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News Library:
Solitario Expands High-Grade Mineralization On its Pedra Branca PGM Project, Brazil; Newmont To Initiate A Second Round Of Drilling On the La Tola Gold Project, Peru
February 24, 2005
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Denver, Colorado: Solitario Resources Corporation ("Solitario") today announced that drilling on its Pedra Branca platinum-palladium ("PGM") project in northeastern Brazil intersected significant widths and grades of platinum-palladium ("PGM") mineralization on three emerging PGM deposits, Santa Amaro, Trapia I and Cedro. Highlights of this drilling campaign included SA-08 and TU-06 that intersected 82.7 meters grading 1.45 grams per tonne ("gpt") PGM+gold and 56.0 meters grading 1.75 gpt PGM+gold. The 30-hole drilling program was funded by Solitario's exploration partner, Anglo American Platinum Corporation Limited ("Anglo Platinum"), as part of Anglo Platinum's Phase II US$500,000 work commitment.
In other project news, Newmont Peru S.L.R. ("Newmont"), a subsidiary of Newmont Mining Corporation, completed 13 reverse circulation drill holes testing six target areas on the La Tola gold project in southern Peru. Highlights of this round of drilling included LT-04 and LT-05, that intersected 18.0 meters grading 1.29 gpt gold and 14.0 meters grading 0.85 gpt gold, respectively. As part of its joint venture arrangement with Solitario, Newmont funded this round of drilling and plans to commence a second round of drilling testing several new target areas.
Pedra Branca PGM Project, Brazil
Anglo Platinum can earn a 51% interest in Pedra Branca by spending a total of US$7.0 million on exploration and development over a four-year period. Anglo Platinum can earn a further 14% interest (to a total 65% interest) by completing a bankable feasibility study and arranging 100% project financing. Having now received all the Phase II drilling results, Anglo Platinum and Solitario are reviewing the data to determine future exploration activities at Pedra Branca.
Highlights of the latest Phase II drilling results are:
* Santa Amaro drill holes SA-08 and SA-09 that intersected 82.7 meters grading 1.45 grams per tonne ("gpt") of PGM+gold and 32.2 meters of 1.61 gpt of PGM+gold, respectively,
* Trapia I drill holes TU-04 and TU-06 that intersected 41.4 meters of 1.08 gpt of PGM+gold and 58.0 meters of 1.72 gpt of PGM+gold, respectively; and
* Cedro drill holes CD-21 and CD-22 that intersected 9.0 meters of 3.51 gpt PGM+gold and 12.8 meters grading 1.26 gpt, respectively.
Excluding drilling conducted on the Esbarro and Curiu prospects that was previously reported (December 2, 2004), 11 prospect areas were drill tested in this latest program. Significant mineralization was intersected in five of these areas. The table below provides a complete listing of significant assay results for the final 19 Phase II core holes. Drill hole location maps for the Esbarro, Curiu, Cedro, Trapia I and Santa Amaro prospects may be viewed on the company's web site.
Solitario controls 33,000 hectares of the 46,000-hectare project outright with no underlying leases or royalties. On the remaining 13,000-hectare area, Solitario holds an option to purchase a 100% interest.
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Phase II Pedra Branca Drill Hole Assay Results
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Prospect
|
Hole
|
From
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To
|
Interval
|
Pt
|
Pd
|
PGM
|
|
Name
|
Number
|
Meters
|
Meters
|
Meters
|
Feet
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g/t
|
g/t
|
(+gold)
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| Santa Amaro |
SA-08 |
0.6 |
14.0 |
13.4 |
44.0 |
0.26 |
0.62 |
0.91 |
|
|
37.7 |
39.1 |
1.5 |
4.8 |
2.68 |
3.00 |
5.76 |
|
|
59.4 |
142.0 |
82.7 |
271.1 |
0.60 |
0.84 |
1.45 |
| including |
|
108.0 |
120.0 |
12.0 |
39.4 |
1.66 |
1.41 |
3.08 |
|
SA-09 |
1.8 |
34.0 |
32.2 |
105.6 |
0.82 |
0.76 |
1.61 |
|
|
74.0 |
78.0 |
4.0 |
13.1 |
1.28 |
1.92 |
3.33 |
| Trapia I |
TU-04 |
71.3 |
73.2 |
1.9 |
6.2 |
0.41 |
0.82 |
1.24 |
|
|
81.2 |
122.6 |
41.4 |
135.8 |
0.33 |
0.73 |
1.08 |
|
|
128.6 |
130.6 |
2.0 |
6.6 |
0.33 |
0.80 |
1.16 |
|
TU-06 |
70.0 |
128.0 |
58.0 |
190.2 |
0.52 |
1.05 |
1.72 |
| Cedro Area |
CD-18 |
23.5 |
25.1 |
1.6 |
5.2 |
0.49 |
1.28 |
1.78 |
|
CD-19 |
56.4 |
60.0 |
3.6 |
11.8 |
0.35 |
0.76 |
1.12 |
|
CD-20 |
65.1 |
71.9 |
6.8 |
22.3 |
0.28 |
0.59 |
0.87 |
|
CD-21 |
91.0 |
100.0 |
9.0 |
29.5 |
1.24 |
2.22 |
3.51 |
|
CD-22 |
11.2 |
24.0 |
12.8 |
42.0 |
0.43 |
0.83 |
1.26 |
| Massape |
MS-02 |
43.3 |
46.9 |
3.6 |
11.8 |
0.38 |
0.50 |
0.88 |
|
|
87.4 |
89.3 |
1.9 |
6.2 |
0.63 |
2.89 |
3.54 |
|
|
93.3 |
95.3 |
2.0 |
6.6 |
0.28 |
0.82 |
1.10 |
|
|
102.6 |
107.7 |
5.1 |
16.7 |
0.49 |
1.25 |
1.80 |
| Trapia II |
TD-02 |
4.5 |
15.1 |
10.6 |
34.8 |
0.43 |
0.74 |
1.18 |
|
|
63.0 |
65.0 |
2.0 |
6.6 |
0.22 |
1.37 |
1.61 |
Drill intervals were calculated utilizing a 0.7 g/t PGM+gold cutoff. Mineralized intervals in the table are all thought to be within 90% of true width, except for the Santa Amaro drill holes, where the geometry of mineralization is not yet well enough understood to estimate true width.
