Filo Mining Corp. (TSX-V: FIL) (Nasdaq First North Growth Market: FIL) (OTCQX: FLMMF) is pleased to announce its results for the three and six months ended June 30, 2021.
HIGHLIGHTS AND OUTLOOK
2020/2021 Campaign Discovers New High-Grade Mineralization and Expands the Deposit to the North, East, and at Depth
Jamie Beck, President & CEO, commented, “Filo del Sol is quickly evolving into one of the most significant copper-gold-silver discoveries in recent history. The 2020/2021 drill campaign has confirmed both the project’s immense size and considerable grades. Our drilling has extended the known mineralization over a continuous distance of approximately 4,500m north-south, 1,000m east-west and almost 1,500m deep. Results this season were highlighted by the high-grade discovery in hole 41, which returned 163m at 5.43% copper equivalent (“CuEq”) within a broader interval of 858m at 1.80% CuEq. Additionally, we made a new oxide gold discovery in hole 42, returned the longest mineralized intersection on the project to date in hole 46, and intersected 4m of over 5kg/t silver in hole 49 – our highest-grade silver result ever.
This is an exciting time for the Company and its shareholders. With over $26 million remaining in the treasury at the end of Q2 2021, and preparations complete for uninterrupted, year-round activities, we are well funded to kick off an ambitious 2021/2022 field campaign next week.”
The Company’s extended 2020/2021 drill campaign successfully concluded in May 2021, with 11,280m completed in 15 holes during the season. Assay results from 13 of these holes were received during the second quarter of 2021, or the period subsequent thereto, highlights of which are as follows:
Following the completion of its 2020/2021 drill campaign in May 2021, the Company is preparing for the resumption of drilling before the end of August 2021, which will lead into year-round field operations moving forward. Key objectives of the upcoming drill program will be to conduct infill drilling, with initial targets set on the high-grade mineralization intersected by hole FSDH041, continued exploration drilling to expand the deposit, preliminary metallurgical test work, and environmental and social baseline work in support of future project permitting.
With the data generated through infill drilling, the Company plans to complete an update to Filo del Sol’s Mineral Resource estimate, which will incorporate data from the deep holes drilled since 2019, including any additional holes completed this upcoming season prior to the update.
|(In thousands of Canadian dollars, except per share amounts)|
|Three months ended||Six months ended|
|June 30,||June 30,|
|Exploration and project investigation||9,358||1,932||21,877||13,872|
|General and administration (“G&A”)||638||844||1,333||1,698|
|Basic and diluted loss per share||0.04||0.01||0.14||0.15|
|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, 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)|
|June 30,||December 31,|
|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 $4.8 million during the three months ended June 30, 2021, comprised primarily of $9.4 million in exploration and project investigation costs and $0.6 million in G&A costs, which were partially offset by a gain of approximately $5.4 million resulting from the use of marketable securities for the purposes of facilitating intragroup funding transfers (the “Funding Gains”). For the 2020 comparative period, the Company reported a net loss of $1.3 million, consisting mainly of $1.9 million in exploration and project investigation costs and $0.8 million in G&A costs, which were partially offset by a Funding Gain of $1.8 million.
LIQUIDITY AND CAPITAL RESOURCES
As at June 30, 2021, the Company had cash of $26.5 million and net working capital of $24.3 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 $5.5 million in gross proceeds received by the Company in relation to the exercise of stock options for the six months ended June 30, 2021.
Moving forward, the Company expects that the majority of its treasury will be used to fund ongoing work programs to advance the Filo del Sol Project.
About Filo Mining
Filo Mining is a Canadian exploration and development company focused on advancing its 100% owned Filo del Sol copper-gold-silver deposit located in Chile’s Region III and adjacent San Juan Province, Argentina. Filo Mining is a member of the Lundin Group of Companies. Filo Mining is listed on the TSX Venture Exchange and Nasdaq First North Growth Market, and also the OTCQX.
Copper Equivalent is calculated based on US$ 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).
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. Mr. Beck is Filo Mining’s President and CEO and is also a Qualified Person under NI 43-101.
Equity Metals Corporation (TSX-V: EQTY) reports thick intercepts ... READ MORE
Freegold Ventures Limited (TSX: FVL) (OTCQX: FGOVF) is pleased to... READ MORE
Sitka Gold Corp. (CSE: SIG) (FSE: 1RF) (OTCQB: SITKF) is pleased... READ MORE
Appia Rare Earths & Uranium Corp. (CSE:API) (OTCQB:APAAF) (Ge... READ MORE
Starr Peak Mining Ltd. (TSX-V: STE) (OTCQX: STRPF) is pleased ... READ MORE
We acknowledge the [financial] support of the Government of Canada.