Ayawilca's Continued Growth: Updated PEA highlights potential for Top-10 global zinc - www.tinkaresources.com
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TSXV & BVL: TK | OTCQB: TKRFF www.tinkaresources.com
Corporate Presentation, October 2021
Ayawilca’s Continued Growth:
Updated PEA highlights potential for Top-10 global zinc
producer
Ayawilca project viewing northeast
Disclaimer
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.
Readers are cautioned that the PEA is preliminary in nature, it 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 PEA results will be realized. Mineral
resources that are not mineral reserves do not have demonstrated economic viability. Additional work is needed to upgrade these mineral resources to mineral reserves.
Certain information in this presentation contains forward-looking statements and 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, challenges resulting from COVID-19, 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, delays in or failure to obtain the
necessary permits, drilling program results varying from expectations, timing of geological reports, the Company’s ability to realize the results of the PEA, 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. 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.
Technical information related to the PEA contained in this presentation has been reviewed and approved by Kim Kirkland, FAUSIMM, Geological Engineer, Principal
Mining Consultant with Mining Plus. Edgard Vilela, MAusIMM (CP), Mining Engineer, Underground Manager, is a full time employee of Mining Plus. Both are Qualified
Persons as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects. The Mineral Resources disclosed in this presentation have been
estimated by Ms. Dorota El Rassi, P.Eng., SLR Consultant Engineer and Ms. Katharine M. Masun, MSA, M.Sc., P.Geo., SLR Consultant Geologist, both independent of
Tinka. By virtue of their education and relevant experience, Ms. El Rassi and Ms. Masun are “Qualified Persons" 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 (May, 2014). The metallurgical and
recovery inputs have been reviewed and verified by Mr. Adam Johnston, FAusIMM, CP (Metallurgy) of Transmin Metallurgical Consultants, a Qualified Person as defined
by National Instrument 43-101. The inputs on processing and costs for tailings filtering and storage have been reviewed and verified by Mr. Donald Hickson, P.Eng., of
Envis E.I.R.L Peru (Envis), a Qualified Person as defined by National Instrument 43-101. Dr. Graham Carman, CEO and a Director of Tinka, and a Qualified Person as
defined in NI 43-101, is responsible for other technical information in this presentation.
2
Key assets
• High quality zinc-silver resource at Ayawilca, 100% owned:
Ayawilca is one of the best undeveloped zinc deposits in the
Americas, potential to be Top-10 Global Zinc producer.
• Updated PEA (Oct 14, 2021): After-Tax NPV8% of US$433M and
IRR of 32% at $1.20/lb zinc price.
• At current spot price of ~$1.50/lb zinc: After-tax NPV8%
increases to US$785 million and IRR to 45.7%. 2021 Current
2019 PEA Base spot Zn
• Tin resource – Separate Ayawilca Tin resource with upside. case price
• Copper-gold skarn & porphyry exploration – Early stage,
potential for large copper-gold discovery at adjacent Silvia NW.
• Successful exploration team – Strong track record of base metal
discoveries in Peru (ex Rio Tinto, Pasminco, AQM, Hochschild).
• Strong strategic partnerships – Buenaventura and Nexa hold
significant stakes in TK, major players in the Peru mining sector.
3
Company snapshot
Shares issued and outstanding 341 million Shareholders
Options (priced from $0.25 to $0.50) 14 million Sentient Equity Partners 22%
Fully diluted shares 355 million Buenaventura 19%
Market capitalization (at C$0.20/share) C$68 million Nexa 9%
Cash (at June 30, 2021) C$13 million Commodity Discovery Fund 7%
Debt nil Other institutions ~7%
52 week high/low C$0.12/$0.30 Total institutional 64%
Management & insiders 3%
Management Directors
Retail & other 33%
Dr Graham Carman President & CEO Graham Carman
Alvaro Fernandez- VP Exploration & Ben McKeown
Baca General Manager
Nick Demare Chief Financial Nick Demare Analyst Coverage
Officer
Luis Romero VP Community Mary Little
Ian Parkinson
relations
Luis Giraldo Project Manager Raul Benavides
Mariana Bermudez Corporate Secretary Pieter Britz
George Topping
4
Base metal prices continue to rise...
