The Mineral Resources presented here are in accordance with the NI 43-101 Indicated and Inferred Mineral Resource categories, at a cut-off grade of US$60 per tonne for the high grade lenses and US$15/t for the low grade halo mineralization. The Mineral Resources were estimated by Roscoe Postle Associates Inc. (RPA) of Toronto, Canada. The reader is advised to review the full NI 43-101 Report dated June 29, 2016.
The Colquipucro Silver deposit is located about 2 kilometres north-northwest of the Ayawilca Zinc and Tin Zones. Sixty five percent (65%) of the silver inventory at Colquipucro occurs within a series of shallowly-dipping high-grade lenses, mostly lying very near to surface.
Indicated Mineral Resources: 2.9 million tonnes at 112 g/t silver for 10.4 million ounces of contained silver.
Inferred Mineral Resources: 2.2 million tonnes at 105 g/t silver for 7.5 million ounces of contained silver.
The Mineral Resource estimate for the combined high-grade lenses and low-grade halo mineralization at Colquipucro is as follows:
TOTAL COLQUIPUCRO MINERAL RESOURCES
Indicated Mineral Resources: 7.4 million tonnes at 60 g/t silver for 14.3 million ounces of contained silver.
Inferred Mineral Resources: 8.5 million tonnes at 48 g/t silver for 13.2 million ounces contained silver.
Mineralization at Colquipucro is oxidized and disseminated within quartzite sandstone outcrops (from 0 metres to 80 metres depth). The silver deposit is likely to be amenable to conventional leaching. Preliminary metallurgical test work indicates good silver recoveries when the material is crushed, and recoveries improve in the higher grade mineralization.
Historically, narrow silver-rich veins were mined periodically at a very small scale. A previous explorer developed several tunnels into Colquipucro hill and drilled four holes on the edge of the property. No other exploration was done prior to Tinka acquiring the property through staking in 2005.
Note: The cut-off grade is based on a price of US$24/oz Ag. Silver recoveries for low-grade and high-grade mineralization were estimated to be 50% and 80%, respectively.