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News Library:
Anglo American Platinum Corp To Proceed With Phase II Exploration On Solitario's Pedra Branca PGM Project
July 29, 2004
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Denver, Colorado: Solitario Resources Corporation ("Solitario") announced today that Anglo American Platinum Limited ("Anglo Platinum") has elected to proceed with funding Phase II exploration on Solitario's Pedra Branca platinum-palladium ("PGM") property in northeastern Brazil. As part of Anglo Platinum's election to proceed, the original Letter Agreement was amended to provide Anglo Platinum with an additional four months (from six months to ten months) to complete the US$500,000 Phase II exploration program.
Terms of the amended agreement call for Anglo to fund the following work programs to earn its interests:
| Exploration Period |
Expenditure
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Anglo's Earned
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Commitment
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Interest At End of
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For Period ($US)
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Commitment Period
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| Phase I (six months) |
$500,000– complete
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0%
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| Phase II (ten months) |
$500,000– underway
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0%
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| Second year |
$1,250,000– optional
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15%
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| Third year |
$1,750,000– optional
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30%
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| Fourth year |
$3,000,000– optional
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51%
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| Total Expenditure Commitment |
$7,000,000
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51%
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Upon completion of the staged $7.0 million work commitment, Anglo Platinum will have the right to earn an additional 9% interest (to 60% total interest) by completing a bankable feasibility study within 18 months of earning its 51% interest. Anglo Platinum can earn a further 5% interest (to 65% total interest) by arranging 100% of the project financing necessary to place the project into commercial production.
Anglo Platinum is the world's largest primary producer of platinum with over 2.3 million ounces of annual production in 2003 that is intended to grow to 2.9 million ounces by the end of 2006. The Pedra Branca project is an advanced exploration project with 15 PGM prospects thus far identified in a district covering an area 50 kilometers long and 15 kilometers wide.
Work conducted by Solitario, and the more recent exploration funded by Anglo Platinum, has advanced ten significant PGM targets to the drill definition stage. The Esbarro prospect is the most advanced with 85 drill holes defining a shallow mineralized zone nearly 800 meters long and up to 200 meters wide. Drill hole intersections within this zone often exceed 2.5 grams per tonne PGM. Location maps and drill hole cross sections for these prospects are available on the company's web site at: (http://www.solitarioresources.com).
Solitario will continue to act as project manager for the Phase II exploration program expected to commence in September 2004. Chris Herald, President and CEO of Solitario, stated, "We are very please that that Anglo Platinum has decided to fund the Phase II exploration program designed to further test Pedra Branca's potential to host economic PGM mineralization. We remain optimistic about the future of both the platinum and palladium markets which are critical to lowering automobile exhaust emissions and fuel cell development."
In other developments, on July 26, 2004, Crown Resources Corporation, Solitario's former largest shareholder, completed the distribution of its holdings in Solitario to its common shareholders. Solitario is a PGM, gold and base metal exploration company actively exploring in Peru, Brazil, Bolivia, Mexico and Nevada (USA). Solitario is traded on the Toronto Stock Exchange under the symbol 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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