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Filo Mining intersects high silver grade of 1,214 g/t, stock surges

Credit: Filo Mining Corp.

Filo Mining (TSX: FIL) reported on Wednesday the initial assay results from drilling at its 100% owned Filo del Sol copper-gold-silver deposit in Chile.

A total of 5,000m of diamond drilling has been completed so far during the current program, with one hole (FSDH054) completed to a depth of 1,370m and another five holes underway. Assays have been received for approximately 2,100m of the length drilled to date.

The latest results were highlighted by FSDH055A, which returned 64m at 1,213.8 g/t Ag and 0.49 g/t Au from a depth of 362m, representing the best intersection of high-grade silver on the project to date.

The silver zone encountered by FSDH055A sits completely outside the current mineral resource. It is open in several directions, with a 420m undrilled gap to the north that is currently being tested by holes FSDH057 and FSDH059.

To the east, this intersection correlates with the silver zone in hole FSDH041 (46m at 75 g/t Ag), which is 50m away from and parallel to FSDH055A. To the west, the intersection remains completely open. FSDH055C is currently underway at the same location to re-drill this hole to target depth.

“Hole 55A is one of the longest, highest-grade silver intercepts seen globally in a long time. It is a great reminder of the outstanding precious metal content of this remarkable deposit and demonstrates that we’ve got a significant silver deposit contained within the major copper-gold deposit at Filo del Sol,” CEO Jamie Beck said in a news release.

“This hole also adds to the evidence that the area around hole FSDH041 is one of the centres of the system, and we look forward to assays from additional step-out holes in this area,” Beck added.

The miner said it will continue its year-round drilling at Filo del Sol, and plans to add an additional two drill rigs in early February, bringing the total rig count to seven drills.

Shares in Filo surged 13.6% on the Toronto Stock Exchange by 12:30 p.m. EDT, trading at 52-week high of C$14.80. The company has a C$1.7 billion ($1.3bn) market capitalization.