Chuck Clark Profile picture
Mining Engineer making the Copper-Gold tour of British Columbia

3 May, 11 tweets

$FIL.V - Some background and industry comparables to @filo_mining #FILyourboots @j_beck00

Filo released a Pre-feasibilty study in February 2019 which focused on the upper oxide part of the deposit. This report declared a probable oxide reserve of 259 Mt with recovery via heap leach (less capital intensity vs. a sulphide project)

The PFS suggested a project with robust economics ( after tax IRR of 23%/NPV8 of 1.3B at 3.00 USD/lb Cu and 1,300 USD/toz Au); at spot metal prices the IRR is 30%+ and NPV8 is 2B+

The PFS also declared a small sulphide resource ~140Mt but the pit was design based on exploiting the oxide resource.

Comparing Filo del Sol to other South American heap leach operations/projects shows that the deposit has a better CuEQ grade than many current operations, and a larger oxide reserve than nearby competing projects such as Caspcihe and Cerro Casale (owned by Newmont and Barrick)

The 2019 PFS delcared 147Mt of indicated and inferred sulphide resource. This stacks up at about middle of the pack in terms of CuEQ compared to other sulphide reserves/resources in south america but does not yet include the "fun stuff" found in the 2019-2021 drilling campaigns.

The "fun stuff" - since releasing the oxide PFS in 2019, Filo has been drilling off the sulphide deposit below the designed oxide open pit. Drilling results have been promising so far. FSDH032 stacks up with the best Cu-Au intercepts wordwide in the past two years

Recent drill intercepts suggest that Filo has the potential to have a significant sulphide Cu-Au-Ag resource in the 0.70% CuEQ range, which would place it third on the south american sulphide project list posted above

Holes 41, 48, 49, and 50 from the 2021 campaign are within the vicinity of FSDH032 which defined 1009m of 0.95% CuEQ. See @NateSmi19691323's recent tweet about these holes and their potential ()

The CuEQ grades and the apparent depth of the sulphide zone would make it ammenable to block caving (my dream mining method). Deposits such as Kemess Underground, Kemess East, and Galore creek are other potential block caves with similar/lower CuEQ

$FIL.V is my largest position - 3 month target price of 5 CAD; 12-15 month target price of 9 CAD

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