Tinka Resource Ltd. (TK.V) is a mining company focused on exploration and discovery. TK.V's 100% owned Ayawilca property is located 200 km north of Lima in 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. Previous coverage: June 2018, November 2018 , June 2019, March 2020. and December 2020.
News releases
Jan. 14 - Drills 39 Metres Grading 9.3% Zinc at Ayawilca: Announce results of four drill holes from the current drill program at Ayawilca. Three of the holes targeted extensions of indicated resources at West and South Ayawilca (holes A20-170, 171 & 175) while one hole is an infill hole at West Ayawilca (A20-173).
Two rigs are operational and are expected to remain at site until February 2021. So far, sixteen diamond drill holes have been completed (A20-169 to A21-184). Results for eleven of these holes are pending.
Hole A20-170 (South Ayawilca): 38.8 metres @ 9.3% zinc & 14 g/t silver from 282.6 metres to 321.4 metres depth.;
Hole A20-173 (West Ayawilca): 18.7 metres @ 7.2% zinc & 11 g/t silver from 187.3 metres depth;
Hole A20-175 (West Ayawilca): 1.2 metres @ 43.6% zinc, 0.5% lead & 212 g/t silver from 136.5 metres depth;
Hole A20-171 (West Ayawilca - vein style): 0.4 metres @ 19.6% zinc & 99 g/t silver from 110.0 metres depth.
Jan. 28 -Drills 8 Metres Grading 31% Zinc & 225 Grams Per Tonne Silver at Ayawilca: Assay results for seven drill holes from the ongoing resource expansion and infill drill program at the Ayawilca project in Peru.
Hole A20-177 (Camp Area) *19.2 metres @ 15.6% zinc. 1.5% lead & 154 g/t silver from 101.1 metres depth
and 34.0 metres @ 7.4% zinc & 8 g/t silver from 290.0 metres depth,
Hole A20-178 (Camp Area) 42.1 metres @ 6.3% zinc & 14 g/t silver from 281.9 metres depth
Hole A20-175 (Camp Area) *1.2 metres @ 43.6% zinc & 212 g/t silver from 136.5 metres depth;
and 16.4 metres @ 4.4% zinc & 7 g/t silver from 235.7 metres depth
Hole A20-179 (West Area) 31.9 metres @ 6.0% zinc & 15 g/t silver from 224.1 metres depth,
and 34.6 metres @ 7.0% zinc & 6 g/t silver from 270.0 metres depth
Hole A20-176 (South Area) 11.2 metres @ 5.3% zinc & 27 g/t silver from 336.2 metres depth.
Hole A20-174 (South Area) 1.2 metres @ 10.3% zinc & 4 g/t silver from 318.6 metres depth.
Hole A20-172 (South Area) *0.9 metres @ 5.9% zinc, 5.3% lead & 733 g/t silver from 178.7 metres depth;
and 7.2 metres @ 5.1% zinc & 15 g/t silver from 277.2 metres depth.
"The 2020-21 Ayawilca drill program continues to deliver high-grade zinc mineralization with significant silver credits. We are particularly excited about the very high-grade zinc-silver vein intersection in hole A20-177, one of the best grade intersections we have ever had at Ayawilca and especially attractive as it occurs at shallow depth." - TK.V's CEO.
Feb. 12 - Hold Annual General Meeting of Shareholders on Thursday, March 11, 2021
Mar. 11 - Announces AGM Results.
Mar. 17 - Drills 9 Metres Grading 20% Zinc at Ayawilca: New assay results for six diamond drill holes from the Company's 2020-2021 resource expansion and infill drill program at the Ayawilca project in Peru.
Four holes are located at the Camp area (A20-180, 181, 182 & 183) and two holes at the South area (A21-185 & 187). The two holes at South Ayawilca intersected high grade zinc-silver mineralization associated with massive sulphide mineralization over substantial widths and are expected to expand the indicated mineral resources at the project.
The Company is compiling the drill data and completing geological interpretations in preparation for an updated mineral resource and Preliminary Economic Assessment (PEA) scheduled for the middle of 2021.
Assay results for the final four drill holes are still pending. Eighty percent of the holes have now been reported.
Hole A20-187b (South Area): 4.1 metres @ 17.7% zinc & 34 g/t silver from 302.9 metres depth;
and 40.0 metres @ 8.8% zinc & 12 g/t silver from 324.0 metres depth,
Hole A20-185 (South Area): *1.7 metres @ 23.4% zinc & 97 g/t silver from 133.3 metres depth;
and 5.0 metres @ 6.9% zinc & 13 g/t silver from 289.6 metres depth;
and 23.6 metres @ 9.4% zinc & 10 g/t silver from 304.3 metres depth,
Hole A20-180 (Camp area): *1.3 metres @ 34.6% zinc, 0.9% lead & 190 g/t silver from 89.0 metres depth.
Hole A20-181 (Camp area): 5.9 metres @ 11.4% zinc, 1.9% lead & 39 g/t silver from 225.2 metres depth.
Hole A20-181a (Camp area): 16.0 metres @ 4.1% zinc & 10 g/t silver from 240.0 metres depth.
Hole A20-182 (Camp area): 4.8 metres @ 3.8% zinc, 3.0% lead & 93 g/t silver from 191.5 metres depth;
and 3.9 metres @ 21.1% zinc & 33 g/t silver from 301.8 metres depth.
