Tinka Reports Additional Step-Out & Infill Drill Holes At Ayawilca And Highlights Upper Manto Discovery

September 18th, 2018
View PDF

Vancouver, Canada – Tinka Resources Limited (“Tinka” or the “Company”) (TSXV & BVL: TK) (OTCPK: TKRFF) is pleased to announce results for twelve drill holes from the Company’s ongoing resource expansion and confirmation drill program at the 100% owned Ayawilca project, central Peru.

Key Highlights:

  • Five resource step-out drill holes at West, South, Central and Camp areas have all intersected significant zinc mineralization hosted mostly by Pucara limestone, the main host of the zinc sulphide mineralization;
  • Hole A18-148 intersected high-grade zinc (5.5 metres grading 10% zinc) 100 metres further east of the current resource at the Central area, with extensions to be tested later in 2018;
  • Hole A18-146 intersected high-grade zinc and silver mineralization (1.7 metres grading 27% zinc & 1520 g/t silver from 57 metres depth) in an ‘Upper Manto’ hosted by sandstone at the South area, above and lateral to the known limestone hosted resource. The Upper Manto has been observed in other drill holes and is considered significant due to its shallow depth and proximity to existing resources;
  • Hole A18-150 (9.6 metres grading 6% zinc) and adjacent hole A18-154 have extended known mineralization at the West area 120 metres to the northeast – mineralization remains open;
  • Seven resource infill holes are also reported from the West and South areas, drilled to improve the Company’s geological model and to target additional zinc mineralization at depth;
  • Tinka now plans to update the Ayawilca resource estimate in Q4 2018, while step-out drilling continues.

Graham Carman, Tinka´s President and CEO, stated: “The step-out drill hole results reported in this release are very positive, and show that the footprint of zinc mineralization at Ayawilca is getting larger. So far in 2018 we have discovered several new areas of significant zinc mineralization, including:

  • thick and high-grade intersections up to 150 metres to the northwest of the West Ayawilca resource (e.g., hole A18-118);
  • the Camp area, which connects West mineralization with the Central area (e.g., holes A18-130 & 134);
  • repetitions of mineralized limestone beneath lenses of phyllite at West Ayawilca which can host exceptional zinc grades (e.g., 10.4 metres grading 44% zinc, hole A18-129);
  • shallow zinc sulphide mineralization hosted by the overlying sandstone within a laterally extensive Upper Manto; and
  • extensions to the mineralization east of the Central and West areas (e.g., holes A18-148 & A18-150);

“Zinc mineralization still remains open along strike and down dip in several directions, while other prospective areas such as Zone 3 continue to offer additional potential.”

“A priority in 2018 has been to identify additional zinc resources with step-out drill holes.In addition, several infill holes have been drilled, to test for repetitions of the mineralized limestone beneath and within areas of known resources where key information was lacking.The infill holes drilled at the South and West areas have improved our geological model and understanding of the controls of the mineralization, while also confirming the continuity of grade and thickness of zinc mineralization.”

“Tinka has so far drilled 19,000 metres in 2018, on top of 46,000 metres drilled at the Ayawilca project from the initial discovery in 2013 to the end of 2017.A resource update is planned for Q4 2018, based on all drill data to the end of September 2018.An additional 1,000-2,000 metres of drilling is planned for the remainder of the year, with one rig operating at site. Importantly, the 2018 drill program is on schedule and on budget.”

“Upon completion of the resource update in Q4 2018, the Company will be in a position to either move ahead with a Preliminary Economic Assessment in 2019, or to focus on further resource expansion.In the meantime, we look forward to updating our shareholders with information on additional drill results and the upcoming resource update.”

Highlights – Infill holes at West Ayawilca

Hole A18-141:

  • 89.0 metres at 5.0% zinc, 11 g/t silver & 97 g/t indium from 288.0 metres depth, including
    3.0 metres at 22.4% zinc, 30 g/t silver & 129 g/t indium from 374.0 metres depth.

Hole A18-143:

  • 14.0 metres at 9.1% zinc, 10 g/t silver & 15 g/t indium from 146.0 metres depth; and
  • 5.5 metres at 15.1% zinc, 19 g/t silver & 196 g/t indium from 298.0 metres depth, including
    2.9 metres at 24.8% zinc, 29 g/t silver & 298 g/t indium from 300.2 metres depth.

