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Mineral Properties

3 Months Ended

Mar. 31, 2024

Mineral Properties

Mineral Properties

2. Mineral Properties

The following table details Solitario’s capitalized mineral properties:

(in thousands)		March 31,				December 31,
		2024				2023
Exploration
Lik Project (Alaska – US)		$	15,611			$	15,611
Golden Crest Project (South Dakota – US)			1,035				1,035
Total exploration mineral properties		$	16,646			$	16,646

Solitario's mineral properties at March 31, 2024 and December 31, 2023 consist of use rights related to its exploration properties. The amounts capitalized as mineral properties include initial concession and lease or option acquisition costs. None of Solitario’s exploration properties have production (are operating) or have established proven or probable reserves. Solitario's mineral properties represent interests in properties that Solitario believes have exploration and development potential.

Exploration expense

The following items comprised exploration expense:

(in thousands)		Three months ended March 31,
		2024				2023
Geologic and field expenses		$	257			$	232
Administrative			97				43
Total exploration costs		$	354			$	275

Asset Retirement Obligation

In connection with the acquisition of its interest in the Lik Project in 2017, Solitario recorded an asset retirement obligation of $125,000 for Solitario’s estimated reclamation cost of the existing disturbance at the Lik Project. This disturbance consists of an exploration camp, including certain drill sites and access roads at the camp. The estimate was based upon estimated cash costs for reclamation as determined by the permitting bond required by the State of Alaska for which Solitario has purchased a reclamation bond insurance policy in the event Solitario or its 50% joint venture partner, Teck, do not complete required reclamation.

Solitario has not applied a discount rate to the recorded asset retirement obligation as the estimated time frame for reclamation is not currently known, as reclamation is not expected to occur until the end of the Lik Project life, which would follow future development and operations, the start of which cannot be estimated or assured at this time. Additionally, no depreciation will be recorded on the related asset for the asset retirement obligation until the Lik Project goes into operation, which cannot be assured.