Solitario Exploration & Royalty Corp. (“Solitario;” NYSE MKT: XPL;
TSX: SLR) and Ely Gold & Minerals (“Ely Gold;” TSX.V: ELY)
are pleased to announce the results of a gold price sensitivity study on
Mt. Hamilton resources. Resource estimates were tabulated using three
gold/silver price assumptions for the confining optimized pit shape:
$1,100/$19, $1,300/$22 and $1,500/$25 per ounce. The study showed that
the contained ounces in the Mt. Hamilton gold/silver resource is
relatively insensitive to gold price assumptions between $1,100 to
$1,500 and silver prices between $19 and $25 per ounce as presented in
the tables below. The cutoff grade of 0.006 ounces per ton gold was held
constant for the reporting of the three price scenarios.
The Measured and Indicated resource estimate for the February 2012
Feasibility Study assumed a gold price of $1,600 and resulted in 526,854
ounces of contained gold (excluding silver). With the addition of the
Seligman resource and additional drilling conducted since the
Feasibility Study was completed, the new Measured and Indicated resource
estimate using an $1,100 per ounce gold price resulted in a 21% increase
in contained gold to 638,490. In addition, Inferred in-pit resources
increased 105% from 60,859 contained ounces of gold in the Feasibility
Study to 124,806 contained gold ounces generated under the new lower
case $1,100 gold price assumption.
Chris Herald, President and CEO of Solitario, stated, “We are extremely
pleased with the results of this study which basically represents a gold
price stress-test on the Mt. Hamilton resource base. Clearly, the work
conducted by the joint venture since the release of the February 2012
Feasibility Study has added significant new value to the project. Under
the $1100/$19 per ounce gold/silver price assumption, the Measured and
Indicated gold equivalent resource stands at 730,477 ounces of gold
equivalent. We believe that with the design of our new mine plan
combining the Centennial and Seligman deposits into a single pit (http://www.solitarioxr.com/art/Seligman-CentennialResourceModel.pdf),
and increasing our production rate from 8,500 to 10,000 tons per day,
project economics will remain robust at lower metal prices.”
These new resource estimates were prepared on behalf of Solitario by SRK
Consulting (U.S.) Inc. (“SRK”) and serve to update the previous resource
estimate for the Mt. Hamilton Project stated in the most recent October
25, 2012 Technical Report. The updated Mount Hamilton resource estimates
were constrained by potentially minable optimized pits using gold price
assumptions of $1,100, $1,300 and $1,500 per ounce of gold and $19, $22
and $25.00 per ounce of silver. These new Mt. Hamilton resource
estimates were based on 857 drill holes with an average hole depth of
396 feet for a total of 317,739 feet of drilling. The drill data were
verified and validated by SRK in compliance with NI-43-101 requirements.
This consolidated Mt. Hamilton resource estimate includes 60 new infill
drill holes that converted earlier Inferred resources to the Indicated
category, and added new ounces to the resource estimate.
Mineral Resource Statement, Mount Hamilton Gold-Silver Deposit,
White
Pine County, Nevada, September 19, 2013
|
Mt. Hamilton Resources at $1,100 Gold and $19 Silver
|
Class
|
|
|
K-Tons
|
|
|
Au (opt)
|
|
|
Ag (opt)
|
|
|
Au Eq. (opt)
|
|
|
Au Total (ounces)
|
|
|
Ag Total (ounces)
|
|
|
Au Eq. (ounces)
|
Measured
|
|
|
1,424
|
|
|
0.030
|
|
|
0.209
|
|
|
0.033
|
|
|
42,145
