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Filo Mining Corp.: Filo Mining Reports Q2 2020 Results

Vancouver, August 13, 2020 /CNW/: Filo Mining Corp. (TSXV: FIL) (Nasdaq First North Growth Market: FIL) ("Filo Mining" or the "Company") is pleased to announce its results for the three and six months ended June 30, 2020. 


Filo Mining Sets Sights on Delineating and Expanding Substantial Exploration Target; Raises $41.7 Million for Follow-up Program

Following completion of its field program in March 2020, the Company's main operational highlight for the second quarter was the receipt and analysis of full assay results from the 2019/2020 diamond drilling campaign at Filo del Sol. The assay results confirmed the existence of substantial copper-gold-silver mineralization extending 700 vertical metres from the floor of the current Mineral Resource, to total depths beyond 1 kilometre below surface. This additional mineralization also remains open to the north and to the south of the Mineral Resource, and highlights the significant potential for resource expansion that exists at Filo del Sol.

The 2019/2020 diamond drill program was highlighted by holes FSDH032 and FSDH034, which are summarized in the following table:

| Hole-ID|From | To |Length | Cu | Au | Ag |CuEq[1]|
| | (m) | (m) | (m) |(%) |(g/t)|(g/t)| (%) |
| FSDH032|132.0|1,141.0|1,009.0|0.57| 0.39| 11.1| 0.95|
| incl.|378.3|1,141.0| 762.7|0.68| 0.43| 13.2| 1.10|
|and incl.|492.0| 702.8| 210.8|0.90| 0.54| 19.5| 1.46|
| FSDH034| 72.0|1,106.0|1,034.0|0.42| 0.32| 3.4| 0.68|
| incl.|520.0| 959.0| 439.0|0.54| 0.36| 4.2| 0.84|
| incl.|676.0| 732.0| 56.0|0.74| 0.60| 8.5| 1.25|

[1] Copper Equivalent is calculated based on US$ 2.80/lb Cu, US$ 1,400/oz Au and US$ 16/oz Ag, with 80% metallurgical recoveries assumed for all metals.  The formula is: CuEq % = Cu % + (0.7292 * Au g/t) + (0.0083 * Ag g/t). See the Company's News Releases dated April 20, 2020 for further details. 

To better conceptualize the potential implications of this compelling mineralization on the ultimate size and scale of the Filo del Sol Project, the Company developed an exploration target by modelling predicted volumes based on approximate east-west extents of the Mineral Resource, depths below surface drilled by the deeper diamond drill holes of the 2018/2019 and 2019/2020 drill campaigns, and the north-south extent drilled by these deeper holes. Copper, gold and silver grades for these volumes were estimated by taking the average of all drill hole samples within them, a total of between 1,169 and 2,561 samples representing between 2,197 and 4,914 metres of drilling. 

The resulting conceptual exploration target has an approximate north-south dimension of 1,400 to 2,000 metres, an east-west dimension of approximately 450 metres, and a vertical depth of 700 metres, underlying the current Resource, and consists of the following:

|  Tonnage | CuEq(%) | Cu(%) | Au(g/t) |Ag(g/t)|
|  1.2 - 1.6 billion|0.7 - 1.0|0.4 - 0.6|0.3 - 0.4|6 - 10 |

The potential quantity and grade of this exploration target is conceptual in nature, and there has been insufficient exploration to define a mineral resource in this area. It is uncertain if further exploration will result in the target being delineated as a mineral resource. This target is in addition to the current resource at Filo del Sol and does not include prospective areas to the north and south of the deposit yet to be drilled.

Following the success of the 2019/2020 field season, on July 30, 2020 the Company closed a bought deal offering and a concurrent non-brokered private placement of a combined total of 22,538,235 common shares for gross proceeds of $41.7 million, or anticipated net proceeds of approximately $40.5 million (the "Financings"). The majority of the anticipated net proceeds from the Financings have been earmarked for the continued exploration and development of its flagship Filo del Sol Project, particularly for the undertaking of a drilling program designed to expand the exploration target and begin to convert it to an Inferred resource.

Jamie Beck, Filo Mining's President and CEO, commented, "The results from our 2019/2020 field season were outstanding and led to the development of an exploration target underlying the existing Mineral Resource at Filo del Sol. To put it into context, this exploration target has the potential to triple the size of the known deposit, and we hope to grow that even further through additional drilling next season. The Company continues to benefit from strong support from our shareholders, and with the recently completed $40 million financing, we are excited to get back into the field and follow-up on this success. We are monitoring the development of the COVID-19 pandemic carefully, particularly in Argentina, and as soon as it is safe and practical to do so, we will look to have drills turning at Filo del Sol again."


