42% Zinc Resource Increase at a Higher ZnEq Grade that Remains Open
Vancouver, Canada – Tinka Resources Limited (“Tinka” or the “Company”) (TSXV: TK) (OTCPK: TKRFF) is pleased to announce a resource update for its 100%-owned Ayawilca zinc – indium – silver – lead sulphide deposit in Peru, which now consists of 18.8 million tonnes grading 8.2% zinc equivalent (ZnEq) at a cut-off grade of 5% ZnEq. In addition, Tinka announces its first tin – copper – silver resource consisting of 5.4 million tonnes grading 0.89% tin equivalent (SnEq) at a cut-off grade of 0.45% SnEq. The Tin Zone resources lies spatially beneath the Zinc Zone and do not overlap. Both of the Mineral Resources are in accordance with the NI 43-101 Inferred Mineral Resource category at a cut-off grade equivalent to approximately US$60/t, as estimated by Roscoe Postle Associates Inc. (RPA) of Toronto, Canada.
Dr. Graham Carman, Tinka’s President and CEO, stated: “The Mineral Resource update of the Zinc Zone represents a significant increase in tonnage and grade from the previous resource estimate (February 23, 2015) as a result of our successful resource step-out drill campaign especially at Central Ayawilca, during the latter part of 2015. In addition, we are very pleased to report a tin-copper-silver Mineral Resource estimate for the first time. The updated Zinc and first Tin resources remain open for expansion in most directions, and will be tested through an extensive drill program later in 2016, subject to obtaining final approvals.”
“Market fundamentals for both zinc and tin are strong due to mine closures and diminishing mine grades. Tinka is well placed to take advantage of a supply shortfall in base metals as the mining cycle continues, and as Tinka continues to prove the potential of a significant zinc/tin deposit at Ayawilca.”
Table 1 – Ayawilca Deposit Inferred Mineral Resources – Zinc Zone
Notes: 1. Base case highlighted. 2. See Table 3 for notes.
Table 2 – Ayawilca Deposit Inferred Mineral Resources – Tin Zone
Notes: 1. Base case highlighted. 2. See Table 4 for notes.
Detail of Mineral Resource Estimates
RPA updated the Ayawilca Mineral Resource estimate using the drill results available to May 15, 2016 (Tables 3 and 4). The resources now include tin (Sn)-copper (Cu) mineralization (“Tin Zone”) located below the zinc (Zn) -indium (In)-silver (Ag) -lead (Pb) mineralization (“Zinc Zone”) – see Figure 1. The two types of mineralization are distinct, and were treated separately using different cut-off values equivalent to an approximate US$60/t cut-off, on the basis of a possible underground mining scenario.
The Zinc Zone Mineral Resources are hosted by Triassic Pucará Group limestone approximately 200 metres thick beneath a sandstone unit that hosts the Colquipucro silver oxide deposit located 1.5 km to the north. The Zinc Zone deposit is made up of multiple, gently dipping lenses or ‘mantos’ within three structural zones (West, Central and East) located above the Paleozoic basement. The bulk of the polymetallic mineralization in central Peru is located in a similar geological environment. Inferred Mineral Resources within the Zinc Zone, reported at a 5% zinc equivalent (ZnEq) cut-off, are estimated to total 18.8 million tonnes at average grades of 5.9% Zn, 74 g/t In, 15 g/t Ag, and 0.2% Pb. The increase in average grade as compared to the February 2015 estimate is due to the use of current lower metal prices. The 5.5 Mt of additional resources since February 2015 are due to mineralization found during the 2015 drilling campaign.
Table 3 – Zinc Zone Inferred Mineral Resources at Ayawilca as of May 25, 2016
- CIM definitions were followed for Mineral Resources.
- Mineral Resources are reported above a cut-off grade of 5% ZnEq or approximately US$60 per tonne NSR value (i.e., the same cut-off as was used for the February 2015 resource estimate).
- The ZnEq grade was based on estimated metallurgical recoveries, assumed metal prices and smelter terms, which include payable factors, treatment charges, penalties, and refining charges. Metal price assumptions were: US$1.00/lb Zn, US$500/kg In, US$20/oz Ag, and US$1.00/lb Pb. Metal recovery assumptions were: 90% Zn, 75% In, 50% Ag, and 75% Pb. The NSR value for each block was calculated using the following NSR factors: US$11.88 per % Zn, US$4.16 per % Pb, US$0.30 per gram In, and US$0.28 per gram Ag.
- The zinc equivalent (ZnEq.%) value was calculated using the following formula:
- Numbers may not add due to rounding.
