Solitario Exploration & Royalty Corp. (“Solitario;” NYSE MKT:
) and Ely Gold & Minerals (“Ely Gold;” TSX.V:
) are pleased to announce the results of a gold price sensitivity study on Mt. Hamilton resources. Resource estimates were tabulated using three gold/silver price assumptions for the confining optimized pit shape: $1,100/$19, $1,300/$22 and $1,500/$25 per ounce. The study showed that the contained ounces in the Mt. Hamilton gold/silver resource is relatively insensitive to gold price assumptions between $1,100 to $1,500 and silver prices between $19 and $25 per ounce as presented in the tables below. The cutoff grade of 0.006 ounces per ton gold was held constant for the reporting of the three price scenarios.
The Measured and Indicated resource estimate for the February 2012 Feasibility Study assumed a gold price of $1,600 and resulted in 526,854 ounces of contained gold (excluding silver). With the addition of the Seligman resource and additional drilling conducted since the Feasibility Study was completed, the new Measured and Indicated resource estimate using an $1,100 per ounce gold price resulted in a 21% increase in contained gold to 638,490. In addition, Inferred in-pit resources increased 105% from 60,859 contained ounces of gold in the Feasibility Study to 124,806 contained gold ounces generated under the new lower case $1,100 gold price assumption.
Chris Herald, President and CEO of Solitario, stated, “We are extremely pleased with the results of this study which basically represents a gold price stress-test on the Mt. Hamilton resource base. Clearly, the work conducted by the joint venture since the release of the February 2012 Feasibility Study has added significant new value to the project. Under the $1100/$19 per ounce gold/silver price assumption, the Measured and Indicated gold equivalent resource stands at 730,477 ounces of gold equivalent. We believe that with the design of our new mine plan combining the Centennial and Seligman deposits into a single pit (
), and increasing our production rate from 8,500 to 10,000 tons per day, project economics will remain robust at lower metal prices.”
These new resource estimates were prepared on behalf of Solitario by SRK Consulting (U.S.) Inc. (“SRK”) and serve to update the previous resource estimate for the Mt. Hamilton Project stated in the most recent October 25, 2012 Technical Report. The updated Mount Hamilton resource estimates were constrained by potentially minable optimized pits using gold price assumptions of $1,100, $1,300 and $1,500 per ounce of gold and $19, $22 and $25.00 per ounce of silver. These new Mt. Hamilton resource estimates were based on 857 drill holes with an average hole depth of 396 feet for a total of 317,739 feet of drilling. The drill data were verified and validated by SRK in compliance with NI-43-101 requirements. This consolidated Mt. Hamilton resource estimate includes 60 new infill drill holes that converted earlier Inferred resources to the Indicated category, and added new ounces to the resource estimate.