Tinka Drills 32 Metres Grading 9.6 % Zinc Within a Wider Interval of 107 Metres Grading 6.8 % Zinc in Ayawilca Step-Out Hole

May 24th, 2018
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Vancouver, Canada – Tinka Resources Limited (“Tinka” or the “Company”) (TSXV & BVL: TK) (OTCPK: TKRFF) is pleased to announce assay results for six holes from its ongoing resource step-out drill program at the Company’s 100%-owned Ayawilca project, central Peru. Three holes are reported from West Ayawilca area (holes A18-115, 116 & 118) and three from the Zone 3 area (A18-110, 113 & 119).

Drill hole A18-118 intersected 106.5 metres grading 6.8 % zinc (uncut) from 237.3 metres depth, one of the best intercepts ever drilled at West Ayawilca, approximately 50 metres north of the current zinc mineral resource.The footprint of high-grade zinc mineralization continues to grow.In addition, high-grade tin intercepts are reported from the Zone 3 area for the first time.Three rigs continue to drill step-out holes at West Ayawilca and at Zone 3, with other targets at South Ayawilca and Valley to be tested in coming weeks.

Key Highlights

West Ayawilca Area

Hole A18-118:

  • 106.5 metres at 6.8 % zinc (uncut), 0.2 % lead, 17 g/t silver & 48 g/t indium from 237.3 metres including:
    • 2.9 metres at 24.1 % zinc, 1.7 % lead & 109 g/t silver from 237.3 metres depth, and
    • 11.8 metres at 6.4 % zinc & 24 g/t silver from 252.3 metres depth, and
    • 23.9 metres at 9.2 % zinc & 15 g/t silver from 270.0 metres depth, and
    • 31.9 metres at 9.6 % zinc, 19 g/t silver & 138 g/t indium from 311.9 metres depth, including
      • 9.8 metres at 17.0 % zinc, 25 g/t silver and 330 g/t indium from 334.0 metres depth.

Hole A18-116: *

  • 1.2 metres at 15.9 % zinc, 25.6 % lead & 559 g/t silver from 47.7 metres depth, and
  • 0.6 metres at 28.5 % zinc, 5.3 % lead & 477 g/t silver from 110.8 metres depth, and
  • 1.0 metres at 19.6 % zinc, 6.3 % lead & 527 g/t silver from 141.8 metres depth.

Hole A18-115: *

  • 0.4 metres at 21.5 % zinc, 0.3% lead & 182 g/t silver from 125.3 metres depth.

Zone 3 Area

Hole A18-119:

  • 6.5 metres at 2.7 % zinc, 2.0 % lead & 77 g/t silver from 376.6 metres depth, and
  • 11.2 metres at 5.3 % zinc & 83 g/t indium from 451.5 metres depth.

Hole A18-113:

  • 20.3 metres at 1.26 % tin & 0.30% copper from 658.0 metres depth, including
    • 7.9 metres at 2.39 % tin & 0.64 % copper from 664.1 metres depth.

Hole A18-110:

  • 12.0 metres at 0.87 % tin & 0.43% copper from 525.0 metres depth, including
    • 1.45 metres at 5.93 % tin & 0.33 % copper from 525.0 metres depth.

Note: True thicknesses of the zinc and tin intersections are estimated to be at least 85% of the downhole thicknesses, except for vein intercepts (marked *) where true thicknesses are unknown.

Dr. Graham Carman, Tinka´s President and CEO, stated: “Tinka is targeting high-grade zinc mineralization outside of the existing resource boundaries in the 2018 step-out drill program, and we are very pleased to report results for hole A18-118, one of the best mineralized holes from West Ayawilca.Importantly, our geological model has successfully predicted zinc mineralization is concentrated close to the hinge of an ‘anticline’ fold within limestone beneath sandstone cover, and this mineralization remains open. At West Ayawilca more holes are planned to target the projections of the fold hinge and its flat-lying eastern limb.The steep-dipping western fold limb, tested by A18-115 & 116, appears to host vein-style mineralization in the overlying sandstone only.”

“We continue to target possible connections between the resource areas at West and Central Ayawilca, and several holes have results pending. The Zone 3 area is also beginning to show encouraging zinc intersections (e.g., hole A18-119), and although the mineralization is relatively deep, we believe Zone 3 has the potential to add significant new resources to the project.High-grade tin mineralization in A18-119, more than 2 kilometres away from West Ayawilca, further indicates the potential and very large size of the Ayawilca mineralized system.”

Figure 1 shows a drill hole location map of the Ayawilca project.Figures 2 and 3 are interpretive cross sections through the Ayawilca project highlighting new results.

