Solitario Zinc Corp. (XPL) shares were down -5.66% in pre-market trading at $0.5802. Solitario stock closed last session at $0.62, increasing 1.30% or $0.01. XPL stock traded between $0.60 and $0.62 during the session. The number of shares traded on XPL was 0.25 million, less than the company’s 50-day daily volume of 0.6 million and less than its Year-to-date volume of 2.43 million. XPL stock is losing momentum it has gained in last session after reporting commencement of an exploration work.
XPL began its exploration where?
Solitario is an emerging zinc exploration and development company. In Alaska, XPL holds a 50% joint venture interest in the high-grade, open-pittable Lik zinc deposit. In Peru, XPL holds a 39% joint venture while Nexa Resources holds the remaining 61%. Directors and Management of XPL hold approximately 9.6% of the Company’s shares.
In an announcement last week, Solitario announced the start of exploration on its Alaskan Lik zinc project.
- Recently, joint venture partners XPL (50%) and Teck American Incorporated (50%), a wholly owned subsidiary of Teck Resources Limited (“Teck”), approved a budget to be jointly funded.
- The project consists of induced polarization (“IP”) geophysics, surface geochemical sampling, and core drilling of at least 2,000 feet in order to test new exploration concepts and expand resources in 2021.
- One of the largest producers of mined zinc in the world is Teck, XPL’s partner.
- On the Lik project, there are 12.0% zinc equivalent Indicated Resources of 17.3 million tonnes and 12.1% equivalent Inferred Resources of 2.9 million tonnes.
- The XPL property may also contain underground mineable mineralization.
- A sizeable, high-grade, low-cost zinc mine, Red Dog is located approximately 14 miles northwest of the project.
- XPL recently conducted its first exploration drilling program in ten years, marking an exciting new phase in its Lik project.
- XPL is drilling during a time when zinc prices are high and demand for zinc is rising.
- In XPL’s drilling program, the company will expand the Lik deposit’s resource in three different areas, while in its surface exploration; it will target potential new mineralization in trend to the northeast of the existing deposit.
How will XPL carry out its drilling program?
Teck and Solitario (XPL) agree that Teck will act as host organization for the project 2021 program in order to draw on Teck’s thirty-five years of successful exploration and operation in the Red Dog mining district. The sampling of geochemical elements has begun, with geophysics expected to begin by the middle of July. After receiving final drill permits, XPL expects the core drilling to begin in July/August.
