TSXV & BVL:TK | OTCPK: TKRFF www.tinkaresources.com
Corporate Presentation – November 2019
Corporate Presentation November 2019 Disclaimer This presentation - - PowerPoint PPT Presentation
TSXV & BVL:TK | OTCPK: TKRFF www.tinkaresources.com Corporate Presentation November 2019 Disclaimer This presentation does not constitute or form a part of, and should not be construed as an offer, solicitation or invitation to
TSXV & BVL:TK | OTCPK: TKRFF www.tinkaresources.com
Corporate Presentation – November 2019
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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. Readers are cautioned that the PEA is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA results will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Additional work is needed to upgrade these mineral resources to mineral reserves. Certain information in this presentation contains forward-looking statements and 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, 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, delays in or failure to obtain the necessary permits, drilling program results varying from expectations, timing of geological reports, the Company’s ability to realize the results of the PEA, approvals from local authorities, community relations, timing and completion of any surface rights agreements, 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. 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 presentation have been estimated by Mrs. Dorota El Rassi, P.Eng., an employees of Roscoe Postle Associates Inc. (RPA). Mrs. El Rassi is a Qualified Person as defined under the meaning of Canadian National Instrument 43-101 (“NI 43-101”) and independent of Tinka. Mr. William Colquhoun, Principal Metallurgical Consultant with Amec Foster Wheeler (Perú) S.A., a Wood company, a Qualified Person as defined in NI 43-101 and independent of Tinka, is responsible for the PEA results contained in this presentation. Ms Stella Searston, RM SME, a Principal Geologist Associate with Amec Foster Wheeler E&C Services, a Wood company, a Qualified Person as defined in NI 43-101 and independent of Tinka, is also responsible for the PEA results contained in this presentation. Mr. Edwin Peralta, P.E., a Senior Engineer with Wood Mining and Metals USA, a Qualified Person under NI 43-101 and independent of Tinka, is also responsible for the results of the
the metallurgical and recovery inputs contained in this presentation. Dr. Graham Carman, CEO and a Director of Tinka, and a Qualified Person as defined in NI 43-101, is responsible for other technical information in this presentation (information not directly related to the Mineral Resource Estimate or the PEA).
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Ayawilca
Peru
37% IRR) using $1.20/lb Zn, $0.95/lb Pb, $18/lb Ag, and $65/t NSR cut-off
million ounces silver/year with a 21 year mine life
Work Program:
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TSXV & BVL: TK | OTCPK: TKRFF
Shares Issued: 264.6 M Options (priced at $0.325 to $0.50) 11.4 M Warrants (priced at $0.45) 12.4 M Fully diluted: 288.9 M Market cap @ C$0.16/share: C$42 M Cash (Jun. 30, 2019): ~C$8 M Enterprise Value @ C$0.16/share: C$34 M
Analyst Coverage Ian Parkinson Kevin MacKenzie George Topping Major Shareholders
Institutional: Sentient Equity Partners 24% IFC (World Bank) 11% JPMorgan UK 7% Other institutions ~10% Total institutional 52% Management & insiders 2% Retail/other 46%
Management – Extensive Peru and Zinc Experience
Dr Graham Carman President & CEO, Director Geologist, 25 years global exploration experience with Rio Tinto, Savage, Pasminco, juniors. Alvaro Fernandez-Baca VP Exploration, Peru Geologist, 20 years global exploration experience with Gitennes, AQM Copper & Hochschild. Cesar Carbajal HSEC Manager Social management specialist, 15 years experience with Teck, MWH, Peru Ministry of Mines. Mariana Bermudez
20 years regulatory compliance services experience. Nick Demare CFO, Director CPA, CA, extensive junior board experience.
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Independent Directors
Ben McKeown Chairman of the Board. Mining engineer, MBA, with 25 years experience in mining, oil & gas, and private equity. Pieter Britz Sentient Group representative. Professional engineer with over 20 years’ experience as a mining professional and as a mining investment professional. Mary Little Founder of Mirasol Resources, geologist, MBA, 20 years in Latin America.
