Tinka Resources (TK.V) has released an updated resource estimate on its Ayawilca project in Peru where it has outlined a zinc-silver-lead-indium zone. The total resource now consists of 18.8 million tonnes of rock at an average grade of 8.2% zinc-equivalent using a 5% cutoff grade. This 8.2% zinc equivalent grade consists of 5.9% zinc, 0.2% lead, 74 g/t Indium and approximately half an ounce of silver per tonne of rock, and using the company’s own calculations, the total resource now contains 3.4 billion pounds of zinc-equivalent, of which 2.4 billion pounds were zinc.
What’s even more intriguing is the maiden resource estimate focusing on the tin zone which is located directly under the zinc zone. This zone is much smaller but with 5.4 million tonnes at 0.76% tin and 0.89% tin-equivalent, Tinka can’t be too unhappy. The total tin-equivalent resource now contains approximately 106 million pounds of tin-equivalent with an in-situ value of approximately $800M. On top of that, the world seems to be heading towards a tin shortage, and we wouldn’t be surprised to see the Tin price to increase to $10/lbs before the end of this decade.
Tinka Resources has gone quiet since the resource update, but we hope to see more news after the summer period.