As part of its regional consolidation strategy, Torque Metals Ltd (ASX:TOR) has entered into an option agreement to acquire a 100% interest in an extensive and strategic package of tenements with gold and lithium potential in the Eastern Goldfields of Western Australia.
This move is consistent with the company’s strategy to consolidate further highly prospective ground near its Penzance Exploration Camp, which contains the New Dawn lithium discovery and Paris gold discoveries.
Acquisition of the approximately 250 square kilometres of tenements would see Torque’s project tenure grow to around 1,200 square kilometres, providing a dominant position in the region.
In prolific region
Part of the tenement package under option is west of Horse Rocks, where Lord Resources entered into a binding farm-in agreement with Mineral Resources, and has identified multiple stacked pegmatite swarms displaying extensive fractionation.
The tenements are also near Future Battery Minerals’ Kangaroo Hills project; Kali Metals and Marquee Resources’ Spargoville region; and Mineral Resources’ Mt Marion Lithium Project.
The tenements are interpreted to share similar geological characteristics and structural setting to the Kangaroo Hills and Mt Marion projects, being dominantly on greenstone belts with an adjacent intrusion.
Tenements in the Spargoville region are considered to have strong potential for gold and lithium mineralisation, sharing tenement boundaries with Kali Metals and Marquee Resources.
Torque has also applied for further tenements that would allow it to expand its New Dawn Lithium Project to areas where Arcadium Lithium and Mineral Resources are the major tenement holders.
Significant expansion in WA Goldfields
Torque managing director Cristian Moreno said: “Torque is pleased to announce the options, which pave the way for a significant expansion of its presence in the WA Goldfields through the acquisition of multiple titles with gold and lithium potential, which upon transfer to Torque will increase Torque's project aggregation to approximately 1200 square kilometres, thereby establishing it as a major high-quality tenement holder in the region.
“Upon exercise of the options, Torque will secure 100% ownership of tenements rich in both gold and lithium prospects, bringing Torque's portfolio in the region to 13 mining, four prospecting and 38 exploration licences.
“Notably, among these are tenements, E15/1706 and E15/1707 located west of Horse Rocks, where multiple stacked LCT pegmatite swarms with extensive fractionation have been identified by neighbouring explorers.
"This tenement exhibits similar geological characteristics and structural settings to prominent lithium projects such as Kangaroo Hills and Mt Marion lithium projects.
“The tenements in the Spargoville region demonstrate strong potential for both gold and lithium mineralisation. These tenements share boundaries with Kali Metals Limited and Marquee Resources Limited.
“Whilst lithium sentiment remains subdued for investors, Torque is proactively seeking out opportunities with the potential for discovery of high-quality projects, particularly focusing on lithium and gold, while also diligently discussing collaboration opportunities with potential strategic partners.”
Looking ahead
Torque has commenced geological mapping and sampling at newly identified target areas as a precursor for its initial drilling campaigns, while the company continues to review opportunities to grow its pipeline of gold-lithium-nickel-focused projects as part of its regional consolidation strategy in the Eastern Goldfields.
Torque outlines the following milestones it is pursuing this year:
At the New Dawn Lithium Project -
- RC drill campaigns;
- Soils campaign on recently acquired tenements; and
- Maiden mineral resource estimate.
At the Paris Gold Project -
- RC and diamond drilling results;
- Soils campaign on recently acquired tenements;
- Maiden mineral resource estimate; and
- Maiden exploration target.
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