Tinka Announces New Step Out Holes Extend Zinc At South Ayawilca By 200 Metres And High-Grade Silver Highlights New Style Of Zinc Mineralization

July 17th, 2017
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22.8 METRES GRADING 8.4% ZINC IN HOLE A17-071, MINERALIZATION REMAINS OPEN
11.5 METRES GRADING 780 GRAMS PER TONNE SILVER + 5.2 % ZINC+LEAD IN HOLE A17-072

Vancouver, Canada – Tinka Resources Limited (“Tinka” or the “Company”) (TSXV: TK) (OTCPK: TKRFF) is pleased to announce assay results of five new step-out drill holes at its 100%-owned Ayawilca zinc project in central Peru. Three holes were drilled at the South Ayawilca discovery area, with one hole drilled at West Ayawilca (A17-074). Hole A17-073 was drilled at Zone 3, the first hole into this new target.

Holes A17-071 and A17-075 both intersected significant thicknesses of high grade zinc and have extended the footprint of the South Ayawilca discovery by 200 metres to the southeast, where zinc remains open and untested. Hole A17-072 at South Ayawilca intersected high grade silver with moderate grade zinc-lead mineralization adjacent to an important northeast-trending fault, which is a new style of mineralization observed at Ayawilca, This new high-grade silver discovery opens up additional exploration opportunities. Three rigs continue to turn at the project on multiple fronts.

Key Highlights

Hole A17-071 (South Ayawilca):

  • 22.8 metres at 8.4 % zinc, 0.8 % lead, & 35 g/t silver from 327.2 metres depth, including
    • 12.6 metres at 11.6 % zinc, 0.9 % lead, & 35 g/t silver from 332.4 metres depth;

Hole A17-072 (South Ayawilca):

  • 11.5 metres at 2.9 % zinc, 2.3 % lead & 781 g/t silver from 294.5 metres depth, including
    • 2.0 metres at 5.6 % zinc, 5.5 % lead & 3167 g/t silver from 302.0 metres depth;

Hole A17-075 (South Ayawilca):

  • 20.8 metres* at 5.0 % zinc, 11 g/t silver & 44 g/t indium from 359.0 metres depth, including
    • 3.5 metres at 10.2 % zinc, 17 g/t silver & 96 g/t indium from 376.3 metres depth;
      * includes 1.7 metres of no recovery assumed zero grade

Hole A17-074 (West Ayawilca):

  • 2.2 metres at 31.0 % zinc, 0.1 % lead & 138 g/t silver from 71.4 metres depth (vein), and
  • 0.7 metres at 18.3 % zinc & 38 g/t silver from 148.0 metres depth (vein);

Hole A17-073 (Zone 3):

The first hole at Zone 3, drilled 700 metres east of the existing East Ayawilca Inferred Resource, was completed to a depth of 710 metres. Replacement sulphide mineralization was encountered, mostly pyrite with minor sphalerite, over a 15-metre interval near the base of the carbonate sequence which hosts mineralization elsewhere. At Ayawilca, pyrite occurs on the margins of the zinc mineralization, so we interpret this as an indication that significant zinc mineralization may be close by. A follow-up hole (A17-081) is in progress, with one more hole planned for Zone 3 in this program.

See drill hole and zinc grade-thickness maps (Figures 1 and 2), and a South Ayawilca cross section (Figure 3).

Dr. Graham Carman, Tinka´s President and CEO, stated: “We are very pleased with these new drill results. The zinc discovery at South Ayawilca continues to expand southward, and remains open in several directions (see Figure 2). Hole A17-075 indicates that zinc may be thickening to the south on that section. The high-grade silver (zinc-lead) discovery in A17-072 is also exciting as it opens potential for additional bonanza-grade mineralization along the South Ayawilca Fault, which is largely untested. High-grade silver (zinc-lead) mineralization occurs with sulphides as cavity fillings in recrystallized limestone with abundant quartz-carbonate alteration, quite different to the massive sulphide mineralization associated with the high-grade zinc.”

