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Tinka Resources outlines Ayawilca's credentials as it unveils another batch of drill assays

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Dr Graham Carman, president and chief executive, noted that at this point more than 40,000 metres had been drilled...

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Price: 0.14 CAD

TSX-V:TK
Market: TSX-V
Market Cap: $37.05 m
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Zinc-focused Tinka Resources Ltd (CVE:TK) has run through the credentials of its flagship Ayawilca project in central Peru, where it has been drilling since early 2017.

Notably, the property has already attracted interest from a number of large miners, it said,  and the firm has inked multiple confidentiality agreements and conducted several site visits.

Today's statement contained assays from ten recent holes.

Dr Graham Carman, president and chief executive, noted that at this point more than 40,000 metres had been drilled.

PEA in 2019

"The company is now focusing on compiling and analyzing the large quantity of drill hole information, completing a mineral resource update, expanding metallurgical test work and advancing the project to a PEA in 2019.

"Tinka is well positioned financially with $13-million in cash reserves at the end of September 2018 and no debt.

"The Ayawilca zinc mineral resource is expected to increase meaningfully as a result of this year's drill program.

"Ayawilca is already one of only a handful of independently owned, large zinc resources, located in a mining-friendly jurisdiction with good infrastructure.

Attracting interest

"The property has already attracted interest from a number of large mining companies, and the company has signed multiple confidentiality agreements and conducted several site visits.

"We are encouraged by the level of potential strategic interest and look forward to completing the resource update and a PEA."

Tinka has drilled 20,200 metres at Ayawilca in 56 holes during the 2018 drill campaign, mostly as resource step-out holes, it noted.,

Today's highlight assays included 1.2 meters at  13.8% zinc, 0.8% lead, 817 grams per tonne (g/t) silver and 64 g/t indium from 156.3 metres depth.

Three holes were also drilled to test outcropping silver-lead-zinc carbonate veins at the Vetas area, a target drilled for the first time in 2018, Tinka noted.

"The discovery of epithermal silver-bearing veins at the Vetas area is a further encouraging development," said Carman.

"Although we do not yet have sufficient holes to add to our resource base, the vein system offers additional exploration upside given the high silver grades, while grades and vein thicknesses appear to increase at depth when hosted in the lower sandstone (a quartz-rich unit).

"We believe further exploration of the veins is warranted. Further drill testing of the veins, along with other targets, is planned for 2019."

Tinka Resources shares shed nearly 3% at $0.33.

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Watch

South Ayawilca drilling could reveal a 'world class discovery', says Tinka...

Dr Graham Carman, chief executive of Tinka Resources Ltd (CVE:TK) talks Proactive Investors' Andrew Scott through their the first two holes of this year's 10,000 metre drill program at Ayawilca in Peru. A17-056 and A17-057 were drilled at South Ayawilca - around 400 metres from the...

on 4/4/17

2 min read