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and concerns that zinc market will go into surplus – sentiment is bearish, but improving
Start of China-US trade war Zinc inventories continue to decline despite China slowdown
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materialize (e.g., Teck predicted 800kt increase in mine supply in 2018 – actual growth was 200kt)
environmental regulations & inspections
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10 20 30 40 50 60 2014 2015 2016 2017 2018 2019
Resources (Mt)
Ayawilca Resource Growth 2015 to 2018
Bubble size indicates contained zinc-equivalent pounds (Mlbs)
INFERRED INDICATED
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1 ZnEq includes all metals. Source: GMP Securities, July 2019
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1 ZnEq includes all metals. Source: GMP Securities, July 2019 TK valuations based on $C0.25 share price
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Robust Economics :
21 year mine life
3.5 years after-tax
and 0.9 Moz silver
$1,051M after-tax
PEA metal prices: $1.20/lb Zn, $0.95/lb Pb, and $18/oz Ag
$0 $500 $1,000 $1,500 $2,000
$0 $50 $100 $150 $200 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 Cumulative Cash Flows (US$ millions) Annual Cash Flows (US$ millions)
After-tax cash flow Pre-tax cash flow Cumulative after-tax cash flow Cumulative pre-tax cash flow
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US$363 M US$566 M
(100.0)
200.0 300.0 400.0 500.0 600.0 700.0 800.0
0% 10% 20% 30% 40%
(US$M) Change in Parameter
After Tax NPV8% Sensitivity
Zinc selling price Lead selling price Silver selling price Feed grades Initial CAPEX Operating Cost
PEA Base Case Reduced OPEX Higher zinc grade and price 20% grade increase US$453 M 20% lower OPEX
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at South Ayawilca indicates additional upside to high grade resources
mining methods (e.g., open stoping) may be better suited for thicker South and West Ayawilca zones
Ayawilca 2019 PEA AISC $0.72/lb Zn Sources: Teck, company information
Mineral Rank in World 2018 Latin America 2018 Zinc 2nd 1st Copper 2nd 2nd Tin 4th 1st Lead 3rd 1st Silver 2nd 2nd Gold 6th 1st
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Ayawilca Project
Las Bambas
Antamina
Central Peru zinc belt
CHILE BOLIVIA BRAZIL ECUADOR
San Rafael
Source: USGS 2018
15 Antamina: Largest current copper/zinc mine in Peru Cerro de Pasco: Largest historic silver/zinc mine in Peru
Giant Ore Deposit
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Ayawilca Focus Area - Plan View with Geology
claims (100%)
Tinka Claim Boundary
Ayawilca Claim Map
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magnetic anomaly
multiple mineralizing events
anomalies at South & Zone 3 remain to be adequately tested
Ayawilca
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Category/Area Tonnage (Mt) ZnEq (%) Zn (%) Pb (%) In (g/t) Ag (g/t) Zn (Mlb) Pb (Mlb) In (t) Ag (Moz) Indicated South 3.9 9.1 7.6 0.09 108 16 652 8 422 2.0 West 7.8 7.7 6.5 0.20 72 15 1,126 35 561 3.9 Total Indicated 11.7 8.1 6.9 0.16 84 15 1,778 42 983 5.8 Inferred South 10.2 9.6 7.9 0.27 103 30 1,764 61 1,047 9.9 West 5.0 7.1 6.4 0.27 34 17 699 30 170 2.8 East 11.3 5.9 5.0 0.18 56 14 1,238 44 633 5.0 Central 18.6 5.6 4.6 0.23 62 12 1,884 95 1,153 7.5 Total Inferred 45.0 6.7 5.6 0.23 67 17 5,585 230 3,003 25.2
Notes:
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$15/oz Ag, and US$1.00/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$4.70 per % Pb, US$0.18 per gram In, and US$0.22 per gram Ag.
