Solitario cuts PGM mineralization at Pedra Branca in Brazil

Vancouver — Solitario Resources (SLR-T) has intersected additional platinum-palladium mineralization on two prospects at its Pedra Branca project in Brazil.

Significant mineralization was intersected in 10 of the 13 holes drilled there late in 2001. The mineralization was encountered in the Cedro area and is said to extend into the Trapia 1, Trapia West and Curiu prospects.

Solitario believes the Pedra Branca property hosts several discrete, moderately sized, platinum group metal (PGM) deposits. With that in mind, the company is planning a second phase of drilling to test the newly discovered Santo Amaro prospect.

The Cedro area hosts at least six prospects in an area that measures 2.5 by 1 km. These are about 14 km north of the Trapia area and 3 km west of the extensively drilled Esbarro zone.

The largest target in the Cedro area is the Cedro-2 zone, where Solitario drilled three holes, all of which cut mineralization. Hole CD-3 intersected 9.1 metres grading 3.71 grams combined platinum, palladium and gold, plus 18.2 metres in a second zone that assayed 1.52 grams combined platinum, palladium and gold. Hole CD-4 was collared 100 metres south of CD-3 and intersected 5.2 metres grading 4.55 grams combined platinum, palladium and and gold. Hole CD-5 was drilled 350 metres east and downdip of holes CD-3 and 4 and cut 4 metres grading 1.06 grams combined platinum, palladium and gold, and a second zone graded 1.32 grams over 28.9 metres. The zone remains open to expansion in both directions along strike and downdip.

At the Cedro-3 prospect, holes CD-6 and -7 intersected a narrow interval of mineralization. Additional surface work will attempt to define targets in this area.

At the Cedro-4 prospect, holes CD-1 and CD-2 were drilled about 350 metres apart. Hole CD-1 intersected 1.9 metres grading 1.73 grams combined PGMs plus gold followed by a 15-metre interval that averaged 0.98 gram combined PGMs plus gold. Hole CD-2 cut a moderately thick unit of ultramafic rock with only anomalous PGM values. Further work will try to identify higher-grade mineralization at the Cedro-4 prospect.

The Trapia-1 and Trapia West prospects, in the central part of the project area, are on leased lands where Solitario is earning a 70% interest by spending US$2 million over three years. So far, the junior has spent US$1.4 million.

Two holes were drilled at Trapia-1. Hole Tu-2 cut 47.9 metres grading 1.53 grams combined platinum palladium and 0.28% nickel. This hole was drilled 85 metres downdip of previously reported hole RW-27, which cut 42.8 metres of 1.53 grams PGMs and 0.24% nickel. The second hole, Tu-3, was drilled 75 metres downdip of hole Tu-2 and intersected 9.6 metres grading 2.57 grams PGMs and 0.18% nickel.

Mineralization at Trapia-1 has been traced about 250 metres downdip and remains open in both directions along strike.

At Trapia West, hole TW-10 intersected 27.6 metres grading 1.41 grams PGMs and 0.19% nickel. The hole was collared 65 metres updip from previously reported hole TW-7 (19.4 metres grading 1.64 grams PGM and 0.13% nickel. Holes TW-8 and TW-9 failed to intersect the mineralized horizon.

At the Curiu prospect, hole CU-1 intersected 10.1 metres grading 5.46 grams PGMs plus gold. The hole was collared 50 metres west of hole RW-25, which hit 14 metres grading 3.02 grams PGMs plus gold and a lower zone measuring 19 metres and grading 1.18 grams PGMs plus gold. Curiu, which remains open to the west and south, is wholly controlled by Solitario.

The wholly owned Santa Amaro prospect, north of the Esbarro prospect, was discovered last year through geologic mapping, ground magnetic surveys and trenching. To date, 10 trenches have been excavated and sampled. Highlights from the best trenches are as follows:

– trench 7620 cut 15 metres grading 1.5 grams combined platinum and palladium;

– trench 7655 cut 57 metres grading 2.05 grams combined platinum and palladium;

– trench 7840 intersected 12.9 metres grading 1.91 grams combined platinum and palladium;

– trench 9060 intersected 15 metres grading 1.16 grams combined platinum and palladium;

– trench 9165 cut 18 metres grading 5.01 grams combined platinum and palladium.

Solitario plans to drill four additional holes into Santo Amaro, results from which are expected in late February.