VANCOUVER, BC, Nov. 12, 2021 /CNW/ - Filo Mining Corp.
(TSX: FIL) (Nasdaq First North Growth Market:
FIL) (OTCQX: FLMMF) ("Filo Mining" or the
"Company") announces its results for the three and nine months
ended September 30, 2021. PDF
Version
HIGHLIGHTS AND OUTLOOK
Filo Mining Launches Most Ambitious Drill Campaign to Date
Following Successful 2020/2021 Exploration Program
Jamie Beck, President & CEO,
commented, "We are now into our next phase of drilling at Filo
del Sol, and with the addition of two drill rigs next week, we will
have a total of five rigs turning on site. The initial three holes
are planned 50m step-outs from hole
FSDH041 and are intended to follow up on the high-grade
mineralization intersected in our last program. The
deepest of these holes is currently at 953m; depending on final hole depth, drill
productivity, and assay turnaround time, initial results could be
available prior to year-end. We plan to ramp up to seven rigs
early in the new year, and anticipate continuous, year-round
operations throughout 2022.
Our last program successfully showcased the Filo del Sol
project as one of the most important copper-gold-silver discoveries
in recent years, and we are convinced it has potential to grow even
bigger and better. Amidst a backdrop of strong commodity
prices and a lack of new copper discoveries, it will be an exciting
program for Filo Mining's stakeholders as we continue to explore
this remarkable deposit."
In August 2021, following the
completion of camp winterization efforts to prepare the project and
its facilities for year-round operation, the Company successfully
commenced its 2021/2022 drill campaign at the Filo del Sol project
("Filo del Sol" or the "Filo del Sol Project"), marking the
earliest launch to a drill campaign in the project's history.
This drill program will be a combination of resource definition
drilling and step-out holes, with hole locations to be guided by
drill results, surface mapping, and geophysical
interpretations. Initial drilling will target the area
between FSDH025 in the south and FSDH037 in the north, with
priority set on following up on the high-grade intersections
drilled in FSDH041. Step-out drilling will continue to try to find
the edges of the deposit, which remains open to the north, south,
east and at depth. With seven rigs active on the project
throughout 2022, this will be the Company's most ambitious drill
campaign ever, enabling it to rapidly define the deposit as it
advances key exploration efforts.
The current drill program follows the exceptional exploration
successes achieved by the Company last season, which featured the
discovery of a significant new zone of high-grade copper, gold and
silver mineralization along with the substantial extension of the
known mineralization. During the third quarter of 2021, the Company
received and reported on final assays from the 2020/2021 drill
campaign, highlights of which included:
- Hole FSDH046, which confirmed strong mineralization to over
1,400m below surface and returned the
longest mineralized intersection at the project to date being
1,378m at 0.71% CuEq (0.45% Cu;
0.29g/t Au; 6.1g/t Ag) from a depth of 77.7m, including 676m at 0.92% CuEq (0.57% Cu; 0.34g/t Au; 11.3g/t
Ag) from a depth of 380m;
- Hole FSDH049, which returned 425.3m at 1.55% CuEq (0.42% Cu; 0.44g/t Au;
91.5g/t Ag) and intersected the highest-grade silver intersection
on the project to date, with 4m at
5,045.0 g/t Ag from a depth of 236m
contained within a broader silver interval of 56m at 629.1 g/t Ag from a depth of 228m; and
- Hole FSDH051, which was the most northerly hole drilled into
the deposit to date, returned 344.0m
at 0.50% CuEq (0.26% Cu; 0.21g/t Au; 9.4g/t Ag) from 246m, extending the mineralized zone by
750m to the north, bringing the
north-south strike of continuous mineralization to 4,500m.
FINANCIAL RESULTS
(In thousands of Canadian dollars, except per
share amounts)
|
|
Three months
ended
|
Nine months
ended
|
|
|
September
30,
|
September
30,
|
|
|
2021
|
2020
|
2021
|
2020
|
Exploration and
project investigation
|
|
8,696
|
969
|
30,573
|
14,841
|
General and
administration ("G&A")
|
|
3,102
|
1,696
|
4,436
|
3,394
|
Net loss
|
|
9,142
|
2,510
|
24,366
|
15,608
|
Basic and diluted
loss per share
|
|
0.08
|
0.02
|
0.22
|
0.17
|
The financial
information in this table were selected from the Company's
condensed interim consolidated financial statements for the three
and nine
months ended September 30, 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)
|
September
30,
|
December
31,
|
|
|
2021
|
|
2020
|
Cash
|
|
22,936
|
|
36,326
|
Working
capital
|
|
18,701
|
|
33,026
|
Mineral
properties
|
|
8,285
|
|
8,857
|
Total
assets
|
|
33,036
|
|
47,663
|
The financial
information in this table were selected from the Financial
Statements, which are available on SEDAR at www.sedar.com and
the Company's
website www.filo-mining.com.
|
The Company incurred a net loss of $9.1
million during the three months ended September 30, 2021, comprised primarily of
$8.7 million in exploration and
project investigation costs and $3.1
million in G&A costs, which were partially offset by a
gain of approximately $2.5 million
resulting from the use of marketable securities for the purposes of
facilitating intragroup funding transfers (a "Funding Gain"). For
the 2020 comparative period, the Company reported a net loss of
$2.5 million, consisting mainly of
$1.0 million in exploration and
project investigation costs and $1.7
million in G&A costs, which were partially offset by a
Funding Gain of $0.2 million.
LIQUIDITY AND CAPITAL RESOURCES
As at September 30, 2021, the
Company had cash of $22.9 million and
net working capital of $18.7 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 primarily by
$6.9 million in gross proceeds
received by the Company in relation to the exercise of stock
options during the nine months ended September 30, 2021.
The Company will continue to deploy the majority of its treasury
to fund ongoing advancement of the Filo del Sol Project.
About Filo Mining
Filo Mining is a Canadian exploration and development company
focused on advancing its 100% owned Filo del Sol copper-gold-silver
deposit located in Chile's Region
III and adjacent San Juan Province, Argentina. The Company's
shares are listed on the TSX and Nasdaq First North Growth Market
under the trading symbol "FIL", and on the OTCQX under the symbol
"FLMMF". Filo Mining is a member of the Lundin Group of
Companies.
Technical Information
Copper Equivalent is calculated based on US$ 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).
Details on assay procedures and the drill intersections provided
above can be found in the Company's news releases dated
July 19, 2021 and August 4, 2021.
Qualified Persons
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.
Additional information
The Company's condensed interim consolidated financial
statements for the three and nine months ended September 30, 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,
certifiedadviser.se@paretosec.com.
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 November 12, 2021 at
20:00 EST.
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
results or anticipated outcomes of infill or step-out drilling
planned at Filo del Sol; exploration and development plans and
expenditures, including, but not limited to, its plans to add rigs
to the 2021/2022 drill campaign, the sequencing or prioritization
of drill targets, and a transition to year-round operations; 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; the ultimate size and
scope of its field programs and the Company's ability to achieve
the objectives thereof; the impact of the Company's winterization
efforts at Filo del Sol, and whether such efforts will enable
year-round operations and have adequately anticipated the
challenges of winter operation, including, but not limited to,
weather and potential supply chain disruptions; the timing or
results of an upgrade to the Mineral Resources estimate at Filo del
Sol, including the inputs used therein; 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 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.
SOURCE Filo Mining Corp.