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Tinka Reports Updated PEA for Ayawilca Project: Highlights Potential to Become Top-10 Global Zinc Producer
After-Tax NPV 8% of US$433M and IRR of 32% at $1.20/lb Zinc VANCOUVER, BC / ACCESSWIRE ...
About this update from Tinka Resources Limited
[{"type":"text","content":"Tinka Reports Updated PEA for Ayawilca Project: Highlights Potential to Become Top-10 Global Zinc ProducerAfter-Tax NPV8% of US$433M and IRR of 32% at $1.20/lb ZincVANCOUVER, BC / ACCESSWIRE / October 14, 2021 / Tinka Resources Limited (\"Tinka\" or the \"Company\") (TSXV:TK)(BVL:TK)(OTCQB:TKRFF) is pleased to announce strongly positive financial results from an updated Preliminary Economic Assessment (\"PEA\") prepared for its 100%-owned Ayawilca Zinc Zone project in central Peru. The updated PEA is disclosed in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (\"NI 43-101\") and prepared by Mining Plus Peru S.A.C. (\"Mining Plus\") as principal consultant, Transmin Metallurgical Consultants (\"Transmin\"), Envis E.I.R.L (\"Envis\"), and SLR Consulting (Canada) Ltd (\"SLR\"). The updated PEA provides the economic assessment for an underground ramp-access mine development with an 8,500 tonnes per day processing plant, a significant throughput increase from the 2019 PEA.PEA HighlightsAfter-tax NPV8% of US$433 million (up 19% from 2019 PEA) using base case metal prices of US$1.20/lb zinc, US$22/oz silver, and US$0.95/lb lead on a 100% equity basis (pre-tax NPV8% of US$720 million);Initial Capex of US$264 million with after-tax IRR of 31.9% (pre-tax IRR of 42.6%);At current spot price of $1.50/lb zinc, the after-tax NPV8% increases to US$785 million and IRR increases to 45.7% (pre-tax NPV8% of US$1.27 billion and IRR of 61%);Average annual production of approximately 155,000 tonnes of zinc in concentrate per year, which would make Ayawilca the largest primary zinc producer in South America and a top-10 global zinc producer;43.5 million tonnes mined over 14.4 years using bulk underground mining methods (sub level stoping combined with overhand cut and fill) with daily mill throughput of 8,500 tonnes per day (tpd);Project located in a major mining region close to a paved highway under construction, ~200 km from an operating zinc refinery and port;Designed to minimize risk and environmental impact - 40% of tailings used as underground backfill and on-surface tailings treatment and storage facility to use filtered dry-stack technology;Numerous opportunities to add further value, includingexploration upside for additional zinc discoveries including at Far South, Yanapizgo, and Zone 3 areas;further ...