tinka resources ltd (tsxv:tk) advancing the ayawilca project: a … · [san rafael (minsur)] 800km...
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w w w . t i n k a r e s o u r c e s . c o mNovember 2015 1
Advancing the Ayawilca Project:A New Zinc-Tin-Copper-Silver District
Central Peru
Tinka Resources Ltd (TSXV:TK)
Graham Carman – President & CEO Tinka Resources LtdNovember 1, 2015
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Disclaimer & Forward Looking Statements
This presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction.
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 contract or commitment whatsoever.
Certain information in this presentation contains forward-looking statements and forward-looking information within the meaning of applicable securities laws (collectively "forward-looking statements"). All statements, other than statements of historical fact are forward-looking statements. Forward-looking statements are based on the beliefs and expectations of Tinka as well as assumptionsmade by and information currently available to Tinka's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, capital and other costs varying significantly from estimates, production rates varying from estimates, changes in world metal markets, changes in equity markets, the use of the net proceeds of the recently completed private placement, availability and costs of financing needed in the future, equipment failure, unexpected geological conditions, imprecision in resource estimates or metal recoveries, Tinka’s ability to complete its current and future drilling programs, drilling program results varying from expectations, delays in obtaining survey results, success of future development initiatives, competition, operating performance, environmental and safety risks, delays in obtaining or failure to obtain necessary permits and approvals from local authorities, community relations, and other development and operating risks. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein. Although Tinka believes that assumptions inherent in the forward-looking statements arereasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be puton such statements due to the inherent uncertainty therein. Except as may be required by applicable securities laws, Tinka disclaims any intent or obligation to update any forward-looking statement.
The Mineral Resources disclosed in this company presentation were estimated by Mr. David Ross, P.Geo., an employee of Roscoe Postle Associates Inc. (RPA) and is independent of Tinka. The Mineral Resources were publically released on February 26, 2015. By virtue of his education and relevant experience, Mr. Ross is a "Qualified Person" for the purpose of National Instrument 43-101. The Mineral Resources have been classified in accordance with CIM Definition Standards for Mineral Resources and Mineral Reserves. This presentation has been prepared, reviewed and verified by Dr. Graham Carman, Tinka’s President and CEO and a Fellow of the Australasian Institute of Mining and Metallurgy, a qualified person as defined by NI 43-101.
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About Tinka Resources
█ Base metals explorer in central Peru (TSXV:TK)
█ 100%-owned Ayawilca-Colquipucro (Zinc, Tin, Copper, Silver) Projects
█ Large scale district: 12,300 ha land package, under explored
█ Team with discovery track record
█ Well funded & supported by 2 large institutions (Se ntient, IFC)
█ 10,000-metre drill program in progress (Aug-Dec 201 5)
█ 2016: Resources update, new drill permits to expand drilling area
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Projects with Growth Potential
█ Ayawilca Zinc – Indium (sulphide)
� Initial Inferred Mineral Resource (Feb’ 2015)
� 13.3 Mt at 5.9% Zn, 68g/t In, 14 g/t Ag, 0.2% Pb for 7.7% Zn Eq.
█ Ayawilca Tin (cassiterite) - Copper (chalcopyrite)
� A15-40: 50.5 m at 1.23% Sn & 0.16% Cu
� A15-44: 14.9 m at 1.10% Sn & 0.36% Cu
█ Colquipucro Silver (oxide)
� 7.4 Mt at 60 g/t Ag for 14.3 Moz silver (Indicated) and 8.5 Mt at 48 g/t Ag for 13.2 Moz silver (Inferred)
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Trading Symbol: TSXV: TK Shares Issued: 149.8 M
Warrants: 40.1 M
Options: 10.9 M
Shares reserved : 0.5 M
Fully diluted: 201.3 M
Last Financing May 29 ‘15C$7.25m raised at $0.215 per share
Cash 30 June 2015: ~ C$9.0 M
Market cap @ $0.17/sh: ~C$25 M
Major shareholders
Sentient Group: 21.5%
International Finance Corp: 14.0%
Tinka Resources - Corporate
12 Month Share PriceRange: $0.15 to $0.43
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Team
MANAGEMENT
Graham Carman President & CEO, Director Geologist, Peru zinc discovery record (Bongara, Accha, Yanque) Ex Rio Tinto, Savage, Pasminco(Peru based 1994-2000)Ph.D. Lihir Island gold
Alvaro Fernandez-Baca
Vice President, Exploration Geologist 19yrs, P. Geo., APEGBC, Ex Hochschild, AQM Copper, Entrée Gold, Gitennes (Peru base)
Nick Demare Chief Financial Officer, Director
Experienced CPA, CA, officer/director various public co.
