Tinka Reports a Substantial Increase IN Zinc and TIN Mineral Resources at Ayawilca
TINKA RESOURCES LIMITED
#1305 – 1090 WEST GEORGIA STREET
VANCOUVER, B.C. V6E 3V7
Tel: (604) 685 9316 Fax (604) 683 1585
Website: www.tinkaresources.com
TSXV & BVL: TK OTCPK: TKRFF
NEWS RELEASE November 26, 2018
TINKA REPORTS A SUBSTANTIAL INCREASE IN ZINC AND TIN MINERAL
RESOURCES AT AYAWILCA
Vancouver, Canada – Tinka Resources Limited ( “Tinka” or the “ Company”) ( T S X V & B V L : T K)
(OTCPK: TKRFF ) is pleased to announce an updated Mineral Resources estimate for its 100%-owned
Ayawilca zinc and tin deposits in Peru. Part of the Zinc Zone Mineral Resource is now classified as Indicated,
incorporating a higher-grade portion of the deposit. In addition, the updated Inferred Mineral Resource is of a
similar size and grade to the previous Zinc Zone resource reported in November 2017. The updated Tin Zone
Inferred Mineral Resource is also substantially larger. This resources update follows a very successful drilling
program, with the company completing approximately 20,000 metres during 2018.
Key Highlights of Updated Mineral Resources at Ayawilca
Indicated Zinc Zone Mineral Resource of 11.7 million tonnes grading 6.9% zinc, 0.16% lead, 84 g/t
indium and 15 g/t silver (8.1% zinc equivalent "ZnEq"), containing:
o 1.8 billion pounds of zinc;
o 983 tonnes of indium;
o 5.8 million ounces of silver; and
o 42 million pounds of lead.
Inferred Zinc Zone Mineral Resource of 45.0 million tonnes grad ing 5.6% zinc, 0.23% lead, 67 g/t
indium & 17 g/t silver (6.7% ZnEq), containing:
o 5.6 billion pounds of zinc;
o 3,003 tonnes of indium;
o 25.2 million ounces of silver; and
o 230 million pounds of lead.
Inferred Tin Mineral Resource of 14.5 million tonnes grading 0. 63% tin, 0.21% copper, & 18 g/t
silver (0.70% tin equivalent "SnEq"), containing:
o 201 million pounds of tin;
o 67 million pounds of copper; and
o 8 million ounces of silver.
The Tin Zone and Zinc Zone resources do not overlap. The Miner al Resources are reported above an NSR
cut-off value of US$55/tonne, as estimated by Roscoe Postle Associates Inc. (RPA Inc.) of Toronto, Canada.
D r . G r ah am C a rm an , T ink a ’s P re s id en t a nd C EO , st a t e d : “We are very pleased with the updated mineral
resources estimation, as the Ayawilca deposit now represents one of the largest zinc resources held in a non-
producing resources company. Ayawilca has for the fir st time, a high-grade Zinc Zone resource in the
Indicated category containing 1.8 billion pounds of zinc (24% of the total zinc inventory), as well as an Inferred
resource containing 5.6 billion pounds of zinc (76% of th e total zinc inventory). Zinc resources were able to
be partially upgraded to Indicated in those areas due to infill drilling at West and South Ayawilca in 2018. In
addition, the Tin Zone resource has increased by 38% a nd now contains over 200 million pounds of tin. The
updated Tin Zone resource is believed to be the largest undeveloped tin resource outside of a producing camp
in Peru.”
“Tinka has had a very successful year at Ayaw ilca, expanding and upgrading the resources. We now look
forward to completing our maiden PEA in the first ha lf of 2019. Additional potential still exists for resource
growth at Ayawilca, with additional step-out and deeper exploration drilling planned for 2019. The Company's
work programs are fully funded into the foreseeable future, with C$13 millio n in cash and no debt as at the
end of September 2018.”