Hole A18-145:

  • 42.0 metres at 5.2% zinc, 12 g/t silver & 144 g/t indium from 302.0 metres depth.

Hole A18-137:

  • 12.7 metres at 10.3% zinc, 18 g/t silver & 306 g/t indium from 279.3 metres depth, including
    3.2 metres at 25.7% zinc, 35 g/t silver & 638 g/t indium from 286.9 metres depth.

Hole A18-140:

  • 9.0 metres at 8.8% zinc, 10 g/t silver & 78 g/t indium from 283.6 metres depth;

Highlights – Infill holes at South Ayawilca

Hole A18-139:

  • 20.5 metres at 5.6% zinc, 5 g/t silver & 63 g/t indium from 248.0 metres depth, including
    2.4 metres at 18.1% zinc, 17 g/t silver & 162 g/t indium from 258.6 metres depth; and
  • 2.9 metres at 15.7% zinc, 0.5% lead & 29 g/t silver from 313.1 metres depth.

Hole A18-142:

  • 19.1 metres at 8.5% zinc, 16 g/t silver & 105 g/t indium from 232.7 metres depth, including
    2.1 metres at 38.4% zinc, 31 g/t silver & 525 g/t indium from 243.6 metres depth.

Highlights – Step-out drill holes

Hole A18-148 (Central Ayawilca):

  • 5.5 metres at 9.8% zinc, 8 g/t silver & 42 g/t indium from 378.6 metres depth in limestone.

Hole A18-146 (South Ayawilca):

  • 1.7 metres at 26.9% zinc, 0.9% lead & 1,526 g/t silver from 57.0 metres depth in the Upper Manto.

Hole A18-138 (Camp):

  • 1.5 metres at 19.3% zinc, 100 g/t silver & 138 g/t indium from 146.2 metres depth in limestone.

Hole A18-150 (West Ayawilca):

  • 9.6 metres at 6.3% zinc, 5 g/t silver & 77 g/t indium from 337.9 metres depth in limestone.

Note: All intercepts shown above are down-hole intercepts.True thicknesses of the zinc intersections are estimated to be at least 85% of the downhole thicknesses.

List of attached figures:

  • Figure 1 is a drill hole location map highlighting holes with recent results in RED.
  • Figure 2 is a long section of South Ayawilca A-A’ viewing to the north.
  • Figure 3 is a long section of West Ayawilca B-B’ viewing to the northwest.
  • Figure 4 is a cross section of West and South Ayawilca C-C’ viewing to the northeast.

List of attached tables:

  • Table 1 shows new significant drill intercepts with the strongest intercepts in bold text.
  • Table 2 summarizes the drill collar information for the recent holes.

Figure 1.Ayawilca drill hole map highlighting 2018 holes, new release holes & current 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 Ayawilca9.0 million tonnes at 7.2% ZnEq (6.1% zinc, 0.2 % lead, 14 g/t silver & 64 g/t indium)
Central Zone13.0 million tonnes at 5.7% ZnEq (4.7% zinc, 0.3 % lead, 13 g/t silver & 54 g/t indium)
East Ayawilca7.5 million tonnes at 6.2% ZnEq (5.1% zinc, 0.2 % lead, 13 g/t silver & 69 g/t indium)
TOTAL42.7 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.Long section of South Ayawilca A-A’ viewing to the north
The Upper Manto within the Goyllar sandstone formation is shown as a 3D projection.
Existing inferred zinc resources are shown by the red & green hatch

Figure 3.Long section of West Ayawilca B-B’ viewing to the northwest
The Upper Manto within the Goyllar sandstone formation is shown as a 3D projection. Recent infill drill holes at West Ayawilca are not labelled. Existing inferred zinc resources are shown by the red & green hatch

Figure 4.Cross section of West and South Ayawilca C-C’ viewing to the northeast
The Upper Manto in the Goyllar sandstone formation is shown as a 3D projection. Some recent infill drill holes are not labelled. Existing zinc resources are shown by the red & green hatch

