What changed in this filing

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Item 2. Properties

2023-03-16 compared with 2022-03-30 · 186 added, 126 removed, 585 unchanged (35% of the section changed)

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We are subject to the reporting requirements of the Exchange Act and applicable Canadian securities laws, and as a result we report our mineral resources according to two different standards.

reporting requirements, are governed by Item 1300 of Regulation S-K (“S-K 1300”), as issued by the U.S.

Securities and Exchange Commission (“SEC”).

Canadian reporting requirements for disclosure of mineral properties are governed by National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), as adopted from the definitions provided by the Canadian Institute of Mining, Metallurgy and Petroleum.

reporting requirements, are governed by Item 1300 of Regulation S-K (“S-K 1300”), as issued by the SEC.

Canadian reporting requirements for disclosure of mineral properties are governed by National Instrument 43-101 Standards of Disclosure for Mineral Projects, as adopted from the definitions provided by the Canadian Institute of Mining, Metallurgy and Petroleum.

Both sets of reporting standards have similar goals in terms of conveying an appropriate level of confidence in the disclosures being reported, but the standards generally embody slightly different approaches and definitions.

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Technical Report Summaries and Qualified Persons

The scientific and technical information concerning our mineral projects in this Form 10-K have been reviewed and approved by “qualified persons” under S-K 1300, including our Chief Operating Officer, Walter Hunt.

For a description of the key assumptions, parameters and methods used to estimate mineral reserves and mineral resources included in this Form 10-K, as well as data verification procedures and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, sociopolitical, marketing or other relevant factors, please review the Technical Report Summaries for each of the Company’s material properties which are included as exhibits to, and incorporated by reference into, this Annual Report on Form 10-K.

The scientific and technical information concerning our mineral projects in this Annual Report on Form 10-K have been reviewed and approved by “qualified persons” under S-K 1300, including our Chief Operating Officer, Walter Hunt.

For a description of the key assumptions, parameters and methods used to estimate mineral reserves and mineral resources included in this Annual Report on Form 10-K, as well as data verification procedures and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, sociopolitical, marketing or other relevant factors, please review the Technical Report Summaries for each of the Company’s material properties which are incorporated by reference into, this Annual Report on Form 10-K.

Golden Crest Project (United States)

Property Description and Location

(map of Golden Project)

(map of Golden Crest project)

The Golden Crest project is in the northern Black Hills of western South Dakota in Lawrence County.

A map of the project location is shown above.

The Golden Crest Project is comprised of 1390 unpatented lode claims, with an associated area of just under 28,000 acres.

Two hundred forty-one of the claims are leased from Golden Crest II, LLC , a Wyoming limited liability company (“GC LLC”) and 27 unpatented claims (“Easter Claims”) are leased from the Easter Project, LLC, a Wyoming limited liability company (“EP LLC”).

All the remaining claims are owned by Solitario and were staked throughout 2021 and early 2022.

Solitario acquired its interest in the GC Claims in May 2021 by entering into the GC Agreement with GC LLC.

Terms of the GC Agreement include scheduled payments to the underlying owner of $65,000 paid upon signing and an obligation to pay the underlying owner $60,000 at the first anniversary date.

To continue the lease, Solitario has agreed to pay, at its option, the underlying owner escalating annual payments over a five-year period that $340,000 and annual payments of $150,000 thereafter.

The Golden Crest project is comprised of 1,707 unpatented lode claims, with an associated area of approximately 33,000 acres.

All the remaining claims are owned by Solitario and were staked throughout 2021 and 2022.

Solitario acquired its interest in the GC Claims in May 2021 by entering into the Golden Crest Agreement with GC LLC.

Terms of the Golden Crest Agreement include scheduled payments to the underlying owner of $65,000 paid upon signing and an obligation to pay the underlying owner $60,000 at the first anniversary date.

To continue the lease, Solitario has agreed to pay, at its option, the underlying owner escalating annual payments over a five-year period that total $340,000 and annual payments of $150,000 thereafter.

Solitario has agreed to pay the underlying owner an additional success fee of $1.00 per ounce of gold in the event Solitario files a 43-101 qualified resource of up to 1.5 million ounces of gold or a maximum of $1,500,000.

Solitario has agreed to escalating work commitments, at Solitario’s option, on the GC Claims totaling $3,000,000 during the first five years of the lease, with the first year totaling $200,000.

Solitario has agreed to perform escalating work commitments, at Solitario’s option, on the GC Claims totaling $3,000,000 in work expenditures during the first five years of the lease.

Solitario has fulfilled its $600,000 work commitment for the first two years.

The term of the Golden Crest Agreement is for twenty years and is automatically extended as long as Solitario is performing any exploration, development or mining activities on the GC Claims.

The underlying owner will retain a 2.0% Net Smelter Return royalty.

Solitario has the option, but not the obligation, to reduce the Net Smelter Return royalty to 1.0% by paying the owner $1,000,000.

Golden Crest reserves a three-mile area of interest to its original claim position.

Solitario has the option, but not the obligation, to reduce the Net Smelter Return royalty to 1.0% by paying the underlying owner $1,000,000.

GC LLC reserves a three-mile area of interest to its original claim position.

In February of 2022, Solitario entered into a lease agreement (the “Easter Agreement”) whereby Solitario acquired exclusive exploration rights to the Easter Claims in the Black Hills region of South Dakota.

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US Highway 14A, and US Highway 85 are near the eastern and southern boundaries of the Golden Crest project.

Maintained gravel roads extending westward from Highways 14A and 85 as well as numerous unmaintained, numbered secondary USFS roads provide additional ingress to the Golden Crest Project.

The Golden Crest Project is in forested highlands with subdued relief separated by deep steep-sided canyons.

Maintained gravel roads extending westward and northward from Highways 14A and 85 as well as numerous unmaintained, numbered secondary United States Forest Service (“USFS”) roads provide additional ingress to the Golden Crest Project.

