Ayawilca, Peru: A Potential World Class Zinc Discovery

Transcription

1 Ayawilca, Peru: A Potential World Class Zinc Discovery Investor Presentation Graham Carman President & CEO Tinka Resources Ltd June 2016

2 Important Information 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 but not limited to, all costs varying significantly from estimates, production rates varying from estimates, changes in metal markets, changes in equity markets, the proposed use of net proceeds from private placements, availability and costs of financing needed in the future, equipment failure, unexpected geological conditions, imprecision in resource estimates or metal recoveries, ability to complete future drilling programs, drilling program results varying from expectations, delays in obtaining survey results, success of future development initiatives, the completion and implementation of a preliminary economic assessment, pre-feasibility or feasibility studies, 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, forwardlooking 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 Zinc /Tin Mineral Resources were publically released on May 25, 2016, while the Silver Resources were released on Feb 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 Company Highlights Zinc (Zn) Mineral Resource Inferred (May 16): % ZnEq - 42% increase in 1 yr Tin (Sn) Mineral Resource Inferred (May 16): % SnEq - Initial Silver (Ag) Mineral Resource (ox): g/t Ag (Ind) & g/t Ag (Inf) Rapid resource growth in 2 years: ~ 3.0 Blb ZnEq discovered at cost of 0.5 cents /lb Mineralization open: Extensive drill campaign planned for Q3/Q4 Q2016 Excellent & ongoing relationships with communities: IFC providing ongoing support Experienced Board and Management team with strong local team in Peru CAD3.8 million cash (Mar 31, 2016) 3

4 Vision & Focus Tinka's Vision To discover and develop a world class zinc project in Peru; To create long term real shareholder value; and To work with key stakeholders to find sustainable development opportunities Tinka's Current Focus Continue to expand zinc / tin resources through drilling PEA to follow drill program in 2017 Project Location Pasco Region, Central Peru Project Ownership Ayawilca zinc/tin 100% Tk Colquipucro silver 100% Tk 4

5 Corporate Summary Trading Symbol: TSXV: TK Shares Issued: M Warrants: 39.8 M Options: 10.3 M Shares reserved : 0.5 M Fully diluted: M Market $0.23/share: ~C$34 M Cash 31 March 2016: ~C$3.8 M Major shareholders Sentient Group: 21.5% International Finance Corp (World Bank): 14.0% 5

6 Milestones and Outlook TIMELINE 2007 Jul 2014 Aug Jul 2015 Aug Jul 2016 Aug 2016 Jul 2017 Aug 2017 Jul 2018 Aug Jul 2019 Resource Growth Initial defined Ag resource at Colquipucro; Zn discovery at Ayawilca in 2012 Initial Inferred Zn Resource 7.7% ZnEq), and Ag Ox Resource (14.3Moz indicated & 13.2Moz inferred) Feb 2015 Updated Inferred Zn Resource 8.2% ZnEq); and New Tin Inferred Resource 0.89% Sn) May 16 TBD TBD TBD Work Activity 11,000m drilled for Zn and 6,000m drilled for Ag 6,000m drilled for Zn and 2,000m for Ag 9,000m drilled for Zn & Sn +10,000m drilling planned for Zn and Tin zone extension. PEA PFS / FS Corporate Tinka & Darwin merger - new CEO from July 2014 Financing C$7.9M financing (Sentient C$5.3M) July 2014 C$7.2M financing (Sentient C$2.0M, IFC C$4.5M) May 2015 TBD

7 Peru A Mining Country Ayawilca Project Antamina Las Bambas San Rafael Mineral Rank in World 2015 Latin America 2015 Zinc 2nd 1st Copper 3rd 2nd Tin 3rd 1st Lead 4th 1st Silver 3rd 2nd Gold 5th 1st * Only large mineral deposits shown 7

8 Peru - Central Peru Mines Antamina: Largest Current Copper/Zinc Mine in Peru Cerro de Pasco: Largest Historic Silver/Zinc Mine in Peru Giant Ore Deposit 50 km 8

9 Community & Environment Ongoing partnerships with three communities - employment and training Social engagement and sustainable development programs throughout the project area, fostering long-term relationships Working under IFC s guidance to implement best practices in Health, Safety, Environment and Community (HSEC) Training programs Guinea pig breeding programs Road and drill platforms 9

10 Projects & Resources Ayawilca (100%) underground potential Zinc Zone Inferred Mineral Resources (May 2016): 18.8 Million Tonnes grading 8.2 % Zinc Eq. (42% increase on 2015 resource) 5.9% Zn, 0.2% Pb, 74 g/t In, 15g/t Ag metal grades o 2.45 billion pounds of Zinc; o 1,385,000 kilograms of Indium; o 8.8 million ounces of Silver; and o 82 million pounds of Lead Tin Zone Inferred Mineral Resources (May 2016): 5.4 Million Tonnes grading 0.89 % Tin Eq. 0.76% Sn, 0.31% Cu, 18g/t Ag metal grades o 90 million pounds of Tin (41,000 tonnes); o 37 million pounds of Copper; and o 3.1 million ounces of Silver Colquipucro (100%) open pit potential Silver Zone - Silver Oxide Resource (Feb 2015): 14.3 Moz silver grading 60 g/t Ag (Indicated), and 13.2 Moz silver grading 48g/t Ag (Inferred) Prices: Zn: $1.00/lb, Pb: $1.00/lb, Ag: $20/oz, In: $500/kgA Cut-off: 5% ZnEq ~ NSR US$60/t Prices: Sn: $9.00/lb, Cu: $3.00/lb, Ag: $20/oz Cut-off: 0.45% SnEq ~ NSR US$60/t Price: $24/oz Cut-off: 15g/t Ag ~ US$12/t Note: Resources estimated by Roscoe Postle Associates Inc. (RPA) of Toronto, Canada (news release of May 25, 2016) 10