NSR = [Zn(%)*US$15.34+Pb(%)*US$4.70+ In(g/t)*US$0.18+Ag(g/t)*US$0.22]
ZnEq = NSR/US$15.34
uncertainty as to their existence, and as to their economic and legal feasibility. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration. United States investors are cautioned not to assume that all
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.
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is “manto” style CRD, but mantos are stacked at South and West Ayawilca – greatest thickness and highest grades
target high-grade resources at shallow depths, with the potential for bulk underground mining
Best grades and thickness
+ +
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well above the average grade of Zinc Zone resource
zinc and 25.9 m @11.8% zinc and 28.7 m @ 14.0% zinc and 14.9 m @ 12.3% zinc
32.6% zinc at edge of resource
g/t silver
silver with 4.9% zinc and 7.9 m @ 150 g/t silver with 6.1% zinc
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2019-2020:
2020-2021:
Resource Definition
PEA
& targeted drilling
Prefeasibility Study & Engineering Feasibility Study & Permitting
Production 2015-2019...
2019-2020
2020-21? 2021-22? 2023?
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8,003 metres drilled in 45 holes (2006-2014)
Notes: : Resources estimated by Roscoe Postle Associates Inc. (RPA)
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$24/oz
resource estimates and assumptions.
Class/Zone Tonnage (Mt) Ag (g/t) Ag (Moz) Indicated High Grade Lenses 2.9 112 10.4 Low Grade Halo 4.5 27 3.9 Total Indicated 7.4 60 14.3 Inferred High Grade Lenses 2.2 105 7.5 Low Grade Halo 6.2 28 5.7 Total Inferred 8.5 48 13.2
prices or an adjunct operation to a zinc mine
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discovered a new high grade silver zone at South Ayawilca
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Zinc Zone Indicated Mineral Resources
NSR US$/t Cut-off Tonnage (Mt) ZnEq (%) Zn (%) Pb (%) Ag (g/t) In (g/t) 40 13.6 7.4 6.3 0.16 15 75 50 12.4 7.9 6.7 0.17 15 80 55
(Base Case)
11.7 8.1 6.9 0.16 15 84 60 10.8 8.5 7.2 0.16 16 89 70 9.4 9.2 7.7 0.15 16 99 80 7.9 10.0 8.4 0.15 17 111 NSR US$/t Cut-off Tonnage (Mt) ZnEq (%) Zn (%) Pb (%) Ag (g/t) In (g/t) 40 52.7 6.2 5.2 0.24 17 60 50 48.1 6.5 5.4 0.24 17 64 55
(Base Case)
45.0 6.7 5.6 0.23 17 67 60 41.5 7.0 5.8 0.23 18 70 70 33.9 7.6 6.4 0.22 18 78 80 26.9 8.3 6.9 0.22 20 86
Zinc Zone Inferred Mineral Resources
See resource table for notes and ZnEq calculations
used, which would allow a higher throughput operation extracting more of the resources
500 750 1,000 1,250 1,500 1,750 2,000 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044
Annual Silver Production (koz) Annual Zinc and Lead Production (tonnes)
Annual Metal Production in Concentrates
Zn recovered to Zn concentrate (left) Pb recovered to Pb-Ag concentrate (left) Ag recovered to Pb-Ag concentrate (right)
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Mining and Resources
Saleable Products
Operating Cost Description Cost per Tonne Processed Mining – Room & Pillar US$38.06 Mining – Post & Pillar US$35.29 Average Mining Cost US36.66 Processing US$6.44 G&A US$5.48 Total Opex US$48.58
Suite 1305 - 1090 West Georgia St Vancouver, BC V6E 3V7 CANADA Ph: +1 604 699-0202 Fax: +1 604 683-1585
CORPORATE OFFICE FOR MORE INFORMATION
info@tinkaresources.com
Rob Bruggeman, Investor Relations
rbruggeman@tinkaresources.com +1 416 884-3556
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