|
|
|
297,992
|
|
|
47,112
|
Indicated
|
|
|
27,177
|
|
|
0.022
|
|
|
0.192
|
|
|
0.025
|
|
|
596,345
|
|
|
5,221,205
|
|
|
683,365
|
M&I
|
|
|
28,601
|
|
|
0.022
|
|
|
0.193
|
|
|
0.026
|
|
|
638,490
|
|
|
5,519,197
|
|
|
730,477
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inferred
|
|
|
6,792
|
|
|
0.018
|
|
|
0.164
|
|
|
0.021
|
|
|
124,806
|
|
|
1,025,934
|
|
|
141,905
|
|
Mt. Hamilton Resources at $1,300 Gold and $22 Silver
|
Class
|
|
|
K-Tons
|
|
|
Au (opt)
|
|
|
Ag (opt)
|
|
|
Au Eq. (opt)
|
|
|
Au Total (ounces)
|
|
|
Ag Total (ounces)
|
|
|
Au Eq. (ounces)
|
Measured
|
|
|
1,426
|
|
|
0.030
|
|
|
0.209
|
|
|
0.033
|
|
|
42,076
|
|
|
298,287
|
|
|
47,048
|
Indicated
|
|
|
29,430
|
|
|
0.021
|
|
|
0.193
|
|
|
0.025
|
|
|
630,441
|
|
|
5,682,686
|
|
|
725,153
|
M&I
|
|
|
30,856
|
|
|
0.022
|
|
|
0.194
|
|
|
0.025
|
|
|
672,518
|
|
|
5,980,973
|
|
|
772,200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inferred
|
|
|
9,152
|
|
|
0.018
|
|
|
0.164
|
|
|
0.020
|
|
|
161,352
|
|
|
1,514,723
|
|
|
186,597
|
|
Mt. Hamilton Resources at $1,500 Gold and $25 Silver
|
Class
|
|
|
K-Tons
|
|
|
Au (opt)
|
|
|
Ag (opt)
|
|
|
Au Eq. (opt)
|
|
|
Au Total (ounces)
|
|
|
Ag Total (ounces)
|
|
|
Au Eq. (ounces)
|
Measured
|
|
|
1,428
|
|
|
0.029
|
|
|
0.209
|
|
|
0.033
|
|
|
42,120
|
|
|
298,313
|
|
|
47,092
|
Indicated
|
|
|
30,450
|
|
|
0.021
|
|
|
0.193
|
|
|
0.024
|
|
|
645,626
|
|
|
5,889,601
|
|
|
743,786
|
M&I
|
|
|
31,878
|
|
|
0.022
|
|
|
0.194
|
|
|
0.025
|
|
|
687,746
|
|
|
6,187,914
|
|
|
790,878
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inferred
|
|
|
10,330
|
|
|
0.017
|
|
|
0.164
|
|
|
0.020
|
|
|
178,798
|
|
|
1,685,962
|
|
|
206,898
|
The following notes pertain to all three of the above resource charts:
-
Mineral Resources are not Mineral Reserves and do not have
demonstrated economic viability. There is no certainty that any part
of the Mineral Resources estimated will be converted into Mineral
Reserves estimate;
-
Resources stated as contained within a potentially economically
minable open pit; pit optimization was based on assumed gold and
silver prices stated in each chart, effective heap leach recoveries of
79.3% for gold, and 39.3% for silver, an average ore mining and a
processing cost of US$6.04/t; and pit slopes of 50°;
-
Resources are reported using a 0.006 ounce per short ton gold cutoff
grade;
-
Gold Equivalent (AuEq) was calculated using a Ag:Au ratio of 60:1;
differences in gold and silver recoveries were not considered in
calculating the AuEq grade or contained AuEq ounces; and
-
Numbers in the table have been rounded to reflect the accuracy of the
estimate and may not sum due to rounding.
The Feasibility Study and the Seligman NI-43-101 Seligman resource
estimate were prepared by SRK Consulting (U.S.), Inc., an independent
and internationally recognized consulting firm. The Feasibility Study
provides mineral resource and mineral reserve estimates, and a
classification of resources and reserves in accordance with the Canadian
Institute of Mining, Metallurgy and Petroleum Standards on Mineral
Resources and Mineral Reserves: Definitions and Guidelines, November 27,
2010 (CIM). It also meets the standards of the U.S. Securities and
Exchange Commission Industry Guide 7 for estimating and reporting
reserves. This release has been reviewed for accuracy by Mr. J. B.
Pennington of SRK and for Solitario by Walter Hunt, Chief Operating
Officer, both of whom are “qualified persons” as that term is defined in
NI 43-101.