West Ayawilca Geology – Discussion

Three geological rock units are observed in all areas at Ayawilca: an upper sandstone, a middle limestone which hosts most of the sulphide zinc mineralization, and a lower phyllite.The main geological feature of West Ayawilca is an ‘anticline’ fold which has a flat-lying eastern limb and a steep-dipping western limb.The hinge of this fold and the flat-lying eastern side of the fold are prospective for zinc and hosts massive sulphide zinc mineralization at West Ayawilca and South Ayawilca up to ~200 metres in vertical thickness, typically in the form of tabular sulphide bodies or “mantos”, and more irregular shaped ‘chimneys’.At these areas, most if not all of the limestone is completely replaced by massive sulphide mineralization (see Figures 2 and 3). Magnetite replacement of limestone predates the sulphide zinc mineralization and typically, as magnetite increases in the drill cores the quantity of sphalerite decreases.

The ultimate source or ‘feeder’ of the zinc mineralization remains uncertain, but Tinka geologists believe the zinc mineralization was brought into the limestone via steep northeast-trending faults that transect the Ayawilca property (not shown in Figure 2 & 3).

Zone 3 Geology – Discussion

The main geological feature at Zone 3 is an overturned ‘syncline’ which has folded the sequence into a ‘V’ and resulted in limestone outcropping at surface on the eastern fold limb (Figure 3).Limestone in hole A18-119 at Zone 3 has been heavily replaced by magnetite, and to a lesser extent pyrite and sphalerite. As at West Ayawilca, Tinka geologists believe that the strongest zinc mineralization is likely to occur around the edges of the magnetite bodies.

Massive pyrite replacement at the base of the limestone hosts significant tin mineralization (e.g., A18-113 & A18-110).The pyrite mineralization postdates and replaces massive pyrrhotite replacement bodies, which hosts tin mineralization elsewhere at the base of the limestone especially at Central Ayawilca (see Figure 3). At Zone 3 and elsewhere, the zinc and tin are completely different styles of mineralization and are physically separated.

Massive sulphide and magnetite replacement at Zone 3 appears to be hosted close to the hinge of the overturned syncline near the Chaucha Fault, with zinc and lead rich mineralization extending into the overlying sandstone (Figure 3). Tinka geologists believe that the magnetite-pyrite/pyrrhotite zonation seen in Zone 3 may be similar to West and Central Ayawilca, with a tin-rich core and zinc-rich margins, particularly near fault intersections.

Figure 1.Ayawilca drill hole location map highlighting 2018 drill holes & known zinc resources

Summary of Ayawilca Inferred Zinc Zone Mineral Resources (Nov’ 8, 2017)

South Ayawilca: 13.3 million tonnes at 9.5 % ZnEq (7.6 % zinc, 0.2 % lead, 25 g/t silver & 118 g/t indium);
West Ayawilca: 9.0 million tonnes at 7.2 % ZnEq (6.1 % zinc, 0.2 % lead, 14 g/t silver & 64 g/t indium);
Central Ayawilca: 13.0 million tonnes at 5.7 % ZnEq (4.7 % zinc, 0.3 % lead, 13 g/t silver & 54 g/t indium);
East Ayawilca: 7.5 million tonnes at 6.2 % ZnEq (5.1 % zinc, 0.2 % lead, 13 g/t silver & 69 g/t indium);
TOTAL: 42.7 million tonnes at 7.3 % ZnEq (6.0 % zinc, 0.2 % lead, 17 g/t silver & 79 g/t indium).

Notes:

  1. US$55/t NSR cut off was used. Metal price assumptions were US$1.15/lb Zn, US$300/kg In, US$18/oz Ag, US$1.10/lb Pb.Metal recovery assumptions were 90% Zn, 75% In, 60% Ag, and 75% Pb for the ZnEq calculation.
  2. The NSR value was calculated using the formula: NSR = Zn(%)*US$15.34+Pb(%)*US$6.15+In(g/t)*US$0.18+Ag(g/t)*US$0.27
  3. The ZnEq value was calculated using the formula: ZnEq = NSR/US$15.34
  4. Numbers may not add due to rounding

Figure 2.Cross section through West Ayawilca and South Ayawilca (see Fig. 1 for location)
Nov’ 2017 mineral resource blocks are colour-coded by NSR value

Figure 3.Cross section from South Ayawilca to Zone 3 (see Fig. 1 for location)
Nov’ 2017 mineral resource blocks are colour-coded by NSR value

Qualified Person – Mineral Resources: The Mineral Resources disclosed in this press release have been estimated by Mr. David Ross, P.Geo., an employee of Roscoe Postle Associates Inc. (RPA), and is independent of Tinka.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 (May, 2014).An independent National Instrument 43-101 Technical Report (the “NI 43-101 Technical Report”) on the Mineral Resource Estimate for the Ayawilca Property, Department of Pasco, Peru has been filed under the Company’s profile on SEDAR at www.sedar.com and is available on the Company’s website at www.tinkaresources.com

True thicknesses of the zinc intersections are estimated to be at least 85% of the downhole thickness, except where marked. Significant new drill intercepts are summarized in Table 1 with the strongest intercepts in bold text. Table 2 summarizes the drill collar information for the recent holes.

