RES
YEAR 25
KEYMILESTONES
Tinka’s strategic review to unlock Ayawilca zinc-tin potential
Tinka Resources (TSX-V:TK) says the 16,800-hectare Ayawilca Project is one of the largest undeveloped zinc resourcesintheAmericas
The company has announced that it will undertake a strategicreviewprocess,withtheassistanceofanadvisor, to identify and evaluate a broad range of potential strategicalternativestoadvanceitshigh-qualityzincasset inPeru
Tinka’s key asset, the Ayawilca Project, is located in the AndesofcentralPeru,just130kmfromthePacificcoastand anewportfacilityatChancay
Ayawilca is a skarn/carbonate replacement deposit formed via a similar process to porphyry deposits Skarns are important sources of economically valuable copper, zinc,silver,lead,tin,gold,molybdenumandiron
The largest skarn deposit in the world, Antamina in Peru, is one of the world’s most profitable copper-zinc mines -owned by BHP (ASX:BHP), Glencore (LSE:GLEN) and Teck (NYSE:TECK) -- due to its size and high grade. It is a prime exampleofjusthowfertileandlargeskarnsystemscanbe. Antamina produces various metals including copper, zinc, silverandmolybdenum.
CEO Dr Graham Carman says, “base metal projects of the qualityofAyawilcadon’tgrowontrees!”
“Peru has some of the largest skarn and carbonate replacementdepositsintheworld,”Carmannotes
“The world-class mines of Antamina and MMG’s Las Bambas have huge reserves of copper, zinc and precious metals and are dominated by skarn mineralisation The prevalenceoflargeskarnsinPeruisduetotheabundance of thick limestones and the fertile magmas which have intrudedthem”
The potential of Tinka’s Ayawilca Project has attracted the backing of one of Peru’s largest mining companies, CompañiadeMinasBuenaventura(NYSE:BVN),aswellasa top-fiveglobalzincproducer,NexaResources(NYSE:NEXA)
Carman tells Miningcomau there is “huge exploration upside” at the project, a fact recognised by Buenaventura andNexa,whicheachowna199%stakeinTinkaandhave miningoperationswithin40kmofAyawilca
Both Buenaventura and Nexa increased their stakes in Tinka late last year by participating in a C$17 million ($19 million)non-brokeredprivateplacement
Buenaventura and Nexa between them own and operate fiveminesandonezincrefineryincentralPeru
The Ayawilca Project sits around 250km from Lima, where the Callao Port and Nexa’s Cajamarquilla refinery are located
The Cajamarquilla zinc refinery is a potential source for Ayawilcazincconcentrates
Discovered by Tinka in 2013, Ayawilca has been subject to 95,000m of drilling so far which has defined a large footprintandresourcebase
It is a “blind” deposit occurring between 80m and 450m fromthesurface
The 2022-2023 drilling campaign returned top hits like 389m@20%zincincluding104m@42%zinc,and145m@ 109%zincincluding293m@202%zincintheSoutharea
From the West area, Tinka reported results of 449m @ 12% zinc including 161m @ 222% zinc, and 979m @ 88% zinc including358m@19%zinc
“We believe that we can replicate our exploration successesatSouthandWestAyawilca–thehighestgrade parts of the Ayawilca zinc deposit incorporating all of the indicated mineral resources – with resource expansion drillingatEastAyawilca,wheretheexistingzincresourceis wideopen,”Carmansays.
“Meanwhile, the tin mineralisation underlying the zinc at Ayawilcaisopenalongstrikeanduntestedatdepth.
“Tinkaalsohashigh-gradeoutcroppingcopper-goldskarn targetsthathaveneverbeendrilledjust20kmawayatthe Silviaproject”
TheZincZoneatAyawilcasofarhostsindicatedresources totalling 283 million tonnes @ 582% zinc, 164 grams per tonne silver, 02% lead and 91g/t indium reported in undergroundminingshapes
The Zinc Zone also has an inferred resource of 312 million tonnes @ 421% zinc, 145g/t silver, 02% lead and 45g/t indium
The Silver Zone has an inferred resource of 1 million tonnes @1114g/tsilver,154%zincand05%lead
The Tin Zone, which lies beneath the zinc mineralisation, has an indicated resource of 14 million tonnes @ 072% tin and an inferred Resource of 127 million tonnes @ 076% tin Tin is hosted by cassiterite, the favourable tin mineral for eventualrecoveryandconcentration
Tinka believes it has only drilled into the very top of the tin system at Ayawilca, as several drill holes ended still in mineralisation, with much more tin potentially lying underneath
“We believe that we can replicate our exploration successes at South and West Ayawilca – the highest grade parts of the Ayawilca zinc deposit incorporating all of the indicated mineral resources – with resource expansion drilling at East Ayawilca, where the existing zinc resource is wide open
The company says the robust resource figures, coupled with strong financial metrics outlined in a 2024 Preliminary Economic Assessment (PEA), underscore the project's potential to become a major player in the production of zinc,silverandtin
ThePEAestimatesthattheAyawilcaundergroundminewill becapableofprocessing2milliontonnesofzinc,silverand leadand300,000tonnesoftineachyearviatwoseparate circuits.
This would give the operation a net present value of US$434 million and an internal rate of return of 25.9% after tax,producingzincfor21yearsandtinfor15years.
The revenue breakdown would be 82% zinc, 11% tin and 7% silverandlead
During the second half of 2024, Tinka undertook a detailed geological review of the mineralisation at Ayawilca, factoring in the key findings from the 2022-2023 drill program
Carman says the greater understanding of the mineralisation at Ayawilca and a reinterpretation of the geological controls on the deposit has led to an updated resourcemodelandpointstoadditionalpotential
“On the exploration front, we are confident there remains considerable upside at Ayawilca over and above that demonstratedinthe2024PEA,”hesays
“Several priority exploration opportunities have been identified with significant potential to improve the economicsofthedepositasweprogresstheproject
“OutsideofAyawilca,wewillalsobelookingtoadvancethe highly prospective Silvia NW copper-gold target, which we expecttobefullydrillpermittedbymid2025”
Previous exploration at Silvia NW returned surface trench samples including 1m @ 123% copper and 186g/t gold TinkaacquiredtheprojectfromBHPin2021inexchangefor a1%royaltyonfutureproduction.
Silvia NW is a copper-gold exploration target with skarn outcropsthatextenddiscontinuouslyover4kmstrike.
Meanwhile, the Silvia South target previously returned rock chipsamplesgradingupto7.5%copperand0.7g/tgold.
The strategic review is expected to be completed during Q22025
“On the exploration front, we are confident there remains considerable upside at Ayawilca over and above that demonstrated in the 2024 PEA. Several priority exploration opportunities have been identified with significant potential to improve the economics of the deposit as we progress the project
DrGrahamCarman CEO TINKARESOURCES
