Ayawilca, Central Peru A large and growing resource in a world-class zinc belt

Transcription

1 Ayawilca, Central Peru A large and growing resource in a world-class zinc belt Tinka Resources Ltd. Dr. Graham Carman, President and CEO Think Zinc! session at AME Roundup 2018 January 23, 2018 TSXV & BVL:TK / OTCPK:TKRFF

2 Disclaimer 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, 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, timing and completion of any surface rights agreements, 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. The Mineral Resources disclosed in this company presentation were estimated by Mr. David Ross, P.Geo., an employee of Roscoe Postle Associates Inc. By virtue of his education and relevant experience, Mr. Ross is a "Qualified Person" for the purpose of National Instrument Readers are encouraged to read the Company s technical report in their entirety. 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 TINKA S AYAWILCA PROJECT IS A LARGE AND GROWING ZINC & TIN DISCOVERY IN CENTRAL PERU Company Highlights High-grade zinc discovery at South Ayawilca in drill intercepts of 52 10% zinc & 15 20% zinc Ayawilca Inferred Mineral Resources (Nov. 17): o 42.7 million 7.3% ZnEq containing 5.6 billion pounds zinc metal; and o 10.5 million 0.70% tin equivalent Leverage to zinc, also tin 100% ownership of property, well located 2018: Drilling for further resource expansion & PEA Ayawilca Peru 3

4 Zinc Inventories Approaching Critical Levels (Low) Closure of mines, shut downs in China due to environment concerns Changes in zinc stocks have opposite impact on price To Nov 2017 zinc was in deficit almost 500,000 t (Lead Zinc Study Group) 10 years LME Zinc stock (1,000 tonnes) 1,250 Zinc Price 1, Zinc Inventories 250 Source: Westmetall.com 4

5 Peru A Mining Country ECUADOR Ayawilca Project Mineral Rank in World 2015 Latin America 2015 BRAZIL Zinc 2nd 1st Central Peru zinc belt Antamina Copper 3rd 2nd Tin 3rd 1st Las Bambas San Rafael Lead 4th 1st Silver 3rd 2nd BOLIVIA Gold 5th 1st CHILE 5

6 Regional Geology of Central Peru ** ** **Thick limestones 6

7 Infrastructure & Major Mines in Central Peru Antamina: Largest current copper/zinc mine in Peru Cerro de Pasco: Largest historic silver/zinc mine in Peru 7

8 Regional Geology Central Peru Extension of Cerro fault Thick limestones 8

9 Ayawilca Mining Claims Tinka owns 100% of the 150 km 2 contiguous mining claims Other Targets Good infrastructure - public roads, high voltage power lines, water sources Supportive local communities Lots of targets Colquipucro silver mineral resource Ayawilca zinc & tin mineral resource 9

10 Ayawilca Geology Pre-2017 drill hole 2017 drill hole Area of current drilling 10

11 Ayawilca: Three Deposit Types 1. Zinc Zone Inferred Mineral Resource (Nov. 2017): % ZnEq o 6.0% Zn, 0.2% Pb, 17g/t Ag, 79g/t In o 5.6 billion pounds of Zinc (2.5M tonnes) o 3,400 tonnes of Indium o 23.3 million ounces of Silver o 209 million pounds of Lead 2. Tin Zone Inferred Mineral Resource (Nov. 2017): % SnEq o 0.63% Sn, 0.23% Cu, 12 g/t Ag o 145 million pounds of Tin (66,000 tonnes) o 53 million pounds of Copper o 4.2 million ounces of Silver 3. Colquipucro Mineral Resource (higher grade lenses, oxidized): g/t Ag (Indicated) and g/t Ag (Inferred) 11

12 Zinc Resource (RPA Nov. 2017) Zinc Mineral Resource NSR Cut-off Sensitivity NSR $/t Cut-off Tonnage (Mt) ZnEq% Grade Zinc % Lead % Indium g/t Silver g/t Metal price assumptions: US$1.15/lb Zn, US$300/kg In, US$18/oz Ag, and US$1.10/lb Pb. Metal recovery assumptions: 90% Zn, 75% In, 60% Ag, and 75% Pb. 12

13 Detailed Sections 200 m 200 m South Ayawilca West Ayawilca 13

14 Carbonate Replacement Deposit (CRD) Deposit analogy: Ayawilca versus Cerro de Pasco Similar styles of mineralization, scale (though Cerro more copper) Same host rocks, similar structural positions Cerro de Pasco has a diatreme proximal to mineralization Cerro de Pasco (after Rottier et al, 2016) Source intrusion?? 14

