TSXV & BVL:TK | OTCPK: TKRFF www.tinkaresources.com Corporate Presentation – September 2018
Disclaimer This presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. This presentation does not constitute or form a part of, and should not be construed as an offer, solicitation or invitation to subscribe for, underwrite or otherwise acquire, any securities of Tinka, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. Certain information in this presentation 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 but not limited to, all costs varying significantly from estimates, production rates varying from estimates, changes in metal markets, changes in equity markets, availability and costs of financing needed in the future, equipment failure, unexpected geological conditions, imprecision in resource estimates or metal recoveries, ability to complete future drilling programs, drilling program results varying from expectations, delays in obtaining survey results, success of future development initiatives, the completion and implementation of a preliminary economic assessment, pre-feasibility or feasibility studies, competition, operating performance, environmental and safety risks, delays in obtaining or failure to obtain necessary permits and approvals from local authorities, community relations, timing and completion of any surface rights agreements, 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. Cautionary Note to United States Readers Concerning Mineral Resources and Reserves: The standards employed in estimating the mineral resources referenced in this document differ significantly from the requirements of the United States Securities and Exchange Commission (the “SEC”) and the resource information reported may not be comparable to similar information reported by United States companies. The term “resources” does not equate to “reserves” and normally may not be included in documents filed with the SEC. “Resources” are sometimes referred to as “mineralization” or “mineral deposits. ” While the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are recognized and required by Canadian regulations, they are not defined terms under standards in the United States and normally are not permitted to be used in reports and registration statements filed with the SEC. The estimation of measured, indicated and inferred mineral resources involves greater uncertainty as to their existence and economic feasibility than the estimation of proven and probable reserves. United States readers are cautioned (i) not to assume that measured or indicated resources will be converted into reserves and (ii) not to assume that estimates of inferred mineral resources exist, are economically or legally minable, or will be upgraded into measured or indicated mineral resources. It should not be assumed that further work on the stated resources will lead to mineral reserves that can be mined economically. The terms “mineral reserve,” “proven mineral reserve” and “probable mineral reserve” are Canadian mining terms defined in accordance with National Instrument 43- 101 and the CIM Definition Standards on Mineral Resources and Mineral Reserves. These definitions differ from the definitions in the SEC’s Industry Guide 7 and, generally, are not permitted to be used in reports and registration statements filed with the SEC. As such, information contained in this document and the documents incorporated by reference herein concerning descriptions of mineralization and resources under Canadian standards may not be comparable to similar information made public by United States companies in SEC filings. The Mineral Resources disclosed in this company presentation were estimated by Mr. David Ross, P.Geo., an employee of Roscoe Postle Associates Inc. (RPA) and is independent of Tinka. The Zinc/Tin Mineral Resources were publicly released on November 8, 2017, while the Silver Resources were released on Feb 26, 2015. By virtue of his education and relevant experience, Mr. Ross is a "Qualified Person" for the purpose of National Instrument 43-101. The Mineral Resources have been classified in accordance with CIM Definition Standards for Mineral Resources and Mineral Reserves. Readers are encouraged to read the Company’s technical report in their entirety. This presentation has been prepared, reviewed and verified by Dr. Graham Carman, Tinka’s President and CEO and a Fellow of the Australasian Institute of Mining and Metallurgy, a qualified person as defined by NI 43-101. 2
Company Highlights Large, growing high-grade zinc T INKA ’ S A YAWILCA discovery in Peru PROJECT IS A LARGE Inferred Mineral Resources Nov’ 2017: AND GROWING ZINC ▪ Zinc – 42.7 million tonnes @ 7.3% ZnEq* DISCOVERY IN P ERU containing 5.6 billion pounds zinc metal ▪ Tin – 10.5 million tonnes @ 0.70% tin * 6.0% Zn, 0.2% Pb, equivalent** 17g/t Ag, 79g/t In 2018 – C ONTINUED ** 0.63% Sn, 0.23% EXPLORATION AND ~20,000m of step-out drilling in 2018 Cu, 12 g/t Ag DE - RISKING AT Resource update expected Q4 2018 A YAWILCA Technical team with past discoveries in Peru CAD$15 million cash position at July 2018 Ayawilca S TRONG COMPANY Fully funded for next 18 months FUNDAMENTALS Advancing drill permitting for PFS phase Strong institutional investor base Mining-friendly jurisdiction with supportive communities and good infrastructure Peru 3
Zinc Supply & Demand Zinc End Uses Other Zinc Semi- Chemicals 4% 6% Manufactures 6% Total 2017 zinc consumption was 13.7 M Brass and tonnes, while production Bronze Galvanizing 17% was 13.2 M tonnes = a zinc 50% deficit which is expected Zinc Alloying to continue 17% Steady demand growth is Source: International Lead and Zinc Study expected for galvanized Group (ILZSG) steel used in automobiles Wood Mackenzie: Lack and in construction by of new Zinc projects will developing countries like make replacement of China, India, Latin production challenging America Zinc has been used in batteries for decades – recent research estimates low cost zinc-air batteries could substantially increase zinc demand Source: Nexa Resources S.A. 4
Zinc Inventories Remain Low LME inventories (tonnes) Zinc prices have fallen 34% from the February 2018 peak due to USD strength, concerns about China demand due to US tariffs, and a build in LME inventories Zinc price While LME inventories have risen, (USD/t) TOTAL inventories are now lower than at the February peak, indicating that the zinc market remains very tight Total Zinc Inventories Goldman Sachs research (July 2018) forecast zinc prices moving back to US$3300/t (US$1.50/lb) by Q2 2019 Source: Scotiabank 5
Scarcity of Large Undeveloped Zinc Projects A decade of low zinc prices resulted in a lack of exploration and new discoveries Ayawilca is one of the largest undeveloped zinc projects owned by a junior South32 acquired Arizona Mining for USD$1.6 billion in 2018 • Taylor deposit resource: 31.4 Blbs zinc equivalent ➔ takeover EV=USD$1.6B • Nov. 2017 Ayawilca resource: 5.6 Blbs zinc equivalent ➔ EV=USD$84M Zinc Equivalent Resource Size for Select TSX/TSXV Companies 6.0 ? Ayawilca Producing mine Global Resource Zinc Equivalent (Mt) Fireweed-Tom&Jason Resource 5.0 Development project NEXA-Aripuana in 2018 Ayawilca project 4.0 Zinc X-Akie 3.0 NEXA-Cerro Lindo Trevali-Caribou Tinka- 2.0 Rathdowney-Olza Ayawilca NEXA-Vazante Vendetta-Pegmont Foran-McIlvenna Bay 1.0 NEXA-Shalipayco Trevali-Santander - - 10 20 30 40 50 60 70 Global Resource Size (Mt) Notes: - Data from company websites, believed to be accurate - ZnEq based on spot metal prices on Aug. 14, 2018 6 - Global resources include Measured & Indicated and Inferred resources. Vazante and Cerro Lindo data reflects Reserves.
Recommend
More recommend
