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Solitario reports high-grade results from Bongara zinc project in Peru

Last updated: 04:18 01 Feb 2011 EST, First published: 05:18 01 Feb 2011 EST

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Solitario Exploration & Royalty Corp. (NYSE Amex: XPL; TSX: SLR) announced Monday high grade drilling results from its Bongara zinc project in Peru.

Highlights from the round of drilling include hole V-220, which returned 17.4 metres grading 23.9% zinc and lead, and a second zone grading 28.3 metres at 5.5% zinc and lead - making the hole the second best ever drilled on the project.

Hole V-220 is a step-out hole, situated on the southernmost boundary of the current drill pattern, Solitario said.

In addition to this high grade hole, the company also intersected 3.7 metres grading 12.0% zinc and lead in hole V-213; and 10.7 metres grading 10.3% zinc and lead in hole V-218. These two holes are located more than 2 kilometres from hole V-220, in the northeasternmost sector.

Drilling at the project is focused on three different zones: the San Jorge, San Jorge North and Karen-Milagros areas. Of the results from 14 core holes received, the company said only three failed to intersect strong mineralized intervals.

"It is very significant that strong mineralization continues to be intersected at the margins of our current drill hole pattern and affirms our belief that this deposit still has tremendous upside growth potential," said president and CEO Chris Herald.

The drill program at Bongara is being managed and entirely funded by Solitario's joint venture partner, Brazil's Votorantim Metais, the world's fifth largest primary zinc producer. Aside from current road construction at the site to better access the project, Votorantim plans to focus on feasibility-related work for the remainder of the year, which will include engineering and infrastructure studies, resource modeling, permitting and social development work.

"With zinc prices remaining strong at approximately US$1.00 per pound, the economics of this attractive project are further enhanced," added Herald.

The Bongará project hosts the high-grade Florida Canyon zinc deposit, where zinc mineralization has been intersected over a four square kilometer area; the deposit is open to expansion in all directions.

Votorantim Metais can earn up to a 70% interest in the project after placing it into production based on a positive feasibility study.

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