Tinka Resources Ltd (TSXV:TK) Advancing the Ayawilca Project: A New Zinc-Tin-Copper-Silver District Central Peru

Transcription

1 Tinka Resources Ltd (TSXV:TK) Advancing the Ayawilca Project: A New Zinc-Tin-Copper-Silver District Central Peru Graham Carman President & CEO Tinka Resources Ltd November 1,

2 Disclaimer & Forward Looking Statements This presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. This presentation does not constitute or form a part of, and should not be construed as an offer, solicitation or invitation to subscribe for, underwrite or otherwise acquire, any securities of Tinka, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. Certain information in this presentation contains forward-looking statements and forward-looking information within the meaning of applicable securities laws (collectively "forward-looking statements"). All statements, other than statements of historical fact are forward-looking statements. Forward-looking statements are based on the beliefs and expectations of Tinka as well as assumptions made by and information currently available to Tinka's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, capital and other costs varying significantly from estimates, production rates varying from estimates, changes in world metal markets, changes in equity markets, the use of the net proceeds of the recently completed private placement, availability and costs of financing needed in the future, equipment failure, unexpected geological conditions, imprecision in resource estimates or metal recoveries, Tinka s ability to complete its current and future drilling programs, drilling program results varying from expectations, delays in obtaining survey results, success of future development initiatives, competition, operating performance, environmental and safety risks, delays in obtaining or failure to obtain necessary permits and approvals from local authorities, community relations, and other development and operating risks. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein. Although Tinka believes that assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein. Except as may be required by applicable securities laws, Tinka disclaims any intent or obligation to update any forward-looking statement. The Mineral Resources disclosed in this company presentation were estimated by Mr. David Ross, P.Geo., an employee of Roscoe Postle Associates Inc. (RPA) and is independent of Tinka. The Mineral Resources were publically released on February 26, By virtue of his education and relevant experience, Mr. Ross is a "Qualified Person" for the purpose of National Instrument The Mineral Resources have been classified in accordance with CIM Definition Standards for Mineral Resources and Mineral Reserves. This presentation has been prepared, reviewed and verified by Dr. Graham Carman, Tinka s President and CEO and a Fellow of the Australasian Institute of Mining and Metallurgy, a qualified person as defined by NI

3 About Tinka Resources Base metals explorer in central Peru (TSXV:TK) 100%-owned Ayawilca-Colquipucro (Zinc, Tin, Copper, Silver) Projects Large scale district: 12,300 ha land package, underexplored Team with discovery track record Well funded & supported by 2 large institutions (Sentient, IFC) 10,000-metre drill program in progress (Aug-Dec 2015) 2016: Resources update, new drill permits to expand drilling area 3

4 Projects with Growth Potential Ayawilca Zinc Indium (sulphide) Initial Inferred Mineral Resource (Feb 2015) 13.3 Mt at 5.9% Zn, 68g/t In, 14 g/t Ag, 0.2% Pb for 7.7% Zn Eq. Ayawilca Tin (cassiterite) - Copper (chalcopyrite) A15-40: 50.5 m at 1.23% Sn & 0.16% Cu A15-44: 14.9 m at 1.10% Sn & 0.36% Cu Colquipucro Silver (oxide) 7.4 Mt at 60 g/t Ag for 14.3 Moz silver (Indicated) and 8.5 Mt at 48 g/t Ag for 13.2 Moz silver (Inferred) 4

5 Trading Symbol: Shares Issued: Warrants: Options: Shares reserved : Fully diluted: TSXV: TK M 40.1 M 10.9 M 0.5 M M Tinka Resources - Corporate Last Financing May C$7.25m raised at $0.215 per share 12 Month Share Price Range: $0.15 to $0.43 Cash 30 June 2015: ~ C$9.0 M Market $0.17/sh: ~C$25 M Major shareholders Sentient Group: 21.5% International Finance Corp: 14.0% 5

