Solitario Resources Corp. · AMEX:XPL
Solitario Resources — Investor Presentation (February 2022)
38 slides from Solitario Resources's investor presentation, February 2022
Slide 1: A Dynamic Gold and Zinc Explorer & Developer
A Dynamic Gold and Zinc Explorer & Developer February 2022
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation 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, stat
Slide 3: Solitario Investment Proposition
Solitario Investment Proposition Major New Gold Initiative in South Dakota, may develop into one of the most important greenfield projects in North America Significant Joint Venture Interests in two high-grade zinc development projects, ~12% Zn Eq. M&I resource = 2.5 billion lbs., Inferred = 2.1 bil
Slide 4: Capital Structure
Capital Structure Current Price US$0.49/C$0.62 Market Cap ~US$30.3 Mil/C$38.4 Mil Shares Avg. Daily Vol. Outstanding 62 Mil NYSE/TSX (3month) 214K/5.7K Cash and Options 5.5 Mil Marketable $6.7 Mil Securities Fully Diluted 67.5 Mil Annual Burn Rate (excluding drilling) $1.5 Mil 52-Week High US$1.25/C
Slide 5: Northern Black Hills, South Dakota: A Super Giant Gold Province
Northern Black Hills, South Dakota A Super Giant Gold Province ka ge ac n dP i o La ita r So l NYSE American: XPL | TSX: SLR | SolitarioZinc.com 5
Slide 6: Solitario Re-engages in Gold Exploration
Solitario Re-engages in Gold Exploration • Safe Accessible Jurisdiction: North America • Explore in Under-Explored Brownfields/Greenfields Terrain - No more time wasted on recycled marginal resource properties - Low entry costs - Potential for large higher grade underground deposits with lower energ
Slide 7: Is It Possible That 100 Million Ounces Have Been Overlooked In The Black Hills?
Is It Possible That 100 Million Ounces Have Been Overlooked In The Black Hills? 1. Very Little Modern Exploration: There has been virtually no exploration west of the Homestake- Wharf Mining Complex. Homestake Mining Co. owned the district for +120 years and largely neglected exploration west of the
Slide 8: Golden Crest Project: Background and Early Results
Golden Crest Project: Background and Early Results Property has grown from 4,400 acres to the current 21,340 acres of unpatented lode mining claims Ø Greenfields district-scale exploration in the shadow of a Super Giant (Homestake/Wharf district) Ø Originally staked based on acquired Homestake Minin
Slide 9: Golden Crest: HMC Stream Sediment
Golden Crest: HMC Stream Sediment NYSE American: XPL | TSX: SLR | SolitarioZinc.com 9
Slide 10: A Compelling Au Anomaly of District-Scale
A Compelling Au Anomaly of District-Scale Initial Sampling Results 2020 Surface Grab (Rock) Samples: 103 contained gold values >20 ppb Au (41% of samples) 61 contained gold values >50 ppb Au (24% of samples) 45 contained gold values >100 ppb Au (18% of samples) 12 contained gold values >1.0 ppm Au C
Slide 11: Mineralized Jasperoidal Grab Samples, Golden Crest
Mineralized Jasperoidal Grab Samples, Golden Crest NYSE American: XPL | TSX: SLR | SolitarioZinc.com 11
Slide 12: Highly Elevated Pathfinder Elements
Highly Elevated Pathfinder Elements NYSE American: XPL | TSX: SLR | SolitarioZinc.com 12
Slide 13: Excellent target at depth in Cambro-Ordovician for major Au
Excellent target at depth in Cambro-Ordovician for major Au: Wharf Mine analogy (8.2 Moz Au) just 11 km to NE It is entirely reasonable to expect that the exhausted hydrothermal fluids producing Deadwood- hosted mineralization would continue upwards into upper Paleozoic units like the Pahasapa to fo
Slide 14: Golden Crest: Gold in Rocks
Golden Crest: Gold in Rocks NYSE American: XPL | TSX: SLR | SolitarioZinc.com 14
