Solitario reports high grade zinc and lead at Bongara project

Solitario Exploration & Royalty Corp. (TSE:SLR) Wednesday reported "outstanding" zinc and lead drill results of the 2011 drill program on the high-grade Bongara joint venture project in Peru.   

The company, headquartered in Colorado, has received assay results from 18 surface holes as well as five underground drill holes, with tests from a number of holes pending. 

Solitario said 14 of the 18 holes intersected strong mineralized intervals as surface drilling focused on the Karen-Milagros zone located in the northern part of the Florida Canyon mineralized system, while underground drilling was performed in the San Jorge zone in the south-western portion of the Florida Canyon.  

Significant drill results include: underground drill hole V-240 recovering zinc and lead grading of 13.45 percent over 26.85 metres, and 11.4 percent zinc plus lead over 32.1 metres in hole V-244. 

Surface drill hole V-234 recovered 24.1 percent of zinc and lead over 5.9 metres, and 14.9 percent of zinc plus lead over 7.2 metres in hole V-235. 

Solitario chief executive Chris Herald said: "Drilling results continue to come in strong adding both new resources and increasing the confidence level of existing resources.  

"The Bongará project has advanced to a new and exciting stage with the onset of detailed underground drilling, augmenting the continuation of surface exploration."

The 2011 program was managed and funded by Solitario’s joint venture partner Votorantim Metais, the company added. 

Additionally, Votorantim will be advancing the project through pre-feasibility by year’s end, including more surface and underground drilling. 

Votorantim Metais can earn a 70 percent stake in the project by committing to place the project into production based on a positive feasibility study. 

Votorantim can boost its interest to 100 percent if it agrees to finance Solitario’s 30 percent stake for construction, which the company said it would repay through cash-flow distributions.

Shares of Solitario nudged up by four cents, or 2.86 percent, climbing to $1.45 each today on Toronto’s main trading index.