Filo Mining Reports 1,022m at 0.66% CuEq; Extending the Aurora Zone 200m to the East

VANCOUVER, BC, March 16, 2023 /CNW/ - Filo Mining Corp. (TSX: FIL) (Nasdaq First North Growth Market: FIL) (OTCQX: FLMMF) (“Filo Mining”, or the “Company”) is pleased to announce assay results from holes FSDH074 and FSDH077 at the Filo del Sol Project in San Juan, Argentina. Highlights and detailed results are shown below along with accompanying figures:

• 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

Commenting on the results, Jamie Beck, President, and CEO stated, “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.”   Mr. Beck continues, “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.”

Mineralized zones within the Aurora Zone are bulk porphyry-style zones and drilled widths are interpreted to be very close to 
true widths.  True width of the intersection in FSDH077 is unknown.

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.       

Outlook

Drilling will remain a mix of both large and small step-outs to the north and south of our current interpretation of the Aurora Zone, as well as resource definition drilling within it.  

FSDH073 and FSDH079 are now complete, and were drilled to final depths of 1,388m and 846m respectively.  Assay results for completed holes will be released as they are received, analyzed, and confirmed by the Company.

On behalf of Filo Mining,

Jamie Beck

President and CEO 

About Filo del Sol

Filo del Sol is a high-sulphidation epithermal copper-gold-silver deposit associated with one or more large porphyry copper-gold systems. Overlapping mineralizing events combined with weathering effects, including supergene enrichment, have created several different styles of mineralization, including structurally controlled and breccia-hosted gold, manto-style high-grade silver (+/- copper) and high-grade supergene enriched copper within a broader envelope of disseminated, stockwork and breccia-hosted sulphide copper and gold mineralization. This complex geological history has created a heterogeneous orebody which is characterized by zones of very high-grade copper +/- gold +/- silver mineralization within a large envelope of more homogeneous, lower-grade mineralization.

Qualified Persons and Technical Notes

The scientific and technical disclosure for the Filo del Sol Project included in this news release have been reviewed and approved by Bob Carmichael, B.A.Sc., P.Eng. who is the Qualified Person as defined by NI 43-101.  Mr. Carmichael is Vice President, Exploration for the Company. Samples were cut at Filo Mining’s operations base near the town of Guañizuil, Argentina by Company personnel. Diamond drill core was sampled in 2 metre intervals (except where shortened by geological contacts) using a rock saw for sulphide mineralization. Oxide mineralization was cut with a core splitter in order to prevent dissolution of water-soluble copper minerals during the wet sawing process.  Core diameter is a mix of PQ, HQ and NQ depending on the depth of the drill hole.  RC samples were collected at the drill site by Company personnel with splitting carried out at the Company’s field camp near the drill sites.  Individual samples represent final splits from 2 metre intervals down the hole.  Samples were bagged and tagged and packaged for shipment by truck to the ALS preparation laboratory in Mendoza, Argentina where they were crushed and a 500g split was pulverized to 85% passing 200 mesh. The prepared samples were sent to the ALS assay laboratories in either Lima, Peru or Santiago, Chile for copper, gold and silver assays, and multi-element ICP and sequential copper analyses.  ALS is an accredited laboratory which is independent of the Company.  Gold assays were by fire assay fusion with AAS finish on a 30g sample. Copper and silver were assayed by atomic absorption following a 4-acid digestion.  Samples were also analyzed for a suite of 36 elements with ICP-ES and a sequential copper leach analysis was completed on each sample with copper greater than 500ppm (0.05%). Copper and gold standards as well as blanks and duplicates (field, preparation and analysis) were randomly inserted into the sampling sequence for Quality Control. On average, 9% of the submitted samples are Quality Control samples. No data quality problems were indicated by the QA/QC program.

Mineralized zones within the Filo del Sol deposit are typically flat-lying, or bulk porphyry-style zones and drilled widths are interpreted to be very close to true widths.

1Copper Equivalent (CuEq) for drill intersections 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).

Additional Information

The Company's certified adviser on the Nasdaq First North Growth Market is Aktieinvest FK AB, +46 8 506 51703, rutger.ahlerup@aktieinvest.se.

