Solitario Announces Bongará Environmental Permits Approved
Solitario Exploration & Royalty Corp. ('Solitario? - NYSE Amex: XPL;
TSX: SLR) announced that its joint venture partner on its
high-grade Bongará zinc project, Votorantim Metais, has received
environmental permits to proceed with the expanded 2010 exploration and
development activities. The property is located in northern Peru. The
expanded 2010 program includes:
Commencement of 700 meters of underground drifting to access ore and
upgrade resources to reserves
10,000 meters of further surface core drilling to further define
mineralization and to increase resources
Initiation of a 23 kilometer road to access the Bongará deposits
Environmental permits were received for the underground development and
the core drilling programs. Permits for the access road are expected
within two weeks. The initiation of underground access to mineralization
will accelerate underground development of the high-grade zinc deposit
and allow for a greater understanding of orebody geometry. Initially the
underground work will be supported by helicopter transportation of
personnel and materials, until road access is completed. Construction of
additional infrastructure near the underground portal site is planned
for personnel and underground operations. The 10,000 meter core drilling
program will test for new extensions of mineralization, as well as
filling in some areas where there is insufficient drill hole density.
The planned road construction is a major improvement for project
development as access to the deposit has previously occurred via
helicopter and foot-trails.
Chris Herald, President and CEO, stated, 'We are delighted that these
permits were approved in time for the 2010 field season. The proposed
work plan is a major milestone in the advancement of the project. These
activities are critical to the potential development of the project and
will form a significant component to a detailed feasibility study
currently scheduled to begin in 2011. We look forward to reporting
substantial progress on the project throughout the remainder of 2010.?
Terms of the Bongará Agreement
The Bongará property is currently held in a 100%-owned subsidiary of
Solitario, Minera Bongará. Votorantim can earn up to a 70% shareholding
interest in Minera Bongará by completing exploration and development
expenditures totaling at least $18.0 million and by making annual cash
payments of $200,000 to Solitario until a production decision is made or
the agreement is terminated. The option to earn the 70% interest can be
exercised by Votorantim at any time by committing to place the project
into production based upon a feasibility study. Additionally,
Votorantim, in its sole discretion, may elect to terminate the option to
earn the 70% interest at any time. Once Votorantim completes its earn-in
requirements, it has further agreed to finance Solitario's 30%
participating interest until commercial production is achieved.
Solitario will repay the loan facility through 50% of Solitario's cash
flow distributions from the joint operating company.
About Votorantim Metais
Votorantim Metais belongs to a privately-held Brazilian industrial
conglomerate that is a leader in every market segment in which it
operates, including cement, pulp and paper, metals, chemicals, orange
juice, and finance. In 2009, Votorantim Group′s revenues amounted to
US$14.3 billion. The metal business division accounted for approximately
27% of revenues and produces zinc, nickel, steel and aluminum.
Votorantim Metais is the world's third largest primary zinc producer
with three operating zinc smelters, two operating zinc mines and other
zinc processing facilities in the USA and China. It owns the recently
expanded Cajamarquilla zinc smelter and is a major shareholder of
Peruvian zinc producer - Milpo, both located in Peru. The Mineral
Exploration division of Votorantim Metais is actively exploring in
Brazil, Canada, Mexico, Colombia, Peru and Argentina.
About Solitario
Solitario is a gold, silver, platinum-palladium, and base metal
exploration and royalty company actively exploring in Brazil, Mexico,
Peru and Nevada. Besides Votorantim Metais, Solitario has significant
business relationships with Compañía Buenaventura de Minas, Anglo
Platinum and Newmont Mining. Solitario has approximately US$16 million
in cash and marketable securities. Solitario is traded on the NYSE Amex
('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 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 ofSolitario′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 riskssuch 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.
Solitario Exploration & Royalty Corp.
Director ? Investor
Relations
Debbie Mino-Austin, 800-229-6827
or
President &
CEO
Christopher E. Herald, 303-534-1030