Solitario Announces 2018 Work Program, New Property Acquistions & Exploration Opportunities on Its Florida Canyon Zinc Projec...
12 Febrero 2018 - 7:14AM
Business Wire
Solitario Zinc Corp. (“Solitario”) NYSE American: XPL;
TSX: SLR) is pleased to announce the planned 2018 work
program, additional property acquisitions and newly defined
exploration opportunities on its Florida Canyon Zinc Project in
Peru. Florida Canyon is held in a joint venture between Solitario
(39%-interest) and Nexa Resources (61%-interest (“Nexa”) NYSE:
NEXA; TSX: NEXA). Highlights of the planned 2018 work program
include completion of the access road into the mineralized portion
of the project area and permitting that will allow new underground
tunneling, surface drilling and other activities associated with
the future development of the project.
The terrain at Florida Canyon is steep and all previous project
access supporting surface and underground work programs was
conducted by helicopter. The lack of road access restricted the
scope of field activities to further advance the project. With the
completion of the road, heavy equipment will be able to enter the
project area and allow feasibility related activities to proceed
efficiently. Important future activities that will be facilitated
by the completion of the road are the construction of an
underground tunnel into the Karen-Milagros high-grade zinc zone,
detailed underground resource/reserve definition drilling, surface
drilling designed to increase the project resource and additional
feasibility/infrastructure-related studies. Work is scheduled to
begin in May after the rainy season ends and continue until the
road is completed.
Approximately 5,400 hectares (13,300 acres) of new concessions
covering prospective geology and geochemistry were acquired by Nexa
in late-2017 on the northern border of the Florida Canyon claim
block. Earlier in 2017 Nexa filed for 6,500 hectares (16,100 acres)
of new concessions. The consolidated Florida Canyon land position
now stands at 48,700 hectares (120,300 acres). A current property
map can be found here: http://solitarioxr.com/art/20180206.jpg.
Solitario recently engaged SRK to develop an exploration plan at
Florida Canyon aimed at identifying low risk/high-probability of
success resource expansion opportunities at Florida Canyon. The
study focused on defining significant new high-grade zinc-sulfide
mineralization immediately adjacent to the existing defined
resource. The study delineated a program that has high-potential to
expand the current resource by over 50% with a 41-hole, 17,000
meter drilling program. A link to a video describing the
exploration potential within and surrounding the Florida Canyon
deposit can be found here: http://solitarioxr.com/bongara.php.
Chris Herald, President and CEO of Solitario, commented,
“Completion of the access road into the mineralized area is
critical to advancing the Florida Canyon project to a development
stage. It is an important milestone as access has historically been
the single biggest technical challenge to advancing the project. We
also want to encourage our shareholders to view the Florida Canyon
Exploration Opportunities video (see above link) to gain a better
appreciation of the significant resource expansion opportunities
that exist immediately adjacent to the currently defined resources
at Florida Canyon. These targets present the potential to add
significant tonnage and grade to the project’s current
resources.”
Terms of the Florida Canyon and Chambara Joint
Ventures
Solitario owns a 39% interest in the Florida Canyon project
(formerly called the Bongará Project) and an 85% interest in the
contiguous Chambara project. Nexa owns 61% and 15% of these two
projects, respectively. Nexa can earn a 70% interest in the Florida
Canyon project by continuing to fund all project expenditures and
committing to place the project into production based upon a
positive feasibility study. After earning 70%, and at the request
of Solitario, Nexa has further agreed to finance Solitario's 30%
participating interest for construction through a project loan.
Solitario will repay the loan facility through 50% of its net cash
flow distributions for production on Florida Canyon joint venture
properties. If Nexa earns a 70% interest in the Chambara JV and
funds construction, then Solitario would repay any financing of
Chambara initial capital construction from 80% of its net cash flow
distributions.
About Solitario
Solitario is an emerging zinc exploration and development
company traded on the NYSE American (“XPL”) and on the Toronto
Stock Exchange (“SLR”). Besides Solitario’s joint venture with Nexa
Resources on its high-grade Florida Canyon zinc project in Peru,
Solitario also holds a 50% joint venture interest (Teck Resources
Ltd. holds the other 50% interest) in the high-grade, open pitable
Lik zinc deposit in Alaska, and a 9.6% equity interest in Vendetta
Mining. Solitario’s Management and Directors hold approximately
9.2% (excluding options) of the Company’s 58.45 million shares
outstanding. Solitario’s cash balance and marketable securities
stand at approximately US$14 million. Additional information about
Solitario is available online at www.solitariozinc.com.
