Work Program On Lik Zinc Project In Alaska

 

DENVER, CO - Solitario Zinc Corp. reported that Solitario, through its 100%-owned subsidiary Zazu Metals (50% Lik interest) and Teck American Incorporated (50% Lik interest), a wholly owned subsidiary of Teck Resources Limited, Canada's largest diversified resource company, have approved a jointly funded budget for a new work program on the Lik zinc project in Alaska. This is the first time that project work has been jointly funded, as previously, Zazu Metals, acquired by Solitario in July 2017, had sole-funded the project as part of an option earn-in agreement. Solitario believes this is a positive step for future exploration and development activities for the Lik project.

Potentially amenable to open pit mining, the Lik project hosts an Indicated Resource of approximately 17.3 million tonnes grading 8.0% zinc, 2.7% lead and 51 grams/tonne silver and an additional 2.9 million tonnes of Inferred Resource at 8.6% zinc, 2.6% lead and 37 grams/tonne silver. The project is situated approximately 14 miles northwest of Teck's operating Red Dog mine, one of the world's largest and lowest cost zinc mines.

To leverage Teck's thirty years of successful exploration and operational experience in the world-class Red Dog mining district, Solitario and Teck agreed that Teck will act as project operator for this program. The proposed work program, which will begin once appropriate permits are obtained, will consist of surface geologic, geophysical and environmental work, as well as Lik camp rehabilitation. 

Chris Herald, President and CEO of Solitario, commented, "We clearly see project benefits in utilizing Teck's long-term experience in the Red Dog zinc district and are excited about working with Teck to advance the Lik project at a time of encouraging zinc and lead prices and supply-demand fundamentals. The 2018 work program is designed to be the first-step in identifying new drilling targets and assessing the path forward for project development."