6 MANAGEMENT Team Graham Carman President & CEO, Director Geologist, Peru zinc discovery record (Bongara, Accha, Yanque) Ex Rio Tinto, Savage, Pasminco (Peru based ) Ph.D. Lihir Island gold Alvaro Fernandez- Baca Nick Demare Mariana Bermudez Vice President, Exploration Chief Financial Officer, Director Corporate Secretary NON-EXECUTIVE DIRECTORS David Henstridge Yanina Barilá William Lee Geologist 19yrs, P. Geo., APEGBC, Ex Hochschild, AQM Copper, Entrée Gold, Gitennes (Peru base) Experienced CPA, CA, officer/director various public co. Experienced Corporate Secretary, Vancouver based (Peru born) Founding director, experienced geologist, worldwide Sentient Group representative Independent director, CPA, CA 6

7 Map of Central Peru Tinka s tenements located in mining friendly jurisdiction, good infrastructure Cerro de Pasco (Volcan) Largest historic producer in Peru (~ % Zn equiv. mined + reserves) Colquijirca (El Brocal) Peru s largest undeveloped Zn resource San Gregorio (84 7.5% Zn equiv.) Antamina (BHP-Glencore- Teck) Peru s largest zinc and copper mine in same belt [San Rafael (Minsur)] 800km to Peru s only producing tin mine in south 7

8 Zinc Supply and Demand Higher Zinc prices forecast by Glencore cuts Source: Credit Suisse Zinc prices predicted to rise through supply cuts: Glencore mines (- 500ktpa) Century mine (- 500ktpa) 8% of world production Source: UBS Global Research No new mines of any significant size opening Zinc inventory in warehouses falling over the longer term November 2015 w w w. t i n k a r e s o u r c e s. c o m 8

9 Few new tin discoveries worldwide Tin Market Indonesia is largest exporter of tin world-wide, Myanmar new player Minsur largest western tin producer from San Rafael, southern Peru (~20,000 tin metal/year at ~2%Sn head grade) Price around USD 15,000 per tonne (i.e. 9 x Zinc, 3 x Copper) LME Tin Price Solders account for half of tin consumption 9

10 Tinka Mineral Claims 12,300 Ha claims in total Highly prospective under-explored mineral belt 10

11 ~26,000 metres drilled to date at Ayawilca (Zn, Sn-Cu) ~8,000 metres drilled at Colquipucro (Ag) Only 30-35% of prospective area drilled so far Priority future drilling areas include Chaucha, Zone 3, South Ayawilca, Valley Geology and Drilling + 500ppm Zn soils Valley CDD46: 0.8% Sn 2015 Drill Program (Q3-Q4) 11

12 2015 Drill Program Ayawilca ~ 10,000m in Progress 500 metres A15-40: 1.2% Sn, 0.2% Cu? 12

13 Geological Model: Zinc above Tin-Copper mineralization A A A15-46: 37.3% Zn, 347g/t In, 255g/t Ag A12-08: 4.8% Zn & 33g/t In A14-18: 65m 5.7% Zn & 19g/t In A13-05: 5.3% Zn & 83g/t In A15-40: 1.2%Sn & 0.16%Cu 13

14 Zinc: West Ayawilca Drill Hole From (m) To (m) Ayawilca Zinc & Tin Drill Intercepts Interval (m) Zinc (%) Lead (%) Silver (g/t) Indium (g/t) A including including and Tin-Copper: Central Ayawilca Drill Hole From (m) To (m) Interval (m) Tin (%) Copper (%) Silver (g/t) A including including A including

15 IP Geophysical Anomalies IP at 350 metres depth Extensive sulphide! Chaucha anomaly not yet permitted to drill: permits expected Q1-Q Valley CDD46: 0.8% Sn 2015 Drill Program (Q3-Q4) 15

16 Simplified Geological Model - Ayawilca November 2015 LITHOLOGY Sandstone Limestone Phyllite STAGE 1 1.a pyrrhotitesiderite feeder veinlets 1.b massive pyrrhotite + chalcopyrite (Cu) ± cassiterite (Sn) w w w. t i n k a r e s o u r c e s. c o m STAGE 2 2.a pyritesphalerite (Zn) - quartz 2.b galena (Pb) + sphalerite (Zn) + Ag + pyrite