Chris Herald, President and CEO of Solitario, stated, "This drilling campaign demonstrates that the Cedro, Trapia I and Santo Amaro prospects have the potential to host significant deposits of open-pitable PGM mineralization. All three prospects remain open at depth and in at least one direction of strike. Combined with the Esbarro and Curiu deposits, that are much better drill-defined, the Pedra Branca project is starting to develop into a significant PGM district."
The drill hole information contained within this release is reported under a quality control program supervised by Mr. Walt Hunt, Vice President of Operations for Solitario Resources Corporation, 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. In addition to the laboratory's quality control program, a check assay program is ongoing.
La Tola Gold Project, Peru
Newmont completed 13 reverse circulation drill holes testing six target areas on the11,000-hectare (27,240-acre) La Tola gold project in southern Peru. All assay results have now been received from this initial drilling program. Newmont plans to commence a second round of drilling to test several new target areas. The Table below lists drill holes that had intersections exceeding 0.25 gpt gold.
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Phase I - La Tola Drill Hole Assay Results
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| Hole Number |
From |
To |
Interval |
Gold |
|
Meters |
Meters |
Meters |
Feet |
gpt
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| LT-02 |
16.0 |
22.0 |
6.0 |
19.7 |
0.30 |
|
44.0 |
48.0 |
4.0 |
13.1 |
0.54 |
|
62.0 |
108.0 |
46.0 |
150.9 |
0.29 |
| LT-03 |
0.0 |
2.0 |
2.0 |
6.6 |
0.58
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| LT-04 |
0.0 |
18.0 |
18.0 |
59.0 |
1.29 |
| LT-05 |
6.0 |
20.0 |
14.0 |
45.9 |
0.85
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|
44.0 |
50.0 |
6.0 |
19.7 |
0.27 |
| LT-07 |
26.0 |
30.0 |
4.0 |
13.1 |
0.34 |
| LT-08 |
8.0 |
16.0 |
8.0 |
26.2 |
0.36
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| LT-11 |
20.0 |
22.0 |
2.0 |
6.6 |
0.99 |
Drill intervals were calculated utilizing a 0.25 g/t gold cutoff.
The true width of these mineralized intervals are not known as the geometry of mineralization is not yet well enough understood to make a reliable estimate.
Solitario identified and acquired the La Tola property in late-2003 through its successful grassroots exploration program and signed a letter agreement with Newmont in April 2004. Newmont's exploration program has focused on an eight-kilometer long corridor of altered Tertiary volcanic rocks with disseminated and stockwork gold mineralization. Newmont collected approximately 4,000 surface samples, including 3,820 meters of trench and channel samples, and conducted 850 line-kilometers of magnetic geophysical surveys and 102 line-kilometers of IP-geophysical surveys to define drill targets.
Newmont can earn a 51% interest in the La Tola gold property by spending US$7.0 million on exploration and development work over a four-year period. Newmont can earn an additional 14% interest (to a total interest of 65%) by completing a positive feasibility study and arranging 100% of project financing. In addition to its retained participating interest in the project, Solitario retains a sliding scale net smelter return royalty interest on gold and silver production (0 to 2.25% subject to gold price and other conditions).
Solitario is a gold, platinum-palladium, and base metal exploration company actively exploring in Peru, Brazil and Bolivia. Solitario is traded on the Toronto Stock Exchange (TSX: SLR)..
FOR MORE INFORMATION, CONTACT: |
Debbie W. Mino
Director-Investor Relations
(800) 229-6827
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Christopher E. Herald
President & CEO
(303) 534-1030
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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.
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