Solitario(US:XPL)2025-03-11 21:52Mineral Property Assets - Solitario's core mineral property assets include the Golden Crest project in South Dakota, the Florida Canyon project in Peru, and the Lik project in Alaska[21]. - Solitario holds a 50% interest in the Lik project, which is estimated to contain a large tonnage, high-grade deposit potentially mineable by open-pit methods[32]. - The Florida Canyon project has a significant mineral resource, with Solitario being fully carried to production by its joint venture partner Nexa, which will increase its ownership to 70% by funding all project expenditures[32]. - The Florida Canyon and Lik projects have reported mineral resources, but their potential for upgrading to mineral reserves depends on additional geological work and economic evaluation[52]. - The Golden Crest and Cat Creek projects are early-stage exploration projects with no reported mineral resources or reserves, requiring significant additional work for potential future reporting[55][56]. - The Lik Zinc project consists of 47 contiguous mining claims covering approximately 6,075 acres, with annual rental payments to the State of Alaska for 2025 estimated at $9,000[203]. Financial Position and Funding - As of December 31, 2024, Solitario anticipates using cash and short-term investments to fund exploration projects and evaluate additional mineral property assets[22]. - The company anticipates needing to raise additional capital or enter into new joint venture arrangements to fund exploration activities and obligations related to its mineral properties[62]. - The company has recorded revenue in the past from the sale of mineral properties, but such revenues have not been a consistent annual source of cash[20]. - The company has reported losses in 28 of its 31 years of operations, with net income in only three years: 2015, 2003, and 2000[82]. - As of December 31, 2024, the company holds $4,523,000 in money market funds and approximately $44,000 in uninsured cash deposits, which could be adversely affected by the failure of financial institutions[87]. - The company has the authority to issue up to 100,000,000 shares of common stock and 10,000,000 shares of preferred stock, with an ATM program allowing the sale of up to $10,000,000 in shares[84]. Exploration Activities - The company has four full-time employees and utilizes consultants and contractors for exploration activities and administration[23]. - Solitario's exploration activities included extensive grid soil sampling and limited core drilling in 2024[124]. - The company is committed to best practices in exploration activities, minimizing surface disturbance and ensuring reclamation after sampling[155]. - Solitario plans a Phase-1 drilling program of approximately 4,000 meters in 2025, consisting of about 15 exploration core holes, with potential for a Phase-2 program depending on results and funding[156]. - Eleven core holes were completed in the 2024 drilling program, totaling 4,345.7 meters, with six holes intersecting gold grades exceeding 1 gpt[140][143]. Environmental and Regulatory Compliance - The company has a long history of committed environmental, social, and governance (ESG) practices, which are important to its investors and stakeholders[26]. - There were no material environmental incidents or known non-compliance with applicable environmental regulations during 2024[43]. - The company’s exploration activities are subject to various governmental regulations, and failure to comply could result in the loss of exploration or mining rights[42]. - The USFS issued a final Environmental Assessment and Draft Decision of No Significant Impact for the Golden Crest drilling program, allowing drilling to commence in June 2024[153]. - Environmental permits for exploration and development projects in Peru have been obtained, with additional permits being pursued for expanded drilling programs[168]. Market and Economic Risks - Solitario's exploration activities are subject to various macro-economic risks, including health epidemics, geopolitical tensions, and financial market volatility[27]. - The company’s operations are significantly affected by changes in the market price of commodities, particularly gold and zinc, which fluctuate daily and are influenced by factors beyond its control[57]. - The company does not hedge against currency or commodity fluctuations, which could materially affect its financial position[57]. - Exploration activities outside the United States are subject to political and economic risks that could adversely affect the value of certain assets[59]. - Increased costs due to various factors could negatively impact the company's exploration efforts and future development potential[88]. Joint Ventures and Partnerships - The company relies on joint ventures for project development, making its results dependent on the financial condition and operational expertise of its partners[76]. - Solitario holds a 50% interest in the Lik property through a joint venture with Teck, with annual exploration funding agreed upon since 2018[205][206]. - Nexa's expenditures for 2024 are approximately $2.0 million, focusing on upgrading access roads and community outreach programs[176]. - The company may pursue acquisitions of new mineral property assets, which could require substantial capital and involve significant risks[78]. Insurance and Risk Management - The company has limited insurance coverage for various risks, which may lead to material adverse effects on its business if uninsurable events occur[65]. - The company does not maintain "Key-Man" life insurance policies for its key executives, which could adversely affect its operations if these individuals are lost[75]. - The company is dependent on information technology systems, which are subject to cybersecurity risks that could materially affect its operations[89]. - The company has invested in cybersecurity controls and processes to mitigate risks associated with potential cyber-attacks[90]. Geological and Technical Information - Over twenty gold-enriched target areas have been identified by Solitario, with fourteen containing multi-gram gold per tonne[129]. - Significant multi-gram gold mineralization was intersected in four different areas during the drilling program, with high-grade paleo-placer gold found in hole GC-008[143]. - The Geyser Zone has been redefined as a single V-shaped zone, with a total of 515 rock grab samples collected, of which 99 samples returned values exceeding 1.0 gpt gold, and 36 samples exceeded 10 gpt gold[135]. - The Florida Canyon district has defined several zones of strong zinc mineralization, with the largest drilling amounts in the San Jorge, Karen-Milagros, and 1021 zones[184]. - Estimated Mineral Resources at Florida Canyon include 806,945 tonnes measured at 11.32% zinc and 1.39% lead, and 1,634,702 tonnes indicated at 10.28% zinc and 1.31% lead[193].