The Golden Crest Project is in forested highlands with subdued relief separated by steep-sided canyons.

Elevations in the immediate area range from approximately 1,500 m to 2000 m.

Spearfish Creek, a major stream with a year-round flow, borders the eastern side of the property while most other creeks on the property are dry in the summer months.

Vegetation on the property consists of mixed forest composed of deciduous hardwoods and evergreen pines with sporadic meadows and locally dense underbrush.

Stands of timber of commercial value cover the property at higher elevations and are managed by the US Forest Service.

Logging activities have been heavy on large portions of the property in the past five to ten years and are ongoing.

Climate in the Golden Crest Project area is temperate, characterized by hot summers, cold winters and pronounced seasonal variation in precipitation and temperatures.

Spearfish Creek, a stream with a perennial flow, is situated east of the property while most other creeks on the property are generally dry in the summer months.

Vegetation consists of mixed forest composed of deciduous hardwoods and conifers with sporadic meadows and locally dense underbrush.

Stands of timber of commercial value cover the property at higher elevations and are managed by the USFS.

Logging activities have been widespread on large portions of the property in the past five to twenty years and are ongoing.

Climate at the Golden Crest project area is temperate, characterized by hot summers, cold winters and pronounced seasonal variation in precipitation and temperatures.

Average annual temperature, as measured at the Spearfish weather station, is 55°F with seasonal variation averages highs of 32°F and 80°F in winter and summer respectively.

The average amount of annual rainfall is approximately 66 cm along with 104 cm of snowfall (as measured at the Spearfish recording station).

The average amount of annual rainfall is approximately 26 inches along with 44 inches of snowfall (as measured at the Spearfish recording station).

Average precipitation is greater at the higher elevations of the property itself.

The exploration season is from early April to November.

The mineral exploration season is generally from early April to late November.

The closest population center is Spearfish, South Dakota (population 11,500), which represents the largest city in Lawrence County (population:

Spearfish is located along Interstate Highway 90, linking Rapid City, South Dakota to Gillette, Wyoming.

The city supports light industry and tourism as well as hosts a small university, Black Hills State University.

The nearest towns to the project area are Lead (population 3,000) and the nearby town of Deadwood (population 1,500), which is county seat of Lawrence County and a major tourism and gaming center for the area.

Spearfish supports light industry, ranching and tourism and hosts a small university, Black Hills State University.

The nearest towns to the project area are Lead (population 3,000) and the nearby town of Deadwood (population 1,500), which is the county seat of Lawrence County and a major tourism and gaming center for the area.

Mining related employment continues to be an important segment of Lawrence County’s economy.

The closest regional airport servicing the area is at Rapid City, situated approximately 80 km southeast along Interstate Highway 90.

All major commercial and industrial services are available in Rapid City.

Other mining services are available in Lead due to the legacy of the Homestake Mining Company (“Homestake”) operations and the currently producing Wharf mine operated by Coeur Mining.

Other mining services are available in Lead, South Dakota due to the legacy of the Homestake Mining Company (“Homestake”) operations and the currently producing Wharf mine operated by Coeur Mining.

Solitario maintains an office in Spearfish, South Dakota.

The state of South Dakota ranks third among US states for historic gold production, totaling approximately 51 million ounces produced through 2020, most of which came from the world class Homestake Mine in Lead.

The first documented gold discovery in the Black Hills was made by prospectors attached to the Custer Expedition of 1874, who found placer gold in gravel bars along French Creek near the present site of Custer, South Dakota.

The first known permanent lode claims in the Black Hills were located in the spring of 1876 at the head of Gold Run and Deadwood Gulches.

The first documented gold discovery in the Black Hills was made by prospectors attached to the Custer Expedition of 1874, who discovered placer gold in gravel bars along French Creek near the present site of Custer, South Dakota.

The first known lode claims in the Black Hills were located in the spring of 1876 at the head of Gold Run and Deadwood Gulches.

Beginning in the 1890’s, hundreds of mines and mining companies sprang to life in the northern Black Hills, clustered within a relatively small area measuring 20 km long by 16 km wide, and centered around the cities of Lead and Deadwood.

Collectively this area, known as the Lead District, is one of the richest gold districts in the world.

Collectively this area, known as the Lead Gold District, is one of the richest gold districts in the world.

Gold mining has occurred continuously in the district for 145 years, a record unmatched by any other US gold mining district.

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Although the Golden Crest project is adjacent to the Lead Gold District, the lack of regional exploration is apparently due to the widespread cover of the gold bearing Precambrian rocks by younger sedimentary formations.

The Golden Crest Project is within several kilometers of district mines with significant historical production, yet only a handful of prospect pits and several old mines and pits occur on the property.

It is also thought that the subdued topography, soil cover and absence of outcrops of the distinctive Precambrian rocks that host the ore in the main Lead District resulted in the project area being largely overlooked for such a long time.

There is no prior documented work on the property with the exception of three exploration core holes drilled by Homestake in 1993-1994, a small cluster of small mine workings and a very limited stream sediment survey.

The Golden Crest project is within several kilometers of district mines with significant historical production, yet only a handful of prospect pits occur on the property.

It is also thought that the subdued topography, soil cover and absence of outcrops of the distinctive Precambrian rocks that host the ore in the main Lead Gold District resulted in the project area being largely overlooked for such a long time.

There is no prior documented work on the property with the exception of three exploration core holes drilled by Homestake in 1993-1994, a small cluster of small prospect pits and a very limited stream sediment survey.

GC LLC staked the 241 GC Claims in 2021.

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Precambrian rocks in the Lead window consist primarily of Precambrian metasedimentary rocks and minor extrusive metabasalts and intrusive gabbros.

The Paleozoic sequence of marine sedimentary rocks (mainly carbonates and calcareous sediments) resting on this basement contains five formations, dominated by the Cambro-Ordovician Deadwood Formation at its base and the Mississippian-aged Pahasapa Group (regionally known as the Madison Group) at its top.

