VANCOUVER, BC, May 10, 2023
/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 months ended March 31, 2023. View PDF
Jamie Beck, President & CEO,
commented, "With our continued success at expanding and defining
our resource potential, we have commenced 2023 with our most
aggressive drilling campaign to date. There are nine rigs currently
available at the Project and we have exceeded expectations so far
in 2023 on metres drilled. Our winterization efforts are now
underway as the summer drilling season comes to a close, with the
expectation of continuing the program with only minor interruptions
for rig maintenance and re-mobilization. Our Q1 2023 drilling
results were comprised of a mix of both large and small step-outs
to the north and south of our current interpretation of the Aurora
Zone, and we will focus more exclusively on the Aurora and Bonita
Zones as winter conditions arrive on site. Our exploration results
demonstrate the potential of the Project as one of the most
significant copper-gold-silver discoveries of its
generation."
Q1 2023 HIGHLIGHTS
- Continued exploration success, highlighted by:
-
- Multiple holes drilled into the Aurora Zone across large
intervals with consistently strong mineralization. Several of the
holes reported are entirely outside the Company's existing resource
pit shell and serve to improve the geological interpretation of the
deposit;
- Drilled the most northerly hole in the Aurora Zone, extending
it 160m northeast, leaving it wide
open towards the Bonita Zone which sits a further 1.5km to the
northeast;
- Hole 68A setting a new record at Filo del Sol for the longest
interval to date at almost 1.8 km in length;
- Established a new mineralized zone at the Flamenco exploration
target with the first hole drilled in an area that sits over 3
kilometers to the south of the Aurora Zone;
- The Aurora Zone, the Bonita Zone, and the high-grade Breccia 41
area remain open to expansion in several directions and drilling to
further define them is ongoing;
- On March 19, 2023, the Company
announced that it had been added to the ETFMG Prime Junior Silver
Miners ETF ("SILJ") pursuant to the SILJ's quarterly rebalancing,
effective market close on March 17,
2023; and
- On March 13, 2023, the Company
announced the appointment of Ms. Joyce
Ngo and Mr. Peter J.
O'Callaghan to its Board of Directors. Concurrently, Mr.
Alessandro Bitelli retired and
stepped off the Board of Directors. The changes resulted in the
Company's Board of Directors having a total of nine members.
Q1 2023 DRILLING AND ASSAY RESULTS
During and subsequent to the end of the first quarter of 2023,
the Company announced the following results from the ongoing drill
program:
- FSDH070A an infill hole in the Aurora Zone intersected
1,056.5m at 0.86% CuEq from a depth
of 282m, including 670.4m at 0.97% CuEq from 369.7m. The hole ended in strong mineralization
at a depth of 1,338.5m due to rig
capacity;
- FSDH071 an infill hole in the Aurora Zone intersected
1,028.0m at 1.16% CuEq from a depth
of 292m, including 172.0m at 2.14% CuEq from 408.0m and 237.5m
at 1.49% CuEq from 776.0m. The hole
ended in mineralization at a depth of 1,320m due to rig capacity. The entire hole is
outside of the resource pit shell;
- FSDH068A intersected 1,776.0m at 0.70% CuEq from a depth of
18.0m, including 1,120.0m at 0.92% CuEq from 394.0m and 724.2m
at 1.08% CuEq from 574.0m. The hole
is entirely outside of the resource pit shell;
- FSDH069A intersected 1,296.5m at 1.00% CuEq from a depth of
138.0m, including 31m at 127.0 g/t Ag from 404.0m in the Silver Zone, 598.0m at 1.51% CuEq from 498.0m and 94.0m at
3.01% CuEq from 792.0m. The hole
ended in strong mineralization at a depth of 1,434.5m due to rig capacity. The hole is
entirely outside of the resource pit shell;
- FSDH074 intersected 1,022.0m at 0.66% CuEq from a depth of
278.0m, including 516.0m at 0.79% CuEq from 644.0m and 252.0m
at 0.85% CuEq from 840.0m. The hole
was collared on Section 9200N, 200m
east of FSDH068A and 400m east of
FSDH041. The hole was stopped in porphyry mineralization at
1,509.0m. The hole is entirely
outside of the resource pit shell;
- FSDH077 intersected 2.0m
at 10.35 g/t Au from a depth of 192.0m plus 516.2m
at 0.20% CuEq from 404.0m. The hole
was collared on Section 6000N and is the first hole in the new
Flamenco target. The hole was stopped at 920.2m; and
- FSDH073 intersected 983.9m
at 0.89% CuEq from a depth of 404.5m,
including 614.0m at 1.06% CuEq from
600.0m and 272.0m at 1.33% CuEq from 756.0m.
