Solitario exploration turns up mixed results

Exploration work has enabled Solitario Resources (TSE) to increase the size of its Bongara zinc deposit in northern Peru.

The open-pit prospect is estimated to contain 1.9 million tonnes of oxide material grading 19.3% zinc and 2.2% lead, which represents a tonnage increase of 42% over previous estimates. The amount of contained zinc and lead is projected at 82 million lb. and 92 million lb., respectively.

A 10-hole drill program is attempting to locate sulphide mineralization, though, to date, only a minor amount of zinc sulphide mineralization has been found.

Elsewhere in Peru, Solitario reports unfavorable findings from drilling carried out at its Yanacocha property.

Partner Barrick Gold (TSE) has drilled 13 holes on two areas of the property. Insignificant mineralization was encountered at the Chalhuaquero prospect, and no encouraging gold assays were found in the first six test holes at the Shuito prospect. Assays from the last three holes are pending.

Barrick can earn a 60% interest in Yanacocha by spending US$6.2 million and paying Solitario US$1 million over four years.

Meanwhile, in Argentina, Solitario has acquired an option in the Carachas gold property, which is bordered on all sides by Solitario holdings. Surface sampling is being carried out in preparation for drilling in April.

In the same country, Battle Mountain Gold (NYSE) has optioned from Solitario the 22,500-acre Cateo 47 gold property. Solitario will retain a 2-3% royalty on the property, which is situated in the north, just east of the Chilean border.

And at the Rio Blanco property, also in Argentina, surface sampling has determined sediment-hosted gold mineralization. Drilling is scheduled for April.