Solitario Resources Corp. (Solitario), an exploration stage company, engages in the mineral exploration business.
Solitario's primary business is to acquire exploration mineral properties and/or discover economic deposits on its mineral properties and advance these deposits, either on its own or through joint ventures, up to the development stage of the project.
Solitario has never developed a property. Solitario's primary focus is on the acquisition and exploration of precious metal, zinc and...
Solitario Resources Corp. (Solitario), an exploration stage company, engages in the mineral exploration business.
Solitario's primary business is to acquire exploration mineral properties and/or discover economic deposits on its mineral properties and advance these deposits, either on its own or through joint ventures, up to the development stage of the project.
Solitario has never developed a property. Solitario's primary focus is on the acquisition and exploration of precious metal, zinc and other base metal exploration mineral properties. In addition to focusing on its mineral exploration properties and the evaluation of mineral properties for acquisition, Solitario also evaluates potential strategic transactions as a means to acquire an interest in new precious and base metal properties and assets with exploration potential or other potential corporate transactions that Solitario determines to be favorable to Solitario.
Solitario considers its Golden Crest project in South Dakota, its carried interest in the Florida Canyon project in Peru, and its interest in the Lik project in Alaska to be its core mineral property assets. Nexa Resources, Ltd. ('Nexa'), Solitario's joint venture partner at Florida Canyon, is continuing the furtherance of the Florida Canyon project and Solitario is monitoring the progress at Florida Canyon. Solitario is working with its 50% joint venture partner, Teck American Inc., a wholly owned subsidiary of Teck Resources Limited (both companies are referred to in this Annual Report as 'Teck') at its Lik project. Teck completed a drilling program and conducted mapping and ground gravity geophysical activities at the Lik project during 2022. Solitario is conducting mineral exploration on its Golden Crest project on its own.
Mineral Exploration Properties
The company holds a 50% operating interest in the Lik zinc-lead-silver property in northwest Alaska, which is estimated to contain a large tonnage, high-grade deposit potentially mineable by open-pit methods. Teck is a 50% partner with Solitario in the Lik deposit, with Teck acting as the project manager from 2018 through 2023. In late 2021 Solitario engaged Gustavson & Associates to complete a S-K 1300 Technical Report Summary on the Lik project (the 'S-K 1300 Lik TRS') which was completed in March 2022. A Preliminary Economic Assessment ('PEA') was completed on the Lik deposit in 2014.
Solitario also has a 39% interest in the advanced, high-grade, Florida Canyon zinc project located in northern Peru. The project has a significant mineral resource and Solitario is fully carried to production by its joint venture partner Nexa, formerly Votorantim Metais Holdings, SA ('Votorantim') and Compañía Minera Milpo S.A.A. ('Milpo'). Nexa is one of the largest zinc producers in Peru. In late 2021 Solitario engaged Gustavson & Associates to complete a S-K 1300 Technical Report Summary on the Florida Canyon Project (the 'S-K 1300 Florida Canyon TRS'), which was completed in March 2022.
During 2021, Solitario entered into a lease agreement (the 'Golden Crest Agreement') whereby Solitario acquired exclusive exploration rights in certain claims (the 'GC Claims') in the Black Hills region of South Dakota. The GC Claims are part of Solitario's Golden Crest project.
In addition, Solitario staked additional mineral claims, including some claims included in the area of interest of the GC Claims and claims not related to the GC Claims, as part of the Golden Crest project.
As of December 31, 2022, Solitario also held an 85% interest in the Chambara exploration project in Peru. Nexa holds the remaining 15%.
The company conducts exploration and property evaluation activities in Peru and in the United States in Alaska and South Dakota either on the company's own using contract geologists, or through joint ventures operated by the company's partners.
The company's exploration activities and those of the company's joint venture partners are carried out on a property-by-property basis. These activities may include prospecting, geologic mapping, sampling, geophysics and drilling.
The company conducts exploration activities in Peru, Alaska and South Dakota and evaluate properties for potential acquisition and evaluation of strategic corporate opportunities throughout North and South America. The company utilizes contract managers, geologists, administrators and part-time laborers to execute the company's Latin American and North American project work and acquisition evaluations.
Properties
Golden Crest Project (the United States)
The Golden Crest project is in the northern Black Hills of western South Dakota in Lawrence County. A map of the project location is shown above. The Golden Crest project is consisted of 1,707 unpatented lode claims, with an associated area of approximately 33,000 acres. Two hundred forty-one of the claims are leased from Golden Crest II, LLC, a Wyoming limited liability company ('GC LLC') and 27 unpatented claims ('Easter Claims') are leased from the Easter Project, LLC, a Wyoming limited liability company. All the remaining claims are owned by Solitario and were staked throughout 2021 and 2022.
Solitario acquired its interest in the GC Claims in May 2021 by entering into the Golden Crest Agreement with GC LLC. In February of 2022, Solitario entered into a lease agreement (the 'Easter Agreement') whereby Solitario acquired exclusive exploration rights to the Easter Claims in the Black Hills region of South Dakota. The Easter Claims are part of Solitario's Golden Crest project.
In 2022, Solitario discovered a new area of significant mineralization within a generalized area called Ponderosa.
Florida Canyon Zinc Project (Peru)
The Florida Canyon project consists of 16 concessions comprising 12,600 hectares of mineral rights originally granted to Minera Bongará S.A., the company's subsidiary incorporated in Peru. The property is located in the Department of Amazonas, northern Peru. Solitario's and Nexa's property interests are held through the ownership of shares in Minera Bongará S.A., a joint operating company that holds a 100% interest in the mineral rights and other project assets. Solitario owns a 39% interest in the Florida Canyon project.
Lik Zinc Project (Alaska)
The Lik property consists of 47 contiguous Alaska state mining claims. The contiguous claims have been grouped together for the purpose of working and operating under a common plan of development for the benefit of all of the claims. The claims cover an area of approximately 6,075 acres (2,460 ha). The claims are located in the southwestern DeLong Mountains in the Wulik River drainage.
Solitario acquired its 50% interest in the Lik property from the acquisition of Zazu Metals Corp ('Zazu') on July 12, 2017. As a result of the acquisition, Zazu became a wholly owned subsidiary of Solitario.
The company is participating in the exploration and possible development of the Lik property through a joint venture with Teck. Solitario is the operator of the joint venture. Solitario and Teck each retain a 50% interest in the Lik property.
Chambara Zinc Property (Peru)
In April 2008, the company signed the Minera Chambara shareholders' agreement with Votorantim on Solitario's 100%-owned Chambara zinc project. In 2015 Votorantim transferred its interest in the Chambara project to Milpo. In October of 2017, Milpo and Votorantim merged to form Nexa. For the remainder of this Chambara property section, all references to Votorantim, Milpo or Nexa are collectively referred to as 'Nexa'.
The company contributed 9,600 hectares of mineral claims and an extensive exploration data base in the company's possession for an 85% interest in Minera Chambara.
History
The company was founded in 1984. It was incorporated in the state of Colorado in 1984. The company was formerly known as Solitario Resources Corporation and changed its name to Solitario Exploration & Royalty Corp. in 2008. Further, the company changed its name to Solitario Zinc Corp. in 2017, then changed again to Solitario Resources Corp. in July 2023.
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