Following the close of the Financings on July 30, 2020, the Company is now well funded to undertake an extensive follow-up drill campaign at the Filo del Sol Project, focused on further defining and extending the deposit. The Company's plans include approximately 8,000 to 12,000 metres of diamond core drilling, which will allow the Company to further assess the grades, size and extent of the copper-gold-silver deposit underlying and adjacent to the current Mineral Resource. The Company is currently planning to conduct this follow-up program during the 2020/2021 field season, which is expected to commence around November 2020 and continue through April 2021, should conditions, such as those resulting from the ongoing COVID-19 pandemic, allow.

The Company continues to respond to the COVID-19 pandemic within the framework of internal protocols, and local and national health authority requirements and recommendations.  The health and safety of the Company's employees, contractors, visitors, and stakeholders (collectively, "Stakeholders") remain Filo Mining's top priority.  The Company's camp facilities and offices have implemented travel restrictions, surveillance, monitoring and response plans to reduce the risk of COVID-19 exposure and outbreak, including health screening of personnel when appropriate.  All non-critical business travel has also been curtailed. 

The Company is monitoring developments with respect to COVID-19, both globally and within its operating jurisdictions, and will implement any such changes to its business as may be deemed appropriate to mitigate any potential impacts to its business and its Stakeholders. Such changes, may include, but are not limited to, temporary closures of the Company's project site or offices, and deviations from the timing and nature of previous operating plans. Moreover, sustained COVID-19 outbreaks have resulted in operational and supply chain delays and disruption as a result of governmental regulation and preventative measures being implemented worldwide, including in Argentina. The Company could be required to close, curtail or otherwise limit its operating activities as a result of the implementation of any such governmental regulation or preventative measures in the jurisdictions in which the Company operates. Any such closures or curtailments could have an adverse impact on the business of the Company.

As of the date of this press release, the government of Argentina has implemented certain travel restrictions to limit the spread of COVID-19. Per the latest Argentine government policy, any foreigner who is not a resident in Argentina will not be permitted to enter Argentina. In addition, travel restrictions have been imposed by certain provincial authorities on inter-provincial travel within Argentina. In Chile, the government has declared a 90-day state of emergency, which took effect March 19, 2020, and was renewed on June 16, 2020 for an additional 90 days. Effective March 18, 2020, Chile's borders are closed for entry. Chilean citizens and permanent residents are exempted and may still enter Chile at this time. All foreigners and Chileans entering Chile are subject to a mandatory 14-day self-quarantine.

The COVID-19-related health and safety regulations implemented by health officials in the Company's operating jurisdictions continue to evolve, and the Company has employed certain practices and procedures to stay abreast of, and remain adaptable to, the fluid situation. Such practices and procedures include, but are not limited to: analysis of alternate staffing schedules, rotations and accommodation arrangements; development of internal testing and quarantine protocols, including early identification of suitable quarantine locations; and regular dialogue with local government and health officials. As a result of its current strategies, the Company is confident that it can safely and effectively carry out the 2020/2021 field program, however, this expectation will be continuously evaluated as the situation with respect to the COVID-19 pandemic in South America develops.


(In thousands of Canadian dollars, except per share amounts)

Three months ended Six months ended
June 30, June 30,
2020 2019 2020 2019
Exploration and project investigation 1,932 4,332 13,872 15.353
General and administration ("G&A") 844 911 1,698 1,920
Net loss 1,262 5,336 13,098 17,428
Basic and diluted loss per share 0.01 0.07 0.15 0.24

The financial information in this table were selected from the Company's condensed interim consolidated financial statements for the three and six months ended June 30, 2020 (the "Financial Statements"), which are available on SEDAR at and the Company's website  


(In thousands of Canadian dollars) 

June 30, December 31,
2020 2019
Cash 1,506 13,753
Working capital 376 12,735
Mineral properties 8,508 7,312
Total assets 11,862 23,750

The financial information in this table were selected from the Financial Statements, which are available on SEDAR at and the Company's website  

The Company incurred a net loss of $1.3 million during the three months ended June 30, 2020, comprised primarily of $1.9 million in exploration and project investigation costs and $0.8 million in G&A costs, which were partially offset by a gain of approximately $1.8 million resulting from the use of marketable securities for the purposes of facilitating intragroup funding transfers (the "Funding Gains"). For the comparative three months ended June 30, 2019, the Company reported a net loss of $5.3 million, consisting mainly of $4.3 million in exploration and project investigation costs and $0.9 million in G&A costs. The lower net loss for the period was ...

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