NOVEMBER 19, 2020
Vancouver, Canada – Tinka Resources Limited (“Tinka” or the “Company“) (TSXV & BVL: TK) (OTCPK: TKRFF) is pleased to provide an update on the ongoing drill program at the Company’s 100% owned Ayawilca zinc-silver project in central Peru.
As at today’s date, 2,000 metres have been drilled in the 2020 program and the overall program is about 30% complete. A third rig has been mobilized to site and has commenced drilling. We now expect the drill program to continue until February 2021, at which time we will take a break in the drilling to compile data and update the project resource estimations.
Three holes have been completed since the program commenced in October (drillholes A20-169, 170, and 171), and three holes are in progress (drillholes A20-172, 173 and 174). Samples for the first two drillholes are in the laboratory, and we expect assay results to be received by the end of November.
Drilling is currently targeting extensions of the Zinc Zone Indicated Resources at the West and South areas (Figure 1), the portions of the resource with the greatest thickness and the highest grades. Drillholes at the Colqui Silver Zone are planned later in the program to test for extensions of high-grade silver mineralization along the Colquipucro Fault.
President and CEO of Tinka, Dr. Graham Carman, stated: “We are pleased with progress of drilling to date, and we look forward to the results from the first drillholes. The arrival of a third rig will speed up the program, while allowing us to also complete a limited number of geotechnical holes within the framework of our work program and budget.”
“The prices of industrial metals and precious metals have increased significantly in recent times. In the case of zinc, prices are at 18 month highs (~US$1.20/lb) while inventories remain low. Silver prices have also excelled due to global currency devaluation and fiscal stimulus, with silver prices up over 40% in the past year (~US$24/oz). The sharp move higher in silver is the reason we have been re-emphasizing our silver resources, as Ayawilca has substantial silver in the Zinc Zone and also at our nearby Colqui Silver Zone.”
“A Preliminary Economic Assessment (PEA) completed in July 2019 on the Ayawilca Zinc Zone resulted in an after-tax NPV8% of US$363 million (using US$1.20/lb Zn and US$18/oz Ag) with initial capex of US$262 million, which is modest for a base metal project of this size. Tinka is continuing to evaluate ways to add value to the project through optimization of the PEA, which could eventuate in an even more compelling project on the back of an updated resource in 2021.”