torque metals limited p.o. box 27, west perth wa 6872, …€¦ · p.o. box 27, west perth wa 6872,...
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TORQUE METALS LIMITED
P.O. Box 27, West Perth WA 6872, Australia
T: 08 6323 6826
M: 0421977617; 0414270248
April 2020
Dear Member,
In my February update letter I outlined the extensive benefits to the Company of acquiring the exclusive right to
purchase the “near production” Paris Mining Project. This has been a successful strategy and is beginning to pay
off.
Production
With large increases in the $Aud gold price since my last letter, it is worth re-looking at a possible production
outcome from mining the Paris/HHH resource.
In their detailed 2018 scoping study, Austral Pacific estimated that the resource could be mined for a total cash
surplus of ~Aud$2.95 million. The mining study was undertaken at the, then, gold price of around Aud$1,650 /oz.
The significant rise in gold price since then has improved potential returns from the resources at Paris/HHH
exponentially. Today (at around Aud$2,700 / oz) the returns are more likely to be in the range of Aud$12 Mill -
Aud$15 Mill.
Importantly this cash surplus can be achieved in a relatively short space of time due to the fact that the deposits lie
on granted mining leases.
New resource IPO listings on ASX remain near zero. This is due largely to the unwillingness of ASX to recognise
the changing market and accept the desperate need for fresh “blood” in the junior sector. The nervousness of
investors due to the Covid-19 pandemic is also playing a part.
Australia NEEDS a viable second board, dedicated to “start-up” companies, as exists in almost all other first
world countries.
Your board has carried out extensive research into the viability of two existing, alternative stock exchanges – The
National Stock Exchange (NSX) and The Sydney Stock Exchange (SSX). Each has pros and cons in relation to a
new resource listing, but both recognise the need for flexibility, simplification of listing rules and lower costs.
Encouraged greatly by what we have heard, your board has decided to pursue a listing on one of these two
exchanges. (a firm choice will be made after further talks). A new prospectus is underway and is in its second
draft.
When completed it will be lodged with ASIC for compliance approval. I intend to update members regularly on
our progress on this matter.
TORQUE METALS LIMITED
Asset Enhancement.
Some of you may have noticed a recent announcement by the listed resource company, Jindalee Resources Ltd
(JRL), regarding an agreement with Torque. This deal, which gives TOR the ability to acquire up to 80% of the
JRL tenements, has approximately doubled our footprint in the important Paris / HHH mining area.
Fig 1 (below) shows the contiguous nature of the newly acquired area and its significance in relation to the
underlying geology.
The agreement with JRL has added a further ~13km of highly prospective strike extent, to the Paris / HHH mining
area.
Initial research on the area has already uncovered historical drill results up to 3m @ 28g/t Gold at the “Maynards
Dam” prospect, at the Northern end of the newly acquired tenements. (See Fig 1)
The above represents part of a staged programme of project enhancement.
The drilling of two metallurgical test holes beneath the HHH pit has been postponed until late May so that efforts
can be concentrated on the listing process. A mining feasibility study, along with the commencement of infill and
extensional resource drilling will commence immediately after listing.
Finance
The Company is currently finalising the raising of $335,000 through sophisticated investors, as mentioned in my
previous letter.
Unfortunately the strictures placed upon us by ASIC have made the proposed rights issue to all shareholders
impossible to achieve in a timely manner.
The Company is now in discussion with a number of corporate and financial institutions regarding the proposed
IPO capital raising.
Yours Sincerely,
Ian D Finch
TORQUE METALS LIMITED
Figure 1 – Paris/HHH & Jindalee Tenement Map