TSXV & BVL:TK | OTCPK: TKRFF www.tinkaresources.com
Corporate Presentation September 2018 Disclaimer This presentation - - PowerPoint PPT Presentation
Corporate Presentation September 2018 Disclaimer This presentation - - PowerPoint PPT Presentation
TSXV & BVL:TK | OTCPK: TKRFF www.tinkaresources.com Corporate Presentation September 2018 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
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
- ther 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, 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, timing and completion of any surface rights agreements, and other development and operating risks. Should any
- ne 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. Cautionary Note to United States Readers Concerning Mineral Resources and Reserves: The standards employed in estimating the mineral resources referenced in this document differ significantly from the requirements of the United States Securities and Exchange Commission (the “SEC”) and the resource information reported may not be comparable to similar information reported by United States companies. The term “resources” does not equate to “reserves” and normally may not be included in documents filed with the SEC. “Resources” are sometimes referred to as “mineralization” or “mineral deposits.” While the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are recognized and required by Canadian regulations, they are not defined terms under standards in the United States and normally are not permitted to be used in reports and registration statements filed with the SEC. The estimation of measured, indicated and inferred mineral resources involves greater uncertainty as to their existence and economic feasibility than the estimation of proven and probable reserves. United States readers are cautioned (i) not to assume that measured or indicated resources will be converted into reserves and (ii) not to assume that estimates of inferred mineral resources exist, are economically or legally minable, or will be upgraded into measured or indicated mineral resources. It should not be assumed that further work on the stated resources will lead to mineral reserves that can be mined economically. The terms “mineral reserve,” “proven mineral reserve” and “probable mineral reserve” are Canadian mining terms defined in accordance with National Instrument 43- 101 and the CIM Definition Standards on Mineral Resources and Mineral Reserves. These definitions differ from the definitions in the SEC’s Industry Guide 7 and, generally, are not permitted to be used in reports and registration statements filed with the SEC. As such, information contained in this document and the documents incorporated by reference herein concerning descriptions of mineralization and resources under Canadian standards may not be comparable to similar information made public by United States companies in SEC filings. 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 November 8, 2017, while the Silver Resources were released on Feb 26, 2015. By virtue of his education and relevant experience, Mr. Ross is a "Qualified Person" for the purpose of National Instrument 43-101. The Mineral Resources have been classified in accordance with CIM Definition Standards for Mineral Resources and Mineral Reserves. Readers are encouraged to read the Company’s technical report in their entirety. 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 43-101.
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Disclaimer
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Company Highlights
Large, growing high-grade zinc discovery in Peru
Inferred Mineral Resources Nov’ 2017: ▪ Zinc – 42.7 million tonnes @ 7.3% ZnEq* containing 5.6 billion pounds zinc metal ▪ Tin – 10.5 million tonnes @ 0.70% tin equivalent** ~20,000m of step-out drilling in 2018 Resource update expected Q4 2018 Technical team with past discoveries in Peru CAD$15 million cash position at July 2018 Fully funded for next 18 months Advancing drill permitting for PFS phase Strong institutional investor base Mining-friendly jurisdiction with supportive communities and good infrastructure
