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Tinka boost from Buenaventura comment

Tinka Resources has received a boost after Victor Gobitz, the GM of Peruvian polymetallic and NYSE-listed miner Buenaventura, said the Ayawilca deposit in Pasco would become a satellite mine for the company.
Tinka boost from Buenaventura comment Tinka boost from Buenaventura comment Tinka boost from Buenaventura comment Tinka boost from Buenaventura comment Tinka boost from Buenaventura comment

Ayawilca in Pasco, Peru

"The concept of Ayawilca is going to be developed as a satellite mine that supplies ore to Uchuchaccua and El Brocal," said Gobitz at an event hosted by the Institute of Engineers of Peru, reported local press.

Gobitz has significant experience with base metals mining as he ran the Peru operations of Milpo (now Nexa Resources) prior to running Buenaventura.

Raul Benavides, VP business development of Buenaventura and a member of the Benavides family behind the company, was nominated as a director of Tinka following the closing of a strategic C$18.5 million private placement in which the precious and base metals miner acquired a 19.3% stake in the company at a premium to market by investing $16 million.

"We look forward to advancing our Ayawilca project in 2020 with additional resource definition and exploration drilling and project development. We also look forward to Raul Benavides joining our board of directors at our upcoming AGM in February," said Tinka president and CEO Graham Carmen.

Ayawilca is, which is at pre-feasibility stage, hosts a November 2018 indicated mineral resource estimate in the zinc zone of 11.7 million tonnes grading 6.9% zinc, 0.16% lead, 84 grams per tonnes indium, 15g/t silver for 1.8 billion pounds zinc, 42Mlb lead, 983t indium and 5.8Moz silver contained metal. It also has an inferred resource of 45Mt grading 5.6% zinc, 0.23% lead, 67g/t indium and 17g/t silver for 5.6Blb zinc, 230Mlb lead, 3,000t indium and 25.2Moz silver.        

Another attractive aspect of Ayawilca is its separate tin resource, given prices for the metal have recovered to over US$8/lb since bottoming at $7/lb six months ago, although still below the $9-10/lb they were a year ago. The inferred tin resource is 14.5Mt grading 0.63% tin, 0.21% copper and 18g/t silver for 201Mlb tin, 67Mlb copper and 8Moz silver.

Shares in Tinka Resources are trading at C21c, valuing the company at $54 million.