Solitario Intersects 48.9 Meters Grading 6.19% Zinc Equivalent at Florida Canyon, Peru
01 Agosto 2019 - 7:30AM
Business Wire
Solitario Zinc Corp. (“Solitario”) (NYSE American:
XPL; TSX: SLR) is pleased to provide initial 2019
drilling results for its Florida Canyon zinc project in Peru. The
highlight of the first phase of drilling was drill hole
PEBGD-000010 that intersected 48.9 meters grading 6.19%
zinc-equivalent (“Zn-Eq”), including 17.5 meters that graded 13.7%
Zn-Eq. This hole was critically important in demonstrating a new
mineralized zone as discussed in more detail below. The Florida
Canyon high-grade zinc project located in northern Peru that is
joint ventured with the world’s fourth largest zinc miner, Nexa
Resources S.A. (NYSE: NEXA; TSX: NEXA) (“Nexa”).
With the exception of hole PEBGD-000010, all of the first phase
of core holes were drilled in the northern area of the Florida
Canyon deposit where mineralization tends to be narrower, flat
lying (“mantos”) but often high grade. This style of mineralization
was intersected in six of the drill holes reported in the table
below. One of the ten holes did not reach its target depth due to
drilling difficulties and two holes did not intersect significant
mineralization.
Drill hole PEBGD-000010 was very important in that it
intersected what is interpreted to be a replacement body similar to
the San Jorge structure to the south. The hole was a 90-meter
offset of a previously drilled core hole V-21, that intersected 92
meters of 7.26% Zn-Eq, including two intervals that graded 24.13%
Zn-Eq over 10.2 meters and 19.24% zinc over 11.0 meters (this
potential new area is considered the “V-21 zone”). A section
showing the relationship between mineralization intersected in the
two holes can be seen here. Follow-up drilling of the V-21 zone is
underway and could potentially add mineralization comparable to the
size and grade of the San Jorge zone, that constitutes
approximately 40% of the known resource at Florida Canyon.
Highlights of Florida
Canyon Drilling Results
Drill Hole
From
To
Interval
Zinc
Lead
Silver
Zinc-Eq*
Number
(m)
(m)
(m)
(%)
(%)
(g/t)
(%)
PEBGD-000002
322.9
323.9
1.0
4.4
9.5
25.6
12.9
329.8
331.0
1.2
11.7
0.1
43.3
12.7
PEBGD-000003
443.1
444.4
1.3
42.7
15.0
83.0
56.9
PEBGD-000004
463.5
465.0
1.5
16.1
0.5
6.2
16.7
472.1
473.4
1.3
40.5
0.0
4.8
40.6
PEBGD-000006
393.8
396.2
2.4
7.3
0.7
4.0
8.0
PEBGD-000007
372.7
373.1
0.4
13.6
1.3
12.9
15.0
PEBGD-000008
275.1
279.5
4.4
16.8
1.1
32.1
18.3
PEBGD-000010
365.9
414.8
48.9
5.2
0.9
11.5
6.2
including
380.8
398.3
17.5
11.3
2.2
25.4
13.7
including
408.1
409.3
1.2
9.3
1.9
46.5
20.0
including
412.8
414.8
2.0
3.5
0.4
18.1
10.0
*Zn-Eq was calculated using the following price assumptions:
Zn=$1.10/lb., Pb=$0.91lb., Ag=$16.50/oz. Reported intervals are
estimated to be at least 80% of the true thickness. Numbers in this
table may not add exactly as numbers have been rounded to the
nearest decimal.
Current and Future Drilling
Plans
The four-rig drilling program is transitioning from the northern
part of the property to the southern half where the San Jorge zone
is located, except for one drill rig that will further test the
V-21 zone. The San Jorge zone is open in all directions. Visual
results from the first hole (PEBGD-000015) targeting the southern
extension of San Jorge structure intersected strong zinc
mineralization (sphalerite) over approximately 11 meters. No assays
are available yet for this interval. At least three additional
holes are planned to offset PEBGD-000015. In addition, drilling
will begin to test the northern extension of the San Jorge zone as
well as the up-dip extension.
Chris Herald, President and Chief Executive Officer of
Solitario, commented, “We are very pleased with our initial assay
results, especially drill hole PEBGD-000010 that suggests we have
discovered a new replacement body that could develop into a
significant new zone with additional drilling. We have also
demonstrated that the San Jorge zone continues to the south with
the positive visual results from drill hole PEBGD-000015. With the
program now focused on extensions of the San Jorge zone to the
north, south and up-dip, we see the potential for a series of
strongly mineralized drill holes.”
Hydroelectric Power Plant Receives
Permit
Energoret SAC., a private Peruvian company that designs and
builds small-to medium-scale hydroelectric power plants in Peru,
has received approval of the Water Use Plan and the Authorization
for the Execution of Water Works necessary to build the Tingo Power
Plant, a medium-sized hydroelectric power plant situated within ten
kilometers of the Florida Canyon project area. Nexa, on behalf of
the joint venture, has signed a non-binding Memorandum of
Understanding (“MOU”) with Energoret to secure low-cost
hydroelectric power for the Florida Canyon project. The MOU calls
for Energoret to construct power lines from the power plant to the
project area and deliver 8 megawatts to the project site. Energoret
estimates that the power plant will be completed in 2022. This
power plant is considered a significant economic benefit to project
operations.
Drill hole information contained within this release is reported
under Nexa’s quality control program reviewed by Mr. Walt Hunt, COO
for Solitario Zinc 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 transportation companies and
analyzed by ALS Chemex Inc., in Lima, Peru.
About Solitario
Solitario is an emerging zinc exploration and development
company traded on the NYSE American (“XPL”) and on the Toronto
Stock Exchange (“SLR”). Solitario holds 50% joint venture interest
in the high-grade, open-pitable Lik zinc deposit in Alaska and a
39% joint venture interest (Nexa Resources holds the remaining 61%
interest) on the high-grade Florida Canyon zinc project in Peru.
Solitario also holds a 7.6% equity interest in Vendetta Mining.
Solitario’s Management and Directors hold approximately 9.2%
(excluding options) of the Company’s 58.4 million shares
outstanding. Solitario’s cash balance and marketable securities
stand at approximately US$10.0 million. Additional information
about Solitario is available online at www.solitariozinc.com
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 a mining plan, if any, at Lik or Florida Canyon; 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 for could be lower
than estimated for establishing the cutoff grade; and other
statements that are not historical facts could vary significantly
from assumptions made in the PEA. 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; availability of outside contractors, and other
activities; uncertainties relating to obtaining approvals and
permits from governmental regulatory authorities; 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: https://www.businesswire.com/news/home/20190801005558/en/
Valerie Kimball Director – Investor Relations (800) 229-6827
Christopher E. Herald President & CEO (303) 534-1030,
Ext. 14
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