Ayawilca
Peru
* 6.0% Zn, 0.2% Pb, 17g/t Ag, 79g/t In ** 0.63% Sn, 0.23% Cu, 12 g/t Ag
TINKA’S AYAWILCA
PROJECT IS A LARGE AND GROWING ZINC DISCOVERY IN PERU
2018 – CONTINUED
EXPLORATION AND DE-RISKING AT
AYAWILCA STRONG COMPANY
FUNDAMENTALS
Total 2017 zinc consumption was 13.7 M tonnes, while production was 13.2 M tonnes = a zinc deficit which is expected to continue Steady demand growth is expected for galvanized steel used in automobiles and in construction by developing countries like China, India, Latin America Zinc has been used in batteries for decades – recent research estimates low cost zinc-air batteries could substantially increase zinc demand
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Zinc Supply & Demand
Galvanizing 50% Zinc Alloying 17% Brass and Bronze 17% Zinc Semi- Manufactures 6% Chemicals 6% Other 4%
Zinc End Uses
Wood Mackenzie: Lack
- f new Zinc projects will
make replacement of production challenging
Source: Nexa Resources S.A. Source: International Lead and Zinc Study Group (ILZSG)
Zinc prices have fallen 34% from the February 2018 peak due to USD strength, concerns about China demand due to US tariffs, and a build in LME inventories While LME inventories have risen, TOTAL inventories are now lower than at the February peak, indicating that the zinc market remains very tight Goldman Sachs research (July 2018) forecast zinc prices moving back to US$3300/t (US$1.50/lb) by Q2 2019
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Zinc Inventories Remain Low
Source: Scotiabank
Total Zinc Inventories
Zinc price (USD/t) LME inventories (tonnes)
A decade of low zinc prices resulted in a lack of exploration and new discoveries Ayawilca is one of the largest undeveloped zinc projects owned by a junior South32 acquired Arizona Mining for USD$1.6 billion in 2018
- Taylor deposit resource: 31.4 Blbs zinc equivalent ➔ takeover EV=USD$1.6B
- Nov. 2017 Ayawilca resource: 5.6 Blbs zinc equivalent ➔ EV=USD$84M
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Scarcity of Large Undeveloped Zinc Projects
Fireweed-Tom&Jason NEXA-Aripuana
Tinka- Ayawilca
Zinc X-Akie Rathdowney-Olza Trevali-Caribou Vendetta-Pegmont Trevali-Santander Foran-McIlvenna Bay NEXA-Vazante NEXA-Cerro Lindo NEXA-Shalipayco
- 1.0
2.0 3.0 4.0 5.0 6.0
- 10
20 30 40 50 60 70 Global Resource Zinc Equivalent (Mt) Global Resource Size (Mt)
Zinc Equivalent Resource Size for Select TSX/TSXV Companies
Producing mine Development project Ayawilca project
Notes:
- Data from company websites, believed to be accurate
- ZnEq based on spot metal prices on Aug. 14, 2018
- Global resources include Measured & Indicated and Inferred resources. Vazante and Cerro Lindo data reflects Reserves.
Ayawilca Resource in 2018
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Market Capitalization
TSXV & BVL: TK | OTCPK: TKRFF Shares Issued: 263 M Warrants: 31 M Options: 12 M Shares reserved: 0.5 M Fully diluted: 307 M Market cap @ C$0.40/share: C$105 M Cash (July 2018): ~C$15 M
Retail 42% Sentient 25% IFC 12% JPMorgan (UK) 7% Other institutions 13% Mgmt & Directors 2%
Major Shareholders:
CAD$
Analyst Coverage:
GMP Securities – Ian Parkinson Industrial Alliance – George Topping Canaccord Genuity – Kevin MacKenzie
MANAGEMENT
Graham Carman President & CEO, Director
Geologist, PhD Lihir PNG, 25 years experience in mineral exploration, 15 yrs Peru experience at Rio Tinto, Savage, Pasminco
Alvaro Fernandez- Baca VP Exploration, Peru
Geologist, P. Geo., APEGBC, 20 years global exploration work with Hochschild, AQM Copper, Entrée Gold, Gitennes
Javier Escudero HSEC Manager, Peru
Health, Safety, Environment, Community & Permits – 18 years experience with Goldfields, Rio Tinto, Cia. Minera Antamina
Nick Demare CFO, Director
CPA, CA, President of Chase Management Inc. since 1991, with extensive board experience
Mariana Bermudez Corporate Secretary
20 years experience providing corporate secretarial and regulatory compliance services
