VANCOUVER, BC, May 6, 2021 /CNW/ - Filo Mining Corp. (TSXV: FIL) (Nasdaq First North Growth Market: FIL) (OTCQX: FLMMF) ("Filo Mining" or the "Company") is pleased to announce its results for the three months ended March 31, 2021. View PDF version
HIGHLIGHTS AND OUTLOOK
2020/2021 Campaign Exceeds 8,000 Drill Metre Target, Yields Exciting Initial Results, and Supports Increased Exploration Plans
Jamie Beck, President & CEO, commented, "It has been a really successful field program at Filo del Sol this year and with our strong treasury position we have elected to extend our drilling through the end of May 2021. As a result of this two-month extension, the Company now anticipates completing almost 12,000 metres of drilling – a 50% increase over the original plan. We are also undertaking efforts to prepare our camp to allow for year-round exploration activities, reducing the seasonality of our work programs and exploration news flow. Our initial findings have significantly expanded the Filo del Sol system, confirming the broader underlying system extends well beyond the deposit as currently defined. Clearly, we are encouraged by the early season results and look forward to reporting on additional assays once received."
The main focus of the Company during the first quarter of 2021 was the safe and effective execution of a diamond drill program at its flagship Filo del Sol Project. The program was designed to:
- Explore the 1.7 km gap between hole FSDH032 and a mineralized intersection in hole VRC093;
- Clarify the geological controls of significant zones of high-grade copper, gold and silver mineralization present within the overall mineralized envelope; and
- Allow for a portion of the sulphide mineralization to be added to Filo del Sol's Mineral Resource estimate by tightening the drill spacing within this deeper mineralization.
As of March 31, 2021, the Company has successfully completed approximately 8,500 metres of core drilling for the campaign, which exceeds the goal set at the outset. More importantly, the Company's initial assay results from the current program have been positive and put the Company in a strong position to exceed its operating objectives for the season.
The Initial assay results consist of complete assays on four completed holes, and partial results for another two holes (see News Releases dated March 31, 2021 and April 12, 2021 for details). Key highlights of the initial results reported to date include:
- Step-out holes FSDH043 and FSDH044 extend the known mineralization 1 kilometre to the north and 200 metres to the east, respectively. Both holes intersected grades which increased with depth and both ended in mineralization;
- FSDH040 provided infill of the large gap between the long, high-grade intersections from last season's program. Although FSDH040 was lost prior to reaching its target depth, it returned 117.5m of 0.69% CuEq (0.45% Cu; 0.29g/t Au, 2.4g/t Ag) starting from 94.0m, including a high-grade, supergene enriched zone of 26.0m of 1.37% CuEq (1.15% Cu; 0.28g/t Au; 2.3g/t Ag);
- Holes FSDH037 and FSDH041 extended the deposit's high-grade silver zone by 600 metres, and increased the total length of the silver zone to over 2 kilometres. Full assay results for both these holes are pending; and
- Hole FSDH042 discovered a new oxide gold zone 1.5 kilometres north of the main deposit, which confirms the vast exploration potential that still exists at Filo del Sol and that the larger system extends beyond the boundaries of the known deposit. This hole is highlighted by 48m at 1.01 g/t gold.
(In thousands of Canadian dollars, except per share amounts)
Three months ended
Exploration and project investigation
General and administration ("G&A")
Basic and diluted loss per share
The financial information in this table were selected from the Company's condensed interim consolidated financial statements for the three months ended March 31, 2021 (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)
The Company incurred a net loss of $10.4 million during the three months ended March 31, 2021, comprised primarily of $12.5 million in exploration and project investigation costs and $0.7 million in G&A costs, which were partially offset by a gain of approximately $2.6 million resulting from the use of marketable securities for the purposes of facilitating intragroup funding transfers (the "Funding Gains"). For the 2020 comparative period, the Company reported a net loss of $11.8 million, consisting mainly of $11.9 million in exploration and project investigation costs and $0.9 million in G&A costs, which were partially offset by a Funding Gain of $0.7 million.
LIQUIDITY AND CAPITAL RESOURCES
As at March 31, 2021, the Company had cash of $28.9 million and net working capital of $23.1 million, compared to cash of $36.3 million and net working capital of $33.0 million as at December 31, 2020. The decrease in the Company's cash and net working capital is due primarily to funds used to advance exploration at the Filo del Sol Project, and to a lesser extent, funds spent for general corporate purposes. These decreases have been partially offset by $0.3 million in gross proceeds received by the Company in relation to the exercise of stock options for the three months ended March 31, 2021.
Moving forward, the Company expects that the majority of its treasury will be used to fund ongoing work programs to advance the Filo del Sol Project.
About Filo Mining
Filo Mining is a Canadian exploration and development company focused on advancing its 100% owned Filo del Sol copper-gold-silver deposit located in Chile's Region III and adjacent San Juan Province, Argentina. Filo Mining is a member of the Lundin Group of Companies. Filo Mining is listed on the TSX Venture Exchange and Nasdaq First North Growth Market ("FIL"), and also the OTCQX ("FLMMF").
Copper Equivalent is calculated based on US$ 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).
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.
The technical information relating to the pre-feasibility study is based on a 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 (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.
The Company's condensed interim consolidated financial statements for the three months ended March 31, 2021 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 advisor on Nasdaq First North Growth Market is Pareto Securities AB, +46 8 402 50 00, firstname.lastname@example.org.
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 6, 2021 at 21:30 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: potential exploration upside at the Filo del Sol Project, including the extent and significance of the porphyry copper-gold system underlying the current Mineral Resource and the prospectivity of exploration targets; exploration and development plans and expenditures; 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; 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 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.
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.
Neither the 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 news release.
SOURCE Filo Mining Corp.