The Ayawilca polymetallic project stands out as one of the most promising undeveloped zinc, silver, and tin deposits in the world. Discovered by Tinka, Ayawilca is believed to be the largest greenfields zinc discovery in Peru in the last 30 years. The 2024 Preliminary Economic Assessment (PEA) highlighted the project’s robust economics, with zinc being its most important contributor. Tinka is now focused on advancing Ayawilca towards production at a time when the need for zinc is on the rise with global contraction in supply. The importance of zinc as the “Guardian of Green Infrastructure” in our modern society cannot be disputed. Ayawilca has the potential to provide the global zinc market with a safe, consistent and clean supply of this critical metal (about 90,000 tonnes of zinc per year based on the 2024 PEA). The project can also supply significant quantities of other critical metals such as tin, silver, lead and indium.
The Ayawilca Project: Global Significance
Ayawilca boasts an impressive mineral resource inventory in three separate mineral deposits (i.e., Zinc Zone, Silver Zone, and Tin Zone) underpinned by the 6.5 billion pounds of zinc in resources (3.0 M tonnes Zn). Ayawilca is one of the largest undeveloped zinc resources in the world owned by a junior company.
The 2024 Ayawilca PEA shows strong project economics (assuming mine production follows 18 months of startup construction) using conservative metal prices:
· After-tax NPV8% of US$434 million and IRR 25.9%;
· Diversified commodity mix: Zinc (80%), Tin (11%), Silver-Lead (9%);
· Lots of exploration upside with resources open in multiple directions.
Ayawilca’s Role in Sustainable Development
Tinka’s commitment to sustainability further enhances Ayawilca’s appeal and impact on the zinc market. The use of modern, water-efficient technologies for tailings storage (i.e., filtered “dry stack” tailings were assumed in the PEA), demonstrates Tinka’s dedication to minimizing environmental impact. Also, storing a substantial portion of tailings underground as backfill ( assumed in the PEA) means that the project reduces its surface footprint and environmental risks.
Tinka’s engagement with local communities ensures that the benefits of the Ayawilca project should extend well beyond economic gains for the company and its shareholders. Employment opportunities, community development programs, and transparent communication foster strong relationships and support sustainable local growth. This holistic approach aligns with ESG (Environmental, Social, and Governance) principals. We are aiming for Ayawilca to be a leading example for responsible mining practices.
How Zinc Guards the Global Economy!
Zinc is a versatile metal with numerous applications across various industries. Its unique properties make it [gc2] indispensable in several critical areas:
Galvanizing
The primary use of zinc is in galvanizing, which involves coating steel or iron with a thin layer of zinc to protect it from corrosion. Galvanized steel is widely used in construction, automotive manufacturing, and other industries where durability and longevity are essential. The anti-corrosive properties of zinc significantly extend the life of steel structures, reducing maintenance costs and enhancing safety.
Alloys
Zinc is an important component in alloys including brass, which is a combination of zinc and copper. Alloys are used in a multitude of applications, from musical instruments to plumbing fixtures, due to their enhanced strength, ductility, and corrosion resistance.
Die Casting
Zinc’s excellent casting properties make it ideal for alloy die casting, a manufacturing process used to produce complex metal parts with high precision. Industries such as automotive, electronics, and consumer goods rely on zinc die castings for components that require high strength and dimensional accuracy.
Other
Zinc is also used in oxides, chemicals, semi-manufacturing, and other products such as zinc-ion and zinc carbon batteries, and in the pharmaceutical health and agricultural sectors.
Meeting the Growing Demand for Zinc
According to a 2023 report by Wood McKenzie, a shortage of over 3 million tonnes of zinc is forecast by 2031. This shortage is the result of supply constraints due to the lack of new zinc mines being developed and the drop in grade at many of the large zinc mines around the world. Zinc demand is expected to increase due to:
Global Infrastructure Projects
Industry analysts report that global demand for zinc is set to rise significantly as new and replacement infrastructure projects around the world ramp up. Zinc is one of the most versatile and essential materials known to mankind and is the fourth most used metal in the world. Zinc's primary use in galvanizing steel to protect it from corrosion makes it the “Guardian of Green Infrastructure” and essential for the longevity and durability of most infrastructure. With more and more countries investing heavily in building and maintaining bridges, ports, roads, railways, and buildings, the demand for galvanized steel is on an upward trajectory. Zinc is also essential in making alloys such as in die-casting into shapes such as door handles and is also alloyed with copper to make brass.
Renewable Energy Technologies
As the world shifts towards renewable energy sources, the uses for zinc are expected to grow. Zinc is a key component in the production of wind turbines and solar panels to prevent rust. A 10MW offshore wind turbine requires 4 tonnes of zinc, while a 100MW solar panel park—enough to supply 110,000 homes—requires 240 tonnes of zinc.
Zinc-ion batteries are emerging as a viable solution for large-scale energy storage. Zinc-ion batteries are considered safer than lithium-ion as they use a water-based chemistry, avoiding the fire problem that occurs with Li-ion batteries. Zinc batteries are also much easier and cheaper to recycle than lithium batteries.
Electric Vehicles (EVs)
The electric vehicle market is another significant driver of zinc demand. Zinc is used in various components of electric vehicles. As EV adoption accelerates worldwide, the need will increase corresponding with the requirement for zinc.
As the world moves towards greener infrastructure and technology, the role of zinc becomes increasingly vital.
