Vancouver, Canada - Tinka Resources Limited (“Tinka” or the “Company”) (TSXV:TK) is pleased to provide an update on the Company’s planned activities at the Ayawilca and Colquipucro projects in Peru for the next six months by the Company’s new President and CEO, Dr Graham Carman.
- A 10,000 metre drill program will begin at Ayawilca and Colquipucro by the first week of September.
- Objectives of the program include establishing an initial zinc resource at Ayawilca and increasing the existing silver inventory at Colquipucro.
- New magnetic data has identified a number of untested drill targets prospective for zinc mineralization along a 3 kilometre trend at Ayawilca.
Dr Graham Carman, Tinka’s new President and CEO, stated: “Tinka is focussed on advancing its 100%-owned Ayawilca and Colquipucro projects in Peru. The Company now has the financial resources to adequately test and unlock value at both of these exciting projects. A 10,000-metre diamond drill program will begin shortly, and will take 4 to 5 months to complete. The first of two drill rigs will be mobilised to Ayawilca by the end of August 2014.”
“The Colquipucro and Ayawilca projects are a good strategic fit for the Company, providing commodity diversification as well as cost efficiencies given their close proximity. Colquipucro offers the potential for early cash flow from the silver-rich oxide cap, while the adjacent Ayawilca project has the potential to be a major zinc sulphide discovery. Recent geophysical data has highlighted a number of new zinc targets located away from previously drilled areas, offering further exploration upside.”
“I am pleased to have the opportunity to lead Tinka during its next growth phase. I would like to acknowledge the efforts of the past President and CEO of Tinka, Mr Andrew Carter, and wish him well in his future endeavours”.
Upcoming drill program
About 80% of the drill metres in the upcoming drill program will be carried out at Ayawilca in approximately 20 holes. Initially, drilling will be focussed close to areas of known zinc mineralization with the objective of calculating a resource (see Table 1 for a summary of significant past drill intercepts). Several untested geophysical targets will also be drilled in the upcoming program.
Table 1. Selective highlights of previously released Tinka zinc drill intercepts from Ayawilca
At Colquipucro, drilling will aim to increase the silver oxide footprint as defined by the existing NI 43-101 Inferred Mineral Resource (12.1 Mt @ 82g/t silver for 32 million ounces contained silver: Tinka NI 43-101 Technical Report, April 2 2014). Recent channel sampling immediately northwest of the resource indicates surface mineralization is open in that direction and is untested by drilling. The upcoming drill program, if successful, could extend the silver footprint up to 200 metres beyond the existing resource.
New geophysical targets
A ground magnetic survey covering 245 line kilometres has recently been completed, extending the area of magnetics coverage from 4 km2 to almost 28 km2. This new survey has identified a number of untested drill targets prospective for zinc mineralization along a 3-kilometre northeast trend at Ayawilca. Zinc mineralization at Ayawilca commonly occurs in close association with magnetic minerals in the drill core (including pyrrhotite and magnetite). We believe that the magnetics data is useful in identifying targets for drilling, given that the zinc mineralization is ‘blind’ beneath a barren cover sequence. Images of the new magnetics data will be available on Tinka’s website at https://www.tinkaresources.com/projects/ayawilca shortly.
Grant of Stock Options
Tinka announces the granting of stock options to its directors, officers and employees to purchase up to 3,570,000 common shares of the Company for a period of three years. Of these stock options, 2,125,000 are being granted at an exercise price of $0.37 per common share and 1,445,000 at an exercise price of $0.30 per common share.
Appointment of Investor Relations Consultant
Tinka announces the engagement of Albis Capital Corp. (“Albis”) to act as Investor Relations Consultant to the Company. The principals of Albis are Mr. James Powell and Ms. Seema Sindwani. Albis will work with Tinka to, among other things, develop a strategy to enhance and expand the Company’s exposure in North America and Europe, provide market awareness, promotion and arrange road shows. Under the contract, subject to TSX Venture Exchange approval, Albis will be paid a monthly fee of $2,500 plus GST and has been granted stock options to purchase up to 200,000 common shares of Tinka at an exercise price of $0.30 per common share for a period of three years, subject to vesting and termination provisions pursuant to the Company’s Stock Option Plan and TSX Venture Exchange Policies. Albis’ engagement may be terminated at any time on 30-day advance notice.
Tinka also announces the termination of the services agreement with Mr. Reg Advocaat under which Mr. Advocaat provided corporate development and investor relations services. Tinka thanks Mr. Advocaat for the services provided during the term of the agreement and wishes him well in his future endeavours.
The qualified person, Dr Graham Carman, Tinka’s President and CEO, and a Fellow of the Australasian Institute of Mining and Metallurgy, has reviewed and verified the technical contents of this release.
About Tinka Resources Limited
Tinka is a junior resource acquisition and exploration company. Tinka’s focus is on its 100% owned Colquipucro and Ayawilca projects located in the highly mineralized silver-lead-zinc belt of Central Peru.
On behalf of the Board,
Dr. Graham Carman, President & CEO
1305 - 1090 West Georgia St., Vancouver, BC, V6E 3V7
James Powell + 1-647-478-8976
Seema Sindwani +1 647-478-3017
Forward Looking Statements. Certain information in this news release 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 assumptions made 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, uncertainties relating to the availability and costs of financing needed in the future, equipment failure, unexpected geological conditions, imprecision in resource estimates or metal recoveries, 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 are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on 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.
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