Post on 05-Jun-2018
TSXV & BVL:TK / OTCPK:TKRFF www.tinkaresources.com
Tinka Resources Ltd.
January 2018 Presentation
2018 – Continued Exploration Drilling & De-Risking of the Ayawilca Zinc Project in Peru
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, 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 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.
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
cannot be assumed that Tinka will identify any viable mineral resources on its properties or that any mineral reserves, if any, can be recovered profitably, if at all.
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.
2
Disclaimer
3
Company Highlights
High-grade zinc discovery at South Ayawilca in
2017 - drill intercepts included 52 m @ 10% zinc &
15 m @ 20% zinc
Awarded “Explorer of the Year Americas 2017”
by Mining Journal
Inferred Mineral Resources more than doubled
(Nov. 2017):
42.7 million tonnes @ 7.3% ZnEq containing 5.6 billion pounds zinc metal and
10.5 million tonnes @ 0.70% tin equivalent
High leverage to zinc prices – zinc is 82% of ZnEq
Follow up on new discovery at Zone 3
Metallurgical testing for Zinc & Tin
Commence engineering and PEA
Exploration drilling continues to test repetitions
and new zones
Technical team with past discoveries in Peru
~C$6 million cash
Strong and growing institutional investors
Supportive communities
Ayawilca
Peru
* See slide 11 for complete
mineral resource estimate
details
TINKA’S AYAWILCA
PROJECT IS A LARGE
AND GROWING ZINC &
TIN DISCOVERY IN
CENTRAL PERU
2018 – CONTINUED
EXPLORATION AND DE-
RISKING AT AYAWILCA
STRONG COMPANY
FUNDAMENTALS
Zinc mine supply has declined due to mine closures (Century, Lisheen) and delays in
new projects (e.g. Dugald River)
China has been shutting down zinc and lead mines due to safety/environment issues
Zinc inventories are expected to reach critical levels in 2018
4
Zinc Inventories Approaching Critical Levels
Source: Westmetall.com
Zinc Inventories
Zinc Price
LME Zinc stock (1,000 tonnes)
1,250
1,000
750
500
250
Current zinc market projections suggest a 3.5 Mt production gap by 2030
Zinc exploration and development has been underfunded for the past decade
Tinka’s Ayawilca project is an attractive development prospect due to its large size,
high grade, exploration potential, and attractive jurisdiction
5
New Zinc Mines Need to be Developed
Lack of Zinc Projects Will Make Replacement of Production Challenging – Wood Mackenzie
Source: Nexa Resources S.A.
6
Market Capitalization
TSXV & BVL: TK / OTCPK: TKRFF
Shares Issued: 224.7 M
Warrants: 14.2 M* 1.8 M at C$0.20 expire Nov. 2018
12.4 M at C$0.45 expire May 2020
Options: 10.1 M
Shares reserved: 0.5 M
Fully diluted: 249.5 M
Market cap @ C$0.69/share: C$155 M
Current cash: ~C$6 M * 7.8 M warrants held by IFC and 3.5 M warrants
held by Sentient
CAD$
Analyst Coverage:
GMP Securities – Ian Parkinson
Beacon Securities – Michael Bandrowski
Industrial Alliance – George Topping
Canaccord Genuity – Kevin MacKenzie
Retail 44%
Sentient
25% IFC 12%
JPMorgan
(UK) 7%
Other
institutions
10%
Mgmt &
Directors
2%
Major Shareholders:
Drilling
Commenced
Drill
Results
Resource Update
7
Mineral Resource Valuation Comparison
Resource valuation generally increases as resources increase in size and as projects
are de-risked and moved toward production
Tinka’s objectives are to further increase the size of the mineral resource through
exploration drilling AND de-risk the known resource (metallurgy, engineering, PEA)
Source: Company websites and available public disclosure as at Jan. 18, 2018. Zinc equivalent calculations based on spot prices and
do not include tin for Tinka. Tinka Resources cannot guarantee the accuracy or completeness of the data.
Note that Resources shown include Inferred Resources – please see the disclaimer on p2 regarding Inferred Resources.
$0.00
$0.01
$0.02
$0.03
$0.04
Arizona Mining Aquila Resources Tinka Resources
EV
(USD
)/Zn
Eq
(lb
s in
to
tal re
sou
rce
s)
In Situ Resource Valuation - Zinc Equivalent
Stage: PEA completed PEA completed Pre-PEA
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
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
Ben McKeown Mining engineer, MBA, with 25 years experience in mining, oil & gas, and private equity
8
Management & Directors
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
9
Peru – A Mining Country
Pro-mining country – mining accounts for over 50% of exports
Former World Bank economist elected as President in July 2016
Peru is a top 3 global producer of zinc, copper, tin, and silver
Ayawilca
Project
* Only large mineral deposits shown
Las Bambas
Antamina
Central Peru
zinc belt
CHILE
BOLIVIA
BRAZIL
ECUADOR
San Rafael
10
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 the 150 km2
contiguous mining claims
1% NSR royalty, can be acquired by
Tinka for USD$1 million at any time
Excellent infrastructure including
public roads and high voltage power
lines, multiple water sources
Supportive local communities
(Yanacocha, Huarautambo, and
Pillao)
Multiple untested targets on property
11
Ayawilca Mining Claims
Ayawilca zinc & tin
mineral resource
Colquipucro silver
mineral resource
Other
Targets
12
Ayawilca Property Highlights
Ayawilca is one of most significant zinc
discoveries in Peru in the past 20 years
One Property, Three Deposits: 1. Zinc Zone (Zn-In-Ag-Pb) Inferred Mineral
Resource (Nov. 2017): 42.7 Mt @ 7.3% ZnEq
o Grades: 6.0%Zn, 0.2%Pb, 17g/t Ag, 79g/t In
o 5.6 billion pounds of Zinc (2.5M tonnes)
o 3,400 tonnes of Indium
o 23.3 million ounces of Silver
o 209 million pounds of Lead
2. Tin Zone (Sn-Ag-Cu) Inferred Mineral
Resource (Nov. 2017): 10.5 Mt @ 0.70% SnEq
o Grades: 0.63% Sn, 0.23% Cu, 12 g/t Ag
o 145 million pounds of Tin (66,000 tonnes)
o 53 million pounds of Copper
o 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)
13
Robust Resource – Grade is King
Ayawilca is a robust resource
due to good geological and
grade continuity
South and West Ayawilca
represent a high-grade core
totalling 22.3 million tonnes
Nov. 2017 resource is based on
US$1.15/lb zinc price and
US$55/t NSR cut-off significant
upside potential
NSR $t/t Cut-off
Tonnage (Mt)
ZnEq% Grade
Zinc % Lead % Indium
g/t Silver g/t
40 47.2 6.9 5.6 0.2 74 16
50 44.6 7.1 5.8 0.2 77 17
55 42.7 7.3 6.0 0.2 79 17
60 40.1 7.5 6.1 0.2 82 17
70 33.8 8.1 6.6 0.2 92 18
Zinc Mineral Resource NSR Cut-off Sensitivity
13.3
9.5 7.6
9.0 7.2
6.1
13.0
5.7 4.7
7.5 6.2
5.1
42.7
7.3 6.0
Tonnage (Mt) ZnEq (%) Zn (%)
Zinc Zone Inferred Mineral Resources at
Ayawilca (Nov. 2017)
South
West
Central
East
Total
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” 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. 14
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 Inferred tonnage from May 2016 South Ayawilca zone discovery in 2017
Extension of West Ayawilca
Cut-off reduced from US$60/t to USD$55/t
Higher zinc and lead prices, lower indium and silver prices
15
Ongoing Drill Program Continues to Find More Zinc
OPEN
OPEN
OPEN
OPEN
OPEN
12m @ 3% Zn (A17-092)
10.3m @ 7.9% Zn+Pb and
13.5m @ 0.8% Sn (A17-091A)
16
Ayawilca Long Section Looking Northwest
Zinc and tin 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
Y Y’
17
Detailed Sections of Ayawilca
Detail of longitudinal Section Y-Y’ at
South Ayawilca
West Ayawilca E-E’
18
Future Potential (on airborne magnetic image)
South Ayawilca
Chaucha
Zone 3 West
Ayawilca
2018 Drill Targets
Valley
Rock samples to
19% Pb, 9% Zn,
and 500 g/t Ag
Yanapizgo
Central Ayawilca
19
Positive Initial Metallurgical Test Results
Two composite samples (grading 7% & 10% Zn) were selected for
metallurgical testing (Oct. 2016):
Closed-cycle flotation test work in progress – results expected early 2018
Coarse grained sphalerite and marmatite
98% recovery of zinc in first pass (rougher)
concentrates
52% zinc concentrate grade produced in
second pass (cleaner) concentrates
Low manganese levels
Indium reported to the zinc concentrate (150 &
600 ppm In), believed to be 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)
Community Healthcare Education Employment
20
Community & Environment
21
Work Programs & News Flow in 2018
De-risk and Advance Ayawilca
Metallurgical testing of zinc (lead-silver) & tin
Commence engineering studies / PEA H1 2018
Continued Exploration to Expand the Mineral Resource
15,000+ metre drill hole exploration program in 2018 to test extensions
of mineralization and new targets
New discovery at Zone 3 in Dec’17 – 10 metres grading 7.9% Zn+Pb
Milestone 2017 2018
Mineral Resource Update
Exploration Drilling
Metallurgical Testing
Engineering & PEA
Zinc & Lead Tin
Ex
plo
ratio
n
De
ve
lop
me
nt
20,000 m drilled 15,000 m planned (step-out)
?
22
Summary
Ayawilca Project
Zinc & tin project located in central Peru, a stable mining jurisdiction
One of the largest zinc discoveries in Peru in the last 20 years
Updated Inferred zinc mineral resource contains 5.6 billion pounds zinc
Resource step-out drill program ongoing (20,000m drilled in 2017)
2018: 15,000m drilling planned for resource expansion (up to 3 rigs)
Additional metallurgical test work
Engineering and PEA
Multi-Commodity Exposure
Few large Zn deposits coming on stream in near future, strong demand
Ayawilca also hosts significant indium, tin, silver, lead
Corporate
Sufficient cash to fund work well into 2018
Management team and board of directors with extensive experience
and success in Peru
Supportive long term shareholders
24
Ongoing Drill Program
Drill permits granted in February 2017, allow up to four years of drilling
20,000 metres drilled to during 2017 with up to 4 rigs
Another 15,000 metres planned for 2018, commencing at Zone 3 area in January
Drilling program expected to ramp up at the end of the rainy season (April)
A17-56 drill hole – first hole in 2017 drill campaign
Drill Rig Drill Rig
Drill Rig
25
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 0 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.
TIMELINE 2007 -
Jul 2014
Aug 2014 - Jul 2015
Aug 2015 - Dec 2016
Jan 2017 - Dec 2017
Resource
Growth
Initial defined Ag
Mineral Resource at
Colquipucro
Zn discovery at Ayawilca in 2012
Feb. 2015
Initial Inferred Zn
Mineral Resource
(13.3Mt @ 7.7% ZnEq)
Ag Ox Mineral
Resource (14.3Moz
indicated
& 13.2Moz inferred)
May 2016
Updated Inferred
Zn Resource (18.8Mt @
8.2% ZnEq)
New Tin Inferred Mineral
Resource (5.4Mt @
0.89% Sn)
Nov. 2017
Updated Inferred
Zn Mineral Resource
(42.7Mt @ 7.3% ZnEq)
Updated Tin Inferred
Mineral Resource
(10.5Mt @ 0.70% SnEq)
Work Activity
11,000m drilled for
Zn and 6,000m drilled for Ag
6,000m drilled for Zn and 2,000m for Ag
9,000m drilled for Zn &
Sn
Airborne magnetics &
initial Zn metallurgical
tests
Drill program Feb. to
end of 2017 – 17,500m
drilled to date
Additional met testing
commenced
Corporate
Tinka & Darwin
merger July 2014
New CEO and
C$5.3M equity
investment by Sentient
May 2015
C$7.2M financing
(Sentient C$2.0M, IFC
C$4.5M)
Nov. 2016
C$11M brokered
financing completed
Listed on the Lima
Stock Exchange
Coverage from three
brokerage firms
26
History and Important Milestones
ZINC SULPHIDES- matrix replacement of limestones
Massive
sphalerite
(Zn sulfide)
27
Mineralization Styles
Massive Sphalerite
Hole A17-056 Zinc replacement of Magnetite
Hole A17-063
TIN MINERALIZATION – predates zinc
Cassiterite in massive pyrrhotite
Galena vein cutting massive
Pyrrhotite - Hole A17-056
High grade silver
with galena and
sphalerite in
carbonate vein
Hole A17-072
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
28
Tinka Resources Limited