Sign up Australia
Proactive Investors - Run By Investors For Investors
Why invest in TK?
Tinka Resources: THE INVESTMENT CASE

Tinka Resources continues to advance its potentially 'world class' Ayawilca zinc project

In April this year, the group said it was fully funded for exploration at the project for the next 18 months
Tinka Resources continues to advance its potentially 'world class' Ayawilca zinc project
INVESTMENT OVERVIEW: TK The Big Picture
Tinka is focused on mining zinc in Peru

Tinka Resources Limited (CVE:TK) continues to advance  its potentially 'world class'  Ayawilca zinc project in Peru.

In April this year, the group said it was fully funded to execute its exploration programs at the project for the next 18 months.

It had just encountered high grade zinc mineralisation in the first step-out hole at West Ayawilca area of the property, which is a large, high grade discovery, which is still growing.

And last month, it posted assays from six holes from the continuing stepout drilling, which showed one of the best intercepts ever from one area.

This hole hit 106.5 metres at a grade of 6.8 % zinc (uncut) from 237.3 metres depth at West Ayawilca.

The Zone 3 area was also beginning to show encouraging zinc intersections, and although the mineralisation is relatively deep, the company believes Zone 3 has the potential to add significant new resources to the project.

Tinka says 15,000m of drilling is planned for 2018 to expand zinc zones and test new targets and three drill rigs are currently operating.

PEA by end of fourth quarter

Near term goals for Ayawilca are metallurgical test results for zinc by the end of the second quarter and a preliminary economic assessment (PEA) by end of the fourth quarter.

So what is Ayawilca and are there other assets?

Ayawilca is a 150 sq km area 200 km northeast of Lima in Central Peru.

The company doubled the inferred resources at the Ayawilca zinc zone in 2017.

These are 42.7mln tonnes at 7.3% zinc equivalent, containing 5.6bn pounds of zinc metal and 10.5mln tonnes at 0.70% tin equivalent.

It lies 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.

Colquipucro near surface silver deposit

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 14.3mln ounces of contained silver at 60 g/t (grams per ton) silver, while inferred is 13.2mln ounces at 48 g/t.

In 2016, 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.

The group is well funded, with C$18mln in cash, to expand resources and advance to the pre-feasibility stage, it says,

At the end of April it closed a second and final tranche of a private placing, raising a total of C$2.409mln, bringing the total amount raised through its bought deal, first tranche and second tranche to about C$16.2mln

Zinc prices higher

Tinka's progress comes encouragingly when zinc as a commodity is doing rather well.

The base metal is currently at ten year highs of US$1.60 per pound.

It’s the second big price spike since 2000 following record high prices of more than US$2 per pound in late 2006.

The World Bank predicts a more stable picture by 2030, when prices are expected to hover around US$1.09 per pound, giving zinc a strong economic forecast and boosting confidence for a junior like Tinka.

Zinc has been used in batteries for decades and recent research by Stormcrow Capital estimates that the emerging market for low cost zinc-air batteries for  energy storage could increase demand  for the metal by 20mln tonnes.

View full TK profile View Profile

Tinka Resources Timeline

Related Articles

dollar and gold
March 29 2018
Wishbone Gold's unique business model is now beginning to bear fruit
1526557114_W-Resources---pouring-concrete-at-La-Parrilla.jpg
May 17 2018
W Resources is building a strong position in tungsten
Picture of area surrounding Paradox Lithium Project
May 07 2018
Cloud, Cane and LC South will be part of Anson's Paradox project with the claims being close to oil wells with historically recorded lithium values.

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