The holes, drilled 500m apart, show that the high-sulphidation epithermal deposit forming the bulk of the mineral resource which supports the project pre-feasibility study (PFS) is underlain by porphyry copper-gold mineralisation to depths of over 1,000m below surface.

"These two holes confirm that the Filo del Sol resource represents only a small part of a much larger mineralised system, as we have always expected. This really opens up the exploration potential at Filo and offers the potential to transform it into a much larger project than outlined in the recent PFS," said CEO Adam Lundin in a statement.

Highlights included 1,025m grading 0.3% copper and 0.22 grams per tonne of gold.

The January 2019 PFS for Filo del Sol contemplated average annual production of about 67,000 tonnes of copper, 159,000oz gold and 8.7Moz silver for 14 years from a probable mineral reserve of 259Mt grading 0.39% copper, 0.33g/t gold and 15g/t silver. It yielded US$1.28 billion after-tax NPV using an 8% discount rate and an IRR of 23% at $3/lb copper, $1,300/oz gold and $20/oz silver at a capex of $1.27 billion.

The Lundin family owns 31% of Filo Mining.

Filo shares (TSXV:FIL) are trading at C$2.39 valuing the company at $174 million. Its share price has increase 8.6% so far this year.