Cautionary Note
to U.S. Investors concerning estimates of Resources and Exploration
Target Size: This news release uses the terms
Resources and Exploration Target Size. The potential size of the
Exploration Target is evaluated based on a proposed extension
drilling program and its assumed success. An Exploration Target is
not a Mineral Resource. Potential quantity and grade of an
Exploration Target is conceptual in nature. There has been
insufficient exploration to define a Mineral Resource in the areas
of the proposed drilling program and it is uncertain if further
exploration will result in the Exploration Target being delineated
to a Mineral Resource. Exploration Targets and Mineral Resources
are not Mineral Reserves and do not have demonstrated economic
viability. The Company advises U.S. investors that while these
terms are recognized and are in part required by Canadian
regulations, the SEC does not recognize the terms. U.S. investors
are cautioned not to assume that any part or all of an Exploration
Target Size, or Measured, Indicated or Inferred Mineral Resources
will ever be converted into Reserves. Inferred Resources have a
great amount of uncertainty as to their existence, and great
uncertainty as to their economic and legal feasibility. It cannot
be assumed that all or any part of an Inferred Mineral Resource
will ever be upgraded to a higher category. Under Canadian rules,
estimates of Inferred Mineral Resources may not form the basis of
feasibility or pre-feasibility studies, except in rare cases. U.S.
investors are cautioned not to assume that any part or all of a
Measured, Indicated or Inferred resource exists, or is economically
or legally minable.
Cautionary Statement Regarding Forward Looking
Information
This press release contains forward-looking statements within
the meaning of the U.S. Securities Act of 1933 and the U.S.
Securities Exchange Act of 1934, and as defined in the United
States Private Securities Litigation Reform Act of 1995 (and the
equivalent under Canadian securities laws), that are intended to be
covered by the safe harbor created by such sections.
Forward-looking statements are statements that are not historical
fact. They are based on the beliefs, estimates and opinions of the
Company's management on the date the statements are made and
address activities, events or developments that Solitario expects
or anticipates will or may occur in the future, and are based on
current expectations and assumptions. Forward-looking statements
involve a number of risks and uncertainties. Consequently, there
can be no assurances that such statements will prove to be accurate
and actual results and future events could differ materially from
those anticipated in such statements. Such forward-looking
statements include, without limitation, statements regarding the
Company’s expectation of the projected timing and outcome of
engineering studies; expectations regarding the receipt of all
necessary permits and approvals to implement exploration or mining
plans, if any; the potential for confirming, upgrading and
expanding zinc, lead and silver mineralized material; future
operating and capital cost estimates may indicate that the stated
resources may not be economic; estimates of zinc, lead and silver
grades of resources provided are predicted and actual mining grade
could be substantially lower; estimates of recovery rates could be
lower than estimated for establishing the cutoff grade; and other
statements that are not historical facts could vary significantly
from assumptions made herein. Although Solitario management
believes that its expectations are based on reasonable assumptions,
it can give no assurance that these expectations will prove
correct. Important factors that could cause actual results to
differ materially from those in the forward-looking statements
include, among others, risks relating to risks that Solitario’s and
its joint venture partners’ exploration and property advancement
efforts will not be successful; risks relating to fluctuations in
the price of zinc, lead and silver; the inherently hazardous nature
of mining-related activities; uncertainties concerning reserve and
resource estimates; uncertainties relating to obtaining approvals
and permits from governmental regulatory authorities and country
risks of operations, both inside and outside of the United States;
the possibility that environmental laws and regulations will change
over time and become even more restrictive; and availability and
timing of capital for financing the Company’s exploration and
development activities, including uncertainty of being able to
raise capital on favorable terms or at all; as well as those
factors discussed in Solitario’s filings with the U.S. Securities
and Exchange Commission (the “SEC”) including Solitario’s
latest Annual Report on Form 10-K and its other SEC filings (and
Canadian filings) including, without limitation, its latest
Quarterly Report on Form 10-Q. The Company does not intend to
publicly update any forward-looking statements, whether as a result
of new information, future events, or otherwise, except as may be
required under applicable securities laws.
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version on businesswire.com: http://www.businesswire.com/news/home/20180212005688/en/
Solitario Zinc Corp.Debbie Mino-Austin, 800-229-6827Director –
Investor RelationsorChristopher E. Herald, 303-534-1030, Ext.
14President & CEO
Solitario Resources (TSX:SLR)
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