The Paleozoic sequence of marine sedimentary rocks (mainly carbonates and calcareous sediments) contains five formations, dominated by the Cambro-Ordovician Deadwood Formation at its base and the Mississippian-aged Pahasapa Group (regionally known as the Madison Group) at its top.

Thin stratigraphic units including the Ordovician Winnipeg and Whitewood Formations and Devonian Englewood Formation are present.

The Deadwood Formation is the most important Paleozoic host for Tertiary replacement gold mineralization.

The Deadwood Formation is the most important Paleozoic host for Tertiary replacement gold mineralization and paleoplacer gold deposits.

The Mississippian Pahasapa Group contains three recognizable members that correlate to the Lodgepole Limestone, Mission Canyon Limestone and Charles Formation of the regional Madison Group.

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Igneous rocks rarely intrude higher stratigraphic units except for a few pre-mineralization laccolithic stocks and plugs.

The Golden Crest Project area is centered on a broad synform separating the Lead and Tinton domes in the west-central part of the Lead District.

The Golden Crest project area is centered on a broad synform separating the Lead and Tinton domes in the west-central part of the Lead Gold District.

Geographically the synform constitutes a broad plateau 40 km long and up to 20 km across with little structural or topographic relief.

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Two of the three holes intersected the Homestake Formation.

To Solitario’s knowledge, these two holes represent the only area outside of the Lead Precambrian window where Homestake Formation has been documented.

From approximately 2017 to 2020, GC LLC conducted surface exploration consisting of collecting 251 rock float samples mainly exposed in and near recently constructed logging roads.

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The inability to observe outcrop limits the ability to detect and interpret the geometry and thickness of zones of alteration, so a soil sampling program was initiated property-wide to assist in the identification of new target areas for mapping and more detailed rock sampling.

Soils are screened and analyzed in-house by x-ray fluorescence to characterize trace element geochemistry.

This method of geochemical exploration has been helpful in focusing mapping and sampling of float.

Geochemically anomalous float has defined fourteen target zones.

In total, 972 select reconnaissance grab samples of rock and 5,575 soil samples (B-horizon) were collected and analyzed.

Exploration work during the past two years has consisted of grid soil sampling, select grab rock sampling of float and less commonly bedrock, hand-dug trenching, geologic mapping and Induced Polarization ground geophysics.

Mineralization

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The repeated formation of large gold deposits over time in the same small geographic area argues for a fundamentally gold-enriched area of the earth’s crust that has persisted since the Archean time.

Solitario’s property does not contain any historic producing mines nor resources and the presence of nearby gold deposits does not indicate that economic gold deposits will be present on the Golden Crest Project.

Solitario’s property does not contain any historic producing mines nor resources and the presence of nearby gold deposits does not indicate that economic gold deposits are present on the Golden Crest project.

A Laramide-aged igneous belt of alkalic magmatic intrusive centers occurs along a linear WNW-trending belt for approximately 150 km across the northern Black Hills and includes dozens of intrusive stocks and laccoliths and innumerable dikes and sills concentrated in five magmatic centers.

These Tertiary-aged intrusives have remobilized important orogenic gold mineralization in the Precambrian basement into overlying Paleozoic rocks.

In the Ruby Basin camp at the Wharf Mine Complex, thick pre-mineral igneous sills acted as permeability barriers within the Deadwood Formation.

These Tertiary-aged intrusive rocks have remobilized important orogenic gold mineralization in the Precambrian basement into overlying Paleozoic rocks.

In the Ruby Basin camp at the Wharf Mine Complex, thick pre-mineral igneous sills acted as permeability barriers within the Deadwood Formation that resulted in the deposition of gold mineralization.

Alteration, gold and trace element enrichment in the Pahasapa formation at the Golden Crest project is viewed as a possible indication of replacement-style epithermal mineralization in stratigraphic units lower in the sedimentary sequence (e.g.

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This extensive hydrothermal fluid interaction is interpreted to have resulted in widespread low-temperature alteration of limestones, silicification and geochemical anomalism +/- gold mineralization in the Pahasapa Formation.

Fourteen gold-enriched target areas have been identified by Solitario by select rock grab sampling.

All of these prospects have returned anomalous gold assays, five of the prospect areas have assays containing multi-gram gold per tonne and four prospects returned values containing between 0.1 and one-gram gold.

The most thoroughly sampled areas to date are the Whirlwind, Matchstick and Treasure Vault prospects that define a 6.5-kilometer north-south arcuate trend at least 1.5-kilometers across with significant gold values.

A summary table of gold in rock samples by prospect area is provided below:

Target Geochemistry Summary:

Select Rock Grab Samples

No of Samples

Au ppb (avg)*

Yellow Jacket

Treasure Vault

* Average of those samples with detectible gold.

The significance of these samples is limited to determining whether gold is present within rocks effected by hydrothermal alteration fluids and assay results may not be representative of, nor verify economically mineable mineralization at depth.

Over twenty gold-enriched target areas have been identified by Solitario by select rock grab sampling.

All of these prospects have returned anomalous gold assays, with fourteen containing multi-gram gold per tonne and the remaining prospects returned values between 0.1 and one-gram gold.

with fourteen containing multi-gram gold per tonne and the remaining prospects returned values between 0.1 and one-gram gold.

Late in the 2021 field season, Solitario received very high-grade gold values from select surface grab rock samples at the Downpour target area.

Additional surface sampling was conducted in the immediate area of the high-grade samples and eight continuous three-meter (total 24 meters) rock-chip channel samples were also collected.

The location and results of the select rock grab samples and rock-chip channel samples are presented in the map below.

Map showing Downpour select grab and chip channel samples with assay values in grams per tonne gold.

No drilling has been conducted by Solitario

In 2022, Solitario sampled an additional 127.5 meters of trenching at Downpour, where significant high-grade intervals were found as shown in the lefthand Downpour Target map below.

