Tinka Resources remains committed to progressing the Ayawilca zinc-silver-tin project towards development. The Company has identified a number of targets as part of its 2024-25 exploration program, which intends to increase both the size and the quality of the resource. Tinka’s program will total 3,000-5,000 meters of step-out drilling at its flagship Ayawilca project. The aim is to improve zinc resources and bring higher-grade mineralization into the middle years of the mine plan, especially around Year 12 in the mine plan, where the existing two pipes drop off. A third pipe-like zinc sulphide body at East Ayawilca (similar to South and West) could improve the mine economics.
The reinterpretation of the deposit’s geological model led to a heightened level of confidence in the configuration of key resource areas and a better grasp of the factors influencing mineralization. The assessment identified several exploration targets with significant size and resource quality enhancement potential. Over the next 12 months, Tinka will test one or more of these targets, many of which remain largely untested.
Apart from Ayawilca, the Company is also focusing on advancing the highly promising Silvia NW copper-gold target, which is anticipated to be fully permitted with a maiden drill program to be launched in the first half of 2025.
Investment Highlights
- Tinka Resources Limited (TSX-V: TK; OTCQB: TKRFF; BVL: TK) (“TK” or “Company”) is a junior mining company focused on advancing its high-grade zinc deposit in Peru. The Company’s key projects include the Ayawilca Project (Peru) and the Silvia Project (Peru).
- Enhancing mine economics at Ayawilca: The Company has identified a number of targets as part of its 2024-25 exploration program, which intends to increase both the size and the quality of the resource. Tinka’s program will total 3,000-5,000 meters of step-out drilling at its flagship Ayawilca project. The aim is to improve zinc resources and bring higher-grade mineralization into the middle years of the mine plan, especially around Year 12 in the mine plan, where the existing two pipes drop off.
- Drilling at the Silvia Copper-Gold project is expected to begin in Hi 2025. In addition to Ayawilca, the Company is prioritizing the advancement of the highly prospective Silvia NW copper-gold target. It is expected to be fully permitted, with an initial drilling program scheduled to commence in the first half of 2025.
- Attractive valuation: Tinka is attractively valued, trading at a significant discount (nearly 80%) to our NAV calculation. Ayawilca represents one of the cheapest zinc projects on an EV/Resources basis, at US$8.1/t, versus the peer group average of US$95.4/t.
- Based on our analysis and valuation models, we update our fair value estimate to C$0.62 per share (earlier C$0.55).
