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TORQUE METALS LIMITED.. Interim / Quarterly Report 2022

Oct 27, 2021

65941_rns_2021-10-27_3e4b6d48-aaf2-477e-9fb8-b6a6a4ec071a.pdf

Interim / Quarterly Report

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28[th ] October 2021

QUARTERLY ACTIVITIES REPORT ENDING 30 SEPTEMBER 2021

Highlights

  • First pass drilling at Paris Project continued with broad, high-grade gold intersected

  • A total of 102 first pass holes for 7427m drilled with 2728 samples submitted to the laboratory for analysis of gold and a range of other elements. All samples now returned

  • Observation Prospect[1] - All shallow intercepts above 60m depth, include significant results of:

  • 9m @ 11.52g/t gold from 63m (21ORC009)

  • 6m @ 5.58g/t gold from 42m (21ORC003)

  • 9m @ 3.98 g/t gold from 21m (21ORC008)

  • Observation - New gold discovery– 350m strike length open to West, East and at depth. Extends Paris gold corridor by a further 900m North beyond the HHH pit

  • Strauss Prospect[2] - New gold discovery. Initial assay results of:

  • 12m @ 1.21g/t gold from 57m, incl. 3m @ 4.23g/t Au from 36m (21SRC005)

  • 6m @ 2.32g/t gold from 39m (21SRC020)

  • Strauss drilling defined a consistent gold mineralised zone over minimum 150m strike length - open to North, South and at depth with shallow dip to the East

  • Paris and HHH gold mines - High-grade gold hits below historic mines (postquarter end):

  • 6m @ 34.6 g/t gold from 141m (21PRC025) within 24m @ 10.70 g/t gold from 141m

  • 6m @ 15.2 g/t gold from 123m (21PRC021) 9m @ 10.56 g/t gold from 123m

  • New gravity geophysics highlights gold potential of Maynard’s Dam Joint Venture with Jindalee Resources

  • Bullfinch Project - Database compilation and review of historic results - PoW’s in place and rig contracted for first pass RC drilling anticipated in Q2 FY22

1 Refer to ASX announcement dated 18th August 2021

2 Refer to ASX announcement dated 15th September 2021

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Torque Metals Limited ASX Announcement 28[th] October 2021

Commenting on the September Quarter, Torque Executive Chairman Mr Ian Finch said:

“The September Quarter was a defining period in the short life of Torque Metals in which results from the first pass drilling campaign, to test zones most likely to increase the Paris project resource base, exceeded all expectations.

“Importantly for Torque and investors, the new gold discoveries at Strauss and Observation are evidence we are achieving our stated objectives of finding new gold discoveries and proving that significant opportunities remain at the Paris and HHH mines to increase the high-grade gold resource at those prior operations.

“The shallow Strauss and Observation results, coupled with high-grade results from below the old pits (released to market post quarter-end), indicate exciting times ahead for Torque with the company to fast-track follow-up drilling at these discoveries over the coming months.”

Perth-based, Western Australian-focused gold explorer Torque Metals Limited (“Torque” or “the Company”) is pleased to provide a summary of activities for the quarter ending 30[th] September 2021.

PROJECT OVERVIEW

Torque’s Paris Project lies within the area known as the Boulder-Lefroy Fault Zone (Figure 1). This prolific gold-bearing structure is host to numerous mines that have produced many millions of ounces of gold. Not least of these mines is the world famous “Super Pit” in Kalgoorlie. Torque’s Paris Project area remains vastly underexplored, with past drilling generally restricted to the top 50 metres, highlighting significant opportunities for discovery of gold mineralisation by the application of modern-day exploration techniques and the undertaking of more extensive, and deeper, drilling.

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Torque Metals Limited ASX Announcement 28[th] October 2021

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Figure 1: Paris Project located within the Boulder-Lefroy Fault Corridor

REVIEW OF OPERATIONS

Paris Gold Project

During the September Quarter, a total of 102 first pass holes were drilled at the Paris project, for a total of 7427 metres. A total of 2728 samples were despatched to laboratory with all samples now returned.

The eight prospects recently drilled by Torque at the Paris Project include:

  • Observation (22 holes for 1688m),

  • Strauss (24 holes for 1722m),

  • HHH South (11 holes for 804m),

  • Paris North (6 holes for 402m),

  • HHH Pit (3 holes for 308m),

  • Paris Pit (4 holes for 619m),

  • Marmaracs (21 holes for 1116m), and

  • Lady Doris (11 holes for 768m).

The purpose of the drilling at these prospects was to better define the zