The updated PEA shows Ayawilca to be an excellent base metals project with significant enhancements from the previous PEA study.
The Project now features a smaller, more efficient zinc-silver-lead plant, introduces a separate tin plant for additional revenue and commodity diversification and highlights the development path forward for Ayawilca to become a producing mine.
PEA Highlights: Robust economics: After-tax Net Present Value ('NPV') at 8% discount of
Payback period after-tax of 2.9 years (pre-tax of 2.4 years).
Initial Capital Expenditure ('Capex') of
Long 21-year life of mine ('LOM') for a 2.0 million tonnes per annum (Mtpa) zinc-silver-lead operation with 15-years of tin production at 0.3 Mtpa.
Average C1 cash cost of
Average annual metal production (in concentrate) of 200 million pounds of zinc (90,000 tonnes Zn), 3.26 million pounds of tin (1,500 tonnes Sn), 560,000 ounces of silver and 5.7 million pounds of lead (2,590 tonnes Pb).
Zinc Zone Indicated Mineral Resource tonnage increased 49% from the previous Mineral Resource estimate.
Tin Zone Indicated Mineral Resource declared for the first time.
Excellent location in a world-class mining jurisdiction, close to a zinc smelter and port.
Compact mine footprint and planned use of filtered tailings technology provides the lowest risk and most water-efficient solution for tailings storage while 40% of tailings to be stored underground as backfill.
Dr.
'A revised Mineral Resource estimation has significantly improved the level of confidence in the resource as a result of an additional 11,000 metres of drilling completed in 2023. The Zinc Zone Indicated Mineral Resource tonnage has increased 49% over the previous estimate while zinc content has increased by 22% and silver content by 45%. The Tin Inferred Mineral Resource has increased in tonnage and metal content by 51% and 13%, respectively, while a Tin Indicated Mineral Resource is declared for the first time. The Company has chosen to adopt the highest standard for reporting underground mine resources to satisfy the 'Reasonable Prospects for Eventual Economic Extraction (RPEEE)' as required by CIM (2014) in the demonstration of spatial continuity of mineralization within potentially mineable shapes (i.e., stopes). With the market increasingly moving towards RPEEE resource reporting for underground deposits, we are adopting this method of resource reporting for the first time.'
'The use of filtered tailings is the lowest risk and most water-efficient solution for tailings storage at surface, and highlights our commitment to minimize environmental risks. The storage of a substantial quantity of tailings as backfill underground also reduces surface tailings storage, again helping to minimize the environmental impact.'
'There remains significant exploration potential for further discoveries at Ayawilca, and several of the resource bodies remain open at depth, with a potential feeder system remaining largely untested by drilling particularly at the
The results of the PEA update will be disclosed in an independent technical report in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ('NI 43-101') and prepared by independent consulting firm
Note: The PEA is preliminary in nature and 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 preliminary economic assessment will be realized. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
Mining
Production is assumed to commence following 18 months of construction and commissioning. The mine plan for the Zinc and Silver Zones is based on mining a total of 41.2 million tonnes grading 5.02% Zn, 17.3 g/t silver and 0.19% lead over a 21-year LOM using an NSR cut-off of
Mineral Resource Estimation
For the purposes of demonstrating 'Reasonable Prospects for Eventual Economic Extraction' (RPEEE), Mineral Resources are constrained within underground reporting shapes generated in Deswik Stope Optimizer ('DSO') using a minimum mining width of three metres and an NSR cut-off value of
To satisfy RPEEE for an underground mining scenario, Tinka is reporting Mineral Resources within potentially mineable shapes (i.e., stopes) thereby demonstrating the spatial continuity of the mineralization. Where the potentially mineable volumes (i.e., stopes) contain smaller zones of mineralization with values below the stated cut-off, this lower grade material is included in the Mineral Resource estimate.
No Mineral Reserves have been estimated at the Project.
The Zinc, Silver, and Tin Zone Mineral Resource estimates for the
Contact:
Tel: 1.604.685.9316
Email: info@tinkaresources.com
About
Tinka is an exploration and development company with its flagship property being the 100%-owned Ayawilca zinc-silver-tin project in central
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: timing of planned work programs and results varying from expectations; delay in obtaining results; 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 and operating performance; environmental and safety risks; the Company's expectations regarding the Ayawilca Project PEA; the political environment in which the Company operates continuing to support the development and operation of mining projects; risks related to negative publicity with respect to the Company or the mining industry in general; delays in obtaining or failure to obtain necessary permits and approvals from local authorities; community agreements and 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.
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