PRETORIA, South Africa (ResourceInvestor.com) -- Solitario Resources Corp. [Amex:XPL; TSX:SLR] on Sept. 20 announced encouraging initial results of a drilling programme being conducted by joint venture partner Newmont Mining Corp. [NYSE: NEM] at its Pachuca Real silver-gold mining project in one of Mexico's historically significant mining districts, as well as its wholly-owned and operated Triunfo project in west-central Bolivia.
"The drilling results at Pachuca Real are extremely important as this drilling is conducted within one of the world's greatest silver districts with over 1.4 billion ounces of past silver production and 7 million ounces of gold," Christopher E. Herald, Solitario Resources CEO, told Resource Investor.
"At Triunfo, the exceptional width (80 to 90 meters) of polymetallic mineralization suggests that a large tonnage potential exists and that additional drilling is definitely warranted," he added.
Viva Pachuca!
Solitario's property encompasses about 35% of central Mexico's historic Pachuca-Real Monte mining district and more than 95% of potential extensions in the North District to the north and northwest, according to company information.
Newmont recently completed nine core holes totaling 3,368 meters targeting veins lying beneath broad areas of high-level surface clay alteration at Pachuca Real. The nine holes were drilled on nine separate prospects. Two intersected significant silver-gold mineralisation. Anomalous mineralisation was intersected at all of the other seven.
The two holes showing the highest grades, PAC-08 and PAC-09, intersected 0.9 meters of mineralisation grading 2.03 grams/ton gold and 754 grams/ton silver and 0.5 meters grading 0.75 g/t gold and 468 g/t silver, respectively. Both are located in the central part of Solitario's 46,350-hectare block claim.
"The area of active exploration has never been drill tested as it had been locked up by the Mexican government for the past 50 years. The initial results appear to show identical geology and the same style of high-grade silver-gold mineralization," Herald told Resource Investor.
Newmont is currently defining additional drill targets at Pachuca Real and will resume a major new drilling campaign early in 2008, according to Herald. "With numerous untested drill targets, the potential for future exploration success is high," he commented.
Triunfo Posible
Solitario recently conducted the first drilling to take place on the Triunfo property, about 80 km east of La Paz in west-central Bolivia. Three holes were drilled to explore polymetallic veinlets in bedding planes consisting of lead, zinc, silver and gold hosted in sedimentary rock.
Results for two of the drill holes indicated the presence of "wide and consistently mineralized zones that are near surface," according to Solitario's press release. Average economic values came in at about 39% for lead, 29% for zinc, 19% for silver and 13% for gold. Results from the third hole are being processed.
Occurring at the crest of an antiformal fold with "moderately intense fracturing parallel to the fold axis," management believes there is potential of a large tonnage deposit.
Solitario will conduct additional drilling and initial metallurgy over the next six months.
"For the foreseeable future, Solitario will independently explore Triunfo, but will most likely seek a joint venture partner down the road when we have better defined the scope of the deposit at Triunfo," Herald commented.
Big Drilling Programme in Effect
Solitario in June announced that it would undertake the largest drilling campaign in its history entailing a planned total of 25,000 meters on six separate projects located in Mexico (Pachuca Real), Brazil (the Pedra Branca platinum-palladium project), Peru (the Bongara zinc-lead project) and Bolivia (the Triunfo poly-metallic project).
More than 80% of the drilling programme's costs are to be funded entirely by three of Solitario's joint venture partners: Newmont Mining at Pachuca Real, Anglo Platinum at Pedra Branca and Votorantim Minerals at Bongara. The remaining 20% will take place at project sites wholly owned by Solitario and will be funded by the company.
Newmont stands to earn a 51% equity stake in Pachuca Real by spending US$12 million on exploration and development over a 4 1/2-year period. It can boost that to 65% by completing a positive feasibility study.
Similarly, Anglo Platinum [NasdaqCM:AAUK] stands to earn a 51% interest in Solitario's Pedra Branca platinum-palladium project in Brazil's Ceara State by spending US$7 million on exploration by the end of February 2010 and an additional 9% by either completing a bankable feasibility study or spending an additional US$10 million on exploration or development.
Solitario recently completed a 3,251-meter drilling programme at Pedra Branca. Results are expected shortly.
Votorantim Metals can earn up to a 70% interest in Solitario's Bongara zinc-lead project in northern Peru's Amazonas department by funding US$18 million in exploration and development, making annual cash payments to Solitario and committing to putting the project into production based on a feasibility study.
Votorantim began a planned 14,500-meter drilling programme at Bongara in late-August using core rigs. The program is due to be completed by year-end.
