Ayawilca possibly one of the best new zinc developments in the Americas – Tinka

3rd July 2019

By: Tasneem Bulbulia

Senior Contributing Editor Online

     

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TSX-V-listed Tinka Resources has garnered positive results from a preliminary economic assessment (PEA) for its 100%-owned Ayawilca Zinc Zone project in central Peru.

The PEA estimates an after-tax net present value (NPV) of $363-million and a pre-tax NPV of $609-million using metal prices of $1.20/lb of zinc, $18/oz of silver and $0.95/lb of lead on a 100% equity basis.

Initial capital expenditure of $262-million will be required and the project is expected to generate an after-tax internal rate of return (IRR) of 27.1% and pre-tax IRR of 37.2%.

“The PEA shows the Ayawilca zinc project, which is located in one of the world´s most prolific polymetallic belts, is shaping up to be one of the best new zinc development projects in the Americas, with strong economics and a long mine life of over 20 years,” Tinka president and CEO Dr Graham Carman enthused in a statement issued on Tuesday.

The PEA provides the initial economic assessment for an underground ramp-access mine development with a 5 000 t/d processing plant.

It indicates a 21-year mine life with average head grades of 6.05% zinc, 18.3 g/t silver, 67.1 g/t indium and 0.25% lead.

The PEA indicates average production of about 101 000 t/y of zinc recovered in concentrate and about 906 000 oz/y of silver in a silver/lead concentrate.

The PEA has identified numerous opportunities for potential economic improvement and exploration upside.

“The excellent PEA results are a major milestone and justify the continued advancement of Ayawilca towards production while exploration drilling is continuing with the aim of discovering additional high-grade zinc resources,” said Carman.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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