Assay results received by the Company during and subsequent to
the first quarter of 2023 are summarized in Appendix 1 to this news
release.
OUTLOOK
Drilling continues to be the primary focus with nine drill rigs
at site. Drilling will remain a mix of both large and small
step-outs to the north and south of the Aurora Zone, as well as
resource definition drilling within it. The Company continues to
maintain a strong focus on improving drill productivity through a
variety of initiatives and is planning to continue drilling and
field operations throughout the South American winter.
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. The Company will continue preliminary
metallurgical testwork on the sulphide mineralization, as well as
environmental and social baseline programs in support of future
project permitting.
The Company's plans and timelines are subject to equipment and
staff availability, along with being able to operate safely and
effectively throughout the winter and in accordance with the
Company's health and safety protocols.
SELECTED FINANCIAL INFORMATION
(In thousands of Canadian dollars)
|
March
31,
|
December
31,
|
|
|
2023
|
|
2022
|
Cash and cash
equivalents
|
|
58,711
|
|
74,915
|
Working
capital
|
|
35,809
|
|
60,296
|
Mineral
properties
|
|
10,222
|
|
9,737
|
Total assets
|
|
70,865
|
|
85,964
|
|
|
|
|
|
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.
FINANCIAL RESULTS
(In thousands of
Canadian dollars, except per share amounts)
|
|
|
|
Three months
ended
|
|
|
|
March
31,
|
|
|
|
|
2023
|
2022
|
Exploration and project
investigation
|
|
|
|
34,309
|
14,869
|
General and
administration ("G&A"), excluding share-based compensation
expense(1)
|
|
|
|
2,280
|
955
|
Share-based
compensation expense(1)
|
|
|
|
3,218
|
1,350
|
Net loss
|
|
|
|
29,914
|
14,400
|
Basic and diluted loss
per share
|
|
|
|
0.24
|
0.12
|
(1) Share based
compensation is a non-cash cost which reflects the amortization of
the estimated fair value of share options over their vesting
period. The fair value of share options is calculated using the
Black-Scholes pricing model, which relies heavily on the Company's
share price and historical share price volatility. Due to the
material increase in the Company's share price and volatility since
2021, the calculated fair value of the Company's share options has
increased considerably, resulting in a higher share option value
and resultant share-based compensation expense being
recognized.
|
|
|
The financial
information in this table were selected from the Company's
condensed interim consolidated financial statements for the three
months ended March 31, 2023 (the "Financial Statements"),
which are available on SEDAR
at www.sedar.com and the Company's
website www.filo-mining.com.
|
During the three months ended March 31,
2023, the Company incurred a net loss of $29.9 million. The net loss is driven primarily
by $34.3 million in exploration and
project investigation expense and $4.9
million in G&A expense. These expenses were partially
offset by a gain of $8.4 million
resulting from the use of marketable securities for the purposes of
facilitating intragroup funding transfers ("Funding Gain"). For the
three months ended March 31, 2022,
the Company reported a net loss of $14.4
million consisting mainly of $14.9
million in exploration and project investigation expense and
$2.1 million in G&A expense.
These expenses were partially offset by a Funding Gain of
$2.0 million.
LIQUIDITY AND CAPITAL RESOURCES
As at March 31, 2023, the Company
had cash and cash equivalents of $58.7
million and net working capital of $35.8 million, compared to cash and cash
equivalents of $74.9 million and net
working capital of $60.3 million as
at December 31, 2022. The decrease in
the Company's cash and cash equivalents and net working capital is
due primarily to funds used in operations and for general corporate
purposes, plus amounts used in the acquisition of equipment and
facilities for the Filo del Sol Project, offset by a net
$1.1 million BHP Top-Up and
$1.4 million in gross proceeds
received by the Company in relation to the exercise of stock
options during the three months ended March
31, 2023. The Company plans to deploy its treasury to fund
ongoing exploration and advancement of the Filo del Sol project,
and for working capital and general corporate purposes.
About Filo Mining
Filo Mining is a Canadian exploration and development company
focused on advancing its 100% owned Filo del Sol copper-gold-silver
deposit located in San Juan Province, Argentina and adjacent Region III,
Chile. The Company's shares are listed on the TSX and Nasdaq
First North Growth Market under the trading symbol "FIL", and on
the OTCQX under the symbol "FLMMF". Filo Mining is a member of the
Lundin Group of Companies.
