In late 2020, Filo Mining Corp (TSXV:FIL) began a deep drilling program on their high sulphidation “Filo Del Sol” Cu-Au-Ag deposit which straddles the Chile Argentina border. Long, high grade Cu-Au intersections followed and starting in February, FIL ran from $1.80 to a high of $12, adding over a billon dollars to its market capitalization.
Filo Mining’s “Filo Del Sol”
Ecuador-focused explorer Adventus Mining (TSXV:ADZN) is best known for its El Domo VMS deposit, mineable by open pit methods. ADZN claims an after tax IRR of 57%. Details can be reviewed in ADZN’s presentation available on their website:
A bankable feasibility study is anticipated for September, followed by development financing and construction to begin in 2022. This indicates ADZN is near the end of stage 3 at the bottom of the Lassonde Curve, suggesting a good entry point for a medium term hold.
Less known and “under the radar”, is ADZN’s “Santiago” prospect. In the 1990’s, Newmont drilled a 2km x 3km Cu-Au quartz alunite high sulphidation zone to an average depth of 200 meters. Believing there may be an untested Cu-Au porphyry at depth, in 2019 ADZN flew an airborne magnetotellurics geophysical survey, outlining what appears to be a large porphyry system under neath the “Santiago” high sulphidation Cu-Au zone. Drilling is now scheduled to start early August with first results anticipated in October. Will drilling discover a new high grade Cu-Au porphyry? Should a high grade Cu-Au porphyry discovery be made under Santiago, can ADZN repeat FIL’s recent share price performance? I have taken a position in ADZN for the El Domo VMS deposit and development story, but “Santiago” could surprise the market in the near term, and given the similarities to “Filo Del Sol”, the share price could be in for a wild ride.
Disclosure: I have taken an initial position in the shares of ADZN.V and may buy or sell at any time and without notice. I have no affiliation with ADZN of any kind. The commentary is entirely my opinion based on my research and experience. Note: figures are from FIL’s and ADZN’s presentations.