Tinka Resources Limited (CVE:TK) (OTCPINK:TKRFF) (FRA:TLD) reported more encouraging drill results from its Ayawilca zinc project in Peru, which are expected to improve the resource at the South Ayawilca area ahead of an updated preliminary economic assessment (PEA) earmarked for the middle of this year.
Tinka has now completed around 6,000 metres (m) of the planned 7,500m drill program in the resource expansion drilling program and today's assays come from four holes.
A 2018 resource estimate for the Ayawilca Zinc Zone showed an estimated 1.8 billion pounds of zinc in the higher confidence indicated category and 5.8 million ounces silver. In inferred, there was 5.6 billion pounds zinc and 25.2 million ounces of silver.
"Ayawilca continues to produce strong zinc results with significant silver credits," said chief executive of Tinka Dr Graham Carman in a statement.
One hole at South Ayawilca, which returned 38.8m at a grade of 9.3% zinc and 14 g/t silver from 282.6m to 321.4m depth, is expected to expand indicated resources at South Ayawilca, with mineralization still open to the southeast, noted the company boss.
Highlight assays from West Ayawilca included 18.7m at 7.2% zinc and 11 g/t silver from 187.3m depth, including an intersection of 7.3m at 11.8% zinc and 21 grams per ton (g/t) silver from 196m depth.
An infill hole at West Ayawilca also showed 0.4m at 19.6% zinc and 99 g/t silver from 110m depth.
"We await with much anticipation the assay results for the eleven pending drill holes, and we still have a handful more holes to drill," continued Carman.
"The receipt of results from the lab continues to be slow due to coronavirus pandemic protocols in Peru. Drilling will continue for the next few weeks, focusing on expanding our high-grade indicated resources at South Ayawilca that will be reflected in an updated Preliminary Economic Assessment (PEA) planned for mid-2021."
He also said he believed Ayawilca was perfectly positioned to take advantage of the current positive market sentiment towards base metals, amid zinc prices, which were reflecting "the lack of significant new supply".
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