Dr. Carman continued: “We are continuing to test zinc targets at the project and expand the drilling effort. Step-out holes are taking place at West and South Ayawilca, with new targets being drilled at Zone 3 and Chaucha.
The drilling at Zone 3 is progressing well. Indications are that a significant zinc sulphide system could be nearby. Zone 3 is a large target area covering more than 1 km2, and several holes will be needed to evaluate the full potential of that area.”

True thicknesses of the zinc intersections are estimated to be at least 85% of the downhole thickness, except where otherwise noted in footnotes to Table 1. All significant results of the 2017 program are summarized in Table 1 with the strongest intercepts in bold text. Table 2 is a summary of all drill collar information to date.

Table 1. Summary of 2017 Drill Results from Ayawilca

Drill hole From m To m Interval m Zn % Pb % Ag g/t Indium g/t Reported
A17-0561 90.30 90.65 0.35 29.0 0.4 82 443 April 3 ‘17
and 113.00 113.40 0.40 31.2 0.0 85 759 April 3 ‘17
and 126.00 189.90 63.90 5.6 0.1 17 29 March 6 ‘17
including 127.50 145.40 17.90 11.6 0.2 36 20 March 6 ‘17
including 127.50 133.30 5.80 22.5 0.3 77 50 March 6 ‘17
and 199.20 204.70 5.50 5.8 0.1 6 38 April 3 ‘17
and 228.50 233.70 5.20 12.9 0.0 11 162 March 6 ‘17
and 242.00 293.90 51.90 10.1 0.1 624 233 April 3 ‘17
including 279.00 293.90 14.90 20.6 0.2 1524 441 April 3 ‘17
including 279.00 285.40 6.40 37.5 0.4 301 916 April 3 ‘17
A17-056A 286.50 296.00 9.50 9.3 0.3 19 88 May 3’17
and 309.00 313.10 4.10 18.6 0.1 27 224 May 3’17
including 310.50 313.10 2.60 27.3 0.1 38 336 May 3’17
A17-057 84.90 86.35 1.45 24.8 0.0 62 157 April 3 ‘17
and 143.70 144.50 0.80 40.4 0.1 138 261 April 3 ‘17
and 157.60 197.70 40.10 9.1 0.2 22 168 April 3 ‘17
including 168.20 177.80 9.60 16.8 0.1 22 299 April 3 ‘17
and 227.15 234.90 7.75 3.5 0.2 21 85 April 3 ‘17
and 264.00 279.30 15.30 20.0 2.5 102 263 April 3 ‘17
including 265.75 269.00 3.25 34.5 2.1 96 196 April 3 ‘17
including 272.50 277.70 5.20 32.5 1.3 69 639 April 3 ‘17
A17-058 103.50 107.70 4.205 20.2 4.2 3294 15 May 3’17
and 133.25 134.35 1.105 30.3 3.2 500 61 May 3’17
A17-058 did not reach target, lost at 301 metres in sandstone
A17-059 50.30 51.10 0.80 37.5 0.5 69 70 June 8’17
58.00 60.00 2.00 6.3 0.0 12 30 June 8’17
A17-060 262.40 264.40 2.00 14.8 0.0 35 1178 May 3’17
and 275.00 279.50 4.50 15.0 0.0 20 383 May 3’17
and 298.00 328.50 30.52 3.4 0.2 10 38 May 3’17
including 303.40 312.00 8.60 5.1 0.1 11 6 May 3’17
A17-061 122.70 150.50 27.80 4.4 0.1 18 24 May 3’17
including 145.70 147.50 1.805 27.2 0.0 32 157 May 3’17
and 184.00 202.60 18.603 10.4 0.5 52 59 May 3’17
including 196.20 198.80 2.60 23.6 2.4 192 19 May 3’17