The information contained in this news release was accurate at the time of dissemination, but may be superseded by subsequent news release(s). The Company is under no obligation, nor does it intend to update or revise the forward-looking information, whether as a result of new information, future events or otherwise.

This information was submitted by Filo Mining Corp. for publication, through the agency of the contact person set out below, on March 16, 2023 at 18:00 EDT.

Cautionary Note Regarding Forward-Looking Statements

Certain statements made and information contained herein in the news release constitutes “forward-looking information” and “forward-looking statements” within the meaning of applicable securities legislation (collectively, “forward-looking information”). The forward-looking information contained in this news release is based on information available to the Company as of the date of this news release. Except as required under applicable securities legislation, the Company does not intend, and does not assume any obligation, to update this forward-looking information. Generally, this forward-looking information can frequently, but not always, be identified by use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", “projects”, “budgets”, “assumes”, “strategy”, “goals”, “objectives”, “potential”, “possible”, "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events, conditions or results “will”, "may", "could", "would", “should”, "might" or "will be taken", "will occur" or "will be achieved" or the negative connotations thereof. All statements other than statements of historical fact may be forward-looking statements.

The Company believes that the expectations reflected in the forward-looking information included in this news release are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon.  Information contained in this news release is as of the date of this press release.  In particular, this press release contains forward-looking information pertaining to assumptions made in the interpretation of drill results, geology, grade, geochemistry and continuity of mineral deposits; expectations regarding access and demand for equipment, skilled labour and services needed for exploration and development of mineral properties; and that activities will not be adversely disrupted or impeded by exploration, development, operating, regulatory, political, community, economic, environmental and/or healthy and safety risks.  In addition, this news release may contain forward-looking statements or information pertaining to: potential exploration upside at the Filo del Sol Project, including the extent and significance of the porphyry copper-gold system underlying the current Mineral Resource and the prospectivity of exploration targets; exploration and development plans and expenditures, including a transition to year-round operations and the timing thereof; the ability of the Company’s COVID-19 operating protocol to continue to meet government-mandated health and safety guidelines enabling it to conduct its field programs as planned; the success of future exploration activities; potential for resource expansion; ability to build shareholder value; expectations with regard to adding to its Mineral Reserves or Resources through exploration; expectations with respect to the conversion of inferred resources to an indicated resources classification; ability to execute planned work programs; plans or ability to add additional drill rigs; timing or anticipated results of an update to the mineral resource estimate for Filo del Sol; government regulation of mining activities; environmental risks; unanticipated reclamation expenses; title disputes or claims; limitations on insurance coverage; and other risks and uncertainties.

Statements relating to "mineral resources" are deemed to be forward-looking information, as they involve the implied assessment, based on certain estimates and assumptions that the mineral resources described can be profitably produced in the future.

The forward-looking statements contained in this news release are made as at the date of this news release and Filo does not undertake any obligations to publicly update and/or revise any of the included forward-looking statements, whether as a result of additional information, future events and/or otherwise, except as may be required by applicable securities laws.  Forward-looking information is provided for the purpose of providing information about management's current expectations and plans and allowing investors and others to get a better understanding of the Company's operating environment. Forward-looking information is based on certain assumptions that the Company believes are reasonable, including that the current price of and demand for commodities will be sustained or will improve, the supply of commodities will remain stable, that the general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed on reasonable terms and that the Company will not experience any material labour dispute, accident, or failure of plant or equipment. These factors are not, and should not be construed as being, exhaustive. Although the Company has attempted to identify important factors that would cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. All the forward-looking information contained in this document is qualified by these cautionary statements. Readers are cautioned not to place undue reliance on forward-looking information due to the inherent uncertainty thereof.

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For Further Information Please Contact:

info@filo-mining.com
www.filo-mining.com
www.thelundingroup.com

Trevor D’Sa, Investor Relations, Canada +1 604 689 7842
Robert Eriksson, Investor Relations, Sweden + 46 701 112 615
A Lundin Group Company

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. The Company's shares are listed on the TSX and Nasdaq First North Growth Market under the trading symbol "FIL", and on the OTCQX under the symbol "FLMMF". Filo Mining is a member of the Lundin Group of Companies.