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.

Filo Mining (TSX:FIL) has reported new assay results from the Filo del Sol Project in San Juan, Argentina. The results are from two holes: FSDH074 and FSDH077. Filo del Sol is a deposit of copper, gold, and silver formed by high-sulphidation epithermal processes. The deposit is linked with one or more significant porphyry copper-gold systems. 

The mineralization events overlapped, and the effects of weathering have given rise to different types of mineralization, including structurally controlled and breccia-hosted gold, high-grade silver (with or without copper) in manto-style, and high-grade supergene enriched copper, alongside disseminated, stockwork, and breccia-hosted sulphide copper and gold mineralization. 

Due to this complex geological history, the orebody displays a varied composition, featuring areas of exceptionally high-grade copper, gold, and silver mineralization within a more widespread envelope of less concentrated mineralization.

Jamie Beck, President, and CEO of Filo Mining, commented in a press release: “Hole 74 has successfully extended the Aurora Zone another 200m to the east of our previous drilling, confirming we have yet to find the east-west extents of mineralization.  With each step-out, we build on the potential size of this remarkable Aurora Zone, while improving our geological interpretation of the deposit. I’m excited about what we learned from Hole 77 into our Flamenco target.  Flamenco sits over 3km to the south of the Aurora Zone, and is characterized by a very large, 1.5km2, area of intense surface alteration similar to what we see over the Aurora Zone.  With our first hole ever in this new zone, we’ve established mineralization is evident, and are planning additional drilling at Flamenco in order to properly evaluate the opportunity while chasing higher grades.”

Highlights from the results are as follows:

• Drillhole 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
  • 252.0m at 0.85% CuEq from 840.0m
  • Collared on Section 9200N, 200m east of FSDH068A and 400m east of FSDH041
  • The hole was stopped in porphyry mineralization at 1,509.0m

• Drillhole 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
  • Collared on Section 6000N, this is the first hole into the new Flamenco target
  • The hole was stopped at 920.2m

FSDH074 was collared 200m east of hole FSDH068A on section 9200N, and drilled towards the west at an angle of -75 degrees. It was planned to test for the eastern and depth extension of the Aurora Zone intersected by FSDH041, FSDH055C, FSDH054 and FSDH068A, all on this same section.  The hole is entirely outside of the resource pit shell.

The geology in this hole was very similar to other holes on this section, and matched the geological interpretation very well.  It intersected volcaniclastic and coherent rhyolite from surface to a depth of about 724m where the main mineralized breccia was intersected.  The rhyolite sequence was well mineralized from a depth of 400m with the grade increasing on approach to the breccia.    

The hole continues in breccia to about 1,260m where it enters a mixed interval of porphyry and breccia to 1,300m, transitioning to a multi-phase porphyry interval which continues to 1,458.0m where breccia is again encountered and persists to the end of the hole at 1,509.0m. The porphyry section is primarily the lower-grade late-mineral phase, but grades increase again in the breccia with the final 5m of the hole averaging 0.46% Cu. 

FSDH074 extends the Aurora Zone 200m to the east, and together with the other holes on this section, builds on the potential width of this Zone.  Additional drilling to the east and to the west is required to determine the full width of the Zone.   

FSDH077 was drilled on Section 6000N, towards the west at an angle of -70 degrees. This is the first hole drilled into the Flamenco target and there are no other holes within 500m of it.

The most significant interval is a 2m section at 10.35 g/t Au within a narrow sulphide-rich zone possibly associated with a fault. In addition to this interval, there are long sections of low-grade mineralization, although no significant intervals above 0.3% CuEq.  A 516.2m section from 404.0m to the end of the hole at 920.2m averaged 0.20% CuEq (0.11% Cu, 0.11 g/t Au, 0.9 g/t Ag).

The hole intersected weak quartz-alunite altered rhyolites cut by mafic intrusions over its entire length.  Flamenco is a large target area characterized by abundant massive silica alteration over an area of about 1.5 square kilometres at surface, and additional drilling is required to fully test it.

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.