Solitario also expanded its exploration search area at the Downpour Prospect in 2022 and successfully enlarged the potential target area for high-grade gold mineralization.

As shown on the Rock Grab Sample Assay Map on the righthand side below, mineralization at Downpour has now been identified over an 800-meter-long strike length, with a width of up to 500 meters wide.

This prospect remains open in three directions.

Downpour trenching results with assay values in gpt gold.

Greater Downpour area with rock grab sample assay results.

In 2022, Solitario discovered a new area of significant mineralization within a generalized area called Ponderosa.

Select grab sampling of float, weathered bedrock and bedrock yielded both low- and high-grade gold mineralization.

Three centers of mineralization were initially identified by select grab samples:

Geyser, Spur and Zig Zag.

Based on these very favorable results, a trenching program was initiated in all three areas.

Assay results for both the select rock grab samples and trenching samples are presented on the map below:

Geyser-Spur-Zig Zag prospect area with gold (gpt) assays for rock grab samples and trench samples.

All areas of trenching on the Golden Crest properties are manually completed using hand tools and are reclaimed as soon as sampling is complete.

Revegetation is accomplished utilizing a seed mixture approved by the USFS.

No drilling has been conducted at the Golden Crest project by Solitario but is scheduled to begin before the end of the second quarter of 2023, pending permit approvals (see Exploration and Development section below).

Sampling, Analysis and Security of Samples

The collection of all select surface grab rock samples was supervised by project geologists, including

chain of custody.

The collection of all select surface grab rock samples was supervised by project geologists, including chain of custody.

Rock grab samples were reconnaissance select composite samples that usually displayed alteration, typically silicification, and hydrothermal brecciation.

These samples were derived mainly from residually weathered rock fragments, sub-crop, and less commonly, outcrop.

Many of the select grab samples were rock float.

These samples were derived from the underlying bedrock in the immediate area, with little transport due to the subdued relief.

In all cases the samples are composites within a small area of less than one-square meter or composites of sub-crop or outcrop.

The significance of these samples is limited to determining whether gold, or trace elements usually associated with gold, are present within rocks affected by hydrothermal alteration fluids and assay results may not be representative of, nor verify economically mineable mineralization at depth.

Chip-channel samples were more systematically collected as a measured continuous sample of bedrock.

The chip channel assays are thought to be more representative of bedrock mineralization in comparison to grab samples.

Samples were analyzed by Skyline Assayers & Laboratories in Tucson, AZ, a laboratory accredited in accordance with the standards of ISO 17025:2017.

Chip-channel and trenching and composite samples were more systematically collected as a measured continuous sample of bedrock, Bedrock + weathered bedrock and weathered bedrock.

The chip channel assays are thought to be the most representative of bedrock mineralization in comparison to trench samples that contained weathered bedrock and/or soil.

In all cases, chip channel and trenching samples are considered more representative than select grab samples.

Samples were analyzed by ALS Laboratories in Reno, NV, a laboratory accredited in accordance with the standards of ISO 17025:2017.

The samples were crushed and pulverized, and sample pulps were analyzed using industry standard fire assay methods.

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There are no reported mineral reserves or mineral resources on the Golden Crest Project.

Drill Hole Permitting, General Reclamation and ESG

Solitario submitted a Plan of Operations (“POO”) to the USFS in late-2021 for 25 widely spaced drill hole locations throughout our property position.

After USFS comments, and Solitario responses to those comments, the POO was deemed complete in May of 2022.

Respec Company LLC (“Respec”) was engaged by the USFS to complete an Environmental Assessment (“EA”) on Solitario’s proposed POO activities.

A draft EA is nearing completion.

After a comment period the USFS, in coordination with Respec, will analyze and prepare responses to the public comments, make any required changes to the analysis, prepare a final EA and determine if a Finding of No Significant Impact (FONSI) is appropriate.

A USFS decision and an administrative record is anticipated to be filed by the end of the second quarter 2023.

Solitario is committed to a “best practices” policy for all of its exploration activities, whether on private or public lands.

For example, all proposed drill hole locations will be located adjacent to or on logging roads or other logging related surface disturbances.

In this way drill hole sites will minimize or eliminate new surface disturbance on public land.

All rock and soil sampling, as well as hand-tool trenching, conducted to date has been reclaimed as soon as practical after taking of surface samples.

We have monitored the impacts of these activities, and in all instances, virtually no visual impacts exist after completion of reclamation.

Drilling proposed under the POO and analyzed in the EA will be conducted in accordance with the provisions of the decision document issued by the USFS and any state permits granted for proposed actions.

Planned Exploration and Development

For 2022, Solitario is planning to conduct an aggressive surface exploration program at the Golden Crest Project consisting of prospecting for new areas of mineralization through the collection of select rock grab samples, systematic soil sampling and geophysics.

A Plan of Operations for drilling has been submitted to the US Forest Service and is currently under review.

If permits to drill are received before the end of the 2022 field season, drilling will also be conducted on select targets.

For 2023, Solitario is planning to conduct a 4,000-5,000-meter drilling program consisting of approximately eight to twelve exploration core holes.

The initiation of this program is dependent upon receiving permit approvals, which are expected before the end of the second quarter of 2023 (see Section 11 above for drill hole permitting process and status).

Solitario will also continue its surface exploration program at the Golden Crest project consisting of prospecting for new areas of mineralization through the collection of select rock grab samples, systematic soil sampling, trenching and geophysics.

Florida Canyon Zinc Project (Peru)

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March 15, 2022.

The following summary descriptions of the Florida Canyon Zinc Project does not purport to be a complete description and is qualified in its entirety by reference to the full text of the S-K 1300 Florida Canyon TRS, which is filed as Exhibit 96.1 to this Form 10-K report and is incorporated by reference herein.

The following summary descriptions of the Florida Canyon project does not purport to be a complete description and is qualified in its entirety by reference to the full text of the S-K 1300 Florida Canyon TRS, which is incorporated by reference as Exhibit 96.1 to this Annual Report on Form 10-K.

