Tinka Resources Limited (CVE:TK) (BVL:TK ) (OTCQB:TKRFF ) (FRA:TLD) said it has signed a definitive agreement with BHP World Exploration Inc Sucursal del Peru, and through its wholly-owned subsidiary, Darwin Peru S.A.C., has acquired a 100% interest in the Silvia copper-gold-zinc exploration project in Peru with a one-time cash payment.
The Silvia project consists of 29,500 hectares of mining concessions believed to be prospective for large copper-gold-zinc skarn and porphyry copper deposits, lying immediately adjacent to the company's 100%-owned Ayawilca zinc-silver project in central Peru.
“Tinka now controls over 46,000 hectares of contiguous mining concessions in central Peru, one of the world´s most prolific base metal belts,” said the company.
READ: Tinka Resources intersects high-grade tin at the Ayawilca project in Peru
The Silvia project lies around 80 kilometers (km) south and along strike of Antamina, one of the largest copper mines in Peru and the world's biggest skarn deposit - beneficially owned by BHP Group 33.75%, Glencore 33.75%, Teck 22.5% and Mitsubishi 10%. The project also lies immediately to the north of the Raura zinc-silver-lead-copper mine owned by Minsur.
Greenfield exploration by BHP at the Silvia project has identified copper-gold-zinc mineralization in outcropping skarns at two broad target areas both associated with coincident geophysical anomalies, said the company. Neither of these targets have been drill tested. Limestone belonging to the Jumasha Formation, the main host to the Antamina copper-zinc-silver skarn deposit, is widespread throughout the Silvia project area.
Terms of the Silvia acquisition
- 100% of the right and title of 35 granted mining concessions (plus two applications) to be transferred to Darwin
- Darwin has made a one-time cash payment to BHP. No other milestone payments are required
- BHP retains a 1% NSR royalty over the Silvia Project, which may be repurchased by Darwin
- Darwin is required to keep all mining concessions in good standing, with BHP retaining the right of first refusal on any mining concession that Darwin wishes to relinquish
In a statement, Tinka CEO Graham Carman said the Silvia acquisition fits in “very well” with Tinka's vision of exploring for world-class base and precious metal discoveries in Peru.
“Tinka considers the Silvia project to be highly prospective for large copper skarn and porphyry deposits, and we are thrilled to have acquired this exciting portfolio from BHP right next door to our flagship Ayawilca project. This acquisition triples the size of Tinka's mining concessions in central Peru, turning the company into one of the largest landholders in this highly mineralized belt,” Carman noted.
“The target limestone at the Silvia Project is the Jumasha Formation which hosts the giant Antamina skarn deposit, while the Ayawilca deposit is hosted by the Pucara limestone," he added.
The Tinka boss also noted that the company plans to move forward with the exploration for copper at the Silvia project while work progresses at the Ayawilca zinc-silver project on a preliminary economic assessment (PEA).
“Given the close proximity to Ayawilca, Tinka's exploration team can access the copper targets at the Silvia project from our existing camp facilities, simplifying logistics and minimizing exploration costs,” Carman said. "Tinka remains firmly committed to creating value through mineral exploration in Peru, and we believe that mining will continue to be a mainstay of the country´s economy and development in the future. We look forward to commencing our field programs at the Silvia Project as soon as possible."
Meanwhile, Tinka pointed out that the Silvia project hosts two priority copper targets with outcropping skarn and coincident copper and geophysical anomalies at ‘Silvia Northwest' and ‘Silvia South'.
At Silvia Northwest, copper-gold-zinc mineralized skarns outcrop over several hectares within three zones (Area A, Area B, Area C) along a 3 km northeast trend associated with diorite and dacitic porphyry. High grade rock chip samples of skarn at Area A grade up to 1.9% copper, 0.9 grams per tonne (g/t) gold, and 3.9% zinc.
On the other hand, at Silvia South, copper-gold mineralized skarns outcrop over several hectares associated with monzodiorite porphyry with rock samples grading up to 1.4% copper and 0.3 g/t gold associated with magnetic anomalies.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive