Vancouver, Canada – Tinka Resources Limited (“Tinka” or the “Company”) (TSXV & BVL: TK) (OTCPK: TKRFF) is pleased to provide an update of exploration results at the Ayawilca project in central Peru, including results for ten recent drill holes.
- Four resource step-out holes were drilled at South, Central and West Ayawilca. Hole A18-152 is a 60 metre step-out from known mineralization at South Ayawilca. Hole A18-158 is a 100 metre step-out from known mineralization at Central Ayawilca. A18-125 is a new intersection at Zone 3. Highlights include:
- 1.2 metres at 13.8% zinc, 0.8% lead, 817g/t silver and 64g/t indium from 156.3 metres depth.
- 1.5 metres at 9.6% zinc, 1.2% lead and 32g/t indium from 458.4 metres depth.
- 1.4 metres at 22.7% zinc & 99 g/t indium from 531.4 metres depth.
- Three holes were drilled to test outcropping silver-lead-zinc carbonate veins at the “Vetas” area, a target drilled for the first time in 2018. High-grade silver intercepts occur with visible ‘ruby silver’ minerals and associated base metal sulphides in multiple vein structures. The grade - thickness of intercepts improve with depth due to a more favourable host rock (sandstone). The epithermal silver-lead-zinc carbonate vein system remains open and untested along strike and at depth. Highlights include:
- 2.5 metres (true width) at 665 g/t silver, 1.4% zinc & 1.9% lead from 264.0 m depth, including 1.5 metres (true width) at 925 g/t silver, 1.5% zinc & 2.8% lead from 266.0 m depth.
- Tinka has drilled 20,200 metres at Ayawilca in 56 holes during the 2018 drill campaign, mostly as resource step-out holes. New zinc discoveries at West Ayawilca and the Camp areas, in particular, have significantly extended the mineralization beyond the existing resources (current estimated inferred mineral resources contain 5.6 billion pounds of zinc, 3,300 tonnes of indium, and 23 million ounces of silver with an additional 66,000 tonnes of tin; Nov. 2017 news release ). The 2018 drill campaign has now ended, as planned, allowing our technical team to compile all geological data and finalize interpretations.
- Roscoe Postle Associates Inc (RPA) of Toronto has been appointed as independent consultant to undertake a mineral resource update, which is expected to be finalized by November 2018.
- A Preliminary Economic Assessment (PEA) is scheduled for the first half of 2019.
- Hole A18-131:
Dr. Graham Carman, Tinka´s President and CEO, stated: “Tinka has been drilling continuously at Ayawilca for 20 months since February 2017, having drilled more than 40,000 metres during that time. The Company is now focusing on compiling and analyzing the large quantity of drill hole information, completing a mineral resource update, expanding metallurgical test work, and advancing the project to a PEA in 2019. Tinka is well positioned financially with C$13 million in cash reserves at the end of September 2018 and no debt.”
“The Ayawilca zinc mineral resource is expected to increase meaningfully as a result of this year’s drill program. Ayawilca is already one of only a handful of independently owned, large zinc resources, located in a mining-friendly jurisdiction with good infrastructure. The property has already attracted interest from a number of large mining companies, and the Company has signed multiple confidentiality agreements and conducted several site visits. We are encouraged by the level of potential strategic interest and look forward to completing the resource update and a PEA. (Note that there can be no assurance the Company will pursue a transaction or that a transaction, if pursued, will be completed.)”
“The discovery of epithermal silver-bearing veins at the “Vetas” area is a further encouraging development. Although we do not yet have sufficient holes to add to our resource base, the vein system offers additional exploration upside given the high silver grades, while grades and vein thicknesses appear to increase at depth when hosted in the lower sandstone (a quartz-rich unit). We believe further exploration of the veins is warranted. Further drill testing of the veins, along with other targets, is planned for 2019.”
Figure 1. Geological Map of Ayawilca
Summary of Ayawilca Inferred Zinc Zone Mineral Resources (November, 2017)
South Ayawilca: 13.3 million tonnes at 9.5 % ZnEq (7.6 % zinc, 0.2 % lead, 25 g/t silver & 118 g/t indium);
West Ayawilca: 9.0 million tonnes at 7.2 % ZnEq (6.1 % zinc, 0.2 % lead, 14 g/t silver & 64 g/t indium);
Central Ayawilca: 13.0 million tonnes at 5.7 % ZnEq (4.7 % zinc, 0.3 % lead, 13 g/t silver & 54 g/t indium);
East Ayawilca: 7.5 million tonnes at 6.2 % ZnEq (5.1 % zinc, 0.2 % lead, 13 g/t silver & 69 g/t indium);
TOTAL: 42.7 million tonnes at 7.3 % ZnEq (6.0 % zinc, 0.2 % lead, 17 g/t silver & 79 g/t indium).
- US$55/t NSR cut off was used. Metal price assumptions were US$1.15/lb Zn, US$300/kg In, US$18/oz Ag, US$1.10/lb Pb. Metal recovery assumptions were 90% Zn, 75% In, 60% Ag, and 75% Pb for the ZnEq calculation.