There has not been material change in the mineral reserves or mineral resources for the Florida Canyon Zinc project since the date of the last technical report summary for the property.

Property Description and Location

(Map of Florida Canyon Property, formerly Bongará)

On August 15, 2006, Solitario signed a Letter Agreement with Votorantim Metais Cajamarquilla, S.A., a wholly-owned subsidiary of Votorantim (now known as Nexa) (both companies are referred to in this Item 2 as "Nexa”) on Solitario's 100%-owned Florida Canyon zinc project (formerly called the Bongará project), On March 24, 2007, Solitario signed the Framework Agreement with Votorantim for the Exploration and Potential Development of Mining Properties (the “Framework Agreement”), pursuant to, and replacing, the Florida Canyon Letter Agreement.

On August 15, 2006, Solitario signed a Letter Agreement with Votorantim Metais Cajamarquilla, S.A., a wholly-owned subsidiary of Votorantim (now known as Nexa) (both companies are referred to in this Item 2 as ”Nexa”) on Solitario's 100%-owned Florida Canyon zinc project (formerly called the Bongará project), On March 24, 2007, Solitario signed the Framework Agreement with Votorantim for the Exploration and Potential Development of Mining Properties (the “Framework Agreement”), pursuant to, and replacing, the 2006 Letter Agreement.

In 2015 Votorantim transferred its interest in the Florida Canyon project to Milpo, an 80%-owned affiliate of Votorantim.

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Solitario will repay this loan facility through 50% of Solitario's cash flow distributions from the joint operating company.

Solitario completed the funding of $1,580,000 of the Drilling Program during 2019.

Solitario completed the funding of $1,580,000 of a drilling program during 2019.

Solitario was not obligated to fund under the terms of the Framework Agreement.

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In June 2023, payments of approximately $360,000 to the Peruvian government will be due in order to maintain all the Florida Canyon mineral rights of Minera Bongará S.A.

Nexa is responsible for paying these costs as part of its earn-in expenditures.

Nexa is responsible for paying these costs as part of its earn-in expenditure.

Peru imposes a sliding scale royalty varying from 1% to 12% of the operating profit of a mining operation.

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With the exception of the partially completed access road and approximately 700 meters of tunneling, no permanent infrastructure facilities have been constructed within the project area

A private Peruvian power company has proposed building a hydro-electric power plant within 10 kilometers of the Florida Canyon deposit.

Nexa signed a Memorandum of Understanding with the power company that provides for 100% of the power required for mining and milling operations at low-cost.

We discovered the Florida Canyon mineralized zone of the Florida Canyon project in 1996.

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Cominco withdrew from the joint venture in February 2001, and at that time Solitario retained its 100% interest in the project.

We maintained the claims from 2001 to 2006, until the Florida Canyon Letter Agreement was signed.

We maintained the claims from 2001 to 2006, until the 2006 letter agreement was signed.

Nexa conducted surface drilling on an annual basis from 2006 to 2013 and from 2018 to 2019, and underground tunneling and drilling from 2010 to 2013.

All significant work on the property has been conducted by our joint venture partners, Cominco and Nexa, and is described below in Section 5, “Prior Exploration.”

All significant work on the property has been conducted by our joint venture partners, Cominco and Nexa, and is described below in Section 5, “Prior Exploration and Recent Work.”

Geological Setting

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Nexa has more recently continued surface exploration work consisting of geologic mapping and sampling that has identified new surface zinc mineralization to the south and east of Florida Canyon and also 15 kilometers to the north and northwest in areas called San Jose and Naranjitos (see Chambara Project below).

Nexa’s expenditures for 2022 were approximately $3.2 million.

The two major work activities for 2022 were:

1) advancement and upgrading of the access road to the project area and adjacent communities as part of their community outreach program;

and 2) a significant metallurgical testing program (see section 9 below:

“Prefeasibility Studies”).

Mineralization

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Approximately 80% of mineralization defined at Florida Canyon is sulfide-dominant with the remainder being mixed sulfide-oxide, or oxide-dominant.

Processing of sulfide mineralization is commercially more profitable.

Processing sulfide mineralization is commercially more profitable.

Karst features are localized along the feeder faults and locally produce "breakout zones" where mineralization may extend vertically across thick stratigraphic intervals where collapse breccias have been replaced by ore minerals.

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Intervals of the half-core taken for assay were selected according to geologic criteria under the supervision of the geologist in charge and shipped in sealed bags by land.

Cominco used SGS Laboratories (“SGS”) and Nexa used ALS-Chemex, both in Lima, Peru, where all samples were analyzed by ICP.

Cominco used SGS Laboratories (“SGS”) and Nexa used ALS-Chemex, both in Lima, Peru, where all samples were analyzed by ICP (inductively coupled plasma).

Any samples that contained greater than 1% zinc were then analyzed by wet chemistry assay for zinc and lead to provide a more accurate analysis of grade.

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Nexa, either through its engineering staff or contracted independent mining engineering firms, has conducted prefeasibility-level studies to provide estimates of deposit size and grade, mining and processing recoveries, sizing of appropriate scale of operations, infrastructure design, and capital and operating cost estimates at a level of detail varying from preliminary economic assessment to prefeasibility levels.

Solitario and Nexa jointly completed a PEA for the entire project in 2017 that incorporated a variety of Nexa-generated studies into the analysis.

The PEA evaluation included resource estimation, mining and processing recovery estimates, a preliminary mining and processing plan, infrastructure layout, environmental considerations and an economic analysis based on certain base case parameters.

The PEA envisioned an underground mining operation with a 2,500 tonne per day floatation mill for processing, resulting in a 12.5-year mine life.

Other prefeasibility work completed by Nexa included drilling 16 diamond core holes in 2013 to evaluate geotechnical and hydrological parameters of the mineralized areas for both engineering and environmental purposes.

