Solitario Reports Significant Drilling Results On Its Mt. Hamilton Gold Project, Nevada Plans Additional 2011 Drilling Program
June 2, 2011
Denver, Colorado: Solitario Exploration & Royalty Corp.
("Solitario;" NYSE Amex: XPL; TSX: SLR) and Ely Gold & Minerals
("Ely Gold;" TSX.V: ELY) are pleased to announce the remaining results
from its core drilling program completed in the first quarter of 2011 on
its advanced Mt. Hamilton gold project located at the southern end of
the prolific Battle Mountain gold trend, Nevada. Based on these
results, additional drilling is planned for mid-2011.
Highlights of the most recent drill results include MH10-09 and MH11-02
on the eastern perimeter of the resource containing 81.2meters (266.5
feet) of 1.93 grams per tonne gold equivalent ("g/t Au Eq") and 60.9
meters (199.9 feet) of 1.66 g/t Au Eq, respectively. These two holes
are depicted on cross sections that can be accessed at:
http://www.solitarioxr.com/art/110601CentennialXSectRev03.pdf. Additionally, an infill hole (MH11-01) in an area of sparse drilling reported 102.5 meters (336 feet) of 1.13 g/t Au Eq.
The project is a joint venture between Solitario and Ely Gold. The
eleven-hole, 6,250-foot core drilling program was designed to provide
feasibility-level geotechnical, metallurgical, hydro-geologic and
additional resource information at Mt. Hamilton's Centennial gold
deposit. A Feasibility Study for production at Centennial is targeted
for completion by the end of the third quarter of 2011.
Holes MH-10-01, 05 and 08 were geotechnical holes for the collection of
data for pit slope studies and were not designed to intersect
mineralization. The remaining holes in-filled existing resources or
tested the perimeter of the previously drilled area.
Chris Herald, President and CEO of Solitario commented, "The purpose of
this program was primarily to provide information for the preparation of
our Feasibility Study on the Centennial Deposit at Mt. Hamilton. The
results of the last three holes, however, confirm our belief that the
higher grade portion of the deposit remains open to the east with
increasingly strong mineralization. This potential to expand resources
at the Centennial Deposit is enhanced by significant geochemical data
supporting other drill targets at Mt. Hamilton in the immediate area of
the planned open pitable deposit. We are looking forward to testing
these targets in upcoming drill programs."
"Solitario continues to fast track the Mt Hamilton project towards
production, stated Trey Wasser, Ely Gold's President & CEO. These
outstanding results combined with the recently permitted geotech
drilling will be incorporated in a bankable feasibility this fall."
Mt. Hamilton Project
Centennial Gold Deposit Drill Results, 2010-2011 Program
All drill thicknesses are thought to represent at least a 90% true thickness of the mineralized interval.
Assumed silver to gold ratio is 50:1. opt=ounces per short ton; g/tn=grams per metric tonne
"*" holes previously reported on February 7, 2011.
Planned 2011 Drilling Program
Plans are well advanced for additional drilling at Mt. Hamilton for the
third quarter of 2011. An additional 12 holes are planned to test the
eastern extension of mineralization that remains open to expansion and
to infill a couple of areas within the deposit. Another 20 holes are
planned in the Chester prospect area where limited past drilling
intersected strong near-surface gold mineralization.
Terms of the Mt. Hamilton LLC Joint Venture
Solitario and Ely Gold formed the Mt. Hamilton LLC ("MH-LLC"), a limited
liability company which now holds 100% of the Mt. Hamilton project
assets under an Operating Agreement ("MH-Agreement"). Per the terms of
the MH-Agreement, DHI-US, Ely Gold's wholly owned US subsidiary,
currently has a 90% initial interest in the MH-LLC and Solitario has a
10% initial interest. Solitario can earn up to an 80% interest in the
MH-LLC by completing a feasibility study, arranging project financing,
and making future property and advanced royalty payments.
The drill hole information contained within this release is reported
under a quality control program supervised by Mr. Walt Hunt, Chief
Operating Officer for Solitario, who is a qualified person as defined by
National Instrument 43-101. He has verified the drill results and
other data disclosed in this new release, including sampling, analytical
and test data. 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 and analyzed by American Assay
Laboratories, Reno, Nevada, an ISO9001:2000 registered company. In
addition to the laboratory's quality control program, a check assay
program is ongoing.
Solitario is a gold, silver, platinum-palladium, and base metal
exploration and royalty company actively exploring in Brazil, Mexico,
Peru and Nevada. Solitario has significant business relationships with
Votorantim Metais, Compañia de Minas Buenaventura S.A.A., Anglo
Platinum, and Newmont Mining. Solitario has approximately US$14 million
in net 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.
About Ely Gold
Ely Gold is focused on the acquisition and development of gold resources
in North America. The Company is currently working toward production
from the Centennial Gold Deposit, a project located on the Company's
100% owned Mount Hamilton property. Ely Gold is traded on the TSX
Venture Exchange ("ELY"). Additional information about Ely Gold is
available online at
FOR MORE INFORMATION AT SOLITARIO, CONTACT:
Director -- Investor Relations
Christopher E. Herald
President & CEO
FOR MORE INFORMATION AT ELY GOLD, CONTACT:
President & CEO
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 and the
United States Securities and Exchange Commission.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.