Technical Information
Copper Equivalent is calculated based on US$ 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
January 10, 2023, February 2, 2023, March
16, 2023 and April 13,
2023.
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 months ended March
31, 2023 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 May 10, 2023 at
05:30 pm EDT.
On behalf of the board of directors of Filo Mining,
Jamie Beck, President and CEO
Filo Mining Corp.
info@filo-mining.com
www.filo-mining.com
www.thelundingroup.com
APPENDIX 1 – Q1 2023 ASSAY RESULTS
Assay results received by the Company during and subsequent to
the first quarter of 2023 are summarized in the following
table:
Hole-ID
|
From
(m)
|
To
(m)
|
Length
(m)
|
Cu
(%)
|
Au
(g/t)
|
Ag
(g/t)
|
CuEq1
(%)
|
FSDH068A
|
18.0
|
1,794.0
|
1,776.0
|
0.45
|
0.30
|
4.0
|
0.70
|
incl.
|
54.0
|
94.0
|
40.0
|
0.65
|
0.92
|
8.1
|
1.39
|
incl.
|
394.0
|
1,514.0
|
1,120.0
|
0.59
|
0.38
|
5.3
|
0.92
|
incl.
|
574.0
|
1,298.2
|
724.2
|
0.69
|
0.45
|
6.8
|
1.08
|
FSDH069A
|
138.0
|
1,434.5
|
1,296.5
|
0.60
|
0.38
|
13.9
|
1.00
|
incl.
|
404.0
|
435.0
|
31.0
|
0.00
|
0.27
|
127.0
|
|
and incl.
|
498.0
|
1,096.0
|
598.0
|
0.92
|
0.57
|
19.3
|
1.51
|
incl.
|
792.0
|
886.0
|
94.0
|
1.78
|
1.37
|
26.3
|
3.01
|
FSDH070A
|
282.0
|
1,338.5
|
1,056.5
|
0.54
|
0.38
|
4.0
|
0.86
|
incl.
|
369.7
|
1,040.0
|
670.4
|
0.63
|
0.41
|
5.3
|
0.97
|
incl.
|
540.0
|
712.0
|
172.0
|
0.75
|
0.47
|
5.9
|
1.15
|
FSDH071
|
292.0
|
1,320.0
|
1,028.0
|
0.78
|
0.47
|
6.7
|
1.16
|
incl.
|
408.0
|
580.0
|
172.0
|
1.44
|
0.82
|
12.6
|
2.14
|
incl.
|
514.0
|
574.0
|
60.0
|
2.18
|
1.64
|
16.9
|
3.53
|
incl.
|
776.0
|
1,013.5
|
237.5
|
1.04
|
0.68
|
6.0
|
1.49
|
FSDH073
|
404.5
|
1,388.4
|
983.9
|
0.62
|
0.32
|
4.0
|
0.89
|
incl.
|
600.0
|
1,214.0
|
614.0
|
0.74
|
0.41
|
3.2
|
1.06
|
incl.
|
756.0
|
1,028.0
|
272.0
|
0.92
|
0.52
|
3.2
|
1.33
|
FSDH074
|
278.0
|
1,300.0
|
1,022.0
|
0.49
|
0.19
|
4.4
|
0.66
|
incl
|
644.0
|
1,160.0
|
516.0
|
0.61
|
0.21
|
3.2
|
0.79
|
incl
|
840.0
|
1,092.0
|
252.0
|
0.65
|
0.23
|
3.6
|
0.85
|
FSDH077
|
192.0
|
194.0
|
2.0
|
0.05
|
10.35
|
0.5
|
|
plus
|
404.0
|
920.2
|
516.2
|
0.11
|
0.11
|
0.9
|
0.20
|
(1)
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)
|
Mineralized zones
within the Aurora Zone are bulk porphyry-style zones and drilled
widths are interpreted to be very close to true
widths
|
As of the date of this News Release, additional holes have been
completed with assays pending, which include:
- FSDH075 drilled to a final depth of 1,649m – Bonita Zone;
- FSDH076 drilled to a final depth of 1,543m – Aurora Zone infill;
- FSDH079 drilled to a final depth of 846m – Gemelos Target; and
- FSDH081 drilled to a final depth of 683m – Flamenco Target.
Assay results for these holes will be released as they are
received, analyzed and confirmed by the Company.
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.