- Published: 31 January 2011
- Written by Editor
Solitario Reports Outstanding Drilling Results on Its Bongara High-Grade Zinc Project, Peru
Solitario Exploration & Royalty Corp. (NYSE Amex:XPL) (TSX:SLR) announced outstanding drilling results on its high-grade Bongara zinc project in Peru. Included in these results is drill hole V-220 that intersected 17.4 meters grading 23.9% zinc + lead ("Zn+Pb") and a second zone grading 28.3 meters at 5.5% Zn+Pb, making this hole the second best hole ever drilled on the project. Even more remarkable, is the fact that drill hole V-220 is a step-out hole situated on the southernmost boundary of the current drill pattern. Also of significance, are drill holes V-213 and V-218 that intersected strong mineralization in the northeasternmost sector, over two kilometers from V-220.
Exploration Drilling
Since the last drill hole assay results news release, Solitario has received results from an additional fourteen core holes from three different zones: the San Jorge, San Jorge North and Karen-Milagros. Of these only three holes failed to intersect strong mineralized intervals. The ten best intercepts from these fourteen holes are:
Drill Hole Intercept* Zinc Lead Zinc+Lead
Number (meters) % % %
---------- ---------- ------- ------- -----------------------
V-211 6.3 6.3 0.3 6.6
V-212 4.0 4.6 11.4 16.0
V-212 16.1 10.3 0.8 11.1
V-213 3.7 11.3 0.7 12.0
V-214 6.9 12.4 1.2 13.6
V-214 2.0 14.6 4.8 19.4
V-218 10.7 8.0 2.3 10.3
V-220 17.4 23.8 0.1 23.9
V-220 28.3 5.5 0.0 5.5
V-221 7.6 7.8 0.5 8.3
---------- ---------- ------- ------- -----------------------
* True thickness has not been estimated for each individual
intercept, but in all cases are thought to represent at least 85%
of true thickness
Chris Herald, President and CEO of Solitario commented, "It is very significant that strong mineralization continues to be intersected at the margins of our current drill hole pattern and affirms our belief that this deposit still has tremendous upside growth potential. Besides the continuing tunneling and road construction programs, Votorantim will be focused on a broad array of feasibility related work for the remainder of 2011. Such activities include engineering/infrastructure related studies, detailed resource modeling, permitting and social development work. With zinc prices remaining strong at approximately US$1.00 per pound, the economics of this attractive project are further enhanced."
The program is being managed and entirely funded by Solitario's joint venture partner Votorantim Metais ("Votorantim"). The Bongara project hosts the high-grade Florida Canyon zinc deposit where zinc mineralization has been intersected over a four square kilometer area. The deposit is open to expansion in all directions. A complete listing of all assay results received thus far are appended below and a simplified drill hole map can be accessed at http://www.solitarioxr.com/art/2010BongaraDrillResults.pdf. Additional project information is found at http://www.solitarioxr.com/bongara.html.
The drill hole information contained within this release is reported under a quality control program reviewed by Mr. Walt Hunt, COO for Solitario Exploration & Royalty Corp., who is a qualified person as defined by National Instrument 43-101. Samples are derived from 50% splits of HQ and NQ (2.5 and 1.9 inch) diameter core. Samples are then shipped via secured third-party land and air transportation companies and analyzed by ALS Chemex Inc., North Vancouver, Canada, an ISO9002 registered company.
Road Construction & Underground Tunneling
In addition to the surface core drilling, Votorantim has completed 8.5 kilometers of road construction representing completion of 75% of Phase I alignment to the eastern portion of the property adjacent to the La Union target area. Upon completion of road construction, access to the property will be greatly improved and provide for more efficient development of the project. Previous access to the deposit has been via helicopter and foot trails.
Underground tunneling to more effectively access mineralization began in late-September of 2010. Approximately 270 meters of tunnel advancement has been completed of an initial 700 meter program. Tunneling is planned to continue throughout 2011. This tunneling will allow for improved deposit definition and at much lower costs than helicopter assisted deep surface drilling. Underground resource definition drilling will commence later this year.
Bongara Agreement with Votorantim Metais
Votorantim Metais can earn up to a 70% interest in the project by committing to place the project into production based upon a positive feasibility study. After earning 70%, Votorantim Metais has further agreed to finance Solitario's 30% participating interest for construction. Solitario will repay the loan facility through its cash flow distributions.
About Votorantim Metais
Votorantim Metais belongs to a privately held Brazilian business conglomerate that is a leader in every market segment in which it operates, including cement, pulp and paper, metals, chemicals, orange juice, and finance. The metals business division accounted for 29% of revenues from production of zinc, nickel, steel and aluminum. Votorantim Metais is the world's fifth largest primary zinc producer with three operating zinc smelters and two operating zinc mines. It owns the Cajamarquilla zinc smelter and is the majority shareholder of Milpo, both located in Peru. Votorantim Metais also has operations in the United States and China.