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Table 1 – Ayawilca Deposit Indicated Mineral Resource – Zinc Zone as of November 26, 2018:
Sensitivities at various cut-off grades
NSR $/t Cut-off Tonnage (Mt) ZnEq% Grade Zinc % Lead % Indium g/t Silver g/t
40 13.6 7.4 6.3 0.16 75 15
50 12.4 7.9 6.7 0.17 80 15
55 11.7 8.1 6.9 0.16 84 15
60 10.8 8.5 7.2 0.16 89 16
70 9.4 9.2 7.7 0.15 99 16
80 7.9 10.0 8.4 0.15 111 17
Notes:
1. Base case highlighted with bold text.
2. See Table 4 for notes.
Table 2 – Ayawilca Deposit Inferred Mineral Resources – Zinc Zone as of November 26, 2018:
Sensitivities at various cut-off grades
NSR $/t Cut-off Tonnage (Mt) ZnEq% Grade Zinc % Lead % Indium g/t Silver g/t
40 52.7 6.2 5.2 0.24 60 17
50 48.1 6.5 5.4 0.24 64 17
55 45.0 6.7 5.6 0.23 67 17
60 41.5 7.0 5.8 0.23 70 18
70 33.9 7.6 6.4 0.22 78 18
80 26.9 8.3 6.9 0.22 86 20
Notes:
3. Base case highlighted with bold text.
4. See Table 4 for notes.
Table 3 – Ayawilca Deposit Inferred Mineral Resources – Tin Zone, as of November 26, 2018:
Sensitivities at various cut-off grades
NSR $/t Cut-off Tonnage (Mt) SnEq% Grade Tin % Copper % Silver g/t
40 17.1 0.65 0.57 0.20 18
50 15.9 0.67 0.60 0.20 18
55 14.5 0.70 0.63 0.21 18
60 12.5 0.76 0.68 0.22 17
70 10.1 0.84 0.76 0.23 18
80 8.3 0.92 0.84 0.25 18
Notes:
1. Base case highlighted with bold text.
2. See Table 5 for notes.
Detail of Mineral Resource Estimates
RPA updated the Ayawilca Mineral Resource estimate using the dr ill results available to October 9, 2018
(Tables 4 and 5). Two types of mineralization occur at Ayawilc a, zinc-indium-silver-lead mineralization
(“Zinc Zone”) and tin-copper-silver mineralization (“Tin Zone”).
The Zinc Zone Mineral Resources are hosted by the 200 metre thick Triassic-Jurassic Pucará Group limestone
and located beneath the Goyllarisguizga Group sandstone unit which outcrops, and hosts the Colquipucro sil-
ver oxide deposit located 1.5 km to the north. The Zinc Zone de posit is made up of multiple, gently dipping
lenses or ‘mantos’ in the Central and East Ayawilca zones and as massive replacement bodies within structural
zones in the West and South Ayawilca zones, all located above Paleozoic basement rocks. Most of the known
polymetallic mineralization occurrences in central Peru are located in a similar geological environment. The
Mineral Resources within the Zinc Zone are reported at a US$55/ t Net Smelter Return (NSR) cut-off value.
Indicated Mineral Resources are estimated to total 11.7 million tonnes at average grades of 6.9% Zn, 84 g/t In,
15 g/t Ag, and 0.16% Pb. Inferred Mineral Resources are reported at 45.0 million tonnes at average grades of
5.6% Zn, 67 g/t In, 17 g/t Ag, and 0.23% Pb.
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The increase in tonnage as compared to the previous resource estimate, dated October 10, 2017, is due to an
increase in volume of the interp reted mineralized zones defined by the additional drilling during the 2018
campaign.
Table 4 – Zinc Zone Mineral Resources at Ayawilca as of November 26, 2018
Area Tonnage (Mt)
ZnEq
(%)
Zn
(%)
Pb
(%)
In
(g/t)
Ag
(g/t)
Zn
(Mlb)
Pb
(Mlb)
In
(t)
Ag
(Moz)
Indicated
West 7.8 7.7 6.5 0.20 72 15 1,126 35 561 3.9
South 3.9 9.1 7.6 0.09 108 16 652 8 422 2.0
Total Indicated 11.7 8.1 6.9 0.16 84 15 1,778 42 983 5.8
Inferred
West 5.0 7.1 6.4 0.27 34 17 699 30 170 2.8
Central 18.6 5.6 4.6 0.23 62 12 1,884 95 1,153 7.5
East 11.3 5.9 5.0 0.18 56 14 1,238 44 633 5.0
South 10.2 9.6 7.9 0.27 103 30 1,764 61 1,047 9.9
Total Inferred 45.0 6.7 5.6 0.23 67 17 5,585 230 3,003 25.2
Notes:
1. CIM definitions were followed for Mineral Resources.
2. Mineral Resources are reported above a cut-off NSR value of US$55 per tonne.
3. 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$1.15/lb Zn,
US$300/kg In, US$15/oz Ag, and US$1.00/lb Pb. Metal recovery assumptions were: 90% Zn, 75% In, 60% Ag, and 75%
Pb. The NSR value for each block was calculated using the following NSR factors: US$15.34 per % Zn, US$4.70 per %
Pb, US$0.18 per gram In, and US$0.22 per gram Ag.
