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Ayawilca, the Peru project, keeps on delivering for Tinka Resources

Tinka has put out plenty of positive newsflow from Peru in recent months..
Ayawilca, the Peru project, keeps on delivering for Tinka Resources
Zimc prices have been on the up this year

Tinka Resources Ltd (CVE:TK) is making good progress in scaling up its zinc project in Peru where it could be onto a 'world class' discovery.

In the latest statement, the firm unveiled a new discovery at its Ayawilca project and assays from six new holes.

One hole hit what the group called "significant" mineralization at the "Zone 3" area for the first time - a new discovery.

It  uncovered 10.3 metres at 5.9 % zinc, 2% lead and 66 g/t (grams per ton) silver from 570.2 metres.

That included 4.5 metres at 9.4% zinc, 1.1 % lead and 45 g/t silver from 576 metres depth, and 13.5 metres at 0.83 % tin, 0.39 % copper & 54 g/t silver from 588.50 metres depth.

"A drill rig will continue to operate in the Zone 3 area following-up on this exciting discovery. Drilling is now expected to continue well into 2018 without a break, other than for the Christmas period," said chief executive Dr Graham Carman.

A doubling of resources...

Last month, the firm reached another milestone, as it more than doubled the inferred resources at its  Ayawilca deposit.

The inferred zinc resource at Ayawilca is now put at 42.7 million tonnes grading 7.3 % zinc equivalent (ZnEq), compared to 18.8 million (mln) tonnes at a grade of 8.2% zinc equivalent (ZnEq), previously.

Significantly, Tinka also announced an updated tin-copper-silver resource estimated to be 10.5 million tonnes at a grade of 0.70% tin equivalent (SnEq) - providing the potential for upside for exploiting other commodities.

The tin Zone and the zinc zone resources do not overlap.

It all meant that Ayawilca now has 5.6 billion pounds of contained zinc classified as inferred resources, with potential for more as the resources are open in several directions.

Well-funded for development..

Recently, Tinka has boosted its coffers by bringing in over C$3.78mln from the exercise of warrants.

The funds will be used for the continuing drill program, engineering and metallurgical studies at the company's Ayawilca zinc and tin project in Peru, and for general working capital, it said.

So what is Ayawilca and are there other assets?

Ayawilca is a 150 sq km area 200 km northeast of Lima in Central Peru. It is 40 km northwest of the world-class Cerro de Pasco zinc-lead-silver mine, and 100 km south of the giant copper-zinc Antamina mine.  Tinka owns 100% of the concessions.

Tinka also has the Colquipucro near surface silver deposit, which is what bought the company into the area in the first place (and where zinc was found beneath the silver) which lies around 2 kilometres north-northwest of zinc discovery.

There, the higher confidence indicated resource stands at 14.3 million ounces of contained silver at 60 g/t silver, while inferred is 13.2mln ounces at 48 g/t.

In December last year, Tinka discovered a new zinc prospect at Pucarumi, which lies several kilometres northwest of the  inferred zinc resource and within its existing mining claims in central Peru.

Rising zinc prices...?

Tinka's progress comes encouragingly when zinc is generally doing well.

It has taken a pause this year, before rallying again, and around the end of last month was up by 20% or so on the year.

Inventories too have been supportive for the metal, with London Metal Exchange stock having fallen by around 50% in the year so far, while Chinese stocks are down by almost 45% over the same time.

So Tinka looks like a stock to watch...

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