- The NSR value was calculated using the formula: NSR = Zn(%)*US$15.34+Pb(%)*US$6.15+In(g/t)*US$0.18+Ag(g/t)*US$0.27
- The ZnEq value was calculated using the formula: ZnEq = NSR/US$15.34
- Numbers may not add due to rounding
Figure 2. Ayawilca drill hole map highlighting 2018 holes & existing zinc resources
Figure 3. Schematic cross section of the Vetas area (S-S’) highlighting silver-lead-zinc carbonate veins
Note: Vein intercepts shown are true width (in metres), except where marked * unknown
Significant new drill intercepts are summarized in Table 1 with the strongest intercepts in bold text. Table 2 summarizes the drill collar information for the recent holes.
Table 1. Recent drill intercepts at Ayawilca
|Drill hole||From m||To m||Down-hole int m||True width m||Zn %||Pb %||Ag g/t||Indium g/t||Area||Comment|
|A18-144 lost at 365.1 metres depth in limestone|
|A18-153||No significant results to 93 m depth||South|
|A18-155||No significant results||West|
Note: All intercepts shown above are down-hole intercepts. True thicknesses of the ‘manto’ zinc intersections are estimated to be at least 90% of the downhole thicknesses. Estimated true thicknesses of vein intercepts are marked (in brackets, where known). For vein intercepts marked * true thicknesses are undetermined.
Table 2. Summary of Drill Collar Information (coordinates are in UTM WGS84 Zone 18S datum)
|Drill Hole||Easting||Northing||Total depth (m)||Elevation (m)||Azimuth||Dip|
Qualified Person – Mineral Resources: The Mineral Resources disclosed in this press release have been estimated by Mr. David Ross, P.Geo., an employee of Roscoe Postle Associates Inc. (RPA), and is independent of Tinka. By virtue of his education and relevant experience, Mr. Ross is a “Qualified Person” for the purpose of National Instrument 43-101. The Mineral Resources have been classified in accordance with CIM Definition Standards for Mineral Resources and Mineral Reserves (May, 2014). An independent National Instrument 43-101 Technical Report (the “NI 43-101 Technical Report”) on the Mineral Resource Estimate for the Ayawilca Property, Department of Pasco, Peru has been filed under the Company’s profile on SEDAR at www.sedar.com and is available on the Company’s website at www.tinkaresources.com
The Qualified Person, Dr. Graham Carman, Tinka’s President and CEO, and a Fellow of the Australasian Institute of Mining and Metallurgy, has reviewed and verified the technical contents of this release.
On behalf of the Board,
Notes on sampling and assaying
Drill holes are diamond HQ or NQ size core holes with recoveries generally above 80% and often close to 100%. The drill core is marked up, logged, and photographed on site. The cores are cut in half at the Company’s core storage facility, with half-cores stored as a future reference. Half-core is bagged on average over 1 to 2 metre composite intervals and sent to SGS laboratories in Lima for assay in batches. Standards and blanks are inserted into each batch prior to departure from Tinka’s core storage facilities. At the laboratory samples are dried, crushed to 100% passing 2mm, then 500 grams pulverized for multi-element analysis by ICP using multi-acid digestion. Samples assaying over 1% zinc, lead, or copper and over 100 g/t silver are re-assayed using precise ore-grade AAS techniques.
Drill core is orientated and marked as core is removed from the core barrel. In this way geological features in the core such as stratigraphic layering, fault structures, fractures and veins can typically be measured and interpreted in 3D space.
About Tinka Resources Limited
Tinka is an exploration and development company with its flagship property being the 100%-owned Ayawilca carbonate replacement deposit (CRD) in the zinc-lead-silver belt of central Peru, 200 kilometres northeast of Lima. The Ayawilca Zinc Zone Inferred Mineral Resource estimate now consists of 42.7 Mt at 6.0 % zinc, 0.2 % lead, 17 g/t silver & 79 g/t indium, and a Tin Zone Inferred Mineral Resource of 10.5 Mt at 0.63 % tin, 0.23 % copper & 12 g/t silver (Nov. 8, 2017, release). Drilling for resource extensions and the testing of new targets is ongoing.
Forward Looking Statements: Certain information in this news release contains forward-looking statements and forward-looking information within the meaning of Certain information in this news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws (collectively “forward-looking statements”). All statements, other than statements of historical fact are forward-looking statements. Forward-looking statements are based on the beliefs and expectations of Tinka as well as assumptions made by and information currently available to Tinka’s management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, drilling results, the Company’s expectations regarding the ongoing drill program, the Company’s expectations regarding mineral resource calculations, capital and other costs varying significantly from estimates, production rates varying from estimates, changes in world metal markets, changes in equity markets, uncertainties relating to the availability and costs of financing needed in the future, equipment failure, unexpected geological conditions, imprecision in resource estimates or metal recoveries, success of future development initiatives, competition, operating performance, environmental and safety risks, delays in obtaining or failure to obtain necessary permits and approvals from local authorities, community agreements and relations, and other development and operating risks. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein. Although Tinka believes that assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein. Except as may be required by applicable securities laws, Tinka disclaims any intent or obligation to update any forward-looking statement.
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