Slide 15: Rock Geochemistry Statistics For Sampled Target Areas
Rock Geochemistry Statistics For Sampled Target Areas Prospect No of Samples Au ppb (max) Au ppb (avg)* Ag ppm (max) Buena Vista 24 3246 215 0.8 Yellow Jacket 26 132 33 0.8 Shoofly 33 64 14 < Treasure Vault 44 3990 516 3 Matchstick 119 3700 254 0.7 Whirlwind 152 7990 382 4 Citadel 60 30 13 11 11th H
Slide 16: Exploration in Covered Terrain
Exploration in Covered Terrain NYSE American: XPL | TSX: SLR | SolitarioZinc.com 16
Slide 17: Every Drill Hole To Test Multiple High-Grade Targets in Stacked Horizons
Every Drill Hole To Test Multiple High-Grade Targets in Stacked Horizons Precambrian Target: Searching for the next Homestake BIF deposit • Homestake production and reserves through 2001: 46,443,000 oz Au in 231 Mt of ore + 20 Moz of known resources at time of mine closure • Eleven production “ledge
Slide 18: Golden Crest Project Summary
Golden Crest Project Summary • Spring 2021 - Signed Mining Lease Agreement on 4,820 acres and initiated an aggressive claim staking program based on field verified altered (silicified) areas. Current land position 21,340 acres (110 sq. km.) • If the Super Giant Homestake-Wharf gold complex is not an
Slide 19: Why Should You Care About Zinc?
Why Should You Care About Zinc? Stimulus Spending Has the Potential to Create $4 to $6 Trillion in Infrastructure Spending • Infrastructure Buildout Increased Demand for Steel • More Steel Significant Increase in Demand for Zinc Other Uses 40% Galvanization 60% Utilized in die-casting, 40% Utilized
Slide 20: World Class Partners
World Class Partners Partnering with well funded, leading zinc producers reduces costs, risk and capital requirements Florida Canyon Zinc Project held $1.1B Market Cap jointly with Nexa Resources S.A., 4th largest zinc producer with three underground zinc mines and large zinc smelter in Peru. $18.2B
Slide 21: Exceptional Resource Growth
Exceptional Resource Growth (Lik and Florida Canyon - Solitario Attributable) 3.00 Measured & Indicated Inferred 2.50 906% 2.00 Billion Lbs. Zinc 49% 1.50 1.00 0.50 - 2017 2021 2017 2021 NYSE American: XPL | TSX: SLR | SolitarioZinc.com 21
Slide 22: Florida Canyon Zinc Project, Peru
Florida Canyon Zinc Project, Peru Joint ventured with Nexa Resources S.A. Advanced exploration project with $70 million in partner investments (526 drill holes; 134,416 meters) Preliminary Economic Assessment demonstrates robust economics Funded to Production 17,000-meter drilling program completed
Slide 23: Florida Canyon Resource Increase
Florida Canyon Resource Increase 100% Attributed to Sulfide Resource Growth Sulfide - Contained Zinc Equivalent 3.00 • 2019 drilling significantly 105% Growth 2.50 10.9% increased the sulfide ZnEq resource 2.00 Billion Lbs. Zinc • The PEA demonstrates 1.50 that sulfide resources are 11.9% 1.00 ZnEq
Slide 24: Funded to Production
Funded to Production All future costs - drilling, PEA updates, pre-feasibility costs, community relations, environmental expenses, metallurgical studies, engineering & feasibility - will be funded by Nexa to earn its 70%-interest in the project. ü Solitario will not pay back any of these costs. Afte
Slide 25: Game Changing Exploration Potential
Game Changing Exploration Potential Multiple exploratory targets have been identified immediately south, north, east and west of the Florida Canyon deposit with mineralized outcrops. ü Targets to the south appear to be extensions to the Florida Canyon mineralized corridor. ü Drill testing some of th
Slide 26: Lik Zinc Project, Alaska
