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D E C E M B E R / J A N U A R Y 2 0 2 0
MINING
R
ecent high-grade drill results
from the 2019 drilling campaign
have improved the structural
and lithological understanding of the
Tinka Resources Limited [TK-TSXV,
BVL; TKRFF-OTCPK] 100%-owned
Ayawilca zinc-silver deposit in Peru. A
recently completed Preliminary Economic
Assessment (PEA) shows that the project's
economics are most sensitive to zinc grade
and price, so the addition of higher-grade
zinc resources will have a positive impact
on the project economics in future studies.
Tinka released its maiden PEA on
the Ayawilca Project in July. The study
modeled the project as a moderate 5,000
tonne-per-day underground operation
focusing on the zinc mineralization, which
has some silver and lead credits. The
estimated Capex is estimated at US $262
million with an after-tax payback period
of 3.5 years.
The After-tax Net Present Value (NPV),
using an 8% discount rate, rang in at US
$363 million with an After-tax Internal
Rate of Return (IRR) of 27.1%. These val-
ues are based on the following commodity
prices; US $1.20/lb zinc, US $0.95/lb lead,
US $18/lb silver.
The PEA was based on an Indicated
Resource containing 11.7 million tonnes
averaging 6.9% zinc, 0.16% lead, 84 g/t
indium, and 15 g/t silver. This translates
to a contained metal resource of 1.778 bil-
lion lbs of zinc, 42 million lbs of lead, 983
tonnes of indium, and 5.8 million oz of
silver. The Inferred portion of the resource
hosts an additional 45.0 million tonnes
averaging 5.6% zinc, 0.23% lead, 67 g/t
indium and 17 g/t silver. This works out to
a contained metal resource of 5.585 billion
lbs of zinc, 230 million lbs of lead, 3,003
tonnes of indium and 25.2 million oz of
silver.
Based on this study, the mine would pro-
duce 200,000 tonnes of zinc concentrate per
year and 900,000 oz of silver per year for
an estimated 21-year mine life. This would
rank the mine in the top five zinc producers
in Peru. Keep in mind, Peru is the second
largest zinc producer in the world.
Tinka Resources
High-grade drill results could add more value to Ayawilca Project
by Thomas Schuster
