Ayawilca Zinc Project Peru: Targeting Resource Growth in 2017

Transcription

1 Ayawilca Zinc Project Peru: Targeting Resource Growth in 2017 PDAC Peru Day Presentation Dr Graham Carman Tinka Resources Limited March 6, 2017 OTC: TKRFF

2 Disclaimer This presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. This presentation does not constitute or form a part of, and should not be construed as an offer, solicitation or invitation to subscribe for, underwrite or otherwise acquire, any securities of Tinka, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. Certain information in this presentation 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 but not limited to, all costs varying significantly from estimates, production rates varying from estimates, changes in metal markets, changes in equity markets, the proposed use of net proceeds from private placements, availability and costs of financing needed in the future, equipment failure, unexpected geological conditions, imprecision in resource estimates or metal recoveries, ability to complete future drilling programs, drilling program results varying from expectations, delays in obtaining survey results, success of future development initiatives, the completion and implementation of a preliminary economic assessment, pre-feasibility or feasibility studies, competition, operating performance, environmental and safety risks, delays in obtaining or failure to obtain necessary permits and approvals from local authorities, community 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. The Mineral Resources disclosed in this company presentation were estimated by Mr. David Ross, P.Geo., an employee of Roscoe Postle Associates Inc. (RPA) and is independent of Tinka. The Zinc/Tin Mineral Resources were publicly released on May 25, 2016, while the Silver Resources were released on Feb 26, By virtue of his education and relevant experience, Mr. Ross is a "Qualified Person" for the purpose of National Instrument The Mineral Resources have been classified in accordance with CIM Definition Standards for Mineral Resources and Mineral Reserves. This presentation has been prepared, reviewed and verified by Dr. Graham Carman, Tinka s President and CEO and a Fellow of the Australasian Institute of Mining and Metallurgy, a qualified person as defined by NI

3 Company Highlights Ayawilca project in the Pasco region of Peru (also known as Colquipucro) was acquired by Tinka in 2005: Inferred Resources contain ~2.5 Billion pounds Zinc based on 27,000 metres drilled : 18.8 Million 8.2% Zinc Equivalent; and 5.4 Million 0.89% Tin Equivalent Initial metallurgy indicates zinc concentrate is good Tinka is fully-funded for its next growth phase: 10,000+ m step-out drill program commenced Feb 2017 Inicio de Actividades approved in February 2017 Modest valuation with lots of upside: Zinc price rose 60% in 2016 and tin price rose 45% ~C$70 million market capitalization ($0.34 /share) ~C$12 million cash at end of December 2016 Technical Team with past successes in Peru: ex Rio Tinto, Savage-Pasminco, Hochschild Inferred Resource: 2.45 billion pounds Zn * See slide 9 for complete mineral resource estimate details Peru Ayawilca 3

4 Capitalization and Zinc Peer Comparison Symbols: & OTC: TKRFF C$ Shares Issued: M Warrants: 27.2 M* 12.6 M at C$0.30 expire Nov M at C$0.45 expire May 2020 Options: Shares reserved: Fully diluted: 16.4 M 0.5 M M Market C$0.34/share: Cash 31 December 2016: C$70 M ~C$12 M Major shareholders: Sentient Group 22.4% International Finance Corp. 14.0% JP Morgan Asset Mgmt (UK) 7.3% Other institutions ~8% Management & directors ~2% * 15.7 M warrants held by IFC and 6.9 M warrants held by Sentient 4

5 Zinc Price Performance Zinc prices are up 64% YoY and fundamentals support higher prices Price performance driven by supply constraints and anticipated deficits LME zinc inventories are near 5 year lows 12 Month Metal Price Performance Zinc +64% Nickel +28% Copper +27% Tin +22% Silver +19% Gold +4% 5 08/02/ /02/ /03/ /03/ /04/ /04/ /05/ /05/ /05/ /06/ /06/ /07/ /07/ /08/ /08/ /09/ /09/ /10/ /10/ /10/ /11/ /11/ /12/ /12/ /01/ /01/ /02/2017

6 Management & Directors MANAGEMENT Graham Carman Alvaro Fernandez- Baca President & CEO, Director VP Exploration, Peru Geologist, PhD Lihir PNG, 25 years experience in mineral exploration, 15 yrs Peru experience, Ex Rio Tinto, Savage, Pasminco Geologist, P. Geo., APEGBC, Ex Hochschild, AQM Copper, Entrée Gold, Gitennes Javier Escudero HSEC Manager, Peru Health, Safety, Environment, Community & Permits. Ex Goldfields Nick Demare CFO, Director CPA, CA, officer/director, President of Chase Management Inc. Mariana Bermudez Corporate Secretary 19 years experience providing corporate secretarial, corporate governance and securities regulatory compliance services NON-EXECUTIVE DIRECTORS David Henstridge Founding director, geologist, 40 years worldwide experience Yanina Barilá Mary Little Sentient Group representative, MBA in finance from Buenos Aires Founder Mirasol Resources, Geologist, MBA, 15 years in Latin America 6

7 Peru A Mining Country Pro-mining country multiple world-class mines Lots of zinc in central Peru Ayawilca Project Antamina Mineral Rank in World 2015 Latin America 2015 Zinc 2nd 1st Copper 3rd 2nd Tin 3rd 1st Lead 4th 1st Silver 3rd 2nd Gold 5th 1st Las Bambas San Rafael * Only large mineral deposits shown 7

8 Peru Central Peru Mines Antamina: Largest current Copper/Zinc mine in Peru Cerro de Pasco: Largest historic Silver/Zinc mine in Peru Giant Ore Deposit 50 km 8

