VANCOUVER, BC, Nov. 10,
2022 /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, 2022.
PDF version.
HIGHLIGHTS AND OUTLOOK
Filo del Sol drill program successfully extends the Aurora
Zone and Breccia 41 while building confidence in geological
continuity
Jamie Beck, President & CEO,
commented, "Our investment in accelerating exploration continues
to yield impressive results, demonstrating continuity and extension
of the Aurora Zone and Breccia 41 in combination with the Bonita
Zone discovery, establishing a new porphyry centre approximately
2km northeast of Breccia 41. With the arrival of spring, we are
ramping up drilling operations and will be mobilizing additional
rigs to the project in the fourth quarter. Exploration results
continue to stand out on a global scale and showcase the project as
one of the most significant copper-gold-silver discoveries of its
generation."
During and subsequent to the end of the third quarter of 2022,
the Company announced results from three holes at the Filo del Sol
Project. Drillholes FSDH061, FSDH063, and
FSDH067 successfully extended the strike length of the
Aurora Zone by 180m to a total of
1.6km in the north-south direction, in addition to infilling
certain areas of the Aurora Zone which increased confidence in the
geological continuity throughout this zone.
- The Aurora Zone is interpreted to be continuous between
FSDH063 to the south, and FSDH061 to the north (1.6km
total distance between holes); large undrilled gaps remain between
these holes and the Zone remains open in all directions;
- FSDH061 intersected 701.2m
at 1.13% CuEq from a depth of 392m,
including 406m at 1.36% CuEq from
508m and the hole ended in strong
mineralization at a depth of 1,093m;
clearly extending the Aurora Zone, and confirming its generally NNE
strike direction. The Aurora Zone remains completely open northeast
of this intersection;
- FSDH063, located 1.6km southwest of FSDH061, was
drilled to a final depth of 1,141m
and intersected 844.2m at 0.53% CuEq
from a depth of 16m, including
142m at 0.71% CuEq from a depth of
16m and 112m at 0.86% CuEq from a depth of 436m. The Aurora Zone remains open to the south
of this hole, and large distances remain to the north and down-dip
for expansion. Down dip, FSDH025 is just over 500m away from FSDH063, and to the north
there is an undrilled gap of 590m
between FSDH063 and FSDH048 (1,081m at 0.88% CuEq; 0.52% Cu, 0.43g/t Au,
5.3g/t Ag); and
- FSDH067, an infill hole between FSDH061 and
FSDH063, intersected 1,131.6m
at 1.11% CuEq from a depth of 132m,
including 4m at 1.54% Cu, 12.08 g/t
Au and 20.5 g/t Ag from 202m and
36m at 0.76% Cu, 0.71 g/t Au and
123.2 g/t Ag from 248m. The hole
ended in strong mineralization at a depth of 1,263.6m.
Assay results received by the Company during and subsequent to
the end of the third quarter of 2022 are summarized in the
following table:
Hole-ID
|
From
(m)
|
To
(m)
|
Length
(m)
|
Cu
(%)
|
Au
(g/t)
|
Ag
(g/t)
|
CuEq
(%)
|
FSDH061
|
392.0
|
1,093.2
|
701.2
|
0.81
|
0.33
|
9.1
|
1.13
|
incl.
|
508.0
|
914.0
|
406.0
|
0.97
|
0.40
|
11.1
|
1.36
|
FSDH063
|
16.0
|
860.2
|
844.2
|
0.29
|
0.25
|
6.5
|
0.53
|
incl.
|
16.0
|
548.0
|
532.0
|
0.35
|
0.32
|
9.0
|
0.66
|
incl.
|
16.0
|
158.0
|
142.0
|
0.36
|
0.26
|
18.1
|
0.71
|
incl.
|
436.0
|
548.0
|
112.0
|
0.42
|
0.42
|
15.0
|
0.86
|
FSDH067
|
132.0
|
1,263.6
|
1,131.6
|
0.62
|
0.53
|
11.9
|
1.11
|
incl.
|
160.0
|
480.0
|
320.0
|
0.66
|
0.73
|
29.9
|
1.45
|
incl.
|
202.0
|
206.0
|
4.0
|
1.54
|
12.08
|
20.5
|
10.52
|
incl.
|
248.0
|
284.0
|
36.0
|
0.76
|
0.71
|
123.2
|
2.36
|
|
|
|
|
|
|
|
|
As of the date of this News Release, additional holes have been
completed with assays pending, which include:
- FSDH062, infilling a 200m
gap between holes FSDH044 and FSDH046, completed to a
depth of 1,400m; and
- FSDH064, infilling a 400m
gap between holes FSDH032 and FSDH048, completed to a
depth of 1,447m.
Assay results for these holes will be released as they are
received, analyzed and confirmed by the Company.
Two additional holes, FSDH065 (196m) and FSDH066 (458m) were suspended earlier this year, prior to
the winter weather, and will be deepened during the upcoming
months.