About Solitario
Solitario announced (August 26, 2009) a joint venture arrangement with Ely Gold & Minerals on Ely's advanced Mt. Hamilton Gold project in eastern Nevada. Solitario is currently moving the project through feasibility. Solitario is a gold, silver, platinum-palladium, and base metal exploration and royalty company actively exploring in Brazil, Mexico, and Peru. Besides Votorantim, Solitario has significant business relationships with Minera Buenaventura, Newmont Mining and Anglo Platinum. Solitario has approximately US$14 million in net cash and marketable securities. Solitario is traded on the NYSE Amex ("XPL") and on the Toronto Stock Exchange ("SLR"). Additional information about Solitario is available online at www.solitarioxr.com.
This press release includes certain "Forward-Looking Statements" within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of Solitario, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Development of Solitario's properties are subject to the success of exploration, completion and implementation of an economically viable mining plan, obtaining the necessary permits and approvals from various regulatory authorities, compliance with operating parameters established by such authorities and political risks such as higher tax and royalty rates, foreign ownership controls and our ability to finance in countries that may become politically unstable. Important factors that could cause actual results to differ materially from Solitario's expectations are disclosed under the heading "Risk Factors" and elsewhere in Solitario's documents filed from time to time with Canadian Securities Commissions, the United States Securities and Exchange Commission and other regulatory authorities.
Bongara 2010 Drill Results (2nd Half)
--------------------------------------------------------
Zone Hole # From To Drilled Zinc Lead Silver Zn + Pb
(meters) (meters) Thickness
---- ------ -------- -------- --------- ---- ---- ------ -------
KM V_209 394.2 394.8 0.6 8.9 1.7 11.3 10.6
SJN V_210 29.6 32.5 2.9* 2.7 3.3 19.4 6.0
SJN V_211 354.1 358.4 4.3 6.3 0.3 6.9 6.6
V_211 375.2 381.5 6.3 6.7 0.5 7.0 7.2
SJN V_212 68.9 71.9 3.0 3.0 0.0 0.3 3.0
V_212 87.0 91.0 4* 4.6 11.4 102.0 16.0
V_212 104.2 120.3 16.1 10.3 0.8 7.1 11.1
KM V_213 67.8 68.8 1.0 0.1 7.5 30.7 7.6
V_213 357.9 365.2 7.3 6.1 0.4 3.2 6.5
incl. 357.9 361.6 3.7 11.3 0.7 6.1 12.0
V_213 385.2 386.9 1.7 5.4 2.1 14.0 7.5
V_214 46.2 53.1 6.9* 12.4 1.2 13.6 13.6
SJN V_214 73.8 81.0 7.2 4.7 1.3 7.9 6.0
incl. 73.8 75.8 2.0 14.6 4.8 26.9 19.4
SJN V_216 65.4 66.6 1.2 3.5 0.0 2.1 3.5
V_216 97.0 98.7 1.7 5.9 0.3 4.0 6.2
V_216 102.3 103.0 0.7 7.9 0.0 3.0 7.9
KM V_218 350.3 352.5 2.2 9.0 1.9 11.1 10.9
V_218 361.5 372.2 10.7 8.0 2.3 12.0 10.3
SJ V_220 403.2 404.5 1.3 5.5 0.1 4.4 5.6
V_220 410.8 428.2 17.4 23.8 0.1 6.3 23.9
V_220 439.2 467.5 28.3 5.5 0.0 1.9 5.5
incl. 462.2 467.5 5.3 17.2 0.0 4.8 17.2
SJN V_221 86.8 94.4 7.6 7.8 0.5 8.4 8.3
SJN V_222 111.3 113.5 2.2 5.2 0.0 1.3 5.2
---- ------ -------- -------- --------- ---- ---- ------ -------
Drilled thickness is at least 85% of true thickness in all cases.
Core recovery is at least 88% except for those intervals designated
by "*" where core recoveries vary from 61-75%.
Mineralized intervals were calculated using a cutoff grade of 3%
Zn+Pb with a minimum grade thickness multiple of 5.
Zone Codes (see map for locations): KM=Karen-Milagros, SJ=San Jorge,
SJN=San Jorge North.
--------------------------------------------------------
SOURCE: Solitario Exploration & Royalty Corp.
Solitario Exploration & Royalty Corp. Debbie Mino-Austin, 800-229-6827 Director -- Investor Relations Christopher E. Herald, 303-534-1030 President & CEO
