Tinka Resources Limited (“Tinka” or the “Company”) (TSXV & BVL: TK) (OTCQB: TKRFF) owns an impressive portfolio of silver, zinc and lead assets in central Peru.
Ayawilca Zinc (Flagship)
- 100% owned by Tinka
- Part of a total of 46,000 hectares of claims in Central Peru
- One of the most significant zinc-silver resources held by a junior
- Potential to be one of the ten largest global zinc producers
- Zinc – 3.0 billion pounds in the Indicated resource category and 5.7 billion pounds in the Inferred category.
- Silver – 10.3 million ounces in the Indicated resource category and 30.7 million ounces in the Inferred category.
- Lead – 87 million pounds in the Indicated resource category and 370 million in the Colqui Silverthe Inferred category.
- 100% owned by Tinka
- 460 sq km
- Great discovery potential
- Ayawilca, 40 miles northwest
- 4.3 million ounces of silver in the Indicated category and 13.2 million ounces in the Inferred category.
- Silver deposit is potentially amenable to open-pit mining and conventional leaching.
Ayawilca Tin Zone
- underlying the Zinc Zone at Central and East Ayawilca.
- 189 million pounds of tin in the Inferred resource category
Inferred Mineral Resources as of August 30, 2021
Silvia Copper-Gold Project
- 100% owned by Tinka
- 29,500 hectares
- Adjacent to the Ayawilca zinc-silver property
- 80 km south and along the strike of Antamina, one of the largest copper mines in Peru and the world’s most significant skarn deposit (beneficially owned by BHP Group 33.75%, Glencore 33.75%, Teck 22.5% and Mitsubishi 10%).
- Silvia Northwest, three areas of outcropping copper mineralization occur along a northeast-southwest trend.
- A previous explorer’s geochemical data includes 23 samples of skarn outcrops at Silvia South with copper values ranging from <0.01 to 1.37% Cu, gold values ranging from <0.005 to 0.28 g/t Au, and zinc values ranging from 0.03 to 0.06% Zn.
NI 43‐101 Technical Report on Updated Preliminary Economic Assessment; Ayawilca Polymetallic Project (November 10th, 2021)
Whither Zinc Supply/Demand
World mine output is forecast to grow by 1.4% to reach 13.1M tonnes in 2022. Work is forecast to rise by 3.3% in 2023 to reach 13.5M tonnes by 2023 as new mine capacity comes online. Mine production is projected to increase by 1.4% annually to reach 14M tonnes by 2027.
IZA recently launched its Zinc Battery Initiative, touting the benefits of non-flammable zinc batteries over lithium-ion batteries in aviation and marine applications.
The Association says the annual demand for zinc in batteries was only 600 tonnes in 2020, but that figure is projected to rise to 77,500 tonnes in 2030.
The IZA sees the stationary battery market share of zinc batteries climbing from just 1% last year to 5% in 2025 and 20% in 2030. (theassay.com)
As the third largest zinc-producing jurisdiction, Peru will gain more influence as a significant supplier to established technologies and burgeoning battery markets.
Given the quality and inferred and actual deposits, Tinka is likely to gain more and more influence as demand continues to outstrip supply globally.
Even the most neophyte mining investor with a cursory knowledge of copper likely understands the potential of this commodity from a supply-demand perspective.
The Global Copper Market Size accounted for USD 291.1 Billion in 2021 and is projected to occupy a market size of USD 446.7 Billion by 2030, growing at a CAGR of 4.9% from 2022 to 2030.
The demand for copper continues to rise unabated and in a deficit of supply to demand.
The global zinc demand for renewable energy technologies is forecast to continuously increase during the next decade, from 109,300 metric tons in 2020 to 364,000 in 2030. Solar energy is expected to account for the largest share of this zinc consumption, with a forecast volume of 162,000 metric tons in 2030.
The potential for traditional zinc usage is relatively static, but the sectors that will drive the supply shortage against demand is the battery and green energy sector. The four metals critical to solar panels are copper, silver, silicon and, yes, zinc.
If one does the logistics, Tinka is not only a proxy for the growth and supply-demand deficits of the zinc and copper market, it finds itself smack in the middle of the alternative energy sector, with excellent properties in mining-friendly jurisdictions and the endless possibility of further corporate activity; be that M&A, new properties and rapidly growing production.
Should you wish to dive deep into Tinka’s robust drilling program, here’s the link to its news page.