Tinka Resources Limited · TSXV:TK
Tinka Resources — Investor Presentation (September 2020)
28 slides from Tinka Resources's investor presentation, September 2020
Slide 1: Corporate Presentation – September 2020
TSXV & BVL:TK | OTCPK: TKRFF www.tinkaresources.com 30 ZINC 47 SILVER Zn Ag 65.38 107.87 South Ayawilca area Corporate Presentation – September 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: Company Snapshot
Company Snapshot CAPITALIZATION Millions MAJOR SHAREHOLDERS Shares issued 341 Institutional: Options (priced at $0.25 to $0.50) 14 Sentient Equity Partners 22% Fully diluted shares 356 Buenaventura 19% IFC 9% Market capitalization (at C$0.20/share) C$68 JPMorgan UK 5% Cash (at June 30, 2020) C$21 Co
Slide 4: Tinka's Competitive Advantage
Tinka’s Competitive Advantage • Size and grade: Ayawilca is one of the Ayawilca Zinc Zone Resource Growth largest undeveloped Zinc deposits with 60 2015 to 2018 INFERRED additional Silver-Lead, and Tin potential 50 • Pro-mining jurisdiction: Central Peru is a well established mining belt with good 4
Slide 5: Leverage to Zinc and Silver
Leverage to Zinc and Silver 1. Ayawilca Zinc Zone 2. Colqui Silver Zone • Zinc with silver and minor lead • Silver resource hosted in sandstone from • 100% sulphide (no oxides) surface to 100 m, < 2 km from Zinc Zone • Excellent recovery to concentrate (92%) • 2 Km away from the Zinc Zone grading 50
Slide 6: 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 7: 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 8: Silver Upside at Colqui Silver Zone
Silver Upside at Colqui Silver Zone • Tinka is planning to test for expansions of silver resources at the Colqui Silver Zone : • Indicated Resources: 7.4 Million Tonnes grading 60 g/t Ag, including 2.9 Million Tonnes grading 112 g/t Ag Colqui Silver Zone • Inferred Resources: 8.5 Million Tonnes grad
Slide 9: Colqui Silver Zone – Cross section
Colqui Silver Zone – Cross section 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 th
Slide 10: 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 Project BRAZIL Rank in Latin America Mineral World 2019 2019 Antamina Zinc 2nd 1st Central Peru Copper 2nd 2nd zinc belt Tin 4th 1st San
Slide 11: Central Peru – Mines & Infrastructure
Central Peru – Mines & Infrastructure • Ayawilca is located in the prolific mining belt of central Peru • Public road access with two major roads to ports • Twin 220 kV power lines to Antamina, the largest mine in Peru, cross the resource x Shalipayco (NEXA) • Skilled workforce due to multiple mines
Slide 12: 2020 Drill Targets at Ayawilca
2020 Drill Targets at Ayawilca • Key Project Resources: A COLQUI SILVER ZONE IND: 7.4 Mt @ 60 g/t Ag Zinc Zone & Colqui INF: 8.5 Mt @ 48g/t Ag Silver Zone areas • Powerlines cross the C C’ property TIN ZONE (Inferred) B’ • 2020 drill targets – 2020 14.5 Mt @ 0.63% Sn; 0.21% Cu; 18g/t Ag West Ayawilc
Slide 13: Ayawilca has a 4 Km Strike and Open
Ayawilca has a 4 Km Strike and Open… • Ayawilca is a polymetallic carbonate replacement deposit (CRD) • 4 km strike of mineralization and remains open - Zinc Zone drilled to 400 m and open down-dip • Far South area: New target identified in 2020, extensive Zn-Pb soil anomaly, undrilled 4 km A A’ FAR
Slide 14: Ayawilca Zinc Zone – Longitudinal Section
Ayawilca Zinc Zone – Longitudinal Section LOOKING NORTHWEST B Drill targets 2020-2021 B’ SW NE SOUTH AYAWILCA ZINC ZONE ZONE 3 CENTRAL AYAWILCA EAST AYAWILCA ZINC ZONE ZINC ZONE Drill 1x target TIN ZONE 1x
Slide 15: 2020 Drill Program – Commencing Sep'20
2020 Drill Program – Commencing Sep’20 • The 2020 drill program of approximately 7,000 metres at Ayawilca will commence in September with 3 drill rigs (subject to COVID-19 health protocols) with the following planned objectives: • Zinc Zone expansion: 2,000 - 3,000 metres of step-out drilling at Wes
Slide 16: Community Relations & Environment
Community Relations & Environment • Tinka is strongly committed to the health & safety of its employees, families, and communities • The Company has developed strong health protocols to minimise COVID-19 infections • Long-term partnerships are developed with the communities near Ayawilca • Social en
Slide 17: Experienced Management & Board
Experienced Management & Board Management – Extensive Peru and Zinc Experience 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
Slide 18: Summary
Summary • Scarcity Value - Ayawilca Zinc Zone has size & grade in a proven mining belt • Strong Management Team - experienced and successful track record in Peru • Full Ownership - 100% ownership of a PEA stage project with after-tax NPV8% of US$363M • Low Valuation - Tinka EV of ~US$36 million is o
Slide 19: Appendix
APPENDIX
Slide 20: Zinc Supply and Demand
Zinc Supply and Demand • Zinc is an essential industrial metal ▪ Galvanizing: increases life and durability of steel in construction and transport ▪ Other uses: Manufacturing, human health, crop growth, and rechargeable battery potential • More Zinc supply is required to avoid major deficits in the
Slide 21: Zinc Market – Supply Deficits are Increasing
Zinc Market – Supply Deficits are Increasing • 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 22: Ayawilca Zinc Zone Resources
Ayawilca Zinc Zone Resources (Base Case Nov. 2018 @ $55 NSR cut-off) Zinc Grade by Zone • Highest grades at South and West zones, which are also the thickest parts of the deposit and account for 47% of the total Zinc Zone resources 7.82% 6.46% 5.00% 4.60% South West East Central Tonnage Zn Pb Ag Con
Slide 23: Ayawilca PEA Highlights (2019)
Ayawilca PEA Highlights (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) Cumulati
Slide 24: 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 25: Ayawilca – District-Scale Potential
Ayawilca – District-Scale Potential Airborne Magnetics - RTP • Airborne magnetics flown on property in 2016 show a 2.5 km RTP mag anomaly broadly Colquipucro coincident with current resources • Colquipucro Fault appears to be an important 500 m. control for mineralization Valley • Multiple untested
Slide 26: Ayawilca – Comparisons with Cerro de Pasco
Ayawilca – Comparisons with Cerro de Pasco • Cerro de Pasco: 175 Mt @ 7% Zn, 2% Pb, 30oz/t Ag mined in central Peru (Baumgartner et al, 2008) • Comparisons with Ayawilca include: similar limestone, sulphide mineralogy, anticline, big faults • Both deposits are carbonate replacement deposits (CRDs) C
Slide 27: 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 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-
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