Ayawilca

Mineral Resources

The Mineral Resources presented here are in accordance with the NI 43-101 Inferred Mineral Resource category, at a cut-off grade equivalent to approximately US$55/t, as estimated by Roscoe Postle Associates Inc. (RPA) of Toronto, Canada. The reader is advised to review the Company's Mineral Resource Update news release dated November 8, 2017. A full NI 43-101 report will be filed on www.SEDAR.com within 45 days of that news release.

The Zinc Zone Inferred Mineral Resources are estimated to total 42.7 million tonnes grading 7.3% Zinc equivalent (ZnEq). The Zinc Zone Mineral Resources occur in four zones, West, Central, and East (see table below) over an east to west mineralized trend of approximately 1.5 kilometres. The mineralization remains open in most directions. RPA updated the Ayawilca Mineral Resource estimate using the drill results available to October 10, 2017.

Two types of mineralization occur at Ayawilca, tin-copper mineralization (“Tin Zone”) and the zinc-indium-silver-lead mineralization (“Zinc Zone”). The Zinc Zone Mineral Resources are hosted by Triassic Pucará Group limestone approximately 200 metres thick and located beneath the Goyllarisguizga Group sandstone unit which outcrops, and hosts the Colquipucro silver oxide de-posit located 1.5 km to the north. The Zinc Zone deposit is made up of multiple, gently dipping lenses or ‘mantos’ in the Central and East Ayawilca zones and as massive replacement bodies within structural zones in the West and South Ayawilca zones, all located above Paleozoic basement rocks. The bulk of the polymetallic mineralization in central Peru is located in a similar geological environment.

Zinc Zone Inferred Mineral Resources at Ayawilca as of October 10, 2017

Zone

Tonnage (Mt)

ZnEq 

(%)

Zn

(%)

Pb (%) 

In (g/t)

Ag 

(g/t)

Zn 

(Mlb)

Pb 

(Mlb) 

In 

(t)

Ag 

(Moz)

West

9.0

7.2

6.1

0.2

64

14

1,206

37

577

4.0

Central

13.0

5.7

4.7

0.3

54

13

1,338

77

704

5.4

East

7.5

6.2

5.1

0.2

69

13

846

34

519

3.1

South

13.3

9.5

7.6

0.2

118

25

2,228

61

1,561

10.6

Total 

42.7

7.3

6.0

0.2

79

17

5,617

209

3,361

23.1

Notes:

  1. CIM definitions were followed for Mineral Resources.
  2. Mineral Resources are reported above a cut-off NSR value of US$55 per tonne.
  3. The NSR value was based on estimated metallurgical recoveries, assumed metal prices and smelter terms, which include payable factors, treatment charges, penalties, and refining charges. Metal price assumptions were: US$1.15/lb Zn, US$300/kg In, US$18/oz Ag, and US$1.10/lb Pb. Metal recovery assumptions were: 90% Zn, 75% In, 60% Ag, and 75% Pb. The NSR value for each block was calculated using the following NSR factors: US$15.34 per % Zn, US$6.15 per % Pb, US$0.18 per gram In, and US$0.27 per gram Ag.
  4. 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
  5. The ZnEq value was calculated using the formula: ZnEq = NSR/US$15.34
  6. Numbers may not add due to rounding.

Zinc mineralization was discovered at Ayawilca in 2012 while the Company was seeking to expand its silver resources along strike (2km to the south) of the Colquipucro Silver Deposit. The Company completed its initial Zinc Mineral Resource estimate in February 2015 and announced an updated Zinc Mineral Resource estimate on June 29, 2016.


The Tin Zone Inferred Mineral Resources are estimated to total 10.5 million tonnes grading 0.70% Tin equivalent (SnEq). The Tin Zone resources occur in separate lenses from the Zinc Zone Mineral Resources, and do not overlap. The Tin Zone Mineral Resources are hosted as disseminated cassiterite and chalcopyrite in massive to semi-massive pyrrhotite lenses at the contact between the Pucará Group and underlying phyllite of the Devonian Excelsior Group. Parts of the Tin Zone mineralization can occur as quartz sulphide stockwork veinlets hosted by the phyllite.

Tin Zone Inferred Mineral Resources at Ayawilca as of October 10, 2017

Tonnage (Mt) Sn Eq. (%) Sn (%) Cu (%) Ag (g/t) Sn (Mlb) Cu (Mlb) Ag (Moz)

Tin Zones

10.5

0.70

0.63

0.23

12

145

53

4.2

Notes:

  1. CIM definitions were followed for Mineral Resources.
  2. Mineral Resources are reported above a cut-off grade of US$55 per tonne NSR value.
  3. The NSR grade was based on estimated metallurgical recoveries, assumed metal prices and smelter terms, which include payable factors, treatment charges, penalties, and refining charges. Metal price assumptions were: US$9.50/lb Sn, US$3/lb Cu, and US$18/oz Ag. Metal recovery assumptions were: 86% Sn, 75% Cu, and 60% Ag. The NSR value for each block was calculated using the following NSR factors: US$164.53 per % Sn, US$39.95 per % Cu, and US$0.27 per gram Ag.
  4. The NSR value was calculated using the formula: US$NSR = [Sn(%)*US$164.53+Cu(%)*US$39.95+Ag(g/t)*US$0.27].
  5. The SnEq value was calculated using the formula: SnEq = NSR/US$164.53
  6. Numbers may not add due to rounding.

