Tinka Resources Limited · TSXV:TK
Tinka Resources — Investor Presentation (November 2020)
28 slides from Tinka Resources's investor presentation, November 2020
Slide 1: Corporate Presentation – November 2020
TSXV & BVL:TK | OTCPK: TKRFF www.tinkaresources.com 30 ZINC 47 SILVER Zn Ag 65.38 107.87 Ayawilca: Oct 2020 Corporate Presentation – November 2020
Slide 2: Disclaimer
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
Slide 3: Tinka's Competitive Advantage
Tinka’s Competitive Advantage • Ayawilca: One of the largest undeveloped Zinc-Silver projects and still growing Ayawilca Zinc Zone Resource Growth 60 2015 to 2018 INFERRED • Cashed-up: Tinka has a strong balance sheet with approx. C$20M cash & no debt 50 • Pro-mining jurisdiction: Central Peru has e
Slide 4: Ayawilca's Zinc and Silver Resources
Ayawilca’s Zinc and Silver Resources… 1. Zinc Zone 2. Colqui Silver Zone • Zinc with silver and minor lead • Silver resource hosted in sandstone from • All sulphide surface to 100 m, < 2 km from Zinc Zone • Excellent recovery to concentrate (92%) • 2 Km away from the Zinc Zone grading 50% Zn with hi
Slide 5: Company Snapshot
Company Snapshot Millions MAJOR SHAREHOLDERS Shares issued 341 Institutional: Options (priced at $0.25 to $0.50) 14 Sentient Equity Partners 22% Fully diluted shares 355 Buenaventura 19% IFC 9% Market capitalization (at C$0.17/share) C$58 JPMorgan UK 5% Cash (at June 30, 2020) C$21 Commodity Discove
Slide 6: Experienced Management & Board
Experienced Management & Board Management – Strong track record in Peru Dr. Graham Carman Geologist, Highly experienced in Peru (Rio Tinto, President & CEO, Director Savage, Pasminco); PhD in geology (80Moz Lihir Au). Alvaro Fernandez-Baca Respected & successful Peru geologist, 25 years in VP Explor
Slide 7: Zinc Supply and Demand
Zinc Supply and Demand Zinc is an essential industrial metal… ▪ Galvanizing: increases durability of steel ▪ Other uses: manufacturing, human health, crops ▪ Energy storage is a huge future potential growth area due to safeness of zinc and low cost cf. lithium ▪ See link: California shifts attention
Slide 8: Silver Upside - Colqui Area
Silver Upside - Colqui Area • Tinka is planning to test for expansions of the Colqui Silver Zone, 2km from Ayawilca • Shallow : mineralization occurs from surface • Indicated Resources: 7.4 Million Tonnes grading 60 g/t Ag, including 2.9 Million Tonnes grading 112 g/t Ag (oxide) Colqui Silver Zone •
Slide 9: Peru – A Top Mining Jurisdiction
Peru – A Top Mining Jurisdiction • Top 2 global producer of zinc, copper and silver ECUADOR • Pro-mining country – mining accounts for over 50% of exports Ayawilca • Central Peru is a world-class mining belt Project BRAZIL Rank in Latin America Mineral World 2019 2019 Antamina Zinc 2nd 1st Central P
Slide 10: Central Peru – Mines & Infrastructure
Central Peru – Mines & Infrastructure • Ayawilca is located in the prolific mining belt of central Peru • Public road access with major roads to the port at Callao • A 220 kV power line crosses the project • Skilled workforce due to x Shalipayco (NEXA) multiple mines • Tinka’s strategic partner, Bue
Slide 11: Ayawilca - A Huge Intrusion Related Deposit?
Ayawilca - A Huge Intrusion Related Deposit? • High Zn-Ag grades focussed in fold hinge at South & West areas B B’ Southwest Northeast CENTRAL EAST SOUTH ZINC ZONE ZONE 3 TIN 1x ZONE 1x ? Intrusion Source?