In 2016, Nexa completed a geochemical/metallurgical study that more accurately defined the distribution of sulfide/oxide mineralization based on re-assaying of nearly all past drill-hole samples.

This information was critical in resource estimation and accurately estimating metal recoveries.

It was assumed that concentrates would be trucked to Nexa’s Cajamarquilla zinc smelter facility in Lima, Peru.

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Increasingly lower recoveries of zinc and lead resulted in direct proportion to the percentage of oxides present in the ore tested.

Nexa also conducted a comprehensive geochemical testing program that demonstrated that zinc (and lead) recoveries were significantly affected by the Zn-sulfide/Zn-oxide ratio of mineralization.

In general, mineralized material with greater than an 80% ratio of Zn-sulfide/Zn-oxide, recoveries are greater than 90% for Zn.

Conversely, for mineralized material, with less than a 20% ratio of Zn-sulfide/Zn-oxide, recoveries are approximately 40% for Zn.

Although sulfide recoveries achieved to date are very good, SRK suggests that optimization of processing and metallurgical parameters may result in improved recoveries and concentrate grade.

In 2016, Nexa completed a geochemical/metallurgical study that more accurately defined the distribution of sulfide/oxide mineralization based on re-assaying of nearly all past drill-hole samples.

This information was critical in resource estimation and accurately estimating metal recoveries.

In 2022, Nexa initiated a much more rigorous metallurgical testing program that mainly focused on sulfide mineralization, which is the dominant ore type (78%).

This work indicated higher Zn and Pb recoveries as well as higher concentrate grades than was estimated previously.

Zn recovery for sulfide mineralization was estimated at 91.7% with a concentrate grade of 56.6% and lead recovery of 88.5% with a concentrate grade of 52.1%.

Solitario and Nexa jointly funded a PEA prepared by SRK for the entire project in 2017 that incorporated a variety of Nexa-generated studies into the analysis.

The PEA envisioned an underground mining operation with a 2,500 tonne per day floatation mill for processing, resulting in a 12.5-year mine life.

It was assumed that concentrates would be trucked to Nexa’s Cajamarquilla zinc smelter facility in Lima, Peru.

Although sulfide recoveries reported in the 2017 PEA were very good, SRK suggested that optimization of processing and metallurgical parameters may result in improved recoveries and concentrate grade.

In consideration of this recommendation, in 2022, Nexa initiated a much more rigorous metallurgical testing program that mainly focused on sulfide mineralization, which is the dominant ore type (78%).

This work indicated higher Zn and Pb recoveries as well as higher concentrate grades than was estimated previously.

Zn recovery for sulfide mineralization was estimated at 91.7% with a concentrate grade of 56.6% and lead recovery of 88.5% with a concentrate grade of 52.1%.

The impact of these recent metallurgical testing results combined with the increase in sulfide resources reported in 2021 is expected to have a positive impact on project economics.

Prior to the 2022 S-K 1300 Florida Canyon TRS filing, Solitario filed on SEDAR in Canada a technical report entitled:

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There are no reported mineral reserves at the Florida Canyon project.

See “Mineral Resources” detailed below for the mineral resources at the Florida Canyon Project.

Estimated Mineral Resources for the Florida Canyon deposit are shown in the table below (for greater detail, see “ S-K 1300 Technical Report Summary Florida Canyon Zinc Project, Amazonas Department, Peru;

Effective Date:

February 1, 2022, Report Date:

March 15, 2021, which is Exhibit 96.1 to this Annual Report on Form 10-K.

Gustavson & Associates, an international independent mining engineering firm, completed the S-K 1300 Florida Canyon TRS).

Florida Canyon Total Mineral Resources (100% basis)

Classification

Sum of Tonnes

Measured + Indicated

Mineral resources are not mineral reserves and have not been demonstrated to have economic viability.

There is no certainty that the mineral resource will be converted to mineral reserves.

The quantity and grade or quality is an estimate and is rounded to reflect the fact that it is an approximation.

Quantities may not sum due to rounding.

CIM (2014) standards for mineral resources were followed.

The effective date of the Mineral Resource Estimate is February 1 st , 2021.

The mineral resources are reported using a cutoff of US $41.40/t NSR for sub-level mining areas, US $42.93/t for cut and fill,

and US $40.61/t for room and pillar areas of the mine.

The minimum mining thickness was 3 m for sub-levels in cut and fill, and 4 m for room and pillars method.

Mineral resources are reported exclusive of mineral reserves.

Mineral resources are not mineral reserves and have not demonstrated economic feasibility.

Numbers may not sum correctly due to rounding.

Estimates for mineral resources are based on drill results received up to 30 October 2020, with 545 holes and a total length of 136,758.15 m stope shapes for support of economic potential were developed using the stope optimizer tool of Deswik (DSO).

Mining Operations

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Planned Exploration and Development

During 2021, Nexa worked on two separate drilling permits.

The first of these permits (4MEIAsd) was approved and allows additional drilling immediately to the south and east of the current Florida Canyon drilling footprint.

The second permit (5MEIAsd) greatly expands the area in which drilling is permitted to the south and east.

The second permit is expected to be granted before the 2023 field season.

A robust metallurgical testing program is underway to better quantify recoveries of zinc, lead and silver and to better determine the quality of concentrate that the Florida Canyon ores can produce.

Surface exploration consisting of geological mapping and sampling will continue throughout the project area.

Nexa plans to complete road construction to local communities that currently do not have vehicle access as part of their ESG commitment.

The access road could also serve as a support road to project activities.

Nexa plans to conduct a 4,000-to-5,000-meter core drilling program on the Florida Canyon project during 2023.

The program is focused on testing for southern extensions to the very well mineralized San Jorge and Sam structure and associated mantos bodies.

Drilling is also being considered in the Karen-Milagros and Sam areas to the north of the current resources.

Lik Zinc Project (Alaska)

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March 11, 2022.

