Filo Mining Corp. (TSX-V:FIL) (Nasdaq First North Growth Market: FIL) is pleased to announce additional assay results from the 2019/2020 drill program at its 100% owned Filo del Sol project located on the border of Region III, Chile and San Juan Province, Argentina. Diamond drilling was initiated in November, and a reverse circulation drill was added to the program in January.  Two diamond drill holes and six RC holes have been completed to date, and four diamond drill holes and one RC hole are currently in progress.  Partial assay results for holes FSDH032 and FSDH033 were released on January 6, and additional partial results for these two holes are shown below. 

Commenting on the results, CEO, Adam Lundin stated, “The results of hole FSDH032 clearly demonstrate the existence of a large porphyry system which underlies and extends to the north of the current resource.  With four additional diamond drill holes in progress, we are well on our way to achieving the objectives of this year’s program and have shown that Filo del Sol has the potential to be one of the largest copper-gold-silver deposits in this prolific mineral belt.”

Partial results from the latest two holes are presented below:

“It is important to note,” continues Lundin, “that this 600 metre headline intercept begins at what would be the floor of the open pit as defined in our Pre-Feasibility Study for the oxide project.   In other words, the pre-strip to get to this mineralization, is material with an after-tax NPV of US$1.3 billion; an IRR of 23%; and a strip ratio of 1.5:1.²” 

Hole FSDH032 was collared on section 9000N at an angle of -70 degrees towards the west and was drilled to a final depth of 1,141 metres.  Assays have been received down to 978 metres and are pending below this depth.  Mineralization is open to the northeast beyond FSDH032.  This hole clearly establishes strong porphyry-style mineralization well below the current resource.  The hole exits the pit shell which defines the current resource at 378 metres, and the entirety of the hole below this depth is outside of the resource.    

Hole FSDH033 was collared 200 metres to the south of FSDH032, on section 8800N, and drilled to the west at an angle of -70 degrees.  The hole is planned to a depth of 1,000 metres and is currently at 552 metres.  This hole is 72 metres to the east of, and parallel to, hole FSDH030 which was drilled during the 2018/2019 season.  Hole FSDH033 is planned to test the area below the strong mineralization in FSDH030 (see Filo News Release dated May 28, 2019).  The mineralized intervals shown above are within the current mineral resource pit shell and highlight the high-grade zones present within the current resource. 

Complete assays for these and the other holes will be released once all data has been received and verified.

Qualified Persons and Technical Notes

The field program is being carried out under the supervision of Bob Carmichael, B.A.Sc., P.Eng. who is the Qualified Person as defined by NI 43-101.  Mr. Carmichael is Vice President, Exploration for the Company and has reviewed and approved the technical information contained in this news release.  Samples were cut at Filo Mining’s Batidero camp near the project site by Company personnel.  Diamond drill core was sampled in 2 metre intervals (except where shortened by geological contacts) using a rock saw for sulphide mineralization.  Oxide mineralization was cut with a core splitter in order to prevent dissolution of water soluble copper minerals during the wet sawing process.  Core diameter is a mix of PQ and HQ depending on the depth of the drill hole.  Samples were bagged and tagged at camp, and packaged for shipment by truck to Copiapo, Chile.  Samples were delivered to the ALS preparation laboratory in Copiapo where they were crushed and a 500g split was pulverized to 85% passing 200 mesh.  The prepared samples were sent to the ALS assay laboratory in Santiago, Chile for copper, gold and silver assays, with a second split sent to the ALS laboratory in Lima, Peru for multi-element ICP and sequential copper analyses.  ALS is an accredited laboratory which is independent of the Company.  Gold assays were by fire assay fusion with AAS finish on a 30g sample.  Copper and silver were assayed by atomic absorption following a 4 acid digestion.  Samples were also analyzed for a suite of 36 elements with ICP-ES and a sequential copper leach analysis was completed on each sample with copper greater than 500ppm (0.05%).  Copper and gold standards as well as blanks and duplicates (field, preparation and analysis) were randomly inserted into the sampling sequence for Quality Control.  On average, 9% of the submitted samples are Quality Control samples.  No data quality problems were indicated by the QA/QC program.

Mineralized zones within the Filo del Sol deposit are typically flat-lying, or bulk porphyry-style zones and drilled widths are interpreted to be very close to true widths.

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.