Sign up Australia
Proactive Investors - Run By Investors For Investors

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...

View full TK profile View Profile

Tinka Resources Timeline

Related Articles

Mark Wilson and Mark Creasy with core sample from Nova-Bollinger
April 16 2018
Mark Creasy, who was behind Sirius Resources when it struck the jackpot at Nova-Bollinger has a 30% stake in the Rockford project and a 28% stake in Legend.
electric car
Tue
Commissioning at Sonora is intended for the first-quarter of 2020
View of the Senator prospect in mountainous Alaska
March 14 2018
The company is set to release its maiden JORC resource at the Zackly deposit soon.

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use