The Ayawilca zinc and tin deposit is located in Peru, 200 km north of Lima. The deposit is split into a ‘Zinc Zone’ and a ‘Tin Zone’, the former of which has indicated resources of 11.7 million tonnes of ore at 6.9% Zn and inferred resources of 45.0 million tonnes grading 5.6% Zn. The Tin Zone has an inferred resource of 14.5 million tonnes, containing some 91,400 tonnes of tin, an increase of 38% from the initial resource estimate.
The new results, which follow a successful 20,000 metre drilling programme, mean that Ayawilca now represents “one of the largest zinc resources held in a non-producing resources company” and “the largest undeveloped tin resource outside of a producing camp in Peru”, according to Tinka’s President and CEO, Dr Graham Carman.
The company is now looking ahead, with plans to complete its maiden Preliminary Economic Assessment (PEA) in the first half of 2019, along with an additional step-out and deeper drilling programme planned for 2019. Wood (formerly Amec Foster Wheeler) has been brought on-board as the lead consultant to prepare the PEA, with Mr Ken Engquist joining Tinka to oversee its development.
Our View: The 100%-owned Ayawilca project continues to deliver for Tinka Resources, with growth in both the zinc and tin resource estimates. With an additional drilling programme scheduled for 2019, Tinka will be hoping for more positive news. However, the Ayawilca deposit is still in the exploration phase, and the Tin Zone, in particular, requires further sampling and testing to confirm the grade and tonnage.