17 Colquipucro Distal Epithermal Silver Oxide Looking northeast Highest grade Mineral Resource (Feb 15) 14.3 Moz at 60 g/t Ag (Indicated) 13.2 Moz at 48 g/t Ag (Inferred) 45 holes, 8000 m drilled ( ) 550m x 400m x 75m deep Low strip, open pit potential 100% Tinka 17

18 Planned Work Program 2015 & 2016 Milestone Zinc Resource Initial Update Silver Resource Update Tin Resource Initial Today Financing $7.2 M Geophysics Metallurgy tests Drilling Ayawilca Drilling Chaucha/Huarautambo Extend drill permits PEA/PFS 18

19 Social & Environmental Responsibilities Important partnership with three local communities Social engagement and sustainable development programs Employment and training Aiming to achieve best practice environmental standards Training for animal health Yogurt workshop for local women Market showing local artisanal designs 19

20 Why Tinka? Large polymetallic district discovery, 100% Tinka Zinc resource at Ayawilca, growing Tin - Copper discovery at Ayawilca, possible game changer ~10,000 metres drill program to be completed in December % of prospective area drilled so far Large contiguous land package: 12,300 Ha Resource upgrades Q More aggressive drill programs planned in

21 APPENDIX: Zinc Replacement of Limestone, Ayawilca Sphalerite (Sp) replacement of limestone matrix Alteration: Clays and carbonates Sp Sp Sp Py Sp Pyrite (Py) sphalerite massive sulphide 21

22 Cassiterite, chalcopyrite, pyrrhotite, pyrite Tin-Copper Mineralization at Ayawilca A13-11: Massive Pyrrhotite mantos + magnetite + cassiterite (tin) + tourmaline + chalcopyrite A13-11, 340m: Quartz stockwork Pyrrhotite + cassiterite (tin) + chalcopyrite 22

23 Ayawilca Inferred Mineral Resource (Feb. 26, 2015) Zone West Central East Total Tonnage (Mt) Zn Eq. (%) Zn (%) Pb (%) In (g/t) Ag (g/t) Zn (Mlb) Pb (Mlb) In (kg) Ag (Moz) , , , , , Inferred Mineral Resources at Ayawilca estimated by Roscoe Postle Associates Inc. (RPA) (see TK Press Release of February 26, 2015) Notes: CIM definitions were followed for Mineral Resources. Mineral Resources are reported above an NSR cut-off value of US$60 per tonne. The NSR value was based on estimated metallurgical recoveries, assumed metal prices and smelter terms, which include payable factors, treatment charges, penalties, and refining charges. Metal price assumptions were: US$1.20/lb Zn, US$550/kg In, US$24.00/oz Ag, and US$1.10/lb Pb. Metal recovery assumptions were: 90% Zn, 75% In, 50% Ag, and 75% Pb. The NSR value for each block was calculated using the following NSR factors: US$15.24 per % Zn, US$5.57 per % Pb, US$0.33 per gram In, and US$0.34 per gram Ag. The zinc equivalent (Zn Eq.%) value was calculated using the following formula: Zn Eq.(%) = [Zn(%)*US$15.24+Pb(%)*US$5.57+In(g/t)*US$0.33+Ag (g/t)*us$0.34]/ US$15.24 Numbers may not add due to rounding. 23

24 Attractive investment destination with an established mining sector, strong history of successful foreign investment Peru ranks first in Americas for zinc, lead, and tin production Market history shows Peruvian deposits are attractive take-over targets Experienced local skill base and mining services Why Peru Commodity World Latin America Gold 6th 1st Copper 2nd 2nd Zinc 3rd 1st Tin 3rd 1st Silver 2nd 2nd Lead 4th 1st Molybdenum 4th 2nd 24

25 Tinka Resources Ltd (TSXV:TK) Gracias! CORPORATE OFFICE Suite West Georgia St Vancouver, BC V6E 3V7 CANADA Ph: Fax: FOR MORE INFORMATION Dr. Graham Carman President & CEO Corporate Secretary Mariana Bermudez 25