Solitario Reports Significant Seligman Deposit Drilling Results on Its Mt. Hamilton Gold Project, Nevada

DENVER--()--Solitario Exploration & Royalty Corp. (“Solitario”) (NYSE MKT:XPL) (TSX:SLR) and Ely Gold & Minerals (“Ely Gold”) (TSX.V:ELY) are pleased to announce partial drilling results for the recently completed 2012 Mt. Hamilton drilling program. In total, 42 reverse circulation drill holes and 11 core holes were recently completed totaling 16,615 feet and 3,969 feet of drilling, respectively. Results from the first 26 drill holes at the Seligman deposit are presented in this release. The remaining Seligman drill holes and all drilling at the adjacent Centennial deposit should be received and reported by the end of November.

Highlights of results received to date are presented in the Table below. Results from the 26 drill holes in the Seligman deposit are appended to this release. A drill hole location map can be accessed at www.solitarioxr.com/art/Seligman2012DHs,revisedlogo,5Nov2012-finalMap.jpg.

 
Mt. Hamilton Project: 2012 Seligman Drilling Results Highlights
Drill Hole         From         To         Interval*         Gold         Silver         Interval*         Gold Equiv***
        (feet)         (feet)         (feet)         (gpt)         (gpt)         (m)         (g/tn)
MH-12-04         130         200         70         0.50         11.73         21.3         0.71
MH-12-12**         6.2         114.5         108.3         0.75         2.08         33.0         0.79
MH-12-13**         6.1         42.2         38.1         0.58         4.11         11.6         0.65
MH-12-15 0 30 30 0.31 4.74 9.1 0.40
          120         200         80         0.80         20.66         24.4         1.18
MH-12-16 0 35 35 0.31 16.19 10.7 0.60
205 245 40 0.30 12.39 12.2 0.53
          265         315         50         0.82         25.00         15.2         1.27
MH-12-22 0 40 40 0.63 1.85 12.2 0.66
65 95 30 1.04 0.73 9.1 1.05
          110         130         20         0.66         1.45         6.1         0.69
MH-12-26         0         145         145         0.67         1.01         44.2         0.69
MH-12-27         0         95         95         0.42         0.61         29.0         0.43
MH-12-29 35 60 25 0.68 5.80 7.6 0.79
120 155 35 0.36 7.91 10.7 0.50
          190         210         20         0.56         6.60         6.1         0.68
 

*True width is estimated to be approximately 80% of true width for most intervals

**Core hole; all other reported holes in this chart are reverse circulation drill hole

*** Gold Equivalent = gold grade + (silver grade ÷ 55)

 

On September 10, 2012, Solitario announced its initial NI-43-101 resource estimate for the Seligman deposit. The 2012 drilling campaign was designed to achieve several objectives. The main focus was to convert Seligman inferred resources in specific areas to measured and indicated categories. Other objectives included obtaining sample material to carry-out metallurgical and geochemical testing and to measure geotechnical characteristics for mine planning at Seligman. Several holes were also drilled at the Centennial gold deposit to convert inferred resources to measured and indicated categories as well as to test potential extensions of mineralization to the south. The Centennial deposit was the subject of a Feasibility Study issued earlier this year (press release dated Feb. 27, 2012).

Chris Herald, President and CEO of Solitario, commented, “These results are consistent with our expectations and provide us with greater confidence in our initial resource model. We completed this program on schedule and within budget. With the 2012 drilling program completed, we are focused on filing within the next two weeks our Plan of Operations for the Mt. Hamilton Project consolidating the mining at Seligman and Centennial, as well as submitting two important environmental permits with the State of Nevada.”

“The Seligman mineralization represents an important component to the overall Mt. Hamilton mine plan and contributes an additional near surface resource,” stated Trey Wasser, Ely Gold’s President & CEO.

Terms of the Mt. Hamilton LLC Joint Venture

Solitario and Ely Gold formed the Mt. Hamilton LLC (“MH-LLC”), a limited liability company which holds 100% of the Mt. Hamilton project assets under an Operating Agreement (“MH-Agreement”). Per the terms of the MH-Agreement, DHI-US, Ely Gold’s wholly owned US subsidiary, currently has a 20% initial interest in the MH-LLC and Solitario has an 80% interest.

Qualified Person

The drill hole information contained within this release is reported under a quality control program supervised by Mr. Walt Hunt, Chief Operating Officer for Solitario, who is a qualified person as defined by National Instrument 43-101. He has verified the drill results and other data disclosed in this new release, including sampling, analytical and test data. Samples are derived from 50% splits of HQ and NQ (2.5 and 1.9 inch) diameter core. Samples are then shipped via secured third-party land transportation and analyzed by American Assay Laboratories, Reno, Nevada, an ISO9001:2000 registered company. In addition to the laboratory’s quality control program, a check assay program is ongoing.

About Solitario

Solitario is a gold, silver, platinum-palladium, and base metal exploration and royalty company actively exploring in Brazil, Mexico, Peru and Nevada. Solitario has significant business relationships with Votorantim Metais, Compañia de Minas Buenaventura S.A.A., Anglo Platinum, and Newmont Mining. Solitario is traded on the NYSE MKT ("XPL") and on the Toronto Stock Exchange ("SLR"). Additional information about Solitario is available online at www.solitarioxr.com.