Mariana Bermudez
Corporate Secretary Experienced Corporate Secretary, Vancouver based (Peru born)
NON-EXECUTIVE DIRECTORS
David Henstridge Founding director, experienced geologist, worldwide
Yanina Barilá Sentient Group representative
William Lee Independent director, CPA, CA
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Map of Central Peru
Cerro de Pasco (Volcan)
� Largest historic producer in Peru (~ 100 Mt @ 10% Zn equiv. mined + reserves)
Colquijirca (El Brocal)
� Peru’s largest undeveloped Zn resource San Gregorio (84 Mt @ 7.5% Zn equiv.)
Antamina (BHP-Glencore-Teck)
� Peru’s largest zinc and copper mine in same belt
[San Rafael (Minsur)]
� 800km to Peru’s only producing tin mine in south
█ Tinka’s tenements located in mining friendly jurisdiction, good infrastructure
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Source: UBS Global Research
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Zinc Supply and Demand
█ Zinc prices predicted to risethrough supply cuts:
Glencore mines (- 500ktpa) Century mine (- 500ktpa)
8% of world production
█ No new mines of any significant size opening
█ Zinc inventory in warehouses falling over the longer term
Higher Zinc prices forecast by Glencore cutsSource: Credit Suisse
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Tin Market█ Few new tin discoveries worldwide
█ Indonesia is largest exporter of tin world-wide, Myanmar new player
█ Minsur largest western tin producer from San Rafael, southern Peru (~20,000 tin metal/year at ~2%Sn head grade)
█ Price around USD 15,000 per tonne (i.e. 9 x Zinc, 3 x Copper)
LME Tin Price Solders account for half of tin consumption
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Tinka Mineral Claims
█ 12,300 Ha claims in total
█ Highly prospective under-explored mineral belt
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Geology and Drilling█ ~26,000 metres drilled to
date at Ayawilca (Zn, Sn-Cu)
█ ~8,000 metres drilled at Colquipucro (Ag)
█ Only 30-35% of prospective area drilled so far
█ Priority future drilling areas include Chaucha, Zone 3, South Ayawilca, Valley
Valley
2015 Drill Program (Q3-Q4)
+ 500ppm Zn soils
CDD46: 10m @ 0.8% Sn
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2015 Drill Program Ayawilca ~ 10,000m in Progress
500 metres
A15-40: 50.5m @ 1.2% Sn, 0.2% Cu
?
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Geological Model: Zinc above Tin-Copper mineralizat ion
A A’
A13-05: 213m @ 5.3% Zn & 83g/t In
A15-46: 2.1m @ 37.3% Zn, 347g/t In, 255g/t Ag
A14-18: 65m (2) @ 5.7% Zn & 19g/t In
A12-08: 70m @ 4.8% Zn & 33g/t In
A15-40: 50m @ 1.2%Sn & 0.16%Cu
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Ayawilca Zinc & Tin Drill Intercepts
Drill Hole From (m) To (m) Interval
(m) Zinc (%)Lead (%)
Silver (g/t)
Indium (g/t)
A13-05 130.3 343.2 212.9 5.34 0.17 15 83
including 130.3 179.5 49.2 10.07 0.55 32 51
including 150.0 166.0 16.0 18.14 0.05 39 120
and 316.0 326.0 10.0 12.93 0.02 42 670
Zinc: West Ayawilca
Drill Hole From (m) To (m)Interval
(m) Tin (%)Copper
(%) Silver (g/t)A15-40 328.0 378.5 50.5 1.23 0.16 15
including 328.0 341.0 13.0 2.94 0.25 12including 330.0 332.5 2.5 8.81 0.18 10
A13-11 328.0 344.2 16.2 1.03 0.67 22including 330.0 332.0 2.0 4.81 2.07 77
Tin-Copper: Central Ayawilca
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IP Geophysical Anomalies
█ IP at 350 metres depth
█ Extensive sulphide!
