Cominco commits to second year at Bongara

Solitario Resources (SLR-T) reports that Cominco (CLT-T) has made its second-year property payment on the Bongara zinc project in northern Peru.

Solitario received US$300,000 from Cominco’s Peruvian subsidiary, giving the latter firm the right to continue exploration. Cominco is earning a 60% interest in the property by spending US$27.5 million in exploration and making cash payments of US$1.8 million over four years.

Solitario President Christopher Herald is pleased with Cominco’s decision to continue exploration, which has “progressed as we hoped it would.” Cominco spent US$4.9 million in 1997, far more than the US$2.5 million it was required to spend.

Cominco expects to have compiled all the geologic data from last year’s work within the next few weeks. The company completed 39 core holes, totalling 9,700 metres, 32 of which were drilled into the Florida Canyon prospect. In addition, Cominco took about 3,000 stream sediment samples, which identified 10 anomalous areas, five of which exhibited zinc sulphide mineralization.

Herald said it could be until early summer before Cominco’s drilling plans for 1998 are ready, though he expects some of the work will focus on the five new zinc targets.

In the meantime, Solitario is spending its exploration dollars on the grassroots El Tigre gold project, also in Peru, as well as grassroots plays in Mexico.