Soltoro Ltd.

Soltoro Ltd.

May 03, 2010 11:55 ET

Soltoro Reports NI 43-101 Silver Resource at Its El Rayo Project in Jalisco, Mexico

TORONTO, ONTARIO--(Marketwire - May 3, 2010) - Soltoro Ltd. (TSX VENTURE:SOL) has received an indicated and inferred mineral resource estimate for its Las Bolas mineral deposit on its 100% owned El Rayo silver-gold project in Jalisco, Mexico.  At the cut-off grade of 40 g/t Ag the Indicated Mineral Resources are 9,470,000 tonnes at an average grade of 76.3 g/t Ag containing  approximately 23.2 million ounces of silver, and 1,800,000 tonnes of Inferred Mineral Resources at an average grade of 68.9 g/t silver, containing approximately 4.1 million ounces of silver.  The mineral resource estimate was prepared by an independent consultant and is compliant with National Instrument (NI) 43-101.  The resource is based on a total of 84 drill holes, 12 diamond drill core and 72 reverse circulation.

The deposit consists of a northeast trending, 40 degree northwest dipping body, approximately 40 metres thick extending down dip from surface to more than 200 m below the surface and 800 m along strike. The resource is in an area of low relief with no environmental sensitivity, close to established infrastructure, thereby making it amenable to rapid development as a new open-pit mine.

Soltoro President and CEO, Andrew Thomson comments "The initial Las Bolas resource estimate indicates the potential for the El Rayo project to host a significant primary silver deposit. A 15,000 metre reverse circulation drill program is continuing in order to expand the oxide silver and oxide gold resources around historical mine areas as well as numerous associated structures, geophysical anomalies and alteration zones which are yet to be fully explored for their near-surface potential."

In addition to the resources at its Las Bolas deposit, Soltoro is actively exploring additional mineralized zones elsewhere on its 100% owned El Rayo property.  These include:

  • The southern extension of the Las Bolas Structure in an area close to the historical Matachines mine with an additional Inferred Mineral Resources of approximately 400,000 tonnes at an average grade of 65 g/t Ag containing approximately 850,000 ounces of silver. This resource is based on a total of 6 drill holes, 2 diamond drill core and 4 reverse circulation.

  • Highway Zone: Potential for 2 million to 2.3 million tonnes grading 73 g/t Ag to 78 g/t Ag, containing approximately 5.3 million to 5.7 million ounces of silver. This calculation is based on a total of 16 reverse circulation drill holes.

  • El Rayo Structure Northern Extension: Potential for one million to 1.1 million tonnes grading 0.9 g/t Au to 1 g/t Au and 14 g/t Ag to 15 g/t Ag, containing approximately 33,000 to 34,000 ounces of gold and 450,000 to 500,000 ounces of silver. This calculation is based on a total of 8 drill holes, 2 diamond drill core and 6 reverse circulation.

  • The Catarina mine area, the largest of the historical mines on the El rayo property, extends for approximately 500 metres along strike over a vertical extent of over 100 metres. From 1978 to 1981 a Mexican government agency completed surface trenching, underground sampling and development as well as surface and underground drilling from which they derived a historical resource.

Soltoro considers the potential quantity and grade of the material at the Highway Zone and the El Rayo Structure Northern Extension to be conceptual in nature, that there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource and it is uncertain if further exploration will result in discovery of a mineral resource.

The estimated resources are based on a silver price of US $16.00/ounce and a metallurgical recovery based on un- optimized tests of 65% of the contained silver with minimum block sizes of 5 metres vertical. The resource classifications are based upon the CIM definitions.  Cut grades were determined by truncating all assays above 200 g/t Ag to 200 g/t Ag. Mineral Resources are estimated over a minimum 5 metres vertical thickness at an estimated bulk in-situ density of 2.5 tonnes per cubic metre.  Tonnage and average grade values are rounded.  The Mineral Resources are contained within a conceptual open-pit mine at a silver price of US $16.00/ounce.  Indicated Mineral Resources include blocks within a 40 metre search radius of a drill intersection, and Inferred Mineral Resources include blocks within a 65 metre search radius as well as blocks in the hanging-wall of the main deposit.

The Mineral Resources are reported at the cut-off grade of 40 g/t Ag, as recommended by the independent consultant. Tonnage and average grades estimates were reported as follows:

Table 1
Estimates of Mineral Resources at Different Cut-Off Grades, as of April 30, 2010

Cut-off grade Tonnes g/t Silver   Contained ounces of Silver
g/t Silver   Cut Uncut Cut Uncut
Indicated Mineral Resources
20 13,100,000 59.1 64.1 24,900,000 27,000,000
30 11,950,000 62.3 67.8 23,900,000 26,000,000
40 9,470,000 69.4 76.3 21,100,000 23,200,000
50 6,960,000 78.4 87.6 17,500,000 19,600,000
60 5,200,000 86.4 98 14,400,000 16,400,000
Inferred Mineral Resources
20 9,200,000 35.1 36.1 10,400,000 10,700,000
30 4,000,000 48.9 50.2 6,300,000 6,500,000
40 1,800,000 67.4 68.9 4,000,000 4,100,000
50 1,300,000 76.8 79 3,200,000 3,300,000
60 800,000 88.7 92 2,350,000 2,400,000

"In addition to deeper drilling, further metallurgical testing is planned with a view to improving recoveries and cut-off grades to grow the mineral resource at Las Bolas," added Mr. Thomson.

The report from the independent consultant recommends that Soltoro continue to explore for silver and gold mineralization elsewhere on its extensive El Rayo property, particularly along strike and at depth from the Las Bolas deposit.

A copy of the full resource estimation report will be available on the SEDAR website within 45 days of this news release. The mineral resources estimated were completed by Hrayr Agnerian, M.Sc. (Applied), P.Geo. of Agnerian Consulting Ltd. Mr Agnerian is the Qualified Person for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators and has verified the data disclosed in this release.

About Soltoro:

Soltoro is a junior company exploring for bulk tonnage gold and silver deposits in Mexico. The Company has recently completed a geophysical survey at its La Tortuga project and is actively advancing its Quila, Victoria, Chinipas and El Santuario projects. Soltoro has 34,997,850 shares outstanding and trades on the TSX Venture Exchange under the symbol SOL.

This communication to shareholders and the public contains certain forward-looking statements. Actual results may differ materially from those indicated by such statements. All statements, other than statements of historical fact, included herein, including, without limitations statements regarding future production, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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