Zinc Copper
US$1.50/lb 5 years 5 years
spot price
▪ Base metals prices have risen steadily over last 18 months - Zinc is at 3.5 year highs (~US$1.50/lb)
Read More: Goldman Sachs, Reuters,
▪ Supply constraints (for both copper and zinc) caused by:
January 5th 2021
● Head grades decreasing at the biggest mines, and mines can no longer reduce their cut-off
grades and are at, or past, ‘peak’ production.
● Production constraints for environmental reasons (e.g. water shortages in Chile).
● Few discoveries in recent years and few new project developments to replace old mines.
5
Peru: A top-tier mining jurisdiction
• One of the world’s top producers of copper, zinc, silver, tin
ECUADOR
• Mining employs thousands of Peruvians, the largest
generator of foreign income > 50% of exports.
Ayawilca
• We believe President Castillo will continue to strongly Project
support mining in Peru BRAZIL
Rank in World Latin America Antamina
Mineral
2020 2020
Zinc 3rd 1st Central Peru
zinc belt
Copper 2nd 2nd
Tin 4th 1st San Rafael
Las Bambas
Lead 4th 2nd
BOLIVIA
Silver 2nd 2nd
Gold 7th 1st
Source: USGS 2021 CHILE
6
Flagship property: Ayawilca Project
100% owned assets, unencumbered*
• Zinc Zone resources (updated Sep 27th 2021):
• 3.0 Blb zinc (indicated) and 5.7 Blb zinc (inferred) in
sulphide resources, and
• 10 Moz silver (indicated) and 31 Moz silver (inferred), and
• 87 Mlb lead (indicated) and 370 Mlb lead (inferred).
• Tin Zone resource: 189 Mlb pounds of tin (inferred) in separate
area from the Zinc Zone resources.
• Colqui silver oxide: 15 Moz silver (indicated) and 12 Moz silver
(inferred).
*1% NSR can be bought out by Tinka for US$1 million
7
Ayawilca:
Metals for the Green Energy Revolution
30 ZINC 50 TIN 47 SILVER
Zn Sn Ag
65.38 118.71 107.87
Zinc Tin Silver
An essential commodity in the modern The most valuable of all base metals An industrial metal and store of wealth
world, few large undeveloped deposits
▪ Protects steel and improves its ▪ Only limited supply comes ▪ Properties include being highly
durability - galvanized steel, die from sustainable ESG conductive (more than any
casting alloys, brass locations other metals), reflective,
malleable, ductile, germicidal
▪ Essential in human development, ▪ End uses: essential in high
increases crop yields technology applications - ▪ End uses: coins, batteries, fuel
solder in electronics, electric cells, electronics, circuit
▪ End uses: vehicles and transport, boards, solar panels, mobile
vehicles, green power
infrastructure, agriculture, energy phones, all mirrors
technologies
storage (link)
8
Focussed in a world-class mining belt
• Projects located in the
Andes mountains of
Central Peru, many
polymetallic mines Silvia
including world-class
Antamina Cu-Zn mine.
• Well located, 200 km from
Lima on soon to be pave
x Shalipayco (NEXA)
major road, access to
refinery and ports.
• Power lines cross the
Giant ore deposit
project and can be
accessed, water available.
• Supportive local
communities.
9
Tinka owns 460 km2 mining concessions
• Total 460 km2 of contiguous mining
concessions in central Peru at Ayawilca
and Silvia (Ayawilca Mineral Resources as at Aug 30, 2021
OPEN
Plan view of Zinc Zone
and Tin Zone Mineral
OPEN
Resources at Ayawilca
● Based on 88,000
metres of drilling in
209 diamond holes
OPEN
OPEN
11Ayawilca Zinc Zone Mineral Resources
• Indicated: 19.0 million tonnes grading 7.2% zinc, 0.2% lead, 16.8 g/t silver.
