Resource and Metallurgy Update For Mt. Hamilton Gold Project

 

DENVER - Solitario Exploration & Royalty Corp. reported updated resource estimate and favorable metallurgical testing results on the Mt. Hamilton gold project in eastern Nevada. A new NI-43-101 compliant Mt. Hamilton resource estimate was completed incorporating both the Centennial and Seligman gold and silver deposits. The resources for these two deposits were previously reported separately; however, drilling completed in 2012 suggests that these two mineralized zones are a single deposit and could be potentially mined by a single pit. The recently completed metallurgical testing on the Seligman area oxide mineralization has shown similar column leach gold recoveries and moderately enhanced silver recoveries compared to the Centennial area mineralization.

The in-pit Measured and Indicated Resource, at a cutoff grade of 0.006 ounces per ton gold, contains approximately 791,000 ounces of gold equivalent (AuEq) using a 60:1 silver-to-gold ratio. An additional Inferred Resource totaling approximately 207,000 AuEq ounces is also estimated within the optimized pit. Gold and silver mineralization is hosted in moderate to strongly oxidized calc-silicate skarn and hornfels and altered granodiorite. The new Mt. Hamilton resource estimate was based --on 857 drill holes with an average hole depth of 396 ft for a total of 317,739 ft 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 Seligman resources to the Indicated category, while also expanding the Seligman resource.

Solitario is currently working on a new mine plan that considers mining the Seligman deposit first as it would require less pre-stripping of waste than previously envisioned in mining only the Centennial deposit. This could advance initial ore delivery by as much as six months, reduce working capital costs, modestly increase initial capital costs and reduce life-of-mine operating costs compared to the 2012 Centennial Feasibility Study mining plan that did not include Seligman mineralization. 2013 fieldwork includes drilling two geotechnical core holes to better design the conveyor adit and vertical ore pass that connects the Mt. Hamilton open pit operations to the heap leach facilities.