Six drill rigs are currently active, and the Company will add
additional rigs to the program as the weather moderates. The winter
campaign, which focused on the Aurora and Breccia 41 Zones, was
planned to keep the drill rigs close together to prioritize safety.
As these holes finish up, drilling will begin to spread out to test
new exploration targets while also keeping a focus on expanding and
defining the known zones. Some big step-out holes are planned to
the north and south (including testing the Gemelos target, located
5km northeast of the Aurora Zone) along with smaller step-outs, as
the Company drills to the north of FSDH061 and south of FSDH063.
The Company continues to maintain a strong focus on improving drill
productivity through a variety of initiatives, including the
incorporation of two brand new, state-of-the-art diamond drill
rigs, and is planning for consistent drilling over the next 12
months.
Data collected from the current campaign will be used to develop
a comprehensive geological model which will guide further
exploration and form the basis of an eventual update to the Mineral
Resource estimate.
FINANCIAL
RESULTS
|
|
|
|
|
(In thousands of
Canadian dollars, except per share amounts)
|
|
|
|
|
|
Three months
ended
|
Nine months
ended
|
|
|
September
30,
|
September
30,
|
|
|
2022
|
2021
|
2022
|
2021
|
Exploration and project
investigation
|
|
19,915
|
8,696
|
56,919
|
30,573
|
General and
administration ("G&A")
|
|
6,323
|
3,139
|
9,998
|
4,572
|
Net loss
|
|
20,040
|
9,142
|
47,953
|
24,366
|
Basic and diluted loss
per share
|
|
0.16
|
0.08
|
0.40
|
0.22
|
|
|
|
|
|
|
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, 2022 (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,
|
|
|
2022
|
|
2021
|
Cash and cash
equivalents
|
|
91,676
|
|
19,417
|
Working
capital
|
|
76,927
|
|
13,052
|
Mineral
properties
|
|
9,101
|
|
8,063
|
Total assets
|
|
103,521
|
|
30,660
|
|
|
|
|
|
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 $20.0 million during the three months ended
September 30, 2022, comprised
primarily of $19.9 million in
exploration and project investigation costs and $6.3 million in G&A costs, which were
partially offset by a gain of approximately $4.0 million resulting from the use of marketable
securities for the purposes of facilitating intragroup funding
transfers (a "Funding Gain"). For the 2021 comparative period, the
Company reported a net loss of $9.5
million, consisting mainly of $8.7
million in exploration and project investigation costs and
$3.1 million in G&A costs, which
were partially offset by a Funding Gain of $2.5 million.
LIQUIDITY AND CAPITAL RESOURCES
As at September 30, 2022, the
Company had cash and cash equivalents of $91.7 million and net working capital of
$76.9 million, compared to cash of
$19.4 million and net working capital
of $13.1 million as at December 31, 2021. The increase in the Company's
cash and cash equivalents and net working capital is primarily due
to $100.4 million in net proceeds
generated by the Private Placement of 6,270,000 common shares to
BHP at a price of $15.95 per common
share and. An Additional $4.3 million
in gross proceeds was received by the Company in relation to the
exercise of stock options during the nine months ended September 30, 2022. The Company plans to deploy
its treasury to fund ongoing exploration and advancement of the
Filo del Sol project, and for working capital and general corporate
purposes.
About Filo Mining
Filo Mining is a Canadian exploration and development company
focused on advancing its 100% owned Filo del Sol copper-gold-silver
deposit located in Chile's Region
III and adjacent San Juan Province, Argentina. The Company's shares are listed on
the TSX and Nasdaq First North Growth Market under the trading
symbol "FIL", and on the OTCQX under the symbol "FLMMF". Filo
Mining is a member of the Lundin Group of Companies.
Technical Information
Copper Equivalent is calculated based on US$ 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
August 23, 2022 and October 5, 2022.
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, 2022 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 adviser on the Nasdaq First North Growth
Market is Aktieinvest FK AB, +46 8 506 51703,
rutger.ahlerup@aktieinvest.se.
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 10, 2022 at
18:00 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 pre-feasibility study 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: the potential exploration
results or anticipated outcomes of current or future drilling at
Filo del Sol, including the exploration results of the recent
Bonita Zone discovery and the Company's current interpretation of
Filo del Sol as part of a multikilometer, northeast-trending
alignment of overlapping porphyry-centered hydrothermal systems;
exploration and development plans and expenditures, including but
not limited to its plans to add additional rigs, the sequencing or
prioritization of drill targets, and the continuation of winter or
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 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 have adequately
anticipated the challenges of winter operation, including but not
limited to significant weather events and potential supply chain
disruptions; the anticipated use of proceeds from the Private
Placement or Anti-dilution Top-Up and/or its current treasury
balance; 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.
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SOURCE Filo Mining Corp.