The following summary descriptions of the Lik Zinc Project does not purport to be a complete description and is qualified in its entirety by reference to the full text of the S-K 1300 Lik TRS, which is filed as Exhibit 96.2 to this Form 10-K and is incorporated by reference herein.

The following summary descriptions of the Lik Zinc project does not purport to be a complete description and is qualified in its entirety by reference to the full text of the S-K 1300 Lik TRS, which is Exhibit 96.2 to this Annual Report on Form 10-K and is incorporated by reference herein.

There has not been material change in the mineral reserves or mineral resources for the Lik project since the date of the last technical report summary for the property.

Property Description and Location

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In July 2018, the Company and Teck signed a Joint Exploration Agreement (“JEA”) whereby both parties agreed to fund a surface exploration program on a 50%/50% basis for 2018.

Addendums extending the JEA and providing funding for continued exploration were signed in 2019, 2020, 2021 and a fourth Addendum to the JEA is expected to be signed in 2022.

Addendums extending the JEA and providing funding for continued exploration were signed in 2019, 2020, 2021, 2022 and a fifth Addendum to the JEA is expected to be signed in 2023.

Teck has acted as manager of the exploration programs for the past four years.

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Charter flights may be arranged from a number of sites in northwestern Alaska.

The town of Kotzebue, which is located about 90 miles from the deposit, is a seaport with commercial air service from Anchorage.

The town of Kotzebue, Alaska, which is located about 90 miles from the deposit, is a seaport with commercial air service from Anchorage, Alaska.

Kotzebue is the center for access to the nearby Red Dog mine operated by Teck.

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The Red Dog ore deposit was originally discovered in 1970 by a geologist undertaking mapping in the De Long Mountains area on behalf of the United States Geological Survey.

GCO, in joint venture with New Jersey Zinc Company and WGM Inc., carried out stream geochemical sampling and reconnaissance for color anomalies.

GCO, in joint venture with New Jersey Zinc Company and WGM Inc.

(“WGM”), carried out stream geochemical sampling and reconnaissance for color anomalies.

Claims were staked in July 1976 to cover a stream geochemical anomaly on Lik Creek.

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Teck conducted a soil sampling survey, an Induced Polarization (“IP”) geophysical survey and geologic mapping in 2021.

The majority of this work was conducted northeast of the Lik deposit looking for indications of potential new zinc deposits on trend with the Lik deposit in favorable strataigraphy.

The majority of this work was conducted northeast of the Lik deposit exploring for indications of potential new zinc deposits on trend with the Lik deposit in favorable stratigraphy.

A total of 381 soil samples were collected.

Results of the soil survey are still being processed.

The IP geophysical survey consisted of six survey lines totaling eight kilometers.

The results of the IP survey suggested that the rock formation that hosts the Lik deposit may flatten out to the west and be at drillable depths, opening up a whole new area for potential drill testing.

Teck completed a three-hole, 737-meter (2,415 feet) drilling program in 2022.

This was the first drilling program conducted since 2011.

Drill hole Lik-231 intersected 3.5 meters (11.5 feet) grading 9% zinc and 3% lead.

Holes Lik-230 and 232 did not intersect significant mineralization.

In addition to the drilling, Teck also conducted traverse geologic mapping to the northwest of the Lik deposit and a ground gravity geophysics with survey data points at 400-meter (1,300-foot) centers.

The geophysical survey was also conducted to the northwest of the Lik deposit and was successful in defining a low-amplitude gravity anomaly that requires further follow-up work.

In December 2022, Teck submitted a drilling permit application to the Alaska Department of Natural Resources for 70 core holes, including water sources for drilling.

Drill hole location includes step-out drilling surrounding the currently defined deposit as well as location along strike to the northeast and theoretical targets more distant to the deposit.

This robust permitting submission allows for significant flexibility in the choice of drill sites for the next five years.

Mineralization

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Typical grades of mineralized intersections within the Lik deposit are listed in the table below:

Typical Mineralized Intersection

Typical Mineralized Intersections

Previous work by GCO determined that sulfides were deposited in four distinct cycles.

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Historical Diamond Drilling Campaigns

Number of Holes

Aggregate Depth (m)

Managed by WGM

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Managed by Zazu

Managed by Teck

Zazu completed two diamond drilling programs during 2007 and 2008 to further test the Lik South deposit and to obtain samples for metallurgical testing.

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By the end of 2011, a total of approximately 38,328 meters (125,700 feet) of drilling in 229 holes had been completed on the Lik property by the Company (Zazu) and the previous owners.

No drilling has been completed on the Lik project since 2011.

Sampling, Analysis and Security of Samples

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As the entire core was logged and sampled in an isolated field camp, security was not a major concern because access to the camp was closely controlled.

It is noted that four different companies (WGM, GCO, Noranda and Moneta) have completed drilling programs at the Lik property and all of them have obtained consistent results.

It is noted that four different companies (WGM, GCO, Noranda and Moneta Gold Inc.) have completed drilling programs at the Lik property and all of them have obtained consistent results.

The work was considered completed to industry standards in use at the time of the work.

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The PEA envisioned an open pit mining operation with a 5,500 ton per day floatation mill for processing resulting in a nine-year mine life.

Concentrates would be handled through the DeLong Mountain Regional Transportation System (the “DMTS”) road and port system that currently handles all concentrate produced by the nearby Red Dog zinc mine of Teck.

Concentrates would be handled through the DeLong Mountain Regional Transportation System road and port system that currently handles all concentrate produced by the nearby Red Dog zinc mine of Teck.

A summary of metallurgical testing and mineral processing is provided below.

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There are no reported mineral reserves at the Lik project.

See “Mineral Resources” below for the mineral resources at the Lik project.

Estimated mineral resources for the Lik deposit are shown in the table below (for greater detail, see “ S-K 1300 Technical Report Summary Lik Zinc Project, Northwest Arctic Borough, Alaska, USA:

Effective Date:

December 31, 2021, Report Date:

March 11, 2022, included as Exhibit 96.2 to this Annual Report on Form 10-K.

