NGEx Resources has announced plans to spin out its cross-border Chile-Argentina Filo del Sol property into a wholly owned subsidiary to be called Filo Mining Corp. NGEx will retain and focus on advancing its 60% owned, cross-border Constellation project, which is developing the Los Helados property in Chile and the Josemaría property in Argentina. Filo del Sol is adjacent to these two properties.
The Filo del Sol project is based on a very large, high-sulphidation, epithermal copper-gold-silver system associated with a porphyry copper-gold system. (Photos: NGEx Resources)
NGEx shareholders will be entitled to receive one common share of Filo Mining for every four common shares of NGEx held as of the effective date of the spin out, expected to be in mid-August. The company intends to apply for a listing of the Filo Mining shares on the TSX Venture Exchange and on the Nasdaq First North Exchange in Stockholm, Sweden.
The Filo del Sol project is based on a very large, high-sulphidation, epithermal copper-gold-silver system associated with a porphyry copper-gold system. The mineralized system includes both disseminated and stockwork mineralization and is open in several directions. The upper portion is oxidized, and initial leach testing has produced encouraging results. Future work will focus on expanding the oxide resource and additional metallurgical test work.
The current inferred Filo del Sol mineral resource estimate includes two separate high-grade subsets within a much larger overall resource—a subset of high-grade copper mineralization and a separate subset of high-grade silver mineralization. Total inferred resources stand at 381 million metric tons (mt), grading 0.39% copper, 0.33 g/mt gold, and 12.2 g/mt silver.
Oxide copper mineralization at Filo del Sol.
A preliminary economic assessment of the more advanced Constellation project contemplates production averaging 150,000 mt/y of copper, 180,000 oz/y of gold, and 1.18 million oz/y of silver in concentrates over a mine life of 48 years.
NGEx President and CEO Wojtek Wodzicki said, “The Filo del Sol project hosts a large current mineral resource that NGEx believes may have exploration upside and an oxidized upper portion where future work will focus on defining the potential to heap leach this material.”