Filo Mining Corporation provided a summary of the overall results of the 2016 / 2017 program at the Filo Del Sol project, including the results of the final 14 holes from the recently completed 41 hole drill program, and an outline of the next steps for the project. The results released continue to confirm and define the shallow gold oxide and high-grade copper and silver zones in the Filo del Sol deposit, and demonstrate the potential for significant new zones of shallow oxide gold and copper mineralization one kilometre south of the current resource at the Filo South zone.
A total of 8,616 metres was drilled in 41 holes during the exploration program which was completed on March 28th. The results presented are from two areas: the Filo del Sol deposit and the Filo South zone. Intersections from the Filo del Sol deposit are from infill holes contained within the current Mineral Resource estimate, while those from the Filo South zone are entirely outside the current resource.
Filo Mining CEO Wojtek Wodzicki commented, «We had a very successful exploration season at Filo Del Sol. We believe that we have enhanced the existing resource and have made a significant new discovery in the Filo South area. Our drilling has demonstrated that we have an important oxide gold zone in the upper part of the current resource. The infill holes into the copper and silver zones have highlighted the impressive grades and thicknesses present in the high-grade portions of these zones. These results set us up for an eventful second half of the year. In the coming months we will incorporate this season’s drill results into an updated resource estimate, and receive results from our phase 2 metallurgical program which will provide the information to begin engineering studies during the third quarter.»
Filo del Sol Deposit Infill Drilling
Successful Infill Program: The infill drill program was very successful and is expected to convert a portion of the current Inferred Resource to Indicated. Infill drilling continued to confirm the deposit geometry, intersecting three discreet zones of mineralization. From top to bottom these are a gold oxide zone, a high grade copper oxide zone and a high grade silver zone. These three zones are underlain by primary sulphide mineralization containing both copper and gold which remains open at depth. This year’s drilling focused on definition of the upper three zones and most holes were terminated at the contact with the underlying sulphide mineralization.
Expanded gold oxide zone: The drill program expanded and further defined the gold oxide zone, with 11 new intersections. This year’s drilling has increased the dimensions of this zone to approximately 700 metres north-south by 350 metres east-west. The intercepts from this year include some of the best gold mineralization drilled at Filo del Sol to date and it is anticipated that this zone will form an important part of the updated resource estimate.
Confirmed high grade copper oxide zone: Beneath the gold oxide zone is a discreet, high-grade copper oxide zone with associated gold. The copper zone has a very sharp upper contact, often going from <0.10% Cu to >1.00% Cu within less than a metre. The drill holes reported are infill holes that are expected to convert a portion of the Inferred Resource to Indicated.
Confirmed high grade silver zone: A flat-lying, stratiform silver-rich zone underlies the copper oxide zone in most areas of the deposit. This zone has been intersected over a north-south distance of 1.5 kilometres and an east-west distance of 400 metres. Three of the holes announced intersected this zone within the current resource and are expected to covert a portion of the Inferred Resource to Indicated.
New Discovery at the Filo South Area
Drilling in the Filo South area followed up on historic drill holes and more recent surface trenches which intersected significant copper and gold mineralization but were spaced too far apart to allow for correlation between holes or an estimation of the size of the zones. Following this year’s drilling Filo South is characterized by a variety of mineralized intersections over an area of 1,000 metres north-south by at least 500 metres east-west. Mineralization appears to be related to the oxidized upper portion of a significant porphyry system and is distinct from the high-sulphidation epithermal mineralization at the Filo del Sol deposit proper. Following this season’s drill program, mineralization in Filo South has tentatively been subdivided into three zones: Filo South gold zone, Filo SW copper zone, and Filo Northeast copper-gold zone.
Mineralization at Filo South is not currently included in the current Filo del Sol resource estimate, and it is anticipated that the upcoming resource estimate will establish an initial resource for this high-priority area. The newly discovered zones in the Filo South Area all remain open for expansion and will require further drilling to fully delineate them.
Next Steps
- Resource Update: The Company expects to complete an updated resource estimate including all of this year’s drilling by the third quarter of 2017.
- Metallurgical test work: Approximately 2.8 tonnes of material from the oxide gold and copper zones were collected and submitted to SGS Lakefield laboratory for column leach testing. Additional material from drill samples was submitted for test work on the silver zone. Results are expected early in the third quarter of 2017.
- Internal Scoping Study: Once the resource update and metallurgical test work is complete, Filo Mining expects to do an internal scoping study that will analyze various development options. The work is expected to be completed during the third quarter allowing a decision on whether to proceed to a Preliminary Economic Assessment early in the fourth quarter of 2017.