NON-EXECUTIVE 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, over 20 years’ experience as a mining professional and a mining investment professional
Mary Little
Founder Mirasol Resources, geologist, MBA, 20 years in Latin America
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Management & Directors
Mineral Rank in World 2016 Latin America 2016 Zinc 2nd 1st Copper 3rd 2nd Tin 6th 2nd Lead 4th 1st Silver 2nd 2nd Gold 6th 1st
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Peru – A Mining Country
Pro-mining country – mining accounts for over 50% of exports Peru is a top 3 global producer of zinc, copper, and silver
Ayawilca Project
* Only large mineral deposits shown
Las Bambas
Antamina
Central Peru zinc belt
CHILE BOLIVIA BRAZIL ECUADOR
San Rafael
Source: US Geological Survey
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Major Mines in Central Peru
Antamina: Largest current copper/zinc mine in Peru Cerro de Pasco: Largest historic silver/zinc mine in Peru
Giant Ore Deposit
Tinka owns 100% of large mining claim block: 150 km2 contiguous land package Good infrastructure including public roads, high voltage power lines, and water sources 7 hour drive to coast on well formed public roads Supportive local communities (Yanacocha, Huarautambo, and Pillao)
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Ayawilca Mining Claims
Ayawilca zinc & tin mineral resource Colquipucro silver mineral resource Other Targets
Ayawilca Zinc Zone Inferred Mineral Resources: 42.7 Mt grading 7.3% ZnEq
Notes:
- 1. Mineral resource estimate at October 10, 2017
2. Base case highlighted ~ US$55/t NSR cut off. Metal price assumptions were US$1.15/lb Zn, US$300/kg In, US$18/oz Ag, US$1.10/lb Pb. Metal recovery assumptions were 90% Zn, 75% In, 60% Ag, and 75% Pb for the ZnEq calculation. 3. 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 4. The ZnEq value was calculated using the formula: ZnEq = NSR/US$15.34 5. See “Technical Report on the Mineral Resource Estimate for the Ayawilca Property, Department of Pasco, Peru” dated December 11, 2017, for details of resource estimates and assumptions (available at www.sedar.com or at www.tinkaresources.com) 6. “Inferred Mineral Resources” are that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity. An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral
- Reserve. 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 or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are cautioned not to assume that further work on the stated resources will lead to mineral reserves that can be mined economically.
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Ayawilca Zinc Zone
Area Tonnage (Mt) ZnEq (%) Zn (%) Pb (%) In (g/t) Ag (g/t) Zn (Mlb) Pb (Mlb) In (000 kg) 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
Ayawilca Mineral Resource Estimate updated November 8, 2017 127% increase in Zinc Resources from May 2016
Ayawilca Property Highlights
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Ayawilca is one of most significant zinc discoveries in Peru in the past 20 years Three Separate Deposits:
- 1. Zinc Zone (Zn-In-Ag-Pb) Inferred Mineral
Resource (Nov/17): 42.7 Mt @ 7.3% ZnEq
- Grades: 6.0% Zn, 0.2% Pb, 17g/t Ag, 79g/t In
- 5.6 billion pounds of Zinc (2.5M tonnes)
- 3,400 tonnes of Indium
- 23.3 million ounces of Silver
- 209 million pounds of Lead
- 2. Tin Zone (Sn-Ag-Cu) Inferred Mineral
Resource (Nov/17): 10.5 Mt @ 0.70% SnEq
- Grades: 0.63% Sn, 0.23% Cu, 12 g/t Ag
- 145 million pounds of Tin (66,000 tonnes)
- 53 million pounds of Copper
- 4.2 million ounces of Silver
- 3. Colquipucro Silver Oxide (Ag) Deposit
Mineral Resource (higher grade lenses): 10.4 Moz @ 112 g/t Ag (Indicated) and 7.5 Moz @ 105g/t Ag (Inferred)
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2018 Drill Program – Expanding the Resource
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Ayawilca Long Section Looking Northwest
Zinc (Zn) and tin (Sn) zones occur separately Massive replacement bodies within structural zones in South and West Ayawilca with highest grades and greatest thickness Multiple, gently dipping lenses or ‘mantos’ in Central and East Zones
