Tinka Resources Limited 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.
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."