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Mineral Properties

9 Months Ended

Sep. 30, 2024

2. Mineral Properties

The following table details Solitario’s investment in Mineral Properties:

(in thousands)	September 30,		December 31,
	2024		2023
Exploration
Lik (Alaska – US)	$	15,611	$	15,611
Golden Crest (South Dakota – US)		1,078		1,035
Cat Creek (Colorado – US)		12		-
Total exploration mineral properties	$	16,701	$	16,646

During the nine months ended September 30, 2024, Solitario added a new area to its existing Golden Crest Project, covering approximately 98 claims. The initial cost for staking and recording these claims of $43,000 was capitalized as mineral properties. In addition, during the nine months ended September 30, 2024, Solitario acquired a new early-stage exploration project, the Cat Creek Project, and capitalized its initial lease acquisition cost of $12,000. Solitario did not add any new exploration properties or projects during the three months ended September 30, 2024 nor the three and nine months ended September 30, 2023.

All exploration costs on our exploration properties, none of which have proven and probable reserves, including any additional costs incurred for subsequent lease payments or exploration activities related to our projects, are expensed as incurred.

Exploration expense

The following items comprised exploration expense:

(in thousands)	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Geologic and field expenses	$	1,977	$	895	$	2,628	$	1,630
Administrative		90		23		280		118
Total exploration costs	$	2,067	$	918	$	2,908	$	1,748

Asset Retirement Obligation and Reclamation liabilities

Solitario recorded an asset retirement obligation of $125,000 at September 30, 2024 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 Solitario and its joint venture partner Teck and is supported by a permitting bond required by the State of Alaska, for which Solitario has purchased a reclamation bond insurance policy in the event Solitario or 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 completion reclamation is not expected to occur until the end of the related 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.

Solitario is also involved in certain matters concerning its current drilling program remediation at its Golden Crest Project. Generally, the remediation at Golden Crest is carried out concurrently with drilling activities, with only ongoing contouring and reseeding of drill sites upon completion of drilling. At September 30, 2024, Solitario recorded a reclamation liability of $20,000, included in asset retirement and reclamation liabilities related to the Golden Crest Project.