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Solitario reports high grades from Florida Canyon

Well-supported explorer Solitario Zinc (TSX: SLR) has hit 12.4m at 15.1% zinc-equivalent among the latest highlights from drilling at its high-grade Florida Canyon joint venture in Peru.
Solitario reports high grades from Florida Canyon Solitario reports high grades from Florida Canyon Solitario reports high grades from Florida Canyon Solitario reports high grades from Florida Canyon Solitario reports high grades from Florida Canyon

Exploration continues at Solitario’s Florida Canyon JV in Peru

Staff reporter

The intercept, from 435.3m, also included two higher grade zones of 3.6m and 4.6m averaging about 20% Zn-eq.

Five of the 13 holes reported did not intersect significant mineralisation, however president and CEO Chris Herald said they remained encouraged the majority of holes had.

"The programme continues to focus on near-vertical replacement bodies that can be high-grade and large-tonnage," he said.

The world's fourth-largest zinc miner, Nexa Resources, has a 61% interest in Florida Canyon and can earn 70% by continuing to fund all project expenditures and committing to production, based on a positive feasibility study.

The project has a measured and indicated 2.78 million tonne resource grading 15.1% Zn-eq for 925.3 million pounds and an inferred 9.07Mt at 12.44% Zn-eq for 2.5 billion pounds.

A 2017 preliminary economic assessment outlined initial capex of US$214 million with an after-tax NPV (8% discount) of $198 million and an IRR of 24.7%, for a 12.5-year mine producing an average annual 111.7Mlb of zinc, 12.6Mlb of lead and 160,000 ounces of silver.

Solitario also has a 50:50 joint venture with Teck at its Lik zinc project in Alaska.

The company said it had about $10 million in cash and marketable securities this month.

Its shares gained 5.3% or C2c yesterday to close at 39.5c, a midpoint in its 52-week range, capitalising it about $23 million (US$17.4 million).