9 Ayawilca Mining Claims 150 km 2 mining claims (TK 100%) contiguous, no gaps Untested Targets Good Infrastructure Public roads Power nearby Water supplies Supportive local communities Silver resource Ayawilca zinc & tin resources 9

10 Ayawilca Zinc Zone Mineral resource updated May 2016 Ayawilca Zinc Zone Inferred Mineral Resources: 18.8 Mt grading 8.2% ZnEq Area Tonnage (Mt) ZnEq (%) Zn (%) Pb (%) In (g/t) Ag (g/t) Zn (Mlb) Pb (Mlb) In (000 kg) Ag (Moz) West Central , East Total , , Notes: 1. Mineral resource estimate at May 25, Base case highlighted ~ US$60/t NSR cut off (5% ZnEq). Metal price assumptions were US$1.00/lb Zn, US$500/kg In, US$20/oz Ag, US$1.00/lb Pb. Metal recovery assumptions were 90% Zn, 75% In, 50% Ag, and 75% Pb for the ZnEq calculation. 3. See NI report dated June 26, 2016, for details of resource estimates and assumptions 4. Inferred Mineral Resources have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable. 10

11 Ayawilca Property Highlights One Property, Three Deposits: 1. Zinc Zone (Zn-In-Ag-Pb) Inferred Mineral Resource (May 2016): % ZnEq o 2.45 billion pounds of Zinc (1.1M tonnes) o 1,385,000 kilograms of Indium o 8.8 million ounces of Silver o 82 million pounds of Lead 2. Tin Zone (Sn-Ag-Cu) Inferred Mineral Resource (May 2016): % SnEq o 90 million pounds of Tin (41,000 tonnes) o 37 million pounds of Copper o 3.1 million ounces of Silver 3. Colquipucro Silver Oxide (Ag) Deposit Mineral Resource (higher grade lenses): g/t Ag (Indicated) and g/t Ag (Inferred) A17-56 Current Drill hole 11

12 Ayawilca: A Carbonate Replacement Deposit Zinc occur as mantos and chimneys in Pucará Group limestone Sulphides have replaced the carbonate host rock West Ayawilca Chimney Drill Hole From (m) To (m) Interval (m) Zinc (%) Lead (%) Silver (g/t) Indium (g/t) 4200mRL 4000mRL 3800mRL West Ayawilca open A including including and mRL Central Ayawilca East Ayawilca 4000mRL Sandstone 3800mRL Limestone 3600mRL Zinc Zone Tin Zone 500m Phyllite 3600mRL 12

13 Airborne Magnetic Anomaly Map (RTP) East Ayawilca West Ayawilca Zone 3 Central Ayawilca A17-56 South Ayawilca Priority Untested Targets 13

14 A17-56 drill hole (**released March **) First drill hole for 2017, massive sulphide mineralization found 400 metres from zinc resource, a new discovery 62.4 metres grading 5.6% Zinc from metres, including: 17.9 metres at 11.6% Zinc, including: 5.8 metres at 22.5 % Zinc And 5.2 metres grading 12.9 % Zinc from metres; Only sampled to 238 metres..more to come Qz Py Sph 14

15 Ayawilca District Schematic Cross Section Porphyry intrusion found at Los Pinos, 3 kilometres from Zinc Zone resource Large untested targets 15

16 Geochemistry Map Zinc in Soil Elevated zinc in soils over 10 sq km area A

17 Positive Initial Metallurgical Test Results West Ayawilca composite samples (two, grading 7% & 10% Zn): >98% recovery of Zn in first pass (rougher) 52% Zn concentrate grade produced in second pass (cleaner) concentrates Low manganese levels Indium reports to the zinc concentrate (350 ppm Indium average grade in con) 17

18 Proposed Exploration Program Milestone Zinc Zone Resource Upgrade Tin Zone Resource Silver Zone Review Geophysics Metallurgical tests Extend drill permits Drilling* PEA* * subject to drilling results/financing 18

19 Community & Environment Ongoing partnerships with three communities - employment and training Social engagement and sustainable development programs throughout the project area, fostering long-term relationships Working under IFC s guidance to implement best practices in Health, Safety, Environment and Community Training programs Animal health Road and drill platforms 19

20 Silver Mineral Resource - Colquipucro Class/Zone Tonnage (Mt) Ag (g/t) Ag (Moz) Indicated High Grade Lenses Low Grade Halo Total Indicated Inferred High Grade Lenses Low Grade Halo Total Inferred ,003 metres drilled in 45 holes ( ) Notes: : Resources estimated by Roscoe Postle Associates Inc. (RPA) of Toronto, Canada (news release of May 25, 2016). Mineral Resources are reported within a preliminary pit shell and above a cut-off grade of 60 g/t Ag for High Grade Lenses, and 15 g/t Ag for Low Grade Halo. The cut-off grade is based on a price of US$24/oz Ag. Refer to NI report dated June 29, 2016 for details of resource estimates and assumptions. 20

21 Summary One of the largest zinc discoveries in Peru in the last 20 years Existing Inferred zinc resource that contains 2.45 billion pounds of zinc Large untested targets provide potential for major mineral resource expansion Project located in Peru, a stable and mining friendly political jurisdiction Fully funded 10,000 metre drill program commenced February 2017 Zinc price forecast to increase further with continued Asian demand & tight supply Experienced Management Team and Board Supportive long term shareholders (Sentient, IFC, JP Morgan UK) Low valuation relative to zinc peers 21

22 Tinka Resources Limited Thank you! PDAC booth #2937 CORPORATE OFFICE Suite West Georgia St Vancouver, BC V6E 3V7 CANADA Ph: Fax: Graham Carman, President & CEO Rob Bruggeman, Investor Relations FOR MORE INFORMATION 22