Tinka Starts Drilling at Ayawilca; Farms Out Rurimarac Gold Property in Peru
September 8, 2014 (Source: Marketwired) — Tinka Resources Limited (“Tinka” or the “Company“) (TSX VENTURE:TK) announces that drilling at the Company’s 100%-owned Ayawilca zinc project, located in central Peru, has started. The diamond drill program at Ayawilca is planned for 19 holes totalling approximately 8,500 metres.
The first drill hole is underway to target the down-dip extension of zinc mineralization in drill hole A13-05 (213 metres @ 5.3% zinc from 130.3 metres).
A second diamond drill rig has been mobilized to the Company’s 100%-owned Colquipucro silver project to initially drill test the northern extension of the existing 32 million ounce inferred silver oxide resource. The first drill hole at Colquipucro is anticipated to commence by September 9, 2014. A 10 hole program is planned at Colquipucro for approximately 1,500 metres.
A third drill rig is expected to be mobilized to Ayawilca by the end of September 2014.
In other news, the Company is pleased to announce it has entered into an option agreement with Mariana Resources Limited (“Mariana”) whereby Mariana can earn up to 70% of the Rurimarac gold property, consisting of 2,000 ha, in the Department of Ancash, central Peru. The Rurimarac property was acquired by Tinka following the acquisition of Darwin Resources Corp.
Key terms are as follows:
- Mariana can earn 51% of the Rurimarac property by drilling 1,500 metres on the property (‘First Option’) within 12 months of receipt of the approval to initiate drilling activities from the Peruvian authorities. Mariana must file an environmental impact study (DIA) for the drill program within the next 6 months.
- Mariana can earn an additional 19% of the Rurimarac property by drilling a further 3,000 metres within two years of attaining a 51% interest (‘Second Option’).
- If Mariana exercises the First Option and/or the Second Option, a joint venture will be structured pursuant to the relevant interests of both parties. Dilution below 10% will convert to a 2.5% net smelter return royalty, of which 1% may be purchased under certain conditions for US$1 million.
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Dr. Graham Carman, Tinka’s President and CEO, stated: “We are very pleased to have started the drilling at Ayawilca with the first of two rigs now working around the clock. Soon drilling will also be underway at Colquipucro. We look forward to publishing the results from both programs as they become available.”
“Farm out of the Rurimarac gold property is consistent with Tinka’s strategy, to be focussed on exploration at the Company’s 100%-owned Colquipucro – Ayawilca silver and zinc projects. Tinka will have the opportunity to retain a significant minority position at Rurimarac, should the next phases of exploration be successful. Importantly, Mariana will cover all exploration costs during the option period(s) and must maintain the property in good standing.”
The qualified person, Dr. Graham Carman, Tinka’s President and CEO, and a Fellow of the Australasian Institute of Mining and Metallurgy, has reviewed and verified the technical contents of this release.
About Tinka Resources Limited
Tinka is a junior resource acquisition and exploration company. Tinka’s focus is on its 100% owned Colquipucro and Ayawilca projects located in the highly mineralized silver-zinc-lead belt of central Peru.
On behalf of the Board,
Dr. Graham Carman, President & CEO
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, capital and other costs varying significantly from estimates, production rates varying from estimates, changes in world metal markets, 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, operating performance, environmental and safety risks, delays in obtaining or failure to obtain necessary permits and approvals from local authorities, community 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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>