LATIN AMERICA — Solitario drills prospects

Drilling by Solitario Resources (SLR-T) has intersected narrow intervals of high-grade gold mineralization at the Canada Onda prospect in Argentina.

The Denver-based company said high-grade gold was intersected in three separate structural zones at Canada Onda. The company is earning a 75% interest in this project from a private Argentine company by spending US$1 million over five years.

Selected assay results from the recent drill program include: 2 metres grading 41.47 grams gold per tonne; 2 metres of 115.3 grams gold; 10 metres of 15.56 grams; 4 metres of 1.52 grams; 10 metres of 3.69 grams; 2 metres of 16.33 grams; and 32 metres of 1.12 grams (which includes 2 metres of 5.59 grams).

Mineralization occurs both in Tertiary alkalic volcanics and Precambrian metamorphic rocks adjacent to the volcanics. The true width of the intervals reported above is about 50%, as the mineralization occurs in near-vertical structures. The company notes that the drill holes also contained intervals of lower-grade disseminated gold mineralization.

Another round of drilling is planned for Canada Onda.

Meanwhile, at the company’s Santa Barbara project in Peru, drilling has encountered thick intercepts of copper-gold mineralization in a copper-gold porphyry system.

The best hole, 10, encountered 210 metres grading 0.38% copper and 0.27 gram gold.

Solitario is earning a 60% interest in Santa Barbara from Rio Tinto (RTP-N) by spending US$5 million on exploration over three years.

The major did some work on the Peruvian property, which defined a zone that measures 550 by 300 metres in areal extent.

The average thickness of the zone is 166 metres, starting at surface, with grades averaging 0.34% copper and 0.38 gram gold per tonne.

Other results from Solitario’s drilling at Santa Barbara are: 168.4 metres of 0.26% copper and 0.34 gram gold; 183.6 metres of 0.31% copper and 0.57 gram gold; 314 metres of 0.37% copper and 0.42 gram gold; 121.9 metres of 0.38% copper and 0.28 gram gold; and 156 metres of 0.29% copper and 0.34 gram gold.

Solitario has other mineral projects in Latin America, including the promising Bongara zinc project in Peru, which is being drilled by partner Cominco (clt-t). Assay results from this work are expected shortly.

In early 1998, Solitario will launch a drilling program at El Tigre, a gold property in northwestern Peru.

Solitario is owned 57.6% by Crown Resources (CRO-T).