Tinka Resources Ltd (CVE:TK) (OTCPK: TKRFF) told investors that it expects drilling to start at its flagship Ayawilca zinc project in Peru in April this year, adding that the preliminary economic assessment (PEA) is progressing well and expected in the middle of this year.
The program will be up to 10,000 meters and the aim is to test the potential for deeper, repeated zones of high-grade zinc mineralization hosted by limestone beneath the current Ayawilca zinc resources.
READ THE DEEP DIVE: Tinka Resources meets major milestone with updated Ayawilca resource down in Peru
At least six holes are planned to test the current resources at West, South, and Central Ayawilca, the firm said.
"The Zinc Zone Resources at Ayawilca have quadrupled since the initial resource estimate in 2015," said Dr Graham Carman, Tinka's president and CEO.
"While the Ayawilca Zinc Zone resource is already large and high grade, we believe there is still more potential for growth. The upcoming exploration drill program will test for zinc mineralization in repetitions of the favorable limestone beneath the high-grade zinc resources, as well as provide valuable infill drill information within the existing shallow resources."
"If successful, this deep drill program could add significant upside to the project," he added.
On the PEA, a top group of consultants are managing engineering and metallurgical test work on behalf of Tinka and the report will provide a preliminary gauge of the economic value of the current resource at Ayawilca, the company said.
Extending drill permit
This week, Tinka also said it had filed an EIA (environmental impact assessment) modification for Ayawilca, which, it said, will extend the drill permit for a further two years until the end of 2022.
Once granted, this will allow sufficient drill platforms for a future pre-feasibility-stage infill drill program. The modification is not required for the upcoming 2019 drill program outlined here, and is expected to be granted in the fourth quarter of 2019.
Tinka will be taking part in the upcoming PDAC annual conference in Toronto, Canada.
The Ayawilca Zinc zone contains 11.7 Mt (million tonnes) of indicated resources grading 6.9% zinc, 0.2% lead, 15 g/t (grams per ton) silver and 84 g/t indium and 45.0 Mt inferred resources grading 5.6% zinc, 0.2% lead, 17 g/t silver and 67 g/t indium.
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