Solitario Zinc Corp. said May 23 that a major drill program will kick off at the Florida Canyon zinc project in Peru in the third quarter, subject to permitting.
The program is expected to comprise 41 drillholes totaling 17,260 meters and will focus on testing resource expansion opportunities identified in a 2017 preliminary economic assessment, particularly the North Central, Northeast, Northwest and San Jorge areas.
Solitario and Nexa Resources Perú SAA agreed to fund the estimated C$5.3 million cost for the 2018-2019 drill program on a 70/30 basis, in line with a 2006 joint venture agreement.
Solitario currently holds a 39% stake in the Florida Canyon project, with Nexa owning an indirect 61% interest and acting as project manager.
Nexa can increase its stake to 70% by continuing to fund all project expenditures and committing to place the project into production. After earning the 70% interest, Nexa will fund Solitario's 30% stake for construction via a project loan.
