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Solitario provides update for Mt. Hamilton gold-silver project

Solitario Exploration and Royalty (TSE:SLR)(AMEX:XPL) announced Monday that it continues to work towards the completion of a feasibility study at the Centennial deposit on the Mt. Hamilton project in eastern Nevada.

The project is a joint venture with Ely Gold and Minerals (CVE:ELY). Under the terms of the agreement, Solitario may earn up to 80% interest in the property by making cash payments of US$2.75 million, issuing 300,000 of its common shares, subscribing for up to US$2.5 million in Ely stock, and making advanced royalty payments.

Solitario has made improvements to the feasibility study at the property, including the increase in production rate to 8,500 tons per day (tpd) from 5,000 tpd, the increased size of mining equipment for greater productivity and cost efficiency, and an improved ore delivery system.

Recovery rates are expected to be approximately 75% for gold and about 36% for silver.

The final feasibility study is expected for completion in the fourth quarter, with a plan of operation to follow shortly after.

Solitario president and CEO, Chris Herald said: "We are extremely pleased with the substantial improvements that have been made in the operational design of the Mt. Hamilton project and believe that these changes will result in enhanced overall economics and operational efficiencies for the project moving forward."

In addition, Solitario said it has begun a core drilling program to test the extensions of higher-grade mineralizations along the eastern edge of the deposit, as well as testing for new mineralization at the Chester prospect, located one mile south of Centennial.

Based in Wheat Ridge, Colorado, Solitario's stock in Toronto rose 2.94% to $2.10 as of 1:00 pm EDT.