The recent surge in the price of zinc suggests that the company is in the right market, at the right time, as the world is dealing with a supply shortage of zinc, with few new projects in the pipeline to address that shortfall.
Tinka, to be fair, is still only at the exploration stage with its flagship Ayawilca project, but it recently raised C$11mln from institutional investors and is ready to drill and grow its resource.
The company is fully-funded for the next 12 to 18 months for what looks set to be a busy period. Carman promised “lots of news flow for investors”.
“The potential’s huge,” Carman asserts.
“We have a large resource already, but we want to make it even bigger. The geophysics that we’ve done indicates that we’ve only drilled 30% of the project,” Carman stated.
To put that into perspective, Ayawilca has two separate inferred mineral resource zones: one of 18.8mln tonnes (Mt) at 8.2% zinc equivalent, and another of 5.4 Mt at 0.89% tin equivalent.
Both are open for expansion, and Carman reminded Proactive Investors that the company had increased the permit footprint of the project.
The company is not hanging about either, with drilling scheduled to start in January. The plan is to drill 15,000 metres, and 30 to 40 drill holes.
All of that drilling will produce plenty of material for analysis, and it won’t be until towards the end of the year that the company will be in a position to publish an updated mineral resource estimate.
“We’ll then move to a PEA [preliminary economic assessment] if it makes sense at that point,” Carman said