On Tuesday, Scotiabank reaffirmed its Sector Outperform rating and C$29.00 price target for Filo Mining Corp (TSX:FIL) (OTC:FLMMF), following the company's announcement of drilling results at the Filo del Sol project. Despite a temporary halt in drilling operations due to harsh winter conditions, the analyst from Scotiabank views the latest findings as mildly positive for Filo Mining's stock.
The company reported significant drill results, including an intersection of 1,036.0 meters grading 0.65% copper equivalent (CuEq) in the Bonita Zone (Hole 112) and another of 1,460.0 meters at 0.45% CuEq north of the Bonita Zone (Hole 114). These results are seen as an extension to the deposit, which remains open to the north, east, and west.
The company has indicated that the drilling will resume as soon as the weather conditions allow. The anticipated update to the maiden sulfide resource is scheduled for early Q4/2024. Filo Mining's latest drilling outcomes have not only yielded long intervals of high CuEq grade close to the surface but have also substantiated a minimum 5.5km high-grade corridor through the Filo deposit.
The analyst noted that while the pause in drilling could be seen as a setback, the robust results from Holes 112 and 114 provide a counterbalance. These findings have been instrumental in expanding the known dimensions of the deposit.
Filo Mining's stock continues to be rated Sector Outperform by Scotiabank with a price target of C$29, reflecting confidence in the company's ongoing exploration efforts and the potential of the Filo del Sol project.
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