4. The NSR value was calculated using the following formula:
NSR = Zn(%)*US$15.34+Pb(%)*US$4.70+In(g/t)*US$0.18+Ag(g/t)*US$0.22
5. The ZnEq value was calculated using the following formula:
ZnEq = NSR/US$15.34
6. Numbers may not add due to rounding.
The Tin Zone Mineral Resources are hosted as disseminated cassi terite and chalcopyrite in massive to semi-
massive pyrrhotite lenses at the contact between the Pucará Gro up and underlying phyllite of the Devonian
Excelsior Group. Parts of the Tin Zone mineralization can occur as quartz sulphide stockwork veinlets hosted
by the phyllite. Inferred Mineral Resources within the Tin Zon e, also reported at an NSR cut-off value of
$55/t, are estimated to total 14.5 million tonnes at average gr ades of 0.63% Sn, 0.21% Cu and 18 g/t Ag.
Similar to the Zinc Zone, the increase in tonnage is due to an increased volume of the interpreted zones due to
additional drilling in 2018.
Table 5 – Tin Zone Inferred Mineral Resources at Ayawilca as of November 26, 2018
Tonnage
(Mt)
Sn Eq. Sn
(%)
Cu
(%)
Ag
(g/t)
Sn Cu Ag
(%) (Mlb) (Mlb) (Moz)
Tin
Zones 14.5 0.70 0.63 0.21 18 201 67 8
Notes:
1. CIM definitions were followed for Mineral Resources.
2. Mineral Resources are reported above a cut-off grade of US$55 per tonne NSR value.
3. The NSR grade 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$9.00/lb Sn,
US$2.85/lb Cu, and US$15/oz Ag. Metal recovery assumptions were: 86% Sn, 75% Cu, and 60% Ag. The NSR value for
each block was calculated using the following NSR factors: US$155.21 per % Sn, US$37.59 per % Cu, and US$0.22 per
gram Ag.
4. The NSR value was calculated using the following formula:
US$NSR = Sn(%)*US$155.21+Cu(%)*US$37.59+Ag(g/t)*US$0.22
5. The SnEq value was calculated using the following formula:
SnEq = NSR/US$155.21
6. Numbers may not add due to rounding.
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The Ayawilca drill database includes 71,200 m in 185 drill hole s. The three-dimensional wireframe models
were generated using an approximate NSR cut-off value of $50/t for both Zinc and Tin Zones (Figure 1). Prior
to compositing to two metre lengths, high Sn, In, and Ag values were cut to 4%, 350 g/t to 550 g/t, and 100 g/t
to 170 g/t depending on area, respectively. Block model grades within the wireframe models were interpolated
by inverse distance cubed.
Despite lead grades being low it is assumed that lead and silver will be recovered in a lead concentrate. Density
was estimated to be between 3.5 t/m 3 and 3.7 t/m3 for the Zinc Zones and 3.9 t/m 3 for the Tin Zone based on
density measurements from core samples. The Mineral Resources were assigned Indicated or Inferred cate-
gory in the Zinc Zones and Inferred only in the Tin Zone due to the widely spaced drilling. The classification
criteria used to define the Indicated Mineral Resources include d spatial analysis, drill hole spacing, and the
apparent continuity of the mineralization. The drill hole spacing within the area assigned as Indicated category
commonly ranges from 40 m to 70 m. No Mineral Reserves have yet been estimated at Ayawilca.
Figure 1 – 3D model of resource wireframes at Ayawilca
The Mineral Resource estimate for the Colquipucro silver oxide deposit (Indicated Mineral Resource of 7.4
Mt at a grade of 60 g/t Ag for 14.3 Moz Ag and Inferred Mineral Resource of 8.5 Mt at a grade of 48 g/t Ag
for 13.2 Moz Ag, using US$15/t cut-off and a metal price of $24/oz Ag) remains unchanged from the February
26, 2015 news release.
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Discussion and Analysis
The Zinc Zone Mineral Resources at Ayawilca have increased substantially since the initial resource estimate
in 2015. Figure 2 illustrates the growth of the zinc resources from 2015 to 2018.