About Ely Gold

Ely Gold is focused on the acquisition and development of gold resources in North America. The Company is currently working toward production from the Centennial Gold Deposit, a project located on the Company’s 100% owned Mount Hamilton property. Ely Gold is traded on the TSX Venture Exchange ("ELY"). Additional information about Ely Gold is available online at www.elygoldandminerals.com.

This press release includes certain "Forward-Looking Statements" within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of Solitario, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Development of Solitario’s properties are subject to the success of exploration, completion and implementation of an economically viable mining plan, obtaining the necessary permits and approvals from various regulatory authorities, compliance with operating parameters established by such authorities and political risks such as higher tax and royalty rates, foreign ownership controls and our ability to finance in countries that may become politically unstable. Important factors that could cause actual results to differ materially from Solitario’s expectations are disclosed under the heading "Risk Factors" and elsewhere in Solitario’s documents filed from time to time with Canadian Securities Commissions and the United States Securities and Exchange Commission.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

2012 Seligman Drilling Results: Phase 1 (first 26 drill holes)

Hole     Mineralized     Drill Thickness*     Gold Grade     Silver Grade     Gold Equiv.
Number     Interval - feet     feet / meters     gr./tonne     gr./tonne     gr./tonne***
MH12002     no sig. mineralization                        
MH12003     no sig. mineralization                        
MH12004     130 - 200     70 / 21.3     0.50     11.73     0.71
MH12006     25 - 55     30 / 9.1     0.55     6.70     0.67
MH12008     no sig. mineralization                        
MH12009     70 - 85     15 / 4.6     1.42     36.03     2.08
      295 - 350     55 / 16.8     0.36     6.33     0.48
MH12011     20 - 45     25 / 7.6     0.35     29.76     0.89
MH12012**     6.2 - 114.5     108.3 / 33.0     0.75     2.08     0.79
MH12013**     6.1 - 42.2     38.1 / 11.6     0.58     4.11     0.65
MH12014     20 - 50     30 / 9.1     0.84     11.02     1.04
MH12015     0 - 30     30 / 9.1     0.45     4.74     0.40
      120 - 200     80 / 24.4     0.80     20.66     1.18
MH12016     0 - 35     35 / 10.7     0.31     16.19     0.60
      205 - 245     40 / 12.2     0.30     12.39     0.53
      265 - 315     50 / 15.2     0.82     25.00     1.27
MH12019    

100 - 175

    75 / 22.9     0.34     2.99     0.39
      225 - 250     25 / 7.6     0.58     7.80     0.72
MH12020     0 - 20     20 / 6.1     0.36     2.90     0.41
      60 - 80     20 / 6.1     0.57     8.08     0.72
      115 - 145     30 / 9.1     0.46     13.43     0.70
MH12021     no sig. mineralization                        
MH12022     0 - 40     40 / 12.2     0.63     1.85     0.66
      65 - 95     30 / 9.1     1.04     0.73     1.05
      110 - 130     20 / 6.1     0.66     1.45     0.69
MH12023     0 - 25     25 / 7.6     0.32     4.54     0.40
      50 - 65     15 / 4.6     0.40     1.20     0.42
      90 - 110     20 / 6.1     1.34     8.88     1.50
MH12025     no sig. mineralization                        
MH12026     0 - 145     145 / 44.2     0.67     1.01     0.69
MH12027    

0 - 95

    95 / 29.0     0.42     0.61     0.43
MH12028     330 - 355     25 / 7.6     0.75     26.72     1.24
MH12029     35 - 60     25 / 7.6     0.68     5.80     0.79
      120 - 155     35 / 10.7     0.36     7.91     0.50
      190 - 210     20 / 6.1     0.56     6.60     0.68
MH12031     30 - 95     65 / 19.8     0.36     3.85     0.43
MH12032     105 - 155     50 / 15.2     0.41     4.53     0.49
MH12033     230 - 250     20 / 6.1     0.38     0.88     0.40
      335 - 360     25 / 7.6     2.27     7.72     2.41
      400 - 455     55 / 16.8     0.37     3.42     0.43
MH12037     no sig. mineralization                        
 

*True width is estimated to be approximately 80% of drill thickness for most intervals

**Core holes; all other reported holes in this chart are reverse circulation drill holes

***Gold Equivalent = gold grade + (silver grade ÷ 55)

Contacts

Solitario Exploration & Royalty Corp.
Debbie Mino-Austin, 800-229-6827
Director – Investor Relations
or
Christopher E. Herald, 303-534-1030
President & CEO
or
Ely Gold & Minerals
Steve Kenwood, 604-488-1104
Director
or
Trey Wasser, 972-803-3087
President & CEO

Release Summary

Significant drilling results on Solitario's Mt. Hamilton Seligman deposit

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Contacts

Solitario Exploration & Royalty Corp.
Debbie Mino-Austin, 800-229-6827
Director – Investor Relations
or
Christopher E. Herald, 303-534-1030
President & CEO
or
Ely Gold & Minerals
Steve Kenwood, 604-488-1104
Director
or
Trey Wasser, 972-803-3087
President & CEO