Zinc Mineralization

Zinc mineralization at Ayawilca is associated with semi-massive to massive sulphides of sphalerite (marmatite), accompanied by variable amounts of pyrite, pyrrhotite and with minor to trace galena, chalcopyrite and arsenopyrite. Magnetite is also present in the peripheral areas but is typically replaced by the sulphides indicating it pre-dated the main mineralization event. Sulphides also replace the matrix and clasts of the altered limestones, commonly accompanied by chlorite-sericite, iron carbonate, and clays. Zinc is hosted together with high levels of indium, a high-value technology metal, which occurs inside the lattice of the sphalerite crystals. As of August 15, 2017, Tinka has drilled over 40,000 metres in 100 diamond drill holes at Ayawilca since 2011/12.

Selected zinc drill intersections include:

  • A17-070: 39.3 metres at 7.1% zinc & 100 g/t indium from 317.5 metres depth, including 8.0 metres at 20.9% zinc & 265 g/t indium from 340.0 metres depth;
  • A17-069: 29.3 metres at 10.4% zinc & 278 g/t indium from 271.4 metres depth, including 12.1 metres at 19.1% zinc & 440 g/t indium from 287.3 metres depth;
  • A17-063: 47.4 metres at 11.3% zinc & 313 g/t indium from 302.2 metres depth, including 9.8 metres at 17.4% zinc & 587 g/t indium from 303.3 metres depth and 12.2 metres at 17.1% zinc & 495 g/t indium from 327.4 metres depth;
  • A17-056: 63.9 metres at 5.6% zinc & 29 g/t indium from 126.0 metres depth, including 5.8 metres at 22.5% zinc & 50g/t indium, and 51.9 metres at 10.1% zinc & 233 g/t indium from 242.0 metres depth, including 6.4 metres at 37.5% zinc & 916 g/t indium from 279.0 metres depth;
  • A13-05: 212.9 metres at 5.3 % zinc & 83 grams per tonne (g/t) indium from 130.3 metres depth, including 16.0 metres at 18.1 % zinc & 120 g/t indium from 150.0 metres depth, and 10.0 metres at 12.9 % zinc & 670 g/t indium from 316.0 metres depth;
  • A14-22: 32.8 metres at 7.4 % zinc & 66 g/t indium from 211.2 metres depth, including 5.8 metres at 16.8 % zinc & 170 g/t indium from 228.0 metres depth, and 31.0 metres at 6.3% zinc & 101 g/t indium from 283.5 metres depth;
  • A12-08: 36.5 metres at 6.5 % zinc & 63 g/t indium from 162.0 metres depth, and 38.0 metres at 4.6 % zinc & 117 g/t indium from 266.0 metres depth;
  • A12-04A: 20.0 metres at 7.1 % zinc & 127 g/t indium from 260.0 metres depth, including 12.0 metres at 10.5 % zinc & 200 g/t indium from 266.0 metres depth.

The style of mineralization at Ayawilca is commonly known as a Carbonate Replacement Deposit ("CRD"). In CRDs the limestone host rocks are replaced by sulphides (either partially or completely). CRD deposits like Ayawilca typically have mineralization in the form of horizontal “mantos”, subvertical bodies or “chimneys”, and also “veins” which are more narrow. Typical examples of the two main types of zinc mineralization at Ayawilca are shown below.

  1. Massive sphalerite (marmatite with high iron) accompanied by variable pyrite, pyrrhotite and/or magnetite – see samples from A17-056 and A17-063;
  2. Carbonate veins with sphalerite (low iron), galena, and silver minerals - see A17-072 sample. This style of mineralization is considered to post date the massive sphalerite replacement style.


Tin-Copper Mineralization

Tin mineralization was discovered in the Central, East, and North Ayawilca areas following the re-assaying of 2012-2013 drill holes . Tin-copper mineralization lies within tabular 'mantos' beneath, and separately to, the zinc sulphide mantos. The tin occurs predominantly as cassiterite within massive iron sulphide (pyrrhotite) mantos, together with minor chalcopyrite.

Selected tin-copper drill intersections include:

  • A15-40: 50.5 metres at 1.23% tin and 0.16% copper from 328.0 metres depth, including 2.5 metres at 8.81% tin and 0.18% copper from 330.0 metres;
  • A13-11: 16.2 metres at 1.03% tin and 0.67% copper from 328.0 metres depth, including 2.0 metres at 4.8% tin and 2.1% copper from 330 metres;
  • A13-12A: 30.8 metres at 0.54% tin and 0.17% copper from 326 metres depth, including 2.0 metres at 2.5% tin and 0.2% copper from 326 metres depth;
  • A13-01: 76.0 metres at 0.21 % tin and 0.36% copper from 276 metres depth, including 8 metres at 0.94% tin and 0.43% copper;
  • CDD46: 10.5 metres at 0.82 % tin and 0.10 % copper from 252.0 metres depth.