Slide 12: 2020 Ayawilca Resource Expansion Program
2020 Ayawilca Resource Expansion Program • Massive sulphides: A COLQUI SILVER ZONE Occur from 150m to 450m from surface • Key Targets in 2020: C C’ Zinc Zone & Colqui Silver Zone along the B’ Colquipucro Fault 2020 TIN ZONE DRILL • Zinc Zone: Expansion TARGETS ZINC ZONE of the high-grade Zn- Ag reso
Slide 13: Ayawilca - 4 Km Known Strike - Not Fully Tested
Ayawilca - 4 Km Known Strike - Not Fully Tested • 4 km of known mineralization along Colquipucro Fault - drilled to 400 m depth with large gaps • Ayawilca is a polymetallic carbonate replacement deposit (CRD) – open to the south, east, & at depth • Far South area: New target identified, large Zn-Pb
Slide 14: Sulphide Resources – At Nov. 26, 2018
Sulphide Resources – At Nov. 26, 2018 Zinc Zone Zinc Grade by Area Tonnage Zn Pb Ag Category (Mt) (%) (%) (g/t) 7.82% 6.46% 5.00% 4.60% Total Indicated 11.7 6.9 0.16 15 South West East Central Notes: Total Inferred 45.0 5.6 0.23 17 • Resources are based on more than 70,000 metres of drilling • The Q
Slide 15: Colqui Silver Zone – Drill Highlights
Colqui Silver Zone – Drill Highlights • Thick intervals of silver mineralization from the surface at “Silver Pot” Colqui Silver Zone • 50 holes drilled for 8,000 m (2008-2014) ; mineralization remained Open • Top 10 drill holes below, best grade intersections highlighted Hole From m To m Int m Silve
Slide 16: Colqui Silver Zone – Resource
Colqui Silver Zone – Resource C COLQUI SILVER ZONE West to East cross section 8847300 N C’ CDD4: 128m @ 91 g/t Ag • 45 holes drilled at Colquipucro for CDD6: 64m @83 g/t Ag Incl. 4m @ 1,228 g/t Ag 7,000 m (2008-2014) CDD45: 136m @ 75 g/t Ag CDD43: 52m @ 155 g/t Ag • Mineralization is open to the Wes
Slide 17: 2020 Drill Program – Commenced Oct'20
2020 Drill Program – Commenced Oct’20 • The 2020-2021 drill program of approximately 7,000 metres at Ayawilca commenced in October with the following planned objectives: • Expansion of Zinc Zone resources at West and South (principal focus) • Test the Colqui Silver Zone extension to the west • We ex
Slide 18: COVID-19 Protocols
COVID-19 Protocols • COVID-19: Peru on a per capita basis has been one of the worst affected countries in the world – however, case numbers have decreased significantly since August 2020 • Mining in Peru has been impacted significantly due to the pandemic, but mining and exploration are continuing d
Slide 19: Highlights
Highlights • Potential for Expansion & Discovery – DRILLING NOW with strong news flow expected • Zinc and Silver – Drill program will target new step-out areas and priority resource infill • Full Ownership – 100% ownership of a PEA stage project with after-tax NPV8% of US$363M • Well Financed – ~C$2
Slide 20: Appendix
APPENDIX
Slide 21: Ayawilca Project – Regional overview
Ayawilca Project – Regional overview Property Boundary 170 km2 mining claims (100% TK) in the middle of the central Peru base metal belt • Only 3 km of prospective geology has been drill tested to date, resulting in three separate mineral resource estimates: 1. Ayawilca Zinc Zone – carbonate replace
Slide 22: 2020 Ayawilca Drill Program – Progress so far
2020 Ayawilca Drill Program – Progress so far… • Two (2) drill rigs now on Aeromagnetics (Analytical Signal) site – three (2) expected from mid-November onwards • Twenty drill holes for approx. 7,000 metres planned • Starting program at South and West areas along the Colquipucro Fault - see map • Re
Slide 23: Ayawilca Project – Discovery History
Ayawilca Project – Discovery History Zinc Discovery South Ayawilca Tinka – PEA 2019 Tinka Ayawilca Discovery 2015, Capex US$262M Staked claims in Zinc Zone discovery Resource update NPV8% US$363M 2006 2012 IRR 27.1% 2009 2013 2019 1940´s 2005 2012 2017 2018 2011 2015 2020 Pre-Tinka Silver Zone New M
Slide 24: Ayawilca PEA Highlights (July 2019)
Ayawilca PEA Highlights (July 2019) • Underground mine with 5,000 tpd flotation $200 $2,000 plant producing zinc and lead concentrates $150 $1,500 • 38.2 Mt of Resources mined over 21 years • Average annual production of 101 kt zinc and $100 $1,000 0.9 Moz silver Annual Cash Flows (US$ millions) Cum
Slide 25: Peru – Project Pipeline in Zinc
Peru – Project Pipeline in Zinc o Ayawilca is one of the most attractive zinc development projects in Peru, and compares well against producing mines in size and grade Peru Zinc Projects - Sorted by Contained Zinc 6,000 14% 12.0% Producing Mine 5,000 12% 10.3% Contained Zinc (kt) 10% Zinc + Lead Gra
Slide 26: Drill Highlights – South Ayawilca
Drill Highlights – South Ayawilca • Grades in 2019 holes were excellent: ▪ Hole A19-165: 9.0 m @ 11.9% zinc and 25.9 m @11.8% zinc and 28.7 m @ 14.0% zinc and 14.9 m @ 12.3% zinc ▪ Hole A19-163: 5.7m grading 32.6% zinc at edge of resource • Discovery of Lower Silver Zone ▪ Hole A19-163: 13.9 m @ 128
Slide 27: Zinc Market – Mine Closures = Reduced Supply
Zinc Market – Mine Closures = Reduced Supply • Multiple mine closures in Peru, Mexico, and China due to COVID-19 have removed over 1 Mt of zinc from 2020 production • Zinc smelter cuts due to COVID-19 have reduced demand by only 0.3 Mt • New zinc projects and mine expansions continue to be delayed •
Slide 28: Tinka Resources Limited
Tinka Resources Limited CORPORATE OFFICE Suite 1305 - 1090 West Georgia St Vancouver, BC V6E 3V7 CANADA Ph: +1 604 699-0202 Fax: +1 604 683-1585 FOR MORE INFORMATION Dr. Graham Carman, President & CEO info@tinkaresources.com Rob Bruggeman, Investor Relations rbruggeman@tinkaresources.com +1 416 884-
Tinka Resources — Investor Presentation (November 2020) on 6ix