Drilling conducted in 2018 significantly expanded the Zinc Zone mineralization especially at West Ayawilca,
and connected mineralization from zone to zone. Central Ayawilca has now been connected to West Ayawilca
through the Camp area (see resource map, Figure 3). South and Central Ayawilca are partially connected
within the tin resource (see cross section in Figure 4). West Ayawilca connects with South Ayawilca at depth
within the zinc resource (see cross section, Figure 5). Both zinc and tin mineralization were also discovered at
Zone 3 for the first time (see Figure 4).
One of the most important aspects of the resource expansion has been the additional discovery of high-grade,
relatively shallow Zinc Zone mineralization at South and West Ayawilca in 2017 & 2018, much of which has
now been upgraded to the Indicated Mineral Resource category (s ee cross sections, Figures 5 and 6). These
areas contain the thickest and highest-grade zones of mineraliz ation discovered to date at Ayawilca. Zinc
mineralization at West Ayawilca appears to be focussed around the hinge of an anticlinal fold (see cross section
in Figure 6).
The zinc mineralization at Ayawilca is believed to be structura lly controlled, fed by flat-dipping thrust faults
and also steep feeder structures that penetrate to depth. In 2018, the drill program discovered repetitions of the
prospective limestone host rock underneath ledges of the phyllite bounded by low-angle faults, with the lower
repeated limestone being mineralized with very high-grade zinc (e.g. drill hole A18-129 at West Ayawilca).
Note that faults are not depicted on any of the cross sections here. Based on this model for the formation of
the deposit, the Company believes that more potential exists fo r additional resources underneath the existing
resources, possibly within further repetitions of the favourable limestones. Deeper drilling is planned in 2019
to target additional high-grade zinc mineralization at depth.
Figure 2 – Ayawilca Zinc Zone Mineral Resource Growth over Time
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Figure 3 – Geology map and location of 2018 Mineral Resources in plan view
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Figure 4 – Longitudinal section of Ayawilca (A-A’) showing Zinc and Tin blocks by NSR value, looking
northwest.
Note: The thickness of A-A’ section is 180 metres
Figure 5 – Cross section of West and South Ayawilca (B-B’) showing Zinc and Tin blocks by NSR value,
looking east
Note: The thickness of B-B’ section is 150 metres
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Figure 6 – Cross section of West Ayawilca (C-C’) showing Zinc blocks by NSR value, looking northwest
Note: The thickness of C-C’ section is 150 metres
A National Instrument 43-101 Technical Report will be filed on SEDAR within 45 days.
Qualified Person – Mineral Resources: The Mineral Resources disclosed in this press release have bee n
estimated by Ms. Dorota El Rassi, P.Eng., and Mr. David Ross, P.Geo., both employees of RPA and independ-
ent of Tinka. By virtue of their education and relevant experi ence, Ms. El Rassi and Mr. David Ross are
“Qualified Persons" for the purpose of National Instrument 43-1 01. The Mineral Resources have been classi-
fied in accordance with CIM Definition Standards for Mineral Resources and Mineral Reserves (May, 2014).
Both Ms. El Rassi, P.Eng. and Mr. David Ross, P.Geo. have read and approved the contents of this press
release as it pertains to the disclosed Mineral Resource estimates.
The Qualified Person, Dr. Graham Carm an, Tinka’s President and CEO, and a Fellow of the Australasian
Institute of Mining and Metallurgy, has reviewed and verified the technical contents of this release.
On behalf of the Board,
“Graham Carman”
Dr. Graham Carman, President & CEO
Investor Information:
www.tinkaresources.com
Rob Bruggeman 1.416.884.3556
Company Contact:
Mariana Bermudez, 1.604.699.0202
About Tinka Resources Limited
Tinka is an exploration and development company with its flagship property being the 100%-owned Ayawilca
carbonate replacement deposit (CRD) in the zinc-lead-silver bel t of central Peru, 200 kilometres northeast of
Lima. The Ayawilca Zinc Zone contains 11.7 Mt of Indicated Resources grading 6.9% zinc, 0.2% lead, 15 g/t
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. The Ayawilca Tin Zone contains an Inferred Mineral Resource of 14.5 Mt at 0.63% tin, 0.23% copper
& 12 g/t silver (this release). A maiden PEA is underway, with results anticipated in 1H 2019.