Tinka Resources Ltd. [TK-TSXV] has announced an updated mineral resource estimate for its 100%-owned Ayawilca zinc and tin deposits in Peru.
The 150 km2 Ayawilca project is located 40 km northwest of Cerro de Pasco in the richly mineralized silver-lead-zinc belt of central Peru. It ranks as one of the largest zinc discoveries made in Peru during the past 20 years.
Two types of mineralization occur at the Ayawilca, including tin-copper mineralization in the Tin Zone and zinc-indium-silver-lead mineralization in the Zinc Zone.
In a November 26, 2018, press release the company said indicated Zinc Zone mineral resources now stand at 11.7 million tonnes, grading 6.9% zinc, 0.16% lead, 84 g/t indium and 15 g/t silver (8.1% zinc equivalent), containing 1.8 billion pounds of zinc, 983 tonnes of indium, 5.8 million ounces of silver and 42 million pounds of lead.
On top of that is an inferred Zinc Zone mineral resource of 45.0 million tonnes, grading 5.6% zinc, 0.23% lead, 67 g/t indium and 17 g/t silver (6.7% zinc equivalent), containing 5.6 billion pounds of zinc, 3,003 tonnes of indium, 25.2 million ounces of silver, and 230 million pounds of lead.
In addition, Tinka has outlined an inferred tin mineral resource of 14.5 million tonnes, grading 0.63% tin, 0.21% copper, and 18 g/t silver (0.70% tin equivalent), containing 201 million pounds of tin, 67 million pounds of copper and 8.0 million ounces of silver. The resource update follows a very successful drilling program, with the company completing 20,000 metres during 2018, Tinka said.
“We are very pleased with the updated mineral resources estimation, as the Ayawilca deposit now represents one of the largest zinc resources held in a non-producing resources company,” said Tinka President and CEO Graham Carman.
In the Zinc Zone, inferred mineral resources are previously estimated at 42.7 million tonnes, grading 7.3% zinc equivalent. This material occurs in four zones over an east west mineralized trend of approximately 1.5 km.
In December, 2017, the company said highlights of a new NI 43-101 compliant technical report, include an updated tin-copper-silver resource, which was estimated at 10.5 million tonnes, grading 0.70% tin equivalent. At that time, the company said it was continuing to drill beyond the mineral resource boundaries looking for new zinc and/or extensions of known mineralization.
“One of the most important aspects of the resource expansion has been the additional discovery of high-grade, relatively shallow Zinc Zone mineralization at South and West Ayawilca in 2017 and 2018, much of which has now been upgraded to the indicated mineral resource category,” the company said.
These areas contain the thickest and highest grade zones of mineralization discovered to date on the property.
Carman said the company now looks forward to completing a maiden Preliminary Economic Assessment (PEA) in the first half of 2019. “Additional potential still exists for resource growth at Ayawilca, with additional step-out and deeper exploration drilling planned for 2019,” he said.
With $13 million in cash and no debt, Tinka’s work programs are fully funded into the foreseeable future.
On Tuesday Tinka shares eased 2.82% or $0.01 to 34.5 cents. The 52-week range is 78 cents and 30 cents.