Filo Corp. (TSX:FIL) has reported new drilling results from its Filo del Sol project in Argentina, underscoring the scale and potential of the copper-gold deposit. This announcement coincides with the company’s pending acquisition by mining giants BHP Group (ASX,NYSE:BHP) and Lundin Mining (TSX:LUN) for C$4.1 billion. The deal, which is expected to close by early 2024, comes as global demand for critical metals like copper is intensifying.

Filo’s recent drill results from the Aurora zone indicate substantial resource growth and improved mineralization grades. Drillhole FSDH107 intersected 1,270 meters grading 0.55% copper, 0.35 grams of gold per tonne, and 12.6 grams of silver, for a copper-equivalent grade of 0.92%. Within this interval, a higher-grade section yielded 624 meters at 0.78% copper, 0.41 grams of gold, and 5.3 grams of silver, translating to a copper-equivalent grade of 1.13%.

The results have expanded the Aurora zone by 300 meters to the west, increasing its known width to 700 meters. Filo Corp. highlighted that mineralization is now defined across 5.5 kilometers, stretching from the Tamberias zone in the south to Bonita in the north.

Jamie Beck, Filo’s president and CEO, commented in a press release: “This deposit demonstrates extraordinary scale and continuity. With these results, we are pushing the boundaries of what we know about Filo del Sol’s potential.”

Ongoing Exploration and Strategic Steps

The company is aggressively exploring the deposit with nine drill rigs operating under a 30,000 to 35,000-meter program. The data collected will contribute to future resource estimates and inform the next phases of development. Additionally, metallurgical testing on sulphide mineralization and environmental studies are ongoing to evaluate the project’s feasibility further.

Filo’s exploration strategy includes step-out drilling to define the deposit’s boundaries and pinpoint high-grade zones. A recent magnetotelluric survey has identified areas of high conductivity, indicating further exploration targets.

Regional Context and Strategic Importance

Filo del Sol is located within the Vicuña copper district, a promising copper-gold hotspot straddling the Argentina-Chile border. Neighboring projects like NGEx Minerals’ Lunahuasi and Los Helados deposits highlight the district’s potential as a key source of metals critical for the global energy transition.

The timing of Filo’s developments aligns with projections of a significant copper supply shortfall. Analysts forecast a 10-million-tonne gap by 2035, driven by increased demand for electrification and renewable energy technologies. Filo del Sol, already considered an advanced project, is positioned as one of the few assets capable of addressing this looming supply crunch.

The acquisition by BHP and Lundin Mining is poised to accelerate Filo’s development. The companies plan to integrate Filo del Sol with Lundin’s nearby Josemaria project, creating a consolidated hub of high-potential deposits in the region.

Additional Drill Results Confirm Growth Potential

Beyond Aurora, other zones within the Filo del Sol project also yielded promising results. Drillhole FSDH112, located 1.5 kilometers northeast in the Bonita zone, intersected 1,282.5 meters grading 0.46% copper, 0.16 grams of gold, and 4.9 grams of silver for a copper-equivalent grade of 0.61%. This included a higher-grade interval of 528.5 meters at 0.77% copper, 0.2 grams of gold, and 6 grams of silver, equating to 0.97% copper-equivalent.

Meanwhile, in the Tamberias zone, located 4.3 kilometers southwest of Bonita, drillhole FSDH116 intercepted 610 meters grading 0.15% copper, 0.39 grams of gold, and 2.2 grams of silver. These results suggest the presence of a gold-rich porphyry system, according to Beck.

The Filo del Sol deposit consists of overlapping porphyry copper-gold systems and high-sulphidation epithermal mineralization. This complex geological makeup creates an orebody rich in copper, gold, and silver, with mineralization extending to depths of 1.5 kilometers and widths of 800 meters.

High-grade corridors within the deposit improve its economic prospects and suggest the potential for additional bonanza-grade zones. Current resources at Filo del Sol include 432.6 million tonnes of indicated material grading 0.33% copper, containing 3.2 million pounds of metal. Inferred resources add 211.6 million tonnes grading 0.27% copper for 1.3 million pounds.