Tinka Resource Ltd. (TK.V) is a mining company focused on exploration and discovery. TK.V's Ayawilca property (100% owned) is located 200 km north of Lima, Peru. Ayawilca is the zinc-led-silver belt of central Peru with access to infrastructure.
TK.V also has over 50% institutional ownership and has analyst coverage from GMP Securities, Industry Alliance and Canaccord Genuity. Coverage was initiated on June 2018, with a more recent note on November 2018. Here's an update.
Nov. 26 - Substantial Increase in Zinc and Tin Mineral Resources at Ayawilca. Part of the Zinc Zone Mineral Resource is now classified as Indicated, incorporating a higher-grade portion of the deposit. In addition, the updated Inferred Mineral Resource is of a similar size and grade to the previous Zinc Zone resource reported in November 2017. The updated Tin Zone Inferred Mineral Resource is also substantially larger.
Nov. 28 - Commences Ayawilca PEA and hires Ken Engquist as lead consultant to prepare the PEA. Immediately prior to joining Tinka, he was responsible for overseeing the feasibility engineering study for Arizona Mining’s Hermosa Zinc Project which has been acquired by South 32.
Jan. 9 - Filing of NI 43-101 Technical Report on the Ayawilca Property, Peru. Part of the Zinc Zone Mineral Resource is now classified as Indicated, incorporating a higher-grade portion of the deposit. In addition, the updated Inferred Mineral Resource is of a similar size and grade to the previous Zinc Zone resource reported in November 2017. The updated Tin Zone Inferred Mineral Resource is also substantially larger.
Feb. 28 - Announces Upcoming Exploration Drill Program at Ayawilca and Provides Status of PEA. An exploration drill program of up to 10,000 metres is anticipated to commence in April 2019. The Company’s PEA is progressing well and is expected to be completed by mid 2019. This week, the Company filed an EIA modification for Ayawilca, which will extend the drill permit for an additional 2 years until the end of 2022.
Mar. 19 - Announces AGM Results.
Apr. 23 - Commences 2019 Drill Program at Ayawilca. An exploration drill program of up to 10,000 metres has commenced with one drill rig operating. It is anticipated a second rig will be mobilized to site within the next few weeks. Preliminary Economic Assessment for the Ayawilca zinc project (the “Ayawilca Project PEA”) is progressing well and remains on track to be completed by the end of Q2 2019.
June 5 - Reports High Zinc Recoveries in Metallurgical Tests from Ayawilca. The objective of the testwork was to develop a flowsheet using standard flotation for the zinc mineralization at West and South Ayawilca, which was successfully achieved. Testwork results have demonstrated that recoveries of 92% zinc at a concentrate grade of 50% zinc can be consistently achieved using a standard flotation process.
Potentially deleterious elements in the zinc concentrates (including silica, manganese, cadmium, mercury, and arsenic) were well below standard smelter penalty levels Indium in the two locked cycle zinc concentrates (719 ppm and 400 ppm, respectively) is very high and potentially payable.
The Company expects to release the results of the PEA for the Ayawilca zinc project before the end of June 2019.
TK.V has fluctuated between $0.39 to $0.28 cents but the descent of the Zinc Spot in April appears to be correlated to the trend in TK.V's valuation.
However, the current price is not reflective of the progress made to date. TK.V continues to advance Ayawilca. It revised its mineral resources and is in the process of completing a Preliminary Economic Assessment (PEA) which is expected before the end of the month. TK.V also recently reported metallurgical testwork that showed high recovery rates and initiated the 2019 drilling program.
Unlike many junior, TK.V is fully funded with $10-12M in cash and no debt. A recent presentation from the CEO at Metals Investor Forum (May 2019) provides a nice summary of the opportunity. Again, the reiteration that zinc mine supply is an issue (2021) and the timing for which TK.V plans to go in production are very well aligned. As such, TK.V could possibly be a potential take over candidate and is undervalued. Still.
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