X X’
New Discovery of HG Zinc at West Ayawilca
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HG Zinc at West Ayawilca: 10m @ 44% Zn
Massive sphalerite Hole A18-129 (40% Zn from 339.4m to 351.3m) Feeder veins in phyllite Hole A18-132 (20% Zn from 320.0m to 326.9m)
New styles of mineralization have recently been encountered at West Ayawilca and create opportunities for additional resource expansion
- High grade sphalerite in limestone under phyllite
- Feeder veins in phyllite underneath existing resource
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West Ayawilca – Step-out drill results in 2018
Drill hole From (m) To (m) Interval (m) Zn (%) Pb (%) Ag (g/t) Indium (g/t) Date Reported A18-114 300.00 319.30 19.30 9.2 0.2 19 2 April 25, ‘18 including 300.00 304.00 4.00 16.2 0.2 26 2 and 351.40 365.80 14.40 12.8 1.9 140 98 including 352.30 354.30 2.00 11.8 12.1 837 292 including 357.00 358.40 1.40 29.2 0.4 58 24 including 361.20 365.80 4.60 16.8 0.1 15 26 A18-118 237.30 343.80 106.50 6.8 0.2 17 48 May 24, ‘18 including 237.30 240.20 2.90 24.1 1.7 109 4 including 252.30 264.10 11.80 6.4 0.2 24 1 including 270.00 293.90 23.90 9.2 0.0 15 14 including 311.90 343.80 31.90 9.6 0.3 19 138 including 334.00 343.80 9.80 17.0 0.1 25 330 A18-129 197.60 218.00 20.40 4.2 0.1 7 1 Jun 26 ’18 and 260.00 281.20 21.20 9.0 0.1 13 53 including 277.00 281.20 4.20 19.2 0.1 17 186 and 290.50 297.00 6.50 11.0 0.1 8 52 and 339.40 351.30 11.90 39.6 0.8 45 761 including 340.60 351.00 10.40 44.0 0.4 43 869
Note: True thicknesses of the zinc intersections are estimated to be at least 85% of the down hole thicknesses shown above
Hole A18-129 encountered a limestone unit beneath phyllite – opens the possibility of mineralization at depth –intercepted 10.4m of 44% zinc Drill intersections in holes A18-114 and A18-118 extended the West Ayawilca zinc zone by at least 150 metres to north, mineralization remains open New “Camp” area mineralization will link West Ayawilca to Central Ayawilca
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West Ayawilca – South Ayawilca cross section
Massive replacement bodies, on scale of hundreds of metres Multiple, gently dipping lenses (‘mantos’) which can be up to 200 m thick Currently testing possibility of additional limestone at depth
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Metallurgical Test Results - Positive
PEA-level flotation test work in progress Two composite samples (grading 7% & 10% Zn) were selected for metallurgical testing (Oct. 2016): ▪ Coarse grained marmatite (high-Fe) and sphalerite (low-Fe) zinc sulphides ▪ 98% recovery of zinc in first pass (rougher) concentrates ▪ 50-52% zinc concentrate grade produced in second pass (cleaner) concentrates ▪ Low manganese levels ▪ Indium reports to the zinc concentrate (150 & 600 ppm In), payable levels
▪ 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 (HSEC)
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Community & Environment
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2018 Work Program – Fully Funded
Continued Exploration to Expand the Mineral Resource
15,000 m of step-out drilling completed, 5,000 m additional ongoing New discoveries at Camp, West Ayawilca high grade, northern extensions of West Ayawilca; Valley and Zone 3 (more drilling planned)
De-risk and Complete PEA
Resource update, metallurgical testwork, engineering studies and PEA by end of 2018 or early 2019 Milestone 2017 2018 2019
Mineral Resource Update Exploration Drilling Metallurgical Testing, Resource Update, PEA PFS
✓
Exploration Development
20,000 m drilled +15,000 m (step-out) + 5,000 m
✓ ✓
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Summary – Ayawilca Project, Peru
New zinc discovery located in a stable, mining-friendly jurisdiction close to infrastructure One of the largest discoveries in Peru in the last 20 years Inferred zinc mineral resource contains 5.6 billion pounds zinc and continues to grow due to exploration drilling success 2018: 15,000 m drilling completed, 5,000 m additional planned Resource update Q4 PEA 2019 Multi-Commodity Exposure Few large Zn deposits coming on stream in near future, strong demand Ayawilca also hosts significant indium, tin, silver, lead Corporate Management team and board of directors with extensive experience and success in Peru Supportive long term shareholders
