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DENVER -- (Business Wire)
Solitario Exploration & Royalty Corp. (âSolitario;â NYSE MKT: XPL;
TSX: SLR) announces that it has engaged SRK Consulting (U.S.)
Inc. (âSRKâ) to complete a National Instrument 43-101 compliant
Technical Report on Resources on its Bongará Zinc Project in Peru. The
Bongará Zinc Project is currently undergoing advanced technical
evaluation by our partner Votorantim Metais (âVotorantimâ), the fifth
largest zinc producer in the world. SRK is an independent, international
consulting practice specializing in engineering studies and assessments
of mining assets and mineral projects.
The Bongará Project
The Bongará Zinc Project in northern Peru has been actively explored and
studied since Solitario made its initial discovery in 1996. To date, 487
exploration core holes have been completed totaling 117,380 meters. In
addition to exploration and delineation drilling, additional work such
as metallurgy, geotechnical drilling and hydrogeologic studies,
preliminary infrastructure planning, geology and resource modeling and
access road construction have been conducted under the management of
Votorantim. In 2011, Votorantim initiated tunneling in the San Jorge
zone to provide detailed drilling information to upgrade resources. The
underground drilling at San Jorge was completed in 2013.
Presently, the majority of mineralization is contained within two broad
areas, the San Jorge and Karen-Milagros zones. These two zones have been
the focal points of most of the recent drilling. Mineralization in the
Karen-Milagros zone is mainly stratigraphically controlled and
sub-horizontal in orientation. The San Jorge zone is mainly structurally
controlled and sub-vertical in orientation. Mineralization has been
intersected over a footprint that measures approximately two kilometers
in a southwest-northeast direction and over a kilometer in a
northwest-southeast direction. Mineralization remains open in all
directions.
Chris Herald, President and CEO of Solitario commented, âWe are
delighted to work with SRK as they have an established and
internationally-recognized extensive experience in the estimation of NI
43-101 compliant resources. We hope to release the results of SRKâs work
before the end of May, 2014, and issue a NI 43-101 compliant Technical
Report. Many zinc commodity experts are forecasting higher zinc prices
for the remainder of this decade as a significant number of operating
zinc mines are scheduled for closure over the next couple of years due
to reserve depletions. Couple this with the fact that, during the past
several years, investment in new zinc mines has been significantly
reduced due to low zinc prices. We believe this bodes well for the
potential future development of our Bongará zinc project.â Mr. Walt
Hunt, COO for Solitario, who is a qualified person as defined by NI
43-101, is the Qualified Person responsible for the material contained
in this press release.
About SRK
SRK Consulting is an independent, international consulting practice that
has provided technical services to the mining industry for the past 40
years, employing more than 1,500 professionals internationally in over
50 offices on 6 continents. For mining projects, SRK performs services
from exploration to mine closure, including resource estimates,
feasibility studies, due diligence reviews, and production optimization.
SRK has a demonstrated track record in undertaking independent
assessments of Mineral Resources and Mineral Reserves, project
evaluations and audits. The SRK Group has also worked with a large
number of major international mining companies and their projects.
Bongará Joint Venture Agreement with Votorantim Metais
Votorantim can earn up to a 70% interest in the project by committing to
place the project into production based upon a positive feasibility
study. All funds expended by Votorantim through completion of a
feasibility study are 100% Votorantimâs obligation, with no repayment
required by Solitario. After earning its 70% interest in the project,
Votorantim has further agreed to provide financing for Solitario's 30%
participating interest for construction. Solitario will repay the loan
facility through 50% of its net 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
approximately one third of Votorantimâs consolidated 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 also has operations in the United States and China.
About Solitario
Solitario is a gold, silver, platinum-palladium, and base metal
exploration and royalty company actively exploring in the United States,
Brazil, Mexico, and Peru. Solitario is currently focused on permitting
its 80%-owned Mt. Hamilton Gold project in eastern Nevada. Besides
Votorantim, Solitario has significant business relationships with
Hochschild Mining plc (LSE: HOCM.L / HOC LN) ("Hochschild") and Anglo
Platinum. Hochschild is funding a significant exploration program on its
Pachuca Norte silver-gold project in Mexico and Anglo Platinum is
funding the continued exploration of the Pedra Branca PGM project in
Brazil. Solitario is traded on the NYSE MKT ("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, resources and reserves,
exploration results and future plans and objectives of Solitario, future
plans and objectives of Solitarioâs joint venture partner Votorantim
Metais 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
Solitarioâs 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 Solitarioâs expectations
are disclosed under the heading "Risk Factors" and elsewhere in
Solitarioâs documents filed from time to time with Canadian Securities
Commissions, the United States Securities and Exchange Commission and
other regulatory authorities.
Cautionary Note to U.S. Investors --- The United States Securities
and Exchange Commission permits U.S. mining companies, in their filings
with the SEC, to disclose only those mineral deposits that a company can
economically and legally extract or produce. The technical report that
is being undertaken by SRK on the Bongará zinc deposit will fully
conform to the CIM Standards on Mineral Resources and Reserves â
Definitions and Guidelines as referred to in NI 43-101 and from 43-101F1
â Standards of Disclosure for Mineral Projects in effect.The
technical report will contain terms such as "measured," "indicated,"
"inferred," and "resources," that the SEC guidelines strictly prohibit
U.S. registered companies from including in their filings with the SEC.
Contacts:
Solitario Exploration & Royalty Corp.
Debbie Mino-Austin,
800-229-6827
Director â Investor Relations
or
Christopher
E. Herald, 303-534-1030
President & CEO
Source: Solitario Exploration & Royalty Corp.
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