█ Chaucha anomaly not yet permitted to drill: permits expected Q1-Q2 2016
Valley
2015 Drill Program (Q3-Q4)
CDD46: 10m @ 0.8% Sn
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1.b massive pyrrhotite + chalcopyrite (Cu) ±cassiterite (Sn)
2.b galena (Pb) + sphalerite (Zn) + Ag + pyrite
STAGE 2
2.a pyrite-sphalerite (Zn) -quartz
1.a pyrrhotite-siderite feeder veinlets
STAGE 1LITHOLOGY
Sandstone
Limestone
Phyllite
Simplified Geological Model - Ayawilca
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Colquipucro – Distal Epithermal Silver Oxide
Looking northeast
█ Mineral Resource (Feb’15)
█ 14.3 Moz at 60 g/t Ag (Indicated) 13.2 Moz at 48 g/t Ag (Inferred)
█ 45 holes, 8000 m drilled (2006-2014)
█ 550m x 400m x 75m deep
█ Low strip, open pit potential
█ 100% Tinka
Highest grade
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Planned Work Program – 2015 & 2016Milestone 2015 2016
• Zinc Resource Initial Update
• Silver Resource Update
• Tin Resource Initial
• Financing $7.2 M
• Geophysics
• Metallurgy tests
• Drilling Ayawilca
• Drilling Chaucha/Huarautambo
• Extend drill permits
• PEA/PFS
Toda
y
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Social & Environmental Responsibilities
█ Important partnership with three local communities
█ Social engagement and sustainable development programs
█ Employment and training
█ Aiming to achieve best practice environmental standards
Yogurt workshop for local women
Training for animal health
Market showing local artisanal designs
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Why Tinka ?
█ Large polymetallic district discovery, 100% Tinka
█ Zinc resource at Ayawilca, growing…
█ Tin - Copper discovery at Ayawilca, possible game changer…
█ ~10,000 metres drill program to be completed in December 2015
█ 30-35% of prospective area drilled so far
█ Large contiguous land package: 12,300 Ha
█ Resource upgrades Q1 2016
█ More aggressive drill programs planned in 2016
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APPENDIX: Zinc Replacement of Limestone, Ayawilca
Sphalerite (Sp) replacement of limestone matrixAlteration: Clays and carbonates
SpSp
Sp
Py
Sp Pyrite (Py) – sphalerite massive sulphide
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Tin-Copper Mineralization at Ayawilca
A13-11: Massive Pyrrhotite mantos+ magnetite + cassiterite (tin) + tourmaline + chalcopyrite
A13-11, 340m:Quartz stockworkPyrrhotite + cassiterite (tin) + chalcopyrite
█ Cassiterite, chalcopyrite, pyrrhotite, pyrite
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Ayawilca Inferred Mineral Resource (Feb. 26, 2015)
Zone
Tonnage (Mt)
Zn Eq. (%)
Zn (%)
Pb(%)
In (g/t)
Ag (g/t)
Zn (Mlb)
Pb(Mlb)
In (kg)
Ag (Moz)
West5.7 8.9 6.7 0.2 81 15
846 22 459,000 2.7
Central2.2 6.8 5.0 0.1 73 7
248 3 163,000 0.5
East5.4 6.8 5.3 0.3 53 15
625 31 287,000 2.6
Total13.3 7.7 5.9 0.2 68 14
1,719 55 909,000 5.8
Inferred Mineral Resources at Ayawilca estimated by Roscoe Postle Associates Inc. (RPA) (see TK Press Release of February 26, 2015)
Notes:• CIM definitions were followed for Mineral Resources .• Mineral Resources are reported above an NSR cut-off value of US$60 per tonne.• The NSR value was based on estimated metallurgical recoveries, assumed metal prices and smelter terms, which include payable factors,
treatment charges, penalties, and refining charges. Metal price assumptions were: US$1.20/lb Zn, US$55 0/kg In, US$24.00/oz Ag, and US$1.10/lb Pb. Metal recovery assumptions were: 90% Zn, 75% In, 50% Ag, and 75% Pb. The NSR value for each block was calculated using the following NSR factors: US$15.24 per % Zn, US$5. 57 per % Pb, US$0.33 per gram In, and US$0.34 per g ram Ag.
• The zinc equivalent (Zn Eq.%) value was calculated using the following formula:• Zn Eq.(%) = [Zn(%)*US$15.24+Pb(%)*US$5.57+In(g/t)*U S$0.33+Ag (g/t)*US$0.34]/ US$15.24• Numbers may not add due to rounding.
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█ Attractive investment destination with an established mining sector, strong history of successful foreign investment
█ Peru ranks first in Americas for zinc, lead, and tin production
█ Market history shows Peruvian deposits are attractive take-over targets
█ Experienced local skill base and mining services
Why Peru
Commodity World Latin America
Gold 6th 1st
Copper 2nd 2nd
Zinc 3rd 1st
Tin 3rd 1st
Silver 2nd 2nd
Lead 4th 1st
Molybdenum 4th 2nd
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Tinka Resources Ltd (TSXV:TK)
Suite 13051090 West Georgia St
Vancouver, BC V6E 3V7 CANADA
Ph: +1.604.699.0202 Fax: +1.604.683.1585
CORPORATE OFFICE FOR MORE INFORMATION
Dr. Graham CarmanPresident & CEO
Corporate SecretaryMariana Bermudez
Gracias!