Progress On Florida Canyon And Lik Zinc Projects With Drilling On Both
DENVER, CO - Solitario Resources Corp. reported on work programs on the Florida Canyon zinc project in Peru and Lik zinc project in Alaska. Highlights of the planned 2023 program include drilling on both the Florida Canyon and Lik projects, and a new multi-year community agreement at Florida Canyon to support continued exploration. Florida Canyon is held in a joint venture between Solitario (39%) and Nexa Resources (61%), the fifth largest zinc producer in the world (NEXA). The Lik project is held in a joint venture between Solitario (50%) and Teck American Incorporated (50%), a wholly owned subsidiary of Teck Resources Limited, the world's third largest zinc producer (TECK.A, TECK.B, and TECK).
Drilling is expected to begin at Florida Canyon by mid-August. Approximately 4,000 meters of core drilling is planned with the initial exploration targets being extensions of the high-grade Florida Canyon zinc deposit to the south. Additional drilling may be conducted in other areas in and around the Florida Canyon deposit.
Importantly, Nexa recently signed a community agreement that allows for continued exploration on the property to the end of 2025 and paves the way for the completion of an access road to local communities and active project areas. Several communities currently do not have road access and this agreement will significantly improve community safety and provide new opportunities for sustainable commerce in the future.
Permitting is nearly complete to significantly expand the area for drilling in 2024 and beyond. The new application will enlarge the area permitted for drilling by approximately 500 percent where over 80 new drill sites are proposed in areas to the south, east and southeast of the Florida Canyon deposit. Multiple drill holes can be completed from each site. Two multi-kilometer trends identified over the last two years of field work have undrilled high-grade zinc mineralization at surface comparable to the surface mineralization at Florida Canyon.
Chris Herald, President and CEO of Solitario, commented, "It is important to once again be advancing the Florida Canyon project after the significant impacts that Covid had on our work programs during the past several years. Completion of the access road to local communities that currently have no road access demonstrates the social commitment Nexa and Solitario have to improving the social conditions in the areas we work."
Drilling is anticipated to start at Lik in mid-August. Two step-out core holes are planned totaling over 700 meters (2,350 ft.). These two holes test for extensions of previously defined mineralization on the northeastern margin of the currently known resource footprint. In addition, 120 line-kilometers of helicopter-borne ZTEM geophysical surveys will measure conductive features at depth. Flight-lines traversing the entire Lik property position will be spaced every 200 meters. ZTEM is an efficient and cost-effective geophysical method to define deep mineralization and will contribute to a better understanding of the down-dip continuation of the Lik deposit and other potential deeper mineralization below the Kelly River thrust plate.
Solitario owns a 39% interest in the Florida Canyon project with Nexa owning a 61% interest. Nexa can earn a 70% interest in the Florida Canyon project by continuing to independently fund all project expenditures and committing to place the project into production based upon a positive feasibility study. After earning 70%, and at the request of Solitario, Nexa has further agreed to finance Solitario's 30% participating interest for construction through a project loan. Solitario will repay the loan facility through 50% of its net cash flow distributions for production on Florida Canyon joint venture properties.