Lik Zinc Project, Alaska Lik Regional Map • Mining claims covering 6,075 acres located ~14 miles from Teck’s Red Dog Mine, in mining friendly jurisdication • 50/50 joint venture with Teck; Solitario is the operator Solitario Lik Project Claims • Large tonnage, high-grade, open-pittable Teck Mining C
Slide 27: Lik Project Resource
Lik Project Resource 100% Basis Indicated Inferred 4.54 B Lbs. 1.37 B Lbs. 11.37% ZnEq 11.66% ZnEq Solitario’s 50% Share Indicated Inferred 2.2 B Lbs. 0.69 B Lbs. 11.37% ZnEq 11.66% ZnEq Price assumptions for Zinc-Equivalent grade: Zinc $1.20/lb; Lead $1.00/lb; Silver $16.50/oz. NYSE American: XPL |
Slide 28: Lik Project, Alaska (proximity to Red Dog)
Lik Project, Alaska (proximity to Red Dog) Red Dog Mine Red Dog Mine iles 14 M Lik Project NYSE American: XPL | TSX: SLR | SolitarioZinc.com 28
Slide 29: 2021 - 2022 Exploration Program
2021 - 2022 Exploration Program* • 2,000+ feet core drilling program to test new exploration targets, extension of open pit resource and NW Expansion + + stacked ore bodies. + NE Shallow + ü Stacked ore bodies could + provide huge upside Stacked Ore Bodies potential • Surface geochemical and + + geo
Slide 30: Lik Joint Venture Considerations
Lik Joint Venture Considerations • Teck Resources is the third largest zinc producer in the world and operates the largest and most profitable zinc mine in the world - Red Dog. Red Dog is a core asset of Teck. Red Dog is a relatively easy 14-mile ore haul from Lik. • Red Dog production is subject to
Slide 31: Lik Upside Considerations
Lik Upside Considerations • Lik open pit resource has potential to grow by several million tons. • Potential for significant additional mineralization through deeper Lik mineralization exploited by underground mining methods, stacked mineralized horizons below Lik, and the north prospect area. • Pro
Slide 32: Summary
Summary ü Golden Crest has the potential to quickly become one of North America's most important greenfield exploration projects with exceptional potential to host multiple multi- million-ounce gold deposits ü Florida Canyon and Lik represent significantly discounted high-grade zinc deposits moving
Slide 33: Contact Information
Contact Information Christopher Herald, President and CEO 4251 Kipling St., Suite 390 Wheat Ridge, Colorado 80033 303-534-1030 cherald@aol.com Investor Relations Valerie Kimball Director, Investor Relations 720-933-1150 800-229-6827 vkimball@solitariocorp.com Transfer Agent Computershare Investor Se
Slide 34: Appendices
Lik Zinc Project, Alaska Florida Canyon Zinc Project, Peru Appendices NYSE American: XPL | TSX: SLR | SolitarioZinc.com 34
Slide 35: Management
Management § Christopher Herald, President, CEO & Director § Mr. Herald has served as Chief Executive Officer since June 1999, President since 1993, and a director of Solitario since 1992. Prior to its acquisition by Kinross Gold Corp., Mr. Herald also served in various capacities for Crown Resource
Slide 36: Board of Directors
Board of Directors § Brian Labadie, Chairman of the Board - Mr. Labadie has been a director of Solitario since June 2006 and Chairman since March of 2009. Mr. Labadie has in over forty years-experience in the mining industry including formal training and experience as a mining engineer including dev
Slide 37: Mineralization in Paleozoic Sedimentary Rocks
Mineralization in Paleozoic Sedimentary Rocks Deadwood Formation: (200-300 meters depth) The Cambro-Ordovician Deadwood Formation is the most important sedimentary host for gold mineralization in the Black Hills _________________________________________ The Deadwood only outcrops around the Lead dom
Slide 38: Golden Crest Deadwood Target
Golden Crest Deadwood Target NYSE American: XPL | TSX: SLR | SolitarioZinc.com 38
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