• Inferred: 47.9 million tonnes grading 5.4% zinc, 0.4% lead, 20.0 g/t silver.
• Two sulphide concentrates to be produced: Zinc (+ indium); Silver-Lead.
• Excellent zinc recovery (92%) to a zinc concentrate grading 50% Zn.
• Mineral resource estimate as at August 30, 2021 by SLR Consulting (Canada) limited (SLR).
Notes:
1. CIM (2014) definitions were followed for Mineral Resources.
2. Mineral Resources are reported above a cut-off net smelter return (NSR) value of US$55/t.
30 ZINC
Indicated: 3.0 B pounds Zn 3. The requirement of a reasonable prospect of eventual economic extraction is met by having
Zn Inferred: 5.7 B pounds Zn
a minimum modelling width for mineralized zones of three metres, a cut-off based on
reasonable input parameters, and continuity of mineralization consistent with a potential
underground mining scenario.
65.38 4. The NSR value was based on estimated metallurgical recoveries, assumed metal prices,
and smelter terms, which include payable factors, treatment charges, penalties, and refining
charges. Metal price assumptions were, US$1.20/lb Zn, US$22/oz Ag, and US$0.95/lb Pb.
47 SILVER Metal recovery assumptions were, 92% Zn, 85% Ag, and 70% Pb. The NSR value for each
block was calculated using the following NSR factors; US$16.23/% Zn, US$0.27/g Ag, and
Indicated: 10.3 Moz Ag
Ag US$10.20/% Pb.
5. Payability is as follows; Zn 84%, Pb 94% and Ag 47%
107.87 Inferred: 30.7 Moz Ag 6. The NSR value was calculated using the following formula:
NSR = Zn(%)*US$16.23+Ag(g/t)*US$0.27+Pb(%)*US$10.20
7. Numbers may not add due to rounding.
12Ayawilca Tin Zone Mineral Resources
• Inferred Mineral Resources: 8.4 million tonnes grading 1.02% tin (separate from the Zinc)
• Cassiterite: Tin mineral at Ayawilca
• Mineral resource estimate as at August 30, 2021 by SLR Consulting (Canada) limited (SLR).
Notes:
1. CIM (2014) definitions were followed for Mineral Resources.
2. Mineral Resources are reported above a cut-off grade NSR value of US$60/t.
3. The requirement of a reasonable prospect of eventual economic extraction is met by
having a minimum modelling width for mineralized zones of three metres, a cut-off
based on reasonable input parameters, and continuity of mineralization consistent with
50 TIN a potential underground mining scenario.
4. The NSR value was based on estimated metallurgical recoveries, assumed metal
Sn Inferred: 189 M pounds Sn prices, and smelter terms, which include payable factors, treatment charges, penalties,
and refining charges. Metal price assumptions were, US$11.00/lb Sn. Metal recovery
118.7 assumptions were, 70% Sn for blocks with Sn:Cu ≥ 5 and 40% for Sn:Cu < 5. The NSR
value for each block was calculated using the following NSR factors, US$141.64 per %
Sn for blocks with Sn:Cu ≥ 5 and US$80.94 for blocks with Sn:CuAyawilca: Updated PEA October 2021
● The updated PEA provides the economic assessment for an underground ramp-access mine
development with an 8,500 tonnes per day processing plant.
● 43.5 million tonnes mined over 14.4 years (includes both Indicated & Inferred resources)
Financial Summary – Base Case Zn at US$1.20/lb Pre-tax After-tax
NPV (8% discount rate) US$720 million US$433 million
IRR 42.6% 31.9%
Payback period 2.0 years 2.6 years
Pre-production capital expenditure (Capex)1 US$264.0 million
Sustaining Capex US$186.8 million
Life of Mine (LOM) Capex US$450.7 million
Closure Cost US$15.2 million
Notes: 1 Includes contingencies of US$44 million. Prices at US$1.20/lb zinc, US$0.95/lb lead, US22/oz silver.