including 201.90 202.60 0.70 28.7 3.6 202 41 May 3’17
and 220.00 233.40 13.40 18.7 0.9 57 463 May 3’17
including 224.10 230.00 7.90 29.3 0.8 71 719 May 3’17
and 265.00 266.80 1.80 37.0 0.2 85 808 May 3’17
A17-062 152.40 153.05 0.655 33.6 0.3 166 42 June 28’17
A17-062 was lost prior to target depth in a fault zone at 313 metres
A17-063 302.20 349.90 47.70 11.3 0.0 18 313 June 8’17
including 303.30 313.10 9.80 17.4 0.0 28 587 June 8’17
including 327.40 339.60 12.20 17.1 0.0 26 495 June 8’17
A17-064 269.90 270.40 0.50 15.6 0.0 11 304 June 8’17
and 277.20 277.60 0.40 14.5 0.0 17 39 June 8’17
A17-065 119.00 119.75 0.75 36.6 0.1 88 157 June 8’17
and 204.00 210.00 6.00 4.0 0.0 4 9 June 8’17
and 219.50 238.80 19.30 4.7 0.0 7 93 June 8’17
including 236.20 238.80 2.60 20.6 0.0 23 529 June 8’17
and 266.40 293.00 26.60 3.6 0.0 4 46 June 8’17
and 307.30 332.00 24.70 3.8 0.0 5 51 June 8’17
and 340.00 346.00 6.00 2.6 0.1 7 16 June 8’17
A17-066 185.20 185.50 0.30 37.8 0.0 40 1330 June 8’17
and 330.90 334.40 3.50 7.4 0.1 24 111 June 8’17
and 345.00 350.00 5.00 11.3 0.1 37 270 June 8’17
A17-067 256.40 265.00 8.60 2.7 0.2 39 0 June 28’17
A17-068 343.55 344.30 0.75 6.1 11.6 210 7 June 28’17
and 382.00 388.00 6.00 4.0 0.1 46 47 June 28’17
A17-069 182.00 190.00 8.00 3.0 0.5 13 17 June 28’17
and 261.60 262.30 0.70 17.8 0.0 14 73 June 28’17
and 271.40 300.70 29.30 10.4 0.1 17 278 June 28’17
including 287.30 299.40 12.10 19.1 0.1 25 440 June 28’17
A17-070 100.00 105.10 5.10 6.3 0.6 127 82 June 28’17
and 306.80 308.40 1.60 15.4 0.1 40 529 June 28’17
and 317.50 356.80 39.306 7.1 0.1 13 100 June 28’17
including 340.00 356.80 16.80 12.9 0.1 19 183 June 28’17
including 340.00 348.00 8.00 20.9 0.1 19 265 June 28’17
A17-071 327.20 350.00 22.80 8.4 0.8 35 17 Here
including 332.40 345.00 12.60 11.6 0.9 35 30 Here
A17-072 104.80 105.60 0.80 27.0 0.3 73 125 Here
and 294.50 306.00 11.50 2.9 2.3 781 0 Here
including 302.00 304.00 2.00 5.6 5.5 3167 0 Here
A17-073 no significant results Here
A17-074 71.40 73.60 2.205 31.0 0.1 138 23 Here
and 148.00 148.70 0.705 18.3 0.3 38 0 Here
A17-075 359.00 379.87 20.80 5.0 0.0 11 44 Here
including 376.30 379.80 3.50 10.2 0.0 17 96 Here
1 hole lost at 293.9 metres; wedged and completed as A17-056A to 376 metres depth
2 includes 0.6 m with no core recovery from 315.2 to 315.8 m; this interval was given a zero grade
3 includes 3.1 m with no core recovery from 198.8 to 201.9 m; this interval was given a zero grade
4 includes a silver assay cut at 1000 g/t
5 high grade vein intercepts with variable true thicknesses
6 includes 4.3 m of no recovery assumed zero grade
7 includes 1.7 m of no recovery assumed zero grade
Note: Assays are calculated using a zinc only cut-off grade of 2% over 6 metres