Gustavson & Associates, an international independent mining engineering firm, completed the S-K 1300 Lik TRS).

Lik Mineral Resource Estimate (100% basis)

Indicated Resources

Inferred Resources

Price assumptions for Lik:

Mineral resource recoveries for Lik:

Mineral resource for Lik is reported at a cutoff grade of 5% Pb%+Zn%

The preliminary pit optimization was prepared using Datamine Software.

The drillhole database, mineralized domain solids and block model were imported into Leapfrog Geo/Edge 2021.2.3 for review.

For the current resource estimate only surface mining methods were considered.

While there may be potential to exploit mineralization via underground mining methods, this was not considered in the current resource statement.

Mining Operations

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Planned Exploration and Development

Solitario and Teck are in final discussions to jointly fund a 2022 exploration program, with Teck acting as project manager.

The program, if approved, consists of drilling three core holes totaling approximately 2,130 feet.

Drill targets under consideration are extensions to the currently defined Lik deposit on the northwest and southern limits of the deposit, including one hole to test for stacked mineralized horizons.

Drilling is expected to begin during the 2022 summer field season.

Besides drilling, a gravity geophysical survey west of the Lik deposit is planned where favorable stratigraphy to host zinc mineralization similar to Lik is thought to exist at shallow depths.

Gravity geophysics have proven very effective in detecting zinc mineralization at depth.

We expect to reach a final decision on this program early in the second quarter of 2022.

Timing of this program could be impacted by COVID-19 restrictions.

Solitario and Teck are in final discussions to potentially fund a 2023 exploration program, with Teck acting as project manager.

The program, if approved, consists of drilling two core holes totaling approximately 716 meters (2,350 feet) to test for extensions to the currently defined Lik deposit.

An airborne ZTEM survey to measure for resistivity features at depth is also being considered.

The drilling and geophysical programs, if approved, would begin in June of 2023.

Chambara Zinc Property (Peru)

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Nexa may increase its shareholding interest to 49% through cumulative spending of $6,250,000 and may further increase its interest to 70% by funding a feasibility study and providing construction financing for Solitario's interest.

Nexa has not met the cumulative spending total as of December 31, 2022.

If Nexa provides such construction financing, we would repay that financing, including interest, from 80% of Solitario's portion of the project cash flow.

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Discontinued Projects

During 2021 we recorded $17,000 of mineral property impairment related our its decision to abandon the Gold Coin project in Arizona.

During 2020 we recorded $6,000 of mineral property impairment related to our decision to abandon its La Promesa project in Peru.

We had no mineral property impairments in 2022.

During 2021 we recorded $17,000 of mineral property impairment related to our decision to abandon our Gold Coin project in Arizona.

Mineral Resources

The following mineral resources summary represents Solitario’s interest in the mineral resources as provided in the S-K 1300 Florida Canyon TRS at Solitario’s current 39% interest at the Florida Canyon Project in Peru and Solitario’s interest in the mineral resources provided in the S-K 1300 Lik TRS at Solitario’s current 50% interest at the Lik Project in Alaska, in each case as of the end of the fiscal year ended December 31, 2021.

The following mineral resources summary represents resources attributable to Solitario’s interest in the mineral resources as provided in the S-K 1300 Florida Canyon TRS at Solitario’s current 39% interest at the Florida Canyon project in Peru and Solitario’s interest in the mineral resources provided in the S-K 1300 Lik TRS at Solitario’s current 50% interest at the Lik project in Alaska, in each case as of the end of the fiscal year ended December 31, 2022.

Lik (1)(3)(5)

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“Amphiobile” means any of a class of rock-forming silicate or aluminosilicate minerals typically occurring as fibrous or columnar crystals.

“Anticline” means folds in which each half of the fold dips away front the crest.

“Anticline” means folds in which each half of the fold dips away from the crest.

“Biotite” means a black, dark brown, or greenish black variety of mica, occurring in many igneous and metamorphic rocks.

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“Fault” means a fracture in rock along which there has been displacement of the two sides parallel to the fracture.

“Float” means pieces of rock that have been broken off and moved from their original location by natural forces such as frost or glacial action.

“Galena” means a bluish gray or black mineral of metallic appearance, generally the chief ore of lead sulfide.

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These features include caves, sinkholes, disappearing streams, subsurface drainage and deeply incised narrow canyons.

“Limestone” means a bedded, sedimentary deposit consisting chiefly of calcium carbonate.

“Manto deposits” means replacement ore bodies that are strata bound, irregular to rod shaped ore occurrences usually horizontal or near horizontal in attitude.

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“Mineral Resource” means as a concentration or occurrence of material of economic interest in or on the earth’s crust in such form, grade or quality, and quantity that there are reasonable prospects for its economic extraction.

“Minnelusa” means a formation as a geologic unit of primarily limestone and dolomite found in the Black hills of South Dakota of the Permian to Pennsylvanian aged limestones and dolomites.

“Mineralization” means the concentration of metals within a body of rock.

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“Ounce” means a troy ounce.

“Oxide” means a mineral class in which the chemical compound that typically contains an 0 -2 oxygen atom in its chemical formula.

“Oxide” means a mineral class in which the chemical compound typically contains an 0 -2 oxygen atom in its chemical formula.

“Pahasapa” means a formation as a geologic unit of primarily limestone and dolomite that is exposed in the Black hills of South Dakota of Mississippian aged limestones and dolomites.

”Plagioclaste” means a group of feldspar minerals that form a solid solution series ranging from pure albite, Na(AlSi 3 O 8 ), to pure anorthite, Ca(Al 2 Si 2 O 8 ).

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“Vein” means a fissure, fault or crack in a rock filled by minerals that have traveled upwards from some deep source.

Legal Proceedings

Mine Safety Disclosures

Not applicable

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 2. Properties