Hole A20-183 (Camp area): 6.0 metres @ 3.0% zinc, 2.1% lead & 57 g/t silver from 202.0 metres depth.
Mar. 17 - Nexa Acquires 9% Equity Interest in Tinka Resources: Nexa Resources S.A. (NYSE & TSX Symbol: NEXA), has acquired 29,895,754 common shares of Tinka from an arm's length shareholder in a private transaction at a price of C$0.26 per share, a 13.0% premium of closing share price on TSXV on March 16, 2021.
Mar. 29 - Lists on OTCQB(R) Venture Market Under Ticker Symbol TKRFF: As a result, effective March 29, 2021, the Company's common shares will start trading on OTCQB under the same ticker symbol "TKRFF".
Apr. 14 - Discovers High Grade Tin Mineralization at South Ayawilca: Announce tin assays from the 7,600 metre, 21-hole, 2020-2021 drill program recently completed at the Ayawilca project in central Peru.
While the focus of the 2020-2021 drill program was on resource definition of zinc-silver mineralization, significant tin mineralization was also intercepted in several of the drill holes. Of note, Tinka has discovered a new zone of high-grade tin mineralization at South Ayawilca, immediately adjacent to the highest grade zinc resource.
Tin results – South Area:
Hole A21-187: 12.0 metres @ 3.05% tin from 262.0 metres depth, including 2.0M @ 5.43% tin from 266.0 metres depth.
Hole A21-185: 2.0 metres @ 1.25% tin from 332.0 metres depth; and 7.0 metres @ 0.78% tin from 373.0 metres depth;
Hole A21-184: 4.5 metres @ 0.54% tin from 286.4 metres depth;
Hole A20-177: 2.2 metres @ 0.63% tin from 317.0 metres depth;
Hole A20-176: 4.0 metres @ 0.66% tin from 300.0 metres depth;
Hole A20-174: 4.0 metres @ 1.03% tin from 348.0 metres depth;
Hole A20-173: 3.9 metres @ 0.96% tin from 253.1 metres depth;
Hole A17-063*: 11.0 metres @ 1.81% tin from 275.0 metres depth.
Zinc results – South Area:
Hole A21-184: 16.6 metres @ 5.0% zinc & 12 g/t silver from 281.8 metres depth.
Tin occurs as cassiterite (SnO2), most common ore-forming mineral of tin. TK.V is working towards a resource update and an updated Preliminary Economic Assessment in early Q3 2021.
Jul. 12 - Triples Property at Ayawilca With Acquisition of the Silvia Copper Project: Signed a definitive agreement with BHP World Exploration Inc. Sucursal del Peru (" BHP ") pursuant to which Tinka, through its wholly-owned subsidiary Darwin Peru S.A.C. (" Darwin "), has acquired a 100% interest in the Silvia copper-gold-zinc exploration project.
The Silvia Project consists of 29,500 hectares of mining concessions believed to be prospective for large copper-gold-zinc skarn and porphyry copper deposits, lying immediately adjacent to Ayawilca zinc-silver project in central Peru.
Summary
Tinka completed the FY 2020 drill program (20 drill holes) with consistent results. High grades of zinc and silver content have been reported. In addition, a high grade Tin area has been recently discovered in South Ayawilca.
Its the first time that such high grade was discovered at South Ayawilca. It was intersected in eight adjacent drill holes, including seven of the recent holes, in zones that typically contain very minor or no zinc mineralization.
Tin has the highest value of the major base metals and is currently trading at almost 3 times the value of copper and >10 times the value of zinc (Even higher than it was originally reported).
The exploration success of Tinka were confirmed with Nexa Resources S.A. taking a 9% interest at $0.26 cents. This follows the investment from Buenaventura (19.9% interest, $0.243 cents). Sentient Equity Partners holds 22% interest.
As a reminder, Tinka delivered PEA (Preliminary Economic Assessment) in July 2019 with a base case of US$1.20/lb zinc, US$18/oz silver, and US$0.95/lb lead. Back then (July 30, 2019), Industrial Alliance set a price target of $0.90 cents.
Zinc, Silver and even Lead are now significantly above this base case. It continues to not be reflected in the valuation. As a reminder, Tinka is fully funded with $14M in working capital and $7.5M in cash (MD&A).
As of March 31, 2021 the Company had working capital in the amount of $14,526,894, including $7,545,000 (US $6,000,000) set aside by the Company for certain project related costs to be incurred on the Ayawilca Project.
..Company has sufficient funds to complete the 2021 exploration program at the Zinc and Tin Zones, update the PEA, continue advancing the Ayawilca Project and maintain ongoing corporate overhead and field expenses over the next year.
Unfortunately, Tinka seems to be unable to obtain and sustain higher valuation. Case in point, Tinka traded up to $0.30 cents and as low as $0.17 in the last period. Fact that it close at 0.19 cents today is difficult to understand.
Perhaps, the proposed project timelines for Ayawilca (calls for three more years of drilling) is a factor. This along with the recent acquisition of the Silvia Copper project seems to be doing little to impact the stock price, ironically.
Upcoming catalysts:
• Ayawilca mineral resource and PEA update - by Q4 2021 • Silvia copper-gold skarns – exploration results late 2021
The above is cited in the July 2021 investor presentation. Perhaps, this will finally do it - but then again the last PEA (July 2019) has not been much of a catalyst. Will this time be different? Really?
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