15 Mineralization Domains: Stage 1 (tin) Massive sphalerite (Zn sulfide) Pyrrhotite-cassiterite-pyrite-chalcopyrite (quartz-muscovite-tourmaline) Massive replacement of carbonate host, base of Pucara Limestone 15

16 Mineralization Domains: Stage 2 Mag A A Massive sphalerite (Zn sulfide) Sphalerite (high Fe) pyrite pyrrhotite galena arsenopy (magnetite-chlorite-ankerite-quartz) Semi massive to massive replacement of carbonate host Pucara Limestone 16

17 Mineralization Domains: Stage 3 (Ag-Pb) Galena-sphalerite-ruby silvers (ankerite-rhodochrosite) Veins in Limestone and Sandstone A Massive sphalerite (Zn sulfide) Colquipucro deposit Cross section (oxidized stage 3 veins in sandstone) 200 m 17

18 Magnetics and Targets Chaucha Valley Zone Drill Targets West Ayawilca Central Ayawilca South Ayawilca Yanapizgo Rock samples to 19% Pb, 9% Zn, and 500 g/t Ag 18

19 Exploration History Area staked by Tinka in 2005 for silver (held by Buenaventura for 40 yrs) Colquipucro silver deposit was main focus Hole A13-05, 2km S from Colquipucro, intersected 213 metres at 5.3 % Zn from 130 m depth (uncut) in 2013 Discovery of West Ayawilca zinc zone Magnetics and gravity completed over full area in South Ayawilca discovered in 2017 drilled a magnetic anomaly 400 m from resource Discovery made by commitment to drill prospective area AND geophysics 19

20 Positive Metallurgical Test Results Two composite samples (grading 7% & 10% Zn) were selected for metallurgical testing (Oct. 2016): o Coarse grained sphalerite and marmatite o 98% recovery of zinc in first pass (rougher) concentrates o 51% zinc concentrate grade produced in second pass (cleaner) concentrates o Low manganese levels o Indium reports to zinc concentrate, believed to be at payable levels 20

21 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) Community Healthcare Education Employment 21

22 Work Programs & News Flow in 2018 Exploration Development Milestone Mineral Resource Update Exploration Drilling 20,000 m drilled 15,000 m planned (step-out) Metallurgical Testing Zinc Tin Engineering & PEA PEA? 22

23 Market Capitalization TSXV & BVL: TK / OTCPK: TKRFF CAD$ Shares Issued: M Warrants: 14.2 M* 1.8 M at C$0.20 expire Nov M at C$0.45 expire May 2020 Options: Shares reserved: Fully diluted: 10.2 M 0.5 M M Market C$0.72/share: C$162 M Cash current: ~C$6.0 M Drilling Commenced Drill Results Resource Update Major Shareholders: Sentient 25% IFC 12% JPMorgan (UK) 7% Analyst Coverage: Retail 44% Other institutions 10% GMP Securities Ian Parkinson Beacon Securities Michael Bandrowski Industrial Alliance George Topping Mgmt & Directors 2% Canaccord Genuity Kevin MacKenzie 23

24 Discovery Team Graham Carman Alvaro Fernandez-Baca Javier Escudero President & CEO, Director VP Exploration HSEC-Permit Manager, Peru Geologist, PhD Lihir PNG, Accha, Yanque zinc deposits in Peru ex Rio Tinto, Savage, Pasminco Geologist, Peruvian ex Hochschild, AQM, Entrée Gold, Gitennes Health, Safety, Environment, Community ex Goldfields, Rio Tinto, Minera Antamina Luis Giraldo Geologist ex Anglo American, Meridian, Yamana Peru 24

25 Summary Ayawilca Project Zinc & tin project located in central Peru One of the largest discoveries in Peru in last 20 years Resource step-out drill program ongoing (20,000m drilled in 2017) 2018: 15,000m drilling planned for resource expansion (3 rigs) Engineering and PEA Multi-Commodity Exposure Few large Zn deposits coming on stream in near future Leverage to several commodities Corporate Management team with extensive experience and success in Peru Supportive long term shareholders 25

26 Thank you! FOR MORE INFORMATION Dr. Graham Carman, President & CEO Rob Bruggeman, Investor Relations CORPORATE OFFICE Suite West Georgia St Vancouver, BC V6E 3V7 CANADA Ph: Fax: Drill Rig Drill Rig Drill Rig A17-56 drill hole first hole in 2017 drill campaign 26