La Promesa – Peru
The La Promesa property, acquired in 2008, consists of three concessions totaling 2,600 hectares. Currently, our only holding costs for the mineral rights are annual payments of nine dollars per hectare to the Peruvian government. Total holding costs in 2018 will be approximately $8,000. A subsidiary of Newmont Mining Corporation holds a 2% net smelter return (“NSR”) on the property.
During 2017 Solitario conducted an active social program with the communities located near the La Promesa project area with the objective of obtaining a community agreement to support exploration activities, including drilling. In Peru, a community agreement is required in order to obtain drilling permits. During 2018 our objectives are to complete an agreement with the local community, to conduct surface exploration, and if warranted, conduct a drilling program.
At least five high-grade polymetallic veins have been identified and sampled at surface. Two of the veins, about 300 meters apart, have been traced for at least 400 meters along strike. There appears to be a systematic trend towards greater vein thickness with depth, as the widest observed vein in outcrop occurs at the lowest elevation sampled to date. Channel sampling along 300 meters of strike length from the best exposed vein yielded the following high-grade results: