Tinka Resources Limited
TSX VENTURE : TK
OTC PINK : TKRFF

October 13, 2015 07:00 ET

Tinka Drills 50.5 Metres at 1.23% Tin & 0.16% Copper at Ayawilca

Including 2.5 metres at 8.81% tin & 0.18% copper

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 13, 2015) - Tinka Resources Limited ("Tinka" or the "Company") (TSX VENTURE:TK)(OTC PINK:TKRFF) is pleased to announce its first discovery of high-grade tin mineralization over a substantial thickness at the Ayawilca project, central Peru. The high-grade discovery is part of a larger tin-copper mineralized layer located below and separate to the Ayawilca Zinc Mineral Resource (13.3 million tonnes grading 5.9% zinc, 0.2% lead, 68g/t indium, 14g/t silver Inferred; PR February 26, 2015) defined by the Company in 2014. The Company is currently midway through a step-out drill program of up to 20 holes focussing on extending the resource inventory.

Drill highlights:

  • A15-40: 50.5 metres at 1.23% tin, 0.16% copper and 15g/t silver from 328.0 m depth, including:
    • 13.0 metres at 2.94% tin, 0.25% copper and 12g/t silver from 328.0 m depth, including:
    • 2.5 metres at 8.81% tin, 0.18% copper and 10g/t silver from 330.0 m depth;
  • True thickness of the tin-copper intercepts in hole A15-40 are estimated to be at least 90% of down-hole length;
  • Tin-copper mineralization occurs within a flat-lying sulphide (pyrrhotite) lens beneath but separated from the zinc-dominant sulphide mineralization;
  • A15-40 also intersected 8.0 metres at 5.3% zinc & 91g/t indium from 233.8 metres depth (zinc results for the first 7 step-out holes were reported on September 29, 2015);
  • Tin occurs mostly as cassiterite, the most common ore mineral of tin;
  • Next steps: Follow-up drilling is underway to test extensions to the west and east of drill hole A15-40, where mineralization remains open for both tin-copper and zinc.

Dr. Graham Carman, Tinka's President and CEO, stated: "The discovery of high-grade tin-copper mineralization at Ayawilca is very important for Tinka shareholders. The tin and copper mineralization has so far been identified over an area covering 1.2 kilometres by 250 metres. Tin is valued at about US$15,900 per tonne in the world metal markets, more than 3 times copper (US$5,135 per tonne) and 9 times zinc (US$1,667 per tonne) using LME prices as at Oct. 8, 2015."

"We are extremely pleased with the drill results to date, and the Ayawilca project continues to exceed management's expectations and with continued positive drill results could, in our opinion, become one of the largest greenfields zinc and tin discoveries in recent times. Tinka is continuing to work towards an initial tin-copper resource estimate in 2016, as well as expanding the zinc resource. We will announce the results of drill holes A15-41 to -45 once the zinc and tin assays become available."

2015 Ayawilca Drill Program

The 2015 program is focusing on drill testing extensions of the Inferred Mineral Resource at East, Central and West Ayawilca (Figure 1). Up to twenty step-out holes are planned using two diamond drill rigs. Drilling is likely to continue until early-mid November 2015, when the Company will take a break from drilling to compile and interpret the new results and plan the 2016 work program.

The zinc and tin-copper mineralization is interpreted to be generally gently-dipping, replacing favourable sedimentary units. True widths of the zinc intercepts are interpreted to be at least 75% of the down-hole lengths, except where indicated (see Table 1). Table 2 summarises the drill hole collar information to date.

Geology of Ayawilca

Zinc mineralization at Ayawilca occurs as massive to semi-massive sulphide replacements of Mesozoic limestone up to 250 metres thick (Pucara Group). The zinc mineralization is interpreted to be hosted mostly by gently-dipping replacement bodies or 'mantos', with feeders which are sub-vertical to steeply-south dipping. The zinc occurs as sulphide impregnations (sphalerite) accompanied by abundant pyrite, pyrrhotite, chlorite, iron carbonate, and/or magnetite. Minor sulphides include galena, chalcopyrite, and arsenopyrite. The Pucara limestone is overlain by Cretaceous sandstone (Goyllarisquizga Group) about 150 metre thick. The sandstone largely forms a barren cap to the mineralization, although narrow sphalerite-rich sub-vertical veins (<1 - 3 metres across) cut the sandstones and occasionally outcrop at the surface at West Ayawilca.

Massive to semi-massive pyrrhotite mantos, which occur at or near the base of the Pucara Group limestone, host the disseminated tin and copper mineralization. The pyrrhotite bodies are magnetic, and are the main source of the strong geophysical anomalies. The pyrrhotite-tin-copper mantos vary in thickness from a few metres to up to 50 metres thick. Sulphide stockwork veins occur beneath the mantos hosted within the underlying metamorphic rocks (Excelsior Group).

The Ayawilca project is located in the high Andes Mountains at elevations of between 4000 and 4300 metres. Ayawilca would likely be mined, if proven to be economic, using underground mining methods accessed by horizontal portals at lower elevations.

Tin and copper mineralogy

Based on a mineralogical study of eight tin-bearing samples from seven drill holes in 2014 (PR November 25, 2014), tin at Ayawilca occurs predominantly as cassiterite (tin oxide), the most common ore mineral of tin, with minor stannite (tin-copper sulphide). Almost half of the cassiterite was coarse-grained (> 0.3 mm), providing the opportunity for possible gravity separation of the coarser tin fractions in any future mining operation. Copper was predominantly as chalcopyrite (copper sulphide).

The qualified person, Dr. Graham Carman, Tinka's President and CEO, and a Fellow of the Australasian Institute of Mining and Metallurgy, has reviewed and verified the technical contents of this release.

About Tinka Resources Limited

Tinka is an exploration and development company with projects in Peru. Tinka's focus is on its 100%-owned Ayawilca and Colquipucro projects in the highly mineralized zinc-lead-silver belt of central Peru, 200 kilometres north of Lima. The Ayawilca project (Inferred Mineral Resource of 13.3 Mt @ 5.9% Zn, 0.2% Pb, 68g/t In, 14g/t Ag, Feb' 26, 2015) has the potential to be a major zinc sulphide discovery located 40 kilometres from Peru's largest historic zinc mine at Cerro de Pasco. The adjacent Colquipucro silver oxide project (Indicated Mineral Resource of 7.4 Mt @ 60g/t Ag for 14.3 Moz Ag and Inferred Mineral Resource of 8.5 Mt @ 48 g/t Ag for 13.2 Moz Ag, Feb' 26, 2015) is a near-surface, sandstone-hosted, silver oxide deposit.

On behalf of the Board,

Dr. Graham Carman, President & CEO

Forward Looking Statements: Certain information in this news release 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, without limitations, the successful completion of the current and future drill programs, the interpretation and actual results from the drill programs, the Company's expectations regarding mineral resource calculations, capital and other costs varying significantly from estimates, production rates varying from estimates, changes in world metal markets, changes in equity markets, uncertainties relating to the availability and costs of financing needed in the future, equipment failure, unexpected geological conditions, imprecision in resource estimates or metal recoveries, success of future development initiatives, 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Notes on drill results in Table 1:

All drill holes are diamond HQ bore holes. The down-hole zinc intersections, using a 1% Zn cut-off grade (over 6 metre intervals), are summarized in Table 1. High-grade zinc intersections use a 3% Zn cut-off grade. Tin - copper intersections are calculated using a 0.2% tin or copper cut off.

Notes on core sampling:

All holes are diamond cores with recoveries generally at or close to 100%. The drill core is marked up, logged, and photographed on site. The cores are cut in half at the Company's core storage facility with half-cores stored as a future reference. The other half-core is bagged on average over 2 metre composite intervals and sent to SGS laboratory in Lima for assay in batches. Standards, blanks and duplicates are inserted by the Company for quality control purposes. At the laboratory, samples are dried, crushed to 100% passing 2mm, with 500 grams pulverized for multi-element analysis by ICP using multi-acid digestion. Samples assaying over 1% zinc, lead, or copper are reassayed using precise ore-grade AAS techniques.

Samples which assayed approximately 200 ppm tin or greater in the ICP analysis were re-assayed for tin by fusion with sodium peroxide and AAS finish (SGS Lima laboratory method SGS-MN-ME-112). The fusion results are presented in Table 1, where available. The high-grade tin interval in A15-40 (50.5 metres) was check assayed by XRF pressed powder technique (ALS Lima laboratory method ME-XRF15b) with the results being the same as fusion within analytical uncertainty. Gold was assayed by fire-assay with a 30g charge using an AAS finish, but has not been routinely assayed due to very low gold values found in most samples.

Table 1. Highlights of 2015 Drill Results at Ayawilca (New results highlighted)
Drillhole From
(m)
To
(m)
Int
(m)
Zn
(%)
Pb
(%)
Ag
(g/t)
Cu
(%)
Sn
(%)
In
(g/t)
Au
(g/t)
A15-40 55.00 62.00 7.00 3.89 0.00 3 -0.01 -0.01 1 N/A
and 201.60 253.20 51.60 2.09 0.21 7 0.04 0.01 27 N/A
including 233.80 241.75 7.95 5.31 0.04 9 0.07 0.02 91 N/A
and 300.20 301.20 1.00 7.67 0.14 36 0.06 0.02 140 N/A
and 328.00 378.50 50.50 0.32 0.03 15 0.16 1.23 9 N/A
including 328.00 341.00 13.00 0.05 -0.01 12 0.25 2.94 8 N/A
including 330.00 332.50 2.50 0.02 -0.01 10 0.18 8.81 4 N/A
A15-39 182.60 183.60 1.00 9.64 0.01 10 0.03 -0.01 23 N/A
and 294.80 303.20 8.40 3.29 0.13 9 0.01 0.06 56 N/A
and 320.00 350.00 30.00 3.53 0.10 7 0.01 0.08 50 N/A
including 329.25 331.00 1.75 18.87 0.01 27 0.01 0.07 226 N/A
and 370.00 452.00 82.00 0.01 -0.01 5 0.22 0.33 3 N/A
including 370.00 420.00 50.00 0.01 -0.01 6 0.25 0.52 3 N/A
including 380.00 388.00 8.00 -0.01 -0.01 3 0.19 1.43 1 N/A
A15-38 236.60 280.00 43.40 3.65 0.08 13 0.06 0.08 63 N/A
including 268.00 278.00 10.00 5.90 0.02 16 0.08 0.18 119 N/A
and 294.00 303.30 9.30 4.20 0.02 5 0.03 0.11 31 N/A
and 312.00 328.00 16.00 1.83 -0.01 1 0.03 0.06 46 N/A
and 354.00 360.70 6.70 2.25 -0.01 2 0.05 0.04 46 N/A
and 372.70 379.00 6.30 2.46 -0.01 1 0.02 0.1 22 N/A
and 379.00 388.00 9.00 0.04 -0.01 4 0.26 0.04 5 N/A
A15-37 84.00 89.60 5.60 3.12 0.33 26 0.02 -0.01 50 N/A
and 475.50 481.90 6.40 4.16 0.74 25 0.03 0.07 53 N/A
and 481.90 485.20 3.30 0.16 0.03 13 0.11 0.26 3 N/A
A15-36 79.70 87.00 *7.30 7.10 1.29 194 0.12 -0.01 53 0.24
and 344.50 354.00 9.50 4.00 0.01 2 0.05 0.07 74 N/A
and 360.00 399.35 39.35 0.27 0.06 19 0.11 0.21 26 N/A
A15-35 162.00 190.00 28.00 3.26 0.78 25 0.06 0.06 10 N/A
and 196.00 246.00 50.00 2.97 0.33 12 0.02 0.1 31 N/A
including 202.00 216.00 14.00 3.78 0.04 6 0.02 0.1 19 N/A
including 238.00 246.00 8.00 4.74 0.06 19 0.05 0.17 67 N/A
and 262.00 302.00 40.00 2.26 0.03 3 0.02 -0.01 9 N/A
including 288.00 296.00 8.00 3.53 0.04 8 0.06 -0.01 6 N/A
and 340.00 354.15 14.15 0.31 0.00 1 0.16 0.36 12 N/A
A15-34 98.00 99.30 1.30 5.64 0.18 92 0.14 -0.01 138 N/A
and 364.00 368.00 4.00 1.50 0.12 6 0.02 -0.01 -1 N/A
and 418.00 426.00 8.00 1.41 0.22 8 0.02 0.01 5 N/A
Notes to Table 1: In the case of tin, true widths are at least 90% of down-hole length due to the flat-lying mineralization. True widths of the zinc intercepts are believed to be at least 75% of the down-hole widths (except where marked with * in hole A15-36 where true thickness is estimated to be approx. 30% of down-hole length) as the mineralization is interpreted to be generally gently dipping. N/A Not assayed.
Table 2. Drill hole collar coordinates and hole details
Drill
Hole
PSAD56
East
PSAD56
North
Elevation Total
depth
Azimuth Dip Comment
A15-34 333,713 8,846,592 4,209 435.6 000 -70 Reported Sep' 29 2015
A15-35 333,720 8,846,129 4,138 385.7 180 -75 Reported Sep' 29 2015
A15-36 333,904 8,846,291 4,113 425.8 180 -80 Reported Sep' 29 2015
A15-37 333,858 8,846,620 4,198 509.1 000 -60 Reported Sep' 29 2015
A15-38 333,884 8,846,090 4,118 441.1 000 -90 Reported Sep' 29 2015
A15-39 333,698 8,845,727 4,185 568.3 000 -75 Reported Sep' 29 2015
A15-40 333,893 8,845,891 4,113 423.1 000 -75 New Results
A15-41 333,397 8,845,857 4,202 360.3 180 -75 Results Pending
A15-42 332,858 8,846,372 4,275 299.2 180 -85 Results Pending
A15-43 333,507 8,845,865 4,171 427.5 000 -85 Results Pending
A15-44 333,400 8,845,723 4,220 392.9 180 -80 Results Pending
A15-45 333,800 8,845,816 4,145 404.2 000 -65 Results Pending
A15-46 333,155 8,845,884 4,226 180 -60 In progress
Notes on drill hole data:
Eastings and Northings are based on the PSAD56/18S UTM datum. Elevations were taken from a measured topographic model compiled from field surveys using theodolite from known surveyed points at a scale of 1:1000. Azimuth and dip measurements of drill holes were taken using compass and inclinometer at surface. All holes were down-hole surveyed; small variances in both azimuth and dip do occur down hole but are not shown here.

To view Figure 1. Detailed Plan of Ayawilca, please visit the following link: http://media3.marketwire.com/docs/AyawilcaDrillHole.pdf

Contact Information