11 Project Sites Ayawilca Zinc / Tin zones Extensions Open Silver Oxide Resource at Colquipucro 11

12 Project Resource Maps Geology Magnetics 12

13 Ayawilca Cross Section (West to East) Adit (possible) for advanced exploration/mineral extraction West Ayawilca Central Ayawilca East Ayawilca 4200mRL 4200mRL 4000mRL 4000mRL Sandstone 3800mRL open 3800mRL Limestone 3600mRL 500m Phyllite 3600mRL Zinc zones Tin zones 13

14 District Potential 140 km 2 of contiguous Tinka claims Focus has been on Ayawilca & Colquipucro areas to date Yanapizgo, Tambillo new targets Infrastructure in place including public road, power and water sources nearby BHP actively exploring neighbouring property Colqui silver resource Ayawilca zinc & tin resources 14

15 Yanapizgo Target Outcrops of zinc sulphide at Yanapizgo Closest outcrop of host sequence, 2km south from the Zinc Resource 15

16 Zinc Company Value Comparison Recent increases in the zinc price, supply cuts and a steady increase in zinc demand is improving fundamentals for zinc companies with quality assets in good jurisdictions Tinka has the ingredients to see its value increase in line with its peers EV C$m/Zn+Pb Mlb Tinka Trevali Arizona Mining 16

17 Zinc Market Supply Zinc facing declining output: Glencore, MMG, Nyrstar among others ~ 6% of world Zn production removed last 12 months Century Mine, worlds second largest zinc mine, shut down late 2015 LME stockpiles at 5 year lows and continuing to fall Demand Zinc price rising off 5 year lows The majority of zinc demand growth is coming from Asia driven predominantly by the automobile and appliance sectors Tightening supply and steady growth in demand is pushing up zinc prices Global Zinc Demand & Supply Projections Source: Wood Mackenzie, Q3,

18 Exploration Program 2016 & 2017 Milestone Zinc Zone Resource upgrade Tin Zone Initial Resource Silver Zone Review Geophysics (Heli-mag) Metallurgical tests Drilling* Extend drill permits PEA* *subject to financing 18

19 Management Team MANAGEMENT Graham Carman Alvaro Fernandez- Baca President & CEO, Director VP Exploration, Peru Geologist, PhD Lihir PNG, 25 years experience in mineral exploration, 15 yrs Peru experience, Ex Rio Tinto, Savage, Pasminco Geologist, P. Geo., APEGBC, Ex Hochschild, AQM Copper, Entrée Gold, Gitennes Javier Escudero HSEC Manager, Peru Health, Safety, Environment, Community & Permits. Ex Goldfields Nick Demare CFO, Director CPA, CA, officer/director, Past President of Chase Management Inc. Mariana Bermudez Corporate Secretary Corporate Secretary, 19 yrs experience providing corporate secretarial, corporate governance and securities regulatory compliance services NON-EXECUTIVE DIRECTORS David Henstridge Yanina Barilá Mary Little Founding director, geologist, worldwide experience 40 yrs Sentient Group representative, MBA in finance from Buenos Aires Founder Mirasol Resources, Geologist, MBA, 15 yrs in Latin America 19

20 Summary One of the largest zinc discoveries in Peru in the last 20 years Zinc / tin resources expected to continue to grow in with drilling Stable political and major mining jurisdiction in Peru Company promotes sustainable development opportunities Experienced Management and Board Supportive long term shareholders (Sentient, IFC) Zinc price forecast to increase with continued Asian demand & tight supply Tinka well positioned to take advantage in improving metals markets 20

21 APPENDIX 21

22 Ayawilca Inferred Mineral Resources at May 26, 2016 Zinc Mineral Resource: 18.8 Mt grading 8.2% ZnEq ZnEq% Cutoff Tonnage (Mt) ZnEq% Grade Zinc % Lead % Indium g/t Silver g/t Tin Mineral Resource: 5.4 Mt grading 0.89% SnEq SnEq% Cutoff Tonnage (Mt) SnEq% Grade Tin % Copper % Silver g/t Notes: 1. Base case highlighted ~ US$60/t NSR cut off. 2. See news release May 25, 2016 for details of resource estimates 22

23 Usage of Zinc Zinc Products Galvanising 1% 9% 14% 11% 6% 59% Semimanufacured products Brass semis & castings Die casting alloys Oxides & chemicals Zinc use by Industry Transport 32% 42% Industrial Machinery Consumer Products 12% 14% Infrastucture Construction Source: Wood Mackenzie 23

24 Mineralization I - Zinc Replacement of Limestone Sphalerite in fractures and matrix replacement Massive sphalerite (Zn sulfide) A14-24 Massive Py-Sph in limestone; 350 m depth 24

25 Mineralization II - Tin-Copper Mineralization Massive pyrrhotite with disseminated ~1% tin, 0.3% Cu 25

26 Initiatives with the communities Medical checks Chocolates & Yogurt Livestock enclosures 26

27 Initiatives with the communities Rubbish bins in community centres Guineapig breeding programs Roads & drill tracks 27

28 Tinka Resources Ltd (TSXV:TK) 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 28