Tinka Resources Ltd. [TK-TSXV; TKRFF-OTC; TLD-FSE] shares rallied in heavy trading volume Wednesday March 17 after the company released new drilling results from the company’s Ayawilca Project in Peru.
The latest results include assays from six diamond drill holes from a 2020-2021 resource expansion and infill drill program.
Four holes were located in the Camp area, and two in the South area. The two holes at South Ayawilca intersected high-grade zinc-silver mineralization associated with massive sulphide mineralization over substantial widths and are expected to expand the indicated mineral resource at the project.
Tinka said it has drilled approximately 7,600 metres in 21 completed holes during the 2020-2021 program. The company is compiling the drill data and completing geological interpretations in preparation for an updated mineral resource and preliminary economic assessment (PEA) scheduled for the middle of 2021. Assay results for the final four drill holes are pending.
Meanwhile, drilling highlights released Wednesday from the South Area, include Hole A20-187b, which returned 4.1 metres at 17.7% zinc and 34 g/t silver from 302.9 metres depth and 40.0 metres at 8.8% zinc and 12 g/t silver from 324.0 metres depth, including 9.1 metres at 20.1% zinc and 23 g/t silver form 353.3 metres.
Tinka shares advanced on the news, rising 6.5% or $0.015 to 24.5 cents on volume of 30.4 million, making it the volume leader on the TSX Venture Exchange on Wednesday.
Ayawilca ranks as one of the largest zinc discoveries made in Peru during the past 20 years.
The Ayawilca Zinc Zone contains an estimated 1.8 billion lbs zinc and 5.8 million oz silver Indicated and 5.6 billion lbs zinc and 25.2 million oz silver in Inferred as sulphides.
The Coqui Silver Zone contains an estimated 14.3 million oz silver Indicated category and 13.2 million oz silver Inferred with mineralization starting from surface.
A July 2019 PEA contained details of a proposed underground ramp access mine development with a 5,000 tpd processing plant. The PEA envisaged initial Capex of US$262 million with an after-tax IRR of 27.1% and a 21-year mine life with average head grades of 6.05% zinc, 18.3 g/t silver, 67.1 g/t indium and 0.25% lead. Estimates are based on a base case zinc price of US$1.20/lb.
Average annual production was estimated at approximately 101,000 tonnes of zinc recovered in concentrate and approximately 906,000 ounces of silver in a silver-lead concentrate.