14Ayawilca Zinc Zone: 2021 PEA mine plan
● Mine designed to
minimize risk and
environmental
impact.
● Three, 2-way ramps
with independent
access.
● 100% of waste and
40% of tailings to be
re-used as backfill.
● On-surface tailings
treatment and
storage facility to
use filtered dry-stack
technology.
15Ayawilca Zinc Zone: 2021 PEA mine plan
● Mining of high-grade zinc in early years adds substantial value to the project
16Ayawilca PEA: Sensitivities
● Strongly leveraged to Zinc Price: Spot zinc price of ~US$1.50/lb highlighted
17Ayawilca: Potential Top-10 Global
Zinc producer
18Tin mineralization - Significant upside
• Tin Zone: 8.4 million tonnes grading 1.0% Sn (Inferred resource dated Aug. 30, 2021) occurs
separate and typically beneath (but not always) of the zinc mineralization.
• Zinc Zone: ~9 Blb zinc lies above and on the periphery of the tin mineralization.
B Southwest Northeast B’
CENTRAL EAST
ZINC
ZONE
ZONE 3
TIN
1x ZONE
1x
?
Intrusion Source?
19Ayawilca - Longitudinal section viewing west
• 4 km of known CRD style sulphide mineralization - drilled to 400 metres depth.
• Significant exploration potential: Zinc Zone mineralization remains open down-plunge to south.
• Far South area: Undrilled with large Zn-Pb soil anomaly - awaiting drill permit.
Zn-Pb soil anomaly
20Silvia: Copper-gold skarn & porphyry potential
• 300 km2 of granted
concessions (100%
Tinka) next to Ayawilca Silvia Northwest:
Surface samples
• One-time cash payment
up to 12.3% Cu
to BHP and 18.6 g/t Au
• 1% NSR royalty to BHP
• Regional datasets
(including airborne Silvia South:
magnetics, geochem) Surface samples
• Two main copper up to 1.4% Cu and
0.3 g/t Au
skarn/porphyry targets -
both are undrilled
• Detailed ground
Airborne magnetics image (AS)
magnetics and IP at
Silvia Northwest target 21Silvia Northwest: Copper-gold target
▪ Three areas of outcropping copper-gold skarn
mineralization along a northeast trend covering
3km x 1km.
▪ Area A: 400 m x 100 m skarn with apparently
continuous outcrops - significant scree cover
▪ Samples up to 12.3% Cu, 18.6 g/t Au
▪ Initial Tinka trench results announced in October
2021
▪ Area of current focus: Detailed
mapping and channel sampling
of skarns in Area A and Area B
▪ Reprocessing of geophysics
22Silvia Northwest - High grade copper
▪ Coincident copper and
magnetic anomalies, undrilled.
▪ Garnet-magnetite-copper
skarns.
▪ Of 106 trench samples
Secondary copper collected by Tinka (over a
400m x 100m area) average
grade 0.79% Cu + 0.60 g/t Au
(= 1.24% CuEq.)
▪ Drill targeting for 2022 field
program is the priority.
▪ Sampling is continuing.
Area A trench sampling (note horse for scale) 23Work programs: Next 2 years
2021 2022 2023
Silvia Cu-Au Channels/soils /geophys
prospecting /mapping
Silvia exploration Drill permitting Drilling *
drilling
Ayawilca Resource
Zn-Sn
Definition / Expansion
PEA update Zn Zone
Permitting – Ayawilca Semi detailed EIA
Ayawilca Feasibility
Prefeasibility #
Studies
* timing subject to permitting
# subject to financing
24Contacts:
Dr. Graham Carman, President & CEO
Mariana Bermudez, Corporate Secretary
info@tinkaresources.com
Ph: +1 604 685-9316
Suite 1305 - 1090 West Georgia St
Vancouver, BC V6E 3V7
CANADA
www.tinkaresources.com
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