Table 1. Recent significant drill intercepts at Ayawilca

Drill hole

From m

To m

Interval m

Zn %

Pb %

Ag g/t

Indium g/t

Area

Comment

A18-137

178.00

182.10

4.10

2.3

2.8

102

0

West

Infill

and

250.00

253.30

3.30

9.4

1.9

58

2

West

and

279.30

292.00

12.70

10.3

0.0

18

306

West

including

286.90

290.10

3.20

25.7

0.0

35

638

West

A18-138

104.70

105.10

0.40

26.7

0.3

75

533

Camp

Step-out

and

146.20

147.70

1.50

19.3

0.0

100

138

Camp

and

253.70

256.10

2.40

9.4

0.9

41

0

Camp

and

283.60

285.40

1.80

3.5

4.3

123

0

Camp

A18-139

248.00

268.50

20.50

5.6

0.0

5

63

South

Infill

including

258.60

261.00

2.40

18.1

0.1

17

162

South

and

311.90

317.90

6.00

9.7

0.3

21

8

South

including

313.10

316.00

2.90

15.7

0.5

29

11

South

A18-140

174.70

178.20

3.50

3.4

4.6

120

0

West

Infill

and

283.60

292.60

9.00

8.8

0.1

10

78

West

A18-141

238.00

250.40

12.40

3.9

0.0

8

3

West

Infill

and

288.00

377.00

89.00

5.0

0.0

11

97

West

including

374.00

377.00

3.00

22.4

0.0

30

129

West

A18-142

232.70

251.80

19.10

8.5

0.1

16

105

South

Infill

including

243.60

245.70

2.10

38.4

0.1

31

525

South

A18-143

146.00

160.00

14.00

9.1

0.0

10

15

West

including

155.20

157.80

2.60

18.7

0.1

23

20

West

Infill

and

262.30

269.60

7.30

6.7

0.0

16

12

West

and

298.00

303.50

5.50

15.1

0.0

19

196

West

including

300.20

303.10

2.90

24.8

0.0

29

298

West

A18-144

results awaited

Vetas

A18-145

212.40

221.10

8.70

5.8

0.0

16

0

West

Infill

and

283.40

290.20

6.80

5.0

0.0

8

43

West

and

302.00

344.00

42.00

5.2

0.0

12

144

West

including

338.00

340.90

2.90

11.6

0.0

24

364

West

A18-146

57.00

58.70

1.70

26.9

0.9

1536

16

South

Step-out

A18-147

results awaited

Vetas

A18-148

378.60

384.10

5.50

9.8

0.0

8

42

Central

Step-out

and

395.50

409.60

14.10

4.0

0.0

8

58

Central

and

434.40

442.50

8.10

3.0

0.1

36

24

Central

A18-149

results awaited

Vetas

A18-150

337.90

347.50

9.60

6.3

0.0

5

77

West

Step-out

A18-151

results awaited

South

A18-152

results awaited

South

A18-153

results awaited

South

A18-154

368.80

372.40

3.60

5.3

0.0

6

46

West

Step-out

Note: All intercepts shown in Table 1 are down-hole intercepts.True thicknesses of the zinc intersections are estimated to be at least 85% of the downhole thickness.

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

Drill Hole

Easting

Northing

Total depth (m)

Elevation (m)

Azimuth

Dip

A18-137

332808

8845769

443.9

4233

200

-80

A18-138

332984

8845394

446.6

4241

000

-90

A18-139

333114

8845103

387.5

4205

150

-85

A18-140

332720

8845725

376.5

4246

020

-82

A18-141

332689

8845605

468.0

4267

020

-78

A18-142

333006

8845202

325.9

4213

125

-85

A18-143

332769

8845563

379.5

4254

020

-85

A18-144

332548

8845705

365.1

4294

060

-72

A18-145

332720

8845725

396.1

4246

320

-87

A18-146

332795

8845121

371.9

4183

000

-90

A18-147

332442

8845956

225.5

4336

190

-60

A18-148

333768

8845426

474.8

4150

000

-90

A18-149

332533

8845783

357.7

4284

335

-45

A18-150

332937

8846026

396.3

4251

000

-90

A18-151

332751

8845055

134.4

4145

090

-65

A18-152

333005

8844940

508.9

4152

000

-90

A18-153

332881

8845300

93.3

4216

060

-60

A18-154

332940

8846022

427.2

4251

090

-75


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 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.

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

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.

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).

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