Source: The Critical Investor for Streetwise Reports 03/03/2018
The Critical Investor provides an update on this explorer as it unravels the complex puzzle of the mineralization of its project.
Ayawilca project; drilling location
1. Introduction
Slowly but surely and piece by piece, Tinka Resources Ltd. (TK:TSX.V; TLD:FSE; TKRFF:OTCPK) is unraveling the complex puzzle which is the Ayawilca mineralization. As they hit more mineralization at Zone 3, for example best intercept 5m @20%Zn in hole A18-111, and polymetallic mineralization in adjacent hole A18-109, drilled from the same rig location, management seems more and more convinced that the source of all mineralization might be located below or east of Zone 3. This will have implications for the drill strategy to follow, and each new drill result will help determining the geological concept. The latest drill results, coming from various locations at Ayawilca, and possible consequences for tonnage will be discussed, as well as the geological concept.
All presented tables are my own material, unless stated otherwise.
All pictures are company material, unless stated otherwise.
All currencies are in US Dollars, unless stated otherwise.
Please note: the views, opinions, estimates or forecasts regarding Tinka’s performance are those of the author alone and do not represent opinions, forecasts or predictions of Tinka or Tinka’s management. Tinka has not in any way endorsed the information, conclusions or recommendations provided by the author.
2. Drill results
The rainy season limited the drilling for Tinka Resources on their flagship Ayawilca project in Peru, as just one rig kept on going (as planned), and management recently delivered the latest set of drill results. These results weren’t spectacular as mineralized intercepts had the grade but not the thickness needed to build significantly more tonnage, but nevertheless provided management with further information on where to go next on several targets.
A quick recap: four holes (107, 109, 110 and 111) were drilled at Zone 3. An additional five holes (with overlaps between zones) were drilled at South (103, 104, 108), West (105,106,108) and Central Ayawilca (104). Drilling of hole A18-112 at Zone 3 has now commenced, with a second drill rig expected to start up once the wet weather conditions improve in March. Here is a map with recent drill hole collar locations:
All holes besides 103 intercepted mineralization with often good to very high grades, but short intercepts as mentioned, as the longest intercept containing zinc mineralization was 6m long. The more shallow zinc intercepts are in line with earlier drilled intercepts of vein type structures in sandstone. I (again being a non- geologist) had particular interest in 107 as it was directed east from the platform, and could potentially prove up a wider mineralized envelope around Zone 3 discovery hole 91A, but this didn’t work as no zinc was intercepted, just meaningful amounts of tin.
Hole 105 was also of interest as it could mean another “stacked manto-style” mineralization event like South and West, but so far intercepts were too short to be economic, just like 103, 104, 106 and 108. Interesting to see South mineralization spreading out to the south, indicating great continuity although thickness is much lower than standard mining heights (3-5m). You can’t have it all of course, in my opinion this is the best way to drill test your concepts and theories on geology, and Tinka management has been quite successful so far. Also of interest for Tinka, besides hole 111, were the more polymetallic holes 109 and 110 directed south/south-east, containing high grade silver, tin and some copper (in red, best hole 111 in green):
High-grade zinc mineralization intersected in holes 110 and 111 at Zone 3 is associated with massive sulphide replacements of limestone (hole 110) and sandstone (hole 111), similar in style to the thinner zinc mineralization at South and West Ayawilca. In addition, high-grade vein-style polymetallic mineralization (zinc-lead-silver-copper-tin) has been intersected in phyllite basement rocks at Zone 3 (hole A17-109 and A18-110 at depth). These polymetallic veins are believed by management to be feeder structures for the zinc and tin mineralization in the overlying limestones.
3. Geological concept
To refresh the geological make-up a bit, here is a schematic section of Ayawilca:
