Torque Metals Ltd (ASX:TOR) shares were trading 124% higher intra-day, at 28 cents, after signing binding option agreements to acquire the New Dawn Lithium Project in the Western Australian Goldfields covering ~200 square kilometres adjacent to the Bald Hill lithium-tantalum operation.
New Dawn (foreground) and Bald Hill (background) projects.
New Dawn is adjacent to Torque’s Paris Gold Camp and will expand the company’s existing footprint to ~500 square kilometres across spatially related work areas, encompassing potential for discovery of gold, lithium and nickel deposits.
The new project’s aggregation with Torque’s present land holding creates the newly named “Penzance Portfolio”.
Penzance Project - Torque Metals wholly-owned and under option tenements in the WA Goldfields.
The New Dawn Lithium Project includes two granted mining licences considered prospective for spodumene, just 600 metres along strike from the 26.5 million tonnes at 1% Li2O (lithium oxide) Bald Hill Lithium and Tantalum Mine.
Torque’s desktop studies have identified multiple outcropping pegmatites at New Dawn. Multiple rock chip samples taken by the company in August 2023 assayed grades of up to 6% Li2O.
The company’s 3D model of the pegmatite bodies, generated from historic drill data, positions it to conduct a first-pass diamond drill (DD) program for determination of lithium values in pursuance of its due diligence work.
About 20 DD holes to ~100 metres depth will validate distribution and grade of pegmatites, with drilling expected to start in late September 2023.
Torque managing director Cristian Moreno said: "The WA Goldfields reigns supreme on the global stage for minerals exploration and Torque is ecstatic to strengthen its presence in this renowned jurisdiction.
“Our footprint now spans over 500km², bolstered by 12 mining, 4 prospecting and 12 exploration licences.
"In the wake of remarkable and solid gold discoveries at the Paris gold systems, Torque is strategically expanding its presence in the region, whilst also venturing into the critical minerals domain with the acquisition of New Dawn pre-Native Title mining licenses adjacent to the Bald Hill which hosts a 26.5 Mt @ 1% Li2O spodumene mine."
Paris Gold Camp extended to St Ives mine boundaries
The addition of gold prospective tenements around the Paris Gold Camp expands discovery scope, extending up to and lateral to Gold Fields’ St Ives gold mine.
Torque recently completed its first diamond drilling program at Paris and Observation prospects, which confirmed the existence of high-grade gold mineralised zones in all four drill holes.
The work produced impressive intercepts, such as 1.2 metres at 185 g/t Au (gold) and 2.49 metres at 40.6 g/t Au.
These intercepts are part of a wider mineralised zone at Paris measuring 35 metres at 14.12 g/t Au, highlighting the substantial presence of gold within the Paris gold camp.
Diamond core samples are currently undergoing metallurgical analysis, results are anticipated to be available in the coming weeks.
Torque’s Penzance tenements relative to Gold Fields’ St Ives tenements.
Moreno added: "What's more, our consolidation of tenure across promising gold, nickel and lithium prospects forms the formidable Penzance Portfolio, fortifying Torque's dominant position along the pivotal regional geological feature - the Boulder Lefroy Fault.
“As the potential of the Paris gold camp unfolds this acquisition propels Torque's growth prospects to new heights.
“To Torque’s loyal shareholders I want to express our gratitude, as your support fuels our ambitions. Torque Metals is charting an exciting path in minerals exploration with the WA Goldfields as our canvas and base.”
Option and acquisition terms
The material terms of the agreements are as follows:
- The company has paid $150,000 for an exclusive option to acquire the tenement package. The option may be exercised at any time during the period 1 January – 31 January 2024.
- Upon exercise of the option, conditional upon due diligence by the company, shareholder approval for the consideration shares and performance shares and any other regulatory approvals, the company shall acquire the tenement package on the following terms:
- $1.5 million cash;
- 15 million shares;
- 2% net smelter return (NSR);
- The issue of 85 million performance shares which will be convertible into shares on satisfaction of the performance milestones; and
- Performance-based cash payments, subject to satisfaction of the performance milestones.
Torque has received firm commitments for a share placement to raise $4 million at $0.12 per share.
The placement was strongly supported by several high-net-worth investors, existing shareholders, domestic and international institutional investors, as well as strong support from the vendors of the new projects, demonstrating their strong support for Torque Metals and their high degree of confidence in the potential of those projects.
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