Cautionary Note to U.S. Investors concerning estimates of Resources:
This news release uses the terms “Measured, Indicated and Inferred
Resources.” The Company advises U.S. investors that while these terms
are recognized and required by Canadian regulations, the SEC does not
recognize the terms. U.S. investors are cautioned not to assume
that any part or all of Measured or Indicated Mineral Resources will
ever be converted into Reserves. Inferred Resources have a great
amount of uncertainty as to their existence, and great uncertainty as to
their economic and legal feasibility. It cannot be assumed that all or
any part of an Inferred Mineral Resource will ever be upgraded to a
higher category. Under Canadian rules, estimates of Inferred Mineral
Resources may not form the basis of feasibility or pre-feasibility
studies, except in rare cases. U.S. investors are cautioned not
to assume that any part or all of a measured, indicated or
inferred resource exists, or is economically or legally minable.
Terms of the Mt. Hamilton LLC Joint Venture
Solitario and Ely Gold formed 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”). Solitario holds an
80% interest in MH-LLC, and DHI-US. Ely Gold’s wholly owned US
subsidiary, holds a 20% interest in MH-LLC. Further Solitario
obligations include arranging project financing, and making future
property and advanced royalty payments.
About Solitario
Solitario is a gold, silver, platinum-palladium, and base metal
exploration and royalty company actively exploring in Brazil, Mexico,
and Peru. Solitario has significant business relationships with
Votorantim Metais on its high-grade Bongará zinc project in Peru,
Hochschild Mining on its Pachuca Norte silver-gold project in Mexico and
Anglo Platinum on its Pedra Branca platinum-palladium 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.
About Ely Gold
Ely Gold is focused on the acquisition and development of gold resources
in Nevada, including its recently acquired Green Springs property, 10
miles south of Mt. Hamilton. Ely Gold is traded on the TSX Venture
Exchange ("ELY"). Additional information about Ely Gold is available
online at www.elygoldandminerals.com.
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.
Cautionary Statement Regarding Forward Looking Information
This press release contains forward-looking statements within the
meaning of the U.S. Securities Act of 1933 and the U.S. Securities
Exchange Act of 1934, and as defined in the United States Private
Securities Litigation Reform Act of 1995 (and the equivalent under
Canadian securities laws), that are intended to be covered by the
safe harbor created by such sections. Forward-looking statements are
statements that are not historical fact. They are based on the beliefs,
estimates and opinions of the Company's management on the date the
statements are made and address activities, events or developments that
Solitario expects or anticipates will or may occur in the future, and
are based on current expectations and assumptions. Forward-looking
statements involve a number of risks and uncertainties. Consequently,
there can be no assurances that such statements will prove to be
accurate and actual results and future events could differ materially
from those anticipated in such statements. Such forward-looking
statements include, without limitation, statements regarding the
Company’s expectation of the projected timing and outcome of engineering
studies; expectations regarding the receipt of all necessary permits and
approvals to implement the mining plan at Mt. Hamilton; the potential
for confirming, upgrading and expanding oxide gold and silver
mineralized material at Mt. Hamilton; reserve and resource estimates;
operating cost estimates; estimates of gold and silver grades; estimates
of recovery rates; expectations regarding the cash flow generated by the
property; and other statements that are not historical facts. Although
Solitario management believes that its expectations are based on
reasonable assumptions, it can give no assurance that these expectations
will prove correct. Important factors that could cause actual
results to differ materially from those in the forward-looking
statements include, among others, risks relating to risks that
Solitario’s exploration and property advancement efforts will not be
successful; risks relating to fluctuations in the price of gold and
silver; the inherently hazardous nature of mining-related activities;
uncertainties concerning reserve and resource estimates; availability of
outside contractors in connection with Mt. Hamilton and other
activities; uncertainties relating to obtaining approvals and permits
from governmental regulatory authorities; the possibility that
environmental laws and regulations will change over time and become even
more restrictive; and availability and timing of capital for financing
the Company’s exploration and development activities, including
uncertainty of being able to raise capital on favorable terms or at all;
as well as those factors discussed in Solitario’s filings with the U.S.
Securities and Exchange Commission (the “SEC”) including
Solitario’s latest Annual Report on Form 10-K and its other SEC filings
(and Canadian filings) including, without limitation, its latest
Quarterly Report on Form 10-Q. The Company does not intend to publicly
update any forward-looking statements, whether as a result of new
information, future events, or otherwise, except as may be required
under applicable securities laws.
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