ZnEq.(%) = [Zn(%)*US$11.88+Pb(%)*US$4.16+In(g/t)*US$0.30+Ag(g/t)*US$0.28]/ US$11.88
The Tin Zone Mineral Resources are commonly hosted as disseminated cassiterite and chalcopyrite in massive to semi-massive pyrrhotite lenses at the contact between the Pucará Group and underlying phyllite of the Devonian Excelsior Group, and can also occur as quartz sulphide stockwork veinlets hosted by the phyllite. Inferred Mineral Resources within the Tin Zone, reported at a 0.45% tin equivalent (SnEq) cut-off, are estimated to total 5.4 million tonnes at average grades of 0.89% Sn, 0.3% Cu and 18 g/t Ag.
Table 4 – Tin Zone Inferred Mineral Resources at Ayawilca as of May 25, 2016
- CIM definitions were followed for Mineral Resources.
- Mineral Resources are reported above a cut-off grade of 0.45% SnEq or approximately US$60 per tonne NSR value.
- The SnEq grade was based on estimated metallurgical recoveries, assumed metal prices and smelter terms, which include payable factors, treatment charges, penalties, and refining charges. Metal price assumptions were: US$9/lb Sn, US$3/lb Cu, and US$20/oz Ag. Metal recovery assumptions were: 85% Sn, 75% Cu, and 50% Ag. The NSR value for each block was calculated using the following NSR factors: US$130.36 per % Sn, US$41.26 per % Cu, and US$0.28 per gram Ag.
- The tin equivalent (Sn Eq.%) value was calculated using the following formula:
- Numbers may not add due to rounding.
Sn Eq.(%) = [Sn(%)*US$130.36+Cu(%)*US$41.26+Ag(g/t)*US$0.28]/ US$130.36
The Ayawilca drill database includes 27,248 m in 74 diamond drill holes. A set of cross-sections and level plans were interpreted to construct three-dimensional wireframe models at approximate cut-offs of 5% ZnEq for the zinc zones and 0.45% SnEq for the tin zones. Prior to compositing to two metre lengths, high Zn, Sn, In, and Ag values were cut to 25%, 4%, 500 g/t, and 100 g/t, respectively. Block model grades within the wireframe models were interpolated by inverse distance cubed. Despite lead grades being low it is assumed that lead and silver will be recovered in a lead concentrate. Density was estimated to be 3.6 t/m3 for the Zinc Zones and 3.9 t/m3 for the Tin Zones. All Mineral Resources were assigned to the Inferred category due to the widely spaced drilling. No Mineral Reserves have yet been estimated at Ayawilca.
The Mineral Resource estimate for the Colquipucro silver oxide deposit (Indicated Mineral Resource of 7.4 Mt at a grade of 60 g/t Ag for 14.3 Moz Ag and Inferred Mineral Resource of 8.5 Mt at a grade of 48 g/t Ag for 13.2 Moz Ag, using US$15/t cut-off and a metal price of $24/oz Ag) remains unchanged from the February 26, 2015 news release.
Qualified Person – Mineral Resources: The Mineral Resources disclosed in this press release have been estimated by Mr. David Ross, P.Geo., an employee of RPA and 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). Mr. Ross, P.Geo. has read and approved the contents of this press release as it pertains to the disclosed Mineral Resource estimates.
A National Instrument 43-101 Technical Report will be filed on SEDAR within 45 days.
About Tinka Resources Limited
Tinka is an exploration and development company with projects in Peru. Tinka’s focus is on its 100%-owned Ayawilca Project in the highly mineralized zinc-lead-silver belt of central Peru, 200 kilometres north of Lima and 40 kilometres from Peru’s largest historic zinc mine at Cerro de Pasco. Ayawilca has Inferred Mineral Resources of 18.8 Mt at 8.2% Zinc Eq, and 5.4 Mt at 0.89% Tin Eq (this release), open for expansion. The Colquipucro silver oxide project located 2km to the north (Indicated Mineral Resource of 7.4 Mt at 60g/t Ag for 14.3 Moz Ag and Inferred Mineral Resource of 8.5 Mt at 48g/t Ag for 13.2 Moz Ag; Feb’ 26, 2015) is a near-surface, sandstone-hosted, silver oxide deposit.
On behalf of the Board,
Dr. Graham Carman, President & CEO
1305 – 1090 West Georgia St., Vancouver, BC, V6E 3V7
Mariana Bermudez, 1.604.699.0202
Forward Looking Statements: 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, the successful completion of future drill programs, the interpretation and actual results from the drill programs, 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 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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Figure 1. Map of Updated Resources at Ayawilca, May 2016