Table 1. Significant drill intercepts at Ayawilca in 2018

Drill hole From m To m Interval m Zn % Pb % Ag g/t Indium g/t Tin % Copper % Area Reported
A18-110 278.20 282.00 3.80 3.7 0.3 7 0 Zone 3 April 25’18
and 322.60 326.00 3.40 4.8 0.0 4 48 Zone 3 April 25’18
and 329.90 342.00 12.10 4.9 0.0 8 60 Zone 3 April 25’18
and 436.00 442.00 6.00 5.6 0.0 4 50 Zone 3 Feb 15’18
including 438.90 439.60 0.70 14.7 0.0 3 137 Zone 3 Feb 15’18
and 454.00 458.00 4.00 8.4 0.0 5 126 Zone 3 Feb 15’18
including 456.20 456.70 0.50 41.7 0.0 7 366 Zone 3 Feb 15’18
and 525.00 537.00 12.00 66 0.87 0.43 Zone 3 Here
including 525.00 526.45 1.45 25 5.93 0.33 Zone 3 Here
A18-111 173.80 178.80 5.00 20.2 0.3 74 420 Zone 3 Feb 15’18
and 372.70 374.00 1.30 6.5 0.0 6 212 Zone 3 April 25’18
A18-113 494.00 502.00 8.00 3.2 0.0 7 39 Zone 3 Here
and 658.00 678.30 20.30 5 1.26 0.30 Zone 3 Here
including 664.10 672.00 7.90 10 2.39 0.64 Zone 3 Here
A18-114 300.00 319.30 19.30 9.2 0.2 19 2 West April 25’18
including 300.00 304.00 4.00 16.2 0.2 26 2 West April 25’18
and 351.40 365.80 14.40 12.8 1.9 140 98 West April 25’18
including 352.30 354.30 2.00 11.8 12.1 837 292 West April 25’18
including 357.00 358.40 1.40 29.2 0.4 58 24 West April 25’18
including 361.20 365.80 4.60 16.8 0.1 15 26 West April 25’18
A18-115 125.30 125.70* 0.40 21.5 0.3 182 51 West Here
A18-116 47.70 48.90* 1.20 15.9 25.6 559 0 West Here
and 50.50 50.75* 0.25 11.0 15.7 679 0 West Here
and 110.80 111.40* 0.60 28.5 5.3 477 0 West Here
and 141.80 142.80* 1.00 19.6 6.3 527 0 West Here
A18-117 results pending West
A18-118 120.00 121.10* 1.20 9.8 0.3 73 3 West Here
and 183.10 184.30* 1.20 36.9 1.0 104 27 West Here
and 237.30 343.80 106.50 6.8 0.2 17 48 West Here
including 237.30 240.20 2.90 24.1 1.7 109 4 West Here
including 252.30 264.10 11.80 6.4 0.2 24 1 West Here
including 270.00 293.90 23.90 9.2 0.0 15 14 West Here
including 311.90 343.80 31.90 9.6 0.3 19 138 West Here
including 334.00 343.80 9.80 17.0 0.1 25 330 West Here
A18-119 372.20 373.10 0.90 6.5 4.2 104 8 Zone 3 Here
and 376.60 383.10 6.50 2.7 2.0 77 6 Zone 3 Here
and 410.00 440.00 30.00 3.1 0.3 24 54 Zone 3 Here
and 451.50 462.70 11.20 5.3 0.0 7 83 Zone 3 Here

*Vein style mineralization where true thickness cannot be determined.

Table 2.Summary of Drill Collar Information (coordinates are in UTM Zone 18S WGS84 datum)

Drill Hole Easting Northing Total depth (m) Elevation (m) Azimuth Dip
A18-109 334040 8846140 704.2 4088 130 -70
A18-110 334049 8846138 566.7 4086 350 -70
A18-111 333982 8846287 566.5 4107 035 -75
A18-112 334430 8845945 541.1 4000 250 -70
A18-113 334045 8846545 726.6 4206 035 -80
A18-114 332510 8845882 385.0 4293 090 -70
A18-115 332545 8845646 493.2 4302 070 -82
A18-116 332510 8845882 450.9 4298 090 -80
A18-117 332510 8845882 380.4 4298 060 -70
A18-118 332538 8845780 363.8 4284 060 -65
A18-119 334045 8846545 618.5 4206 215 -80


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

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 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 using multi-acid digestion. Samples assaying over 1% zinc, lead, or copper and over 100 g/t silver are re-assayed using precise ore-grade AAS techniques. Samples assaying over 200 ppm tin are re-assayed by fusion methods with an AAS finish (method AAS90B).

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 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 Inferred Mineral Resource estimate now consists of 42.7 Mt at 6.0 % zinc, 0.2 % lead, 17 g/t silver & 79 g/t indium, and a Tin Zone Inferred Mineral Resource of 10.5 Mt at 0.63 % tin, 0.23 % copper & 12 g/t silver (Nov. 8, 2017, release). Drilling for resource extensions and the testing of new targets is ongoing.

Forward Looking Statements: Certain information in this news release contains forward-looking statements and forward-looking information within the meaning of 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 the ongoing drill program, 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release