APPENDIX
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Ayawilca - Magnetic Anomalies
South Ayawilca Chaucha Zone 3 West Ayawilca
2018 Drill Targets
Valley Rock samples to 19% Pb, 9% Zn, and 500 g/t Ag (not drill permitted) Yanapizgo Central Ayawilca
Drill permits granted in February 2017 - allow up to four years of drilling Lots of drill targets permitted 39,000 metres drilled in 2017 & 2018 to date 26,000 metres drilled from discovery in 2013 to 2017
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Ayawilca Tin Zone
Tin is currently trading at US$9.00/lb, approximately 7.5x the value of zinc Tin is primarily used in tin plated steel, chemicals, solder, and alloys Minsur operates the San Rafael tin mine in Peru and also operates a tin smelter and a tin refinery in Peru Ayawilca is believed to be one of the only other major tin resources in Peru
A17-56 drill hole – first hole in 2017 drill campaign
Ayawilca Tin Zone Inferred Mineral Resources
Notes:
- 1. Mineral resource estimate at October 10, 2017
2. Base case highlighted ~ US$55/t NSR cut off. Metal price assumptions were: US$9.50/lb Sn, US$3/lb Cu, and US$18/oz Ag. Metal recovery assumptions were: 86% Sn, 75% Cu, and 60% Ag for the SnEq calculation. 3. The NSR value was calculated using the formula: US$NSR = [Sn(%)*US$164.53+Cu(%)*US$39.95+Ag(g/t)*US$0.27]] 4. The SnEq value was calculated using the formula: SnEq = NSR/US$164.53 5. See “Technical Report on the Mineral Resource Estimate for the Ayawilca Property, Department of Pasco, Peru” dated December 11, 2017, for details of resource estimates and assumptions (available at www.sedar.com or at www.tinkaresources.com) 6. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued
- exploration. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be
converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists,
- r is economically or legally mineable.
NSR US$/t Cut-off Tonnage (Mt) SnEq (%) Sn (%) Cu (%) Ag (g/t) 40 10.9 0.68 0.61 0.23 12 50 10.7 0.70 0.62 0.23 12 55
(Base Case)
10.5 0.70 0.63 0.23 12 60 9.9 0.72 0.64 0.24 13 70 8.3 0.78 0.70 0.24 13
Tin Inventories Tin Price
Source: Westmetall.com
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South Ayawilca 2017 Drill Result Highlights
Drill hole From (m) To (m) Interval (m) Zn (%) Pb (%) Ag (g/t) Indium (g/t) Date Reported A17-56 126.00 189.90 63.90 5.6 0.1 17 29 March 6/17 including 127.50 145.40 17.90 11.6 0.2 36 20 March 6/17 including 127.50 133.30 5.80 22.5 0.3 77 50 March 6/17 and 228.50 233.70 5.20 12.9 11 162 March 6/17 and 242.00 293.9* 51.90 10.1 0.1 62 233 April 3/17 including 279.00 293.90 14.90 20.6 0.2 152 441 April 3/17 including 279.00 285.40 6.40 37.5 0.4 301 916 April 3/17 A17-57 157.60 197.70 40.10 9.1 0.2 22 168 April 3/17 including 168.20 177.80 9.60 16.8 0.1 22 299 April 3/17 and 264.00 279.30 15.30 20.0 2.5 102 263 April 3/17 including 265.75 269.00 3.25 34.5 2.1 96 196 April 3/17 including 274.40 277.70 3.30 42.7 0.6 61 908 April 3/17 A17-096 241.50 287.00 45.50 7.8 0.0 8 111 October 2/17 including 250.80 261.40 10.60 15.5 0.1 23 320 October 2/17 and 298.40 300.10 1.70 7.3 0.0 7 46 October 2/17 and 304.80 308.60 3.80 8.3 0.0 6 82 October 2/17 and 315.20 356.00 40.80 9.4 0.1 15 145 October 2/17 including 319.00 324.00 5.00 17.2 0.0 28 591 October 2/17 including 342.60 354.50 11.90 17.4 0.1 20 80 October 2/17
All assays are calculated using a zinc cut off grade of 2% Zn over a 6 metre interval. True thickness of the zinc intersections are estimated to be at least 85% of the down hole thickness.
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
- Dr. Graham Carman, President & CEO
info@tinkaresources.com
Rob Bruggeman, Investor Relations
rbruggeman@tinkaresources.com +1 416 884-3556
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