Drill Results Extend the Aurora Zone Strike Length to 1.6km; Build Confidence in Geological Continuity
During and subsequent to the end of the third quarter of 2022, the Company announced results from three holes at the Filo del Sol Project. Drillholes FSDH061, FSDH063, and FSDH067 successfully extended the strike length of the Aurora Zone by 180m to a total of 1.6km in the north-south direction, in addition to infilling certain areas of the Aurora Zone which increased confidence in the geological continuity throughout this Zone.
Assay results received by the Company during and subsequent to the end of the third quarter of 2022 are summarized in the following table:
Hole-ID |
From (m) |
To (m) |
Length (m) |
Cu (%) |
Au (g/t) |
Ag (g/t) |
CuEq1 (%) |
FSDH061 |
392.0 |
1,093.2 |
701.2 |
0.81 |
0.33 |
9.1 |
1.13 |
incl. |
508.0 |
914.0 |
406.0 |
0.97 |
0.40 |
11.1 |
1.36 |
FSDH063 |
16.0 |
860.2 |
844.2 |
0.29 |
0.25 |
6.5 |
0.53 |
incl. |
16.0 |
548.0 |
532.0 |
0.35 |
0.32 |
9.0 |
0.66 |
incl. |
16.0 |
158.0 |
142.0 |
0.36 |
0.26 |
18.1 |
0.71 |
incl. |
436.0 |
548.0 |
112.0 |
0.42 |
0.42 |
15.0 |
0.86 |
FSDH067 |
132.0 |
1,263.6 |
1,131.6 |
0.62 |
0.53 |
11.9 |
1.11 |
incl. |
160.0 |
480.0 |
320.0 |
0.66 |
0.73 |
29.9 |
1.45 |
incl. |
202.0 |
206.0 |
4.0 |
1.54 |
12.08 |
20.5 |
10.52 |
incl. |
248.0 |
284.0 |
36.0 |
0.76 |
0.71 |
123.2 |
2.36 |
1 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).
As of the date of this MD&A, additional holes have been completed with assays pending, which include:
Assay results for these holes will be released as they are received, analyzed and confirmed by the Company.
Two additional holes, FSDH065 (196m) and FSDH066 (458m) were suspended earlier this year, prior to the winter weather, and will be deepened during the upcoming months.
Executive Leadership Appointments
On September 1, 2022, the Company announced the appointment of Mr. Ian Gibbs as Chief Financial Officer ("CFO") and Mr. Arndt Brettschneider as Vice President, Operations & Projects, effective September 1, 2022.
Exercise of Top- up Right by BHP
On July 29, 2022, the Company closed a non-brokered private placement to BHP Western Mining Resources International Pty Ltd, a wholly owned subsidiary of BHP Group Limited (collectively, "BHP"), whereby the Company issued 44,047 common shares to BHP for gross proceeds of $675,681 (the “Anti-dilution Top-Up”).
The Anti-dilution Top-Up was undertaken pursuant to the terms of the March 11, 2022 private placement of 6,270,000 common shares to BHP at a price of $15.95 per common share for total gross proceeds of $100 million (the “Private Placement”), whereby BHP was granted certain anti-dilutive rights, allowing BHP to top-up and maintain its pro rata ownership interest from time to time, provided that such participation rights will not apply to any portion of BHP's ownership interest in excess of a 9.9% undiluted ownership level in the Company. The Company continues to use the proceeds of the Private Placement for exploration and development of the Filo del Sol Project and for working capital and general corporate purposes.