented by other issuers. The Company believes that, in addition
to conventional measures prepared in accordance with IFRS, certain
investors use this information to evaluate the Company's
performance and ability to generate cash flow. Accordingly, it is
intended to provide additional information and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS.
SOURCE Filo Mining Corp.