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Be the first with the news that moves the market- Tinka Resources (TSXV:TK) has issued an update following the extension of Peru’s COVID-19 state of emergency
- The company is to remain on lockdown until May 24, when operations are likely to recommence
- An employee that previously tested positive for COVID-19 has now fully recovered, with no other cases reported
- The restart will probably begin with major operations, while exploration and development projects will resume at a later date
- Tinka Resources (TK) is up 3.85 per cent and trading for C$0.14 per share, with a $44.3 million market cap
Tinka Resources (TSXV:TK) has issued an update following the extension of Peru’s COVID-19 state of emergency.
Prior to the virus outbreak, the junior exploration company’s focus was on developing its wholly owned Ayawilca project. The site sits 40 kilometres northwest of Cerro de Pasco, in the richly mineralised silver-lead-zinc belt of Central Peru.
A state of emergency has been in place in the country since March 15. In a recent announcement, the Peruvian government extended the state of emergency to at least May 24.
However, Tinka Resources has received assurances that the mining sector is a key pillar in the country’s economy. As such, it will be one of the first industries to resume once lockdowns ease.
Once operations recommence, it’s likely that the company will use a staggered approach. As such, Tinka says that its larger operations will be the earliest to restart. The company’s exploration and development projects like Ayawilca will commence at a later date.
Today the company revealed that its employee who tested positive for COVID-19 in mid-March has made a full recovery. While in hospital in Lima, the worker tested positive on March 24, and has been recovering in self-isolation at home.
Tinka says that no other cases of the virus have been reported within its work force, or communities in the Cerro de Pasco region.
Before it can restart operations, the company must obtain approval from government bodies for its own health and safety protocols. These are likely to include self-distancing policies, disinfection procedures, and COVID-19 testing, among other measures.
Once the company reaches this phase, it’s likely that the next exploration period at Ayawilca will begin in 2020’s latter half. This will involve at least 7,000 metres of infill and step-out drilling, with a focus on growing and upgrading the high-grade zinc-silver resources.
Tinka’s CEO, Graham Carman, said the safety of the company’s employees, families, and surrounding communities remain the highest priority.
“Tinka’s fundamentals remain strong following the strategic financing completed early in 2020, underpinned by our 100 per cent owned Ayawilca zinc-silver project.
“Corporate administration costs have been reduced during this lockdown period, as we aim to preserve the company’s cash position,” he added.
Tinka Resources currently has ample funds, following investments from Buenaventura and Sentient in January this year, and has no debt.
Tinka Resources (TK) is up 3.85 per cent and trading for $0.14 per share at 2:58pm EDT.
