Tinka Resources Limited · TSXV:TK
Tinka Resources — Investor Presentation (January 2021)
25 slides from Tinka Resources's investor presentation, January 2021
Slide 1: Advancing the High Quality Ayawilca Zinc-Silver Project in Peru
Advancing the High Quality Ayawilca Zinc-Silver Project in Peru Corporate Presentation – January 2021 TSXV & BVL:TK | OTCPK: TKRFF tinkaresources.com Drilling at Ayawilca: Oct 2020
Slide 2: Disclaimer
*TINKA Resources 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 con
Slide 3: Ayawilca is the best zinc development project in Peru
• Ayawilca is the best zinc development project in Peru • Extensive and high grade zinc-silver resources • Peru ranks 2nd in global base metals production (copper and zinc) • Significant silver by-product – potential financing for construction • District-scale potential with less than 10% of the 170 k
Slide 4: We are entering the start of a new bull market for commodities
We are entering the start of a new bull market for commodities.” There is a prevailing view that a base metals supercycle is developing as the world recovers from the COVID-19 crisis with an emphasis on a green industrial revolution and policy focus on social need. There is a lack of supply of base
Slide 5: Capital structure, shareholders and management
Shares issued and outstanding 341 million Shareholders Options (priced from $0.25 to $0.50) 14 million Sentient Equity Partners 22% Fully diluted shares 355 million Buenaventura 19% Market capitalization (at C$0.24/share) C$82 million IFC 9% Cash (at Dec 31, 2020) ~C$16 million JP Morgan UK 5% Debt
Slide 6: Ayawilca project: 16,500 hectares in central Peru mining belt
• The Ayawilca project consists of 16,500 hectares of contiguous granted mining claims in the world-class central Peru mining belt • Major road access to ports and a zinc smelter outside of Lima (~200 km) • Power lines on the project • Supportive local communities x Shalipayco (NEXA) Giant ore depos
Slide 7: Zinc Zone, Colqui Silver Zone and district potential
• Zinc Zone Deposit: A COLQUI Limestone-hosted zinc-silver-lead SILVER ZONE sulphide deposit is the main focus - potential upside in the Tin Zone • Colqui Silver Zone Deposit: B’ Current Silver mineralization occurs from drilling focus surface to 100m depth (no zinc) AYAWILCA ZINC ZONE • District Po
Slide 8: Big tonnage, high grade zinc with silver upside
• Big tonnage and high grade zinc with silver upside, and still room to grow • Initial mine plan in 2019 PEA (38.2 million tonnes) represents 72% of Indicated and 66% of Inferred resources, respectively • Note: Resource estimates to be updated Q2 2021 following the completion of the + 7,000 m drill
Slide 9: 2019 PEA results
• 2019 PEA: see the full July 2019 technical report • 5,000 tonnes per day underground mine with conventional flotation producing two concentrates • Modest initial capex of US$262 million and sustaining capex of US$145 million • Robust economics: 27.1% post-tax IRR, $363 million post-tax NPV8% and 3.
Slide 10: 4 km of known mineralization along Colquipucro Fault
• 4 km of known mineralization along Colquipucro Fault - drilled to 400 m depth with large gaps • Far South area: Undrilled target with large Zn-Pb soil anomaly - awaiting drill permit (late 2021) A 4 km strike A’ FAR SOUTH AREA SOUTH AYAWILCA WEST AYAWILCA COLQUI South ZINC ZONE ZINC ZONE SILVER ZO
Slide 11: Development timeline 2021-2025
2021 2022 2023 2024 2025 Resource Definition and Drilling Expansion Drilling Resource/PEA update Zinc Zone Geotechnical studies Water/Geotech/Metallurgical Permitting – EIA Semi detailed EIA Detailed EIA Feasibility Studies Prefeasibility Feasibility Development & Construction Production
Slide 12: Ayawilca compared with producing zinc mines
• Ayawilca is the best zinc development project in Peru, and compares well against producing mines in terms of size and grade • Peru is the 2nd largest zinc producer in the world (after China) * The large tonnage, low grade Antamina and Cerro Lindo mines are excluded
Slide 13: Zinc uses and market outlook
▪ Protects steel by improving its durability ▪ Galvanized steel, brass & bronze, die casting ▪ Zinc is essential in human development, increases crop yield ▪ End uses: construction, transport, infrastructure, agriculture ▪ Zinc energy storage is a future growth area due to safe nature of scalable zi
Slide 14: Tonnage and grade compare well; fully funded
• the tonnage and grade compare well with existing base metal mines in the region • • – Tinka is fully funded for its 2020-2021 work program with updates of resources and PEA planned by mid-2021 followed by a fast-track to production • – 100% ownership, strong strategic partners • – ~C$16 million in
Slide 15: Appendix
... APPENDIX a
Slide 16: Peru: top global producer of zinc, copper and silver
• Top 2 global producer of zinc, copper and silver • Pro-mining country – mining accounts for over 50% of exports • Central Peru is a world-class base metals mining belt Rank in World Latin America Mineral 2019 2019 Zinc 2nd 1st Copper 2nd 2nd Tin 4th 1st Lead 3rd 1st Silver 2nd 2nd Gold 7th 1st
Slide 17: Ayawilca history and milestones
Zinc Discovery: South Ayawilca Tinka – PEA 2019 Tinka Mining Ayawilca Capex US$262M Discovery 2015, Claims Staked Zinc Zone 2012 Resource Update NPV8% US$363M 2006 IRR 27.1% 2009 2013 2019 1940´s 2005 2012 2017 2018 2011 2015 2020 Pre-Tinka Silver Deposit: New Management & Resource Update Buenaventu
Slide 18: Three separate mineral resource estimates
Only 3 km of prospective geology has been drilled to date, resulting in three separate mineral resource estimates: – carbonate replacement deposit (CRD) Indicated: 11.9 Mt @ 6.9% Zn, 15g/t Ag, 0.2% Pb Inferred: 45.0 Mt @ 5.6% Zn, 17g/t Ag, 0.2% Pb – sandstone hosted silver oxide deposit Indicated: 7
Slide 19: CRD-style zinc-silver mineralization and Tin Zone upside
• Zinc-Silver mineralization occurs as replacements and infillings in limestones related to deep intrusions (CRD-style) • Tin-copper mineralization occurs at depth in the “Tin Zone” closer to a deep intrusion source • Significant upside exists along strike and at depth (including for additional Zn-Ag
Slide 20: Excellent grades in 2019 drill holes
• 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 g/t silver ▪ Hole A19-167: 7.3 m
Slide 21: Mineralization correlates with magnetic signatures
• Strong correlation between mineralization and magnetic signatures at Ayawilca - several anomalies still untested Airborne magnetics (Analytical Signal)
Slide 22: Colqui Silver Zone resources
• Tinka is reassessing past drill results from the • Mineral Resources were estimated in 2015 as follows: • Indicated Resources: 7.4 Million Tonnes grading 60 g/t Ag, including (oxide) Colqui Silver Zone - viewing north • Inferred Resources: 8.5 Million Tonnes grading 48 g/t Ag, including (oxide) •
Slide 23: Colqui Silver Zone drill intervals
• Extensive intervals of silver mineralization from the surface at Colqui Zone (“Silver Pot” in Quechua language) • 50 holes drilled for 8,000 m (2008-2014) ; mineralization remains Open to the west • Top 10 drill holes below, best grade intersections highlighted Hole From m To m Int m Silver g/t Pb
Slide 24: Zinc Zone and Colqui Silver Zone comparison
• Zinc with silver and minor lead • Silver resource hosted in sandstone from surface • All sulphide to 100 m, < 2 km from Zinc Zone • Excellent recovery to concentrate (92%) grading • 2 Km away from the Zinc Zone 50% Zn with high indium • Oxide, leachable • One of the largest undeveloped zinc resour
Slide 25: Contact details
Suite 1305 - 1090 West Georgia St Vancouver, BC V6E 3V7 CANADA Ph: +1 604 699-0202 Fax: +1 604 683-1585 Dr. Graham Carman, President & CEO info@tinkaresources.com Rob Bruggeman, Investor Relations rbruggeman@tinkaresources.com +1 416 884-3556
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