DENVER--(BUSINESS WIRE)--Solitario Zinc Corp. (“Solitario;” NYSE American: XPL; TSX: SLR) is pleased to announce that is has initiated metallurgical testing to determine the potential to recover silver at its recently acquired Lik zinc project in Alaska. The Lik resource, besides being a high-grade zinc deposit, contains a significant silver inventory that averages about 50 grams per tonne silver. Metallurgical testing to date has focused on the recovery of zinc and lead with virtually no work conducted on silver recovery.
In the 2014 Lik PEA, the economic model assumed less than 5% silver recovery in the zinc and lead concentrates combined. With approximately 29.1 million ounces of silver in the Indicated Resource category, and another 6.5 million ounces in the Inferred Resource category, there is potential for a significant benefit to project economics if silver recoveries can be improved. Solitario has engaged RDI Resource Development Inc. to manage the metallurgical test work. This initial phase of test work is estimated to be completed in the fourth quarter of 2017.
Chris Herald, President and CEO of Solitario, commented, “We are excited about the potential to increase the recovery of a significant portion of this large inventory of silver contained in the high-grade Lik zinc deposit. The metallurgical program will involve a series of tests to determine if silver can be recovered either within a floatation product or by standard cyanidation methods. We believe there is only upside potential to this test program as the current economic modeling of the project estimated less than 5% payable silver recoveries.”
Lik Mineral Resource Estimate (100% basis) – December 31, 2013
|
Location (Cut-off) |
Ag | Contained Ag | % Zn-Eq. | Zn-Eq. | ||||||||||
|
Indicated–Open Pit |
Mt | % Zn | % Pb | g/t | Millions of Oz. | Grade* | Millions lbs. | |||||||
|
Lik South (5%) |
16.85 | 8.0 | 2.7 | 50 | 27.1 | 11.9 | 4,432 | |||||||
| Lik North (5%) | 0.44 | 10.0 | 2.8 | 59 | 0.8 | 14.2 | 138 | |||||||
| Indicated-Underground | ||||||||||||||
| Lik South (7%) | 0.69 | 8.0 | 3.2 | 51 | 1.1 | 12.4 | 188 | |||||||
| Lik North (7%) | 0.13 | 8.9 | 2.9 | 38 | 0.2 | 12.7 | 36 | |||||||
| Sub-Total | 18.11 | 8.1 | 2.7 | 50 | 29.1 | 12.0 | 4,795 | |||||||
| Inferred-Open Pit | ||||||||||||||
| Lik South (5%) | 0.74 | 7.7 | 1.9 | 13 | 0.3 | 9.9 | 161 | |||||||
| Lik North (5%) | 2.13 | 8.9 | 2.9 | 46 | 3.2 | 12.9 | 604 | |||||||
| Inferred –Underground | ||||||||||||||
| Lik South (7%) | 0.51 | 7.0 | 1.6 | 11 | 0.2 | 8.7 | 98 | |||||||
| Lik North (7%) | 1.96 | 9.2 | 3.0 | 46 | 2.9 | 13.2 | 572 | |||||||
| Sub-Total | 5.34 | 8.7 | 2.7 | 38 | 6.5 | 10 | 1,436 | |||||||
| CIM Definitions were followed for Mineral Resources | ||||||||||||||
| Mineral Resources were estimated using an average long-term zinc price of $1.20/lb., lead price $1.20 per pound and silver price of $27/oz. | ||||||||||||||
| A density value of 3.5 g/cubic cm. | ||||||||||||||
|
*Zinc-Equivalent Grade based upon the following metal prices: $1.00 Zn, $0.90 Pb and $20 Ag |
|
Source: Preliminary Economic Assessment Technical Report – Zazu Metals Corporation, Lik Deposit Alaska, USA dated April 23, 2014 and effective March 3, 2014, prepared by Robert L. Matter and Tony Loschiavo, P. Eng. (JDS Energy and Mining, Inc.), Neil Gow, P. Gee. (Roscoe Postle Associates, Inc.) and Michael Travis, PE (Travis Peterson Environmental Consulting, Inc.) |
Florida Canyon Zinc Project – Zinc Price Sensitivity Chart Correction
The Company also wishes to correct the “Florida Canyon Zinc Project (100% Basis, US$) Zinc Price Sensitivity” chart provided in its news release dated August 2, 2017. The corrected Pre-Tax and After-Tax numbers only pertain to those numbers related to a zinc price of $1.40. The corrected chart is provided below with the corrected numbers in bold.
| Florida Canyon Zinc Project (100% Basis, US$) | ||||||||||||||||||||
| Zinc Price Sensitivity (Pb: $1.00/lb, Ag: $16.50/oz) | ||||||||||||||||||||
| Zn Price | $1.00 | $1.10 | $1.20 | $1.30 | $1.40 | |||||||||||||||
| Pre-Tax | After-tax | Pre-Tax | After-tax | Pre-Tax | After-tax | Pre-Tax | After-tax | Pre-Tax | After-tax | |||||||||||
| FCF ($millions) | 408 | 267 | 535 | 352 | 662 | 437 | 788 | 521 | 914 | 605 | ||||||||||
|
NPV8% |
187 | 96 | 263 | 147 | 339 | 198 | 414 | 248 | 490 | 298 | ||||||||||
| IRR | 24.5% | 17.0% | 29.7% | 21.0% | 34.5% | 24.7% | 38.9% | 28.1% | 43% | 31.3% | ||||||||||
All other numbers provided in the above referenced chart were correct in the August 2, 2017 release and all numbers provided in the filed Florida Canyon Technical Report are correct. This news release has been reviewed and approved by Walter H. Hunt, COO, a Non-Independent QP for Solitario under National Instrument 43-101 (“NI 43-101”).
About Solitario
Solitario is an emerging zinc exploration and development company traded on the NYSE American (“XPL”) and on the Toronto Stock Exchange (“SLR”). Besides Solitario’s joint venture with Milpo on its high-grade Florida Canyon zinc project in Peru, Solitario also holds a 50% joint venture interest (Teck Resources Ltd. holds the other 50% interest) in the high-grade, open pitable Lik zinc deposit in Alaska, and a 7.6% equity interest in Vendetta Mining. Solitario’s Management and Directors hold approximately 9.2% (excluding options) of the Company’s 58.45 million shares outstanding. Solitario’s cash balance and marketable securities stand at approximately US$15 million. Additional information about Solitario is available online at www.solitariozinc.com