Notes on sampling and assaying:

Drill holes are diamond HQ or NQ size core holes with recoveries generally above 80% and often close to 100%. The drill core is marked up, logged, and photographed on site. The cores are cut in half at the Company’s core storage facility, with half-cores stored as a future reference. Half-core is bagged on average over 1 to 2 metre composite intervals and sent to either ALS or SGS laboratories in Lima for assay in batches. Standards and blanks are inserted into each batch prior to departure from Tinka’s core storage facilities. At the laboratory samples are dried, crushed to 100% passing 2mm, then 500 grams pulverized for multi-element analysis by ICP (MS) using multi-acid digestion. Samples assaying over 1% zinc, lead, or copper are re-assayed using precise ore-grade AAS techniques.

Table 2. Summary of Drill Collar Information

Drill Hole WGS84 East WGS84 North Total depth (m) Elevation (m) Azimuth Dip
A17-056 333046 8845062 293.9 4202 300 -75
A17-056A 333046 8845062 376.4 4202 300 -75
A17-057 333046 8845062 477.0 4202 300 -55
A17-058 332557 8845657 301.0 4299 040 -82
A17-059 332840 8845192 248.9 4209 120 -85
A17-060 333174 8845005 358.4 4218 300 -70
A17-061 333058 8844996 326.9 4191 290 -67
A17-062 333175 8845004 309.0 4218 000 -90
A17-063 333241 8845118 416.6 4229 310 -70
A17-064 333062 8844993 369.1 4191 290 -50
A17-065 333174 8845090 366.3 4225 300 -75
A17-066 333345 8845193 371.6 4211 310 -70
A17-067 333059 8844996 302.8 4190 120 -85
A17-068 333552 8845279 419.7 4185 310 -75
A17-069 333114 8845103 374.3 4210 300 -65
A17-070 333152 8845150 367.8 4230 310 -75
A17-071 333328 8845044 383.3 4202 310 -70
A17-072 333114 8845103 445.9 4233 300 -53
A17-073 334458 8846616 710.0 4024 210 -75
A17-074 332666 8845491 429.6 4124 015 -75
A17-075 333434 8845121 395.3 4201 310 -70
A17-076 333155 8845153 420.7 4230 310 -55

Figure 1. Current Ayawilca drill hole map with 2016 Mineral Resource boundaries (hatched)

Figure 2. Map of Zinc grade versus thickness (m% Zn) for Ayawilca drill holes to date

Figure 3. Interpretive cross section B-B’ through South Ayawilca, viewing northeast

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.

On behalf of the Board,

Graham Carman
Dr. Graham Carman, President & CEO

Investor Information:
www.tinkaresources.com
Rob Bruggeman 1.416.884.3556
rbruggeman@tinkaresources.com
Company Contact:
Mariana Bermudez, 1.604.699.0202
info@tinkaresources.com

About Tinka Resources Limited

Tinka is an exploration and development company with its flagship property being the 100%-owned Ayawilca carbonate replacement deposit (CRD) in the zinc-lead-silver belt of central Peru, 200 kilometres northeast of Lima. The Ayawilca Zinc Zone has an Inferred Mineral Resource of 18.8 Mt at 5.9 % zinc, 0.2 % lead, 15 g/t silver & 74 g/t indium, and a Tin Zone Inferred Mineral Resource of 5.4 Mt at 0.76 % tin, 0.31 % copper & 18 g/t silver. Both resources are open for expansion (May 25, 2016). The Silver Zone at Colquipucro, 2 km north of the Zinc Zone, has an Indicated Mineral Resource of 2.9 Mt at 112 g/t silver for 10.4 Moz silver and an Inferred Mineral Resource of 2.2 Mt at 105g/t silver for 7.5 Moz silver hosted by oxidized lenses between the surface and 80 metres depth (Feb. 26, 2015).

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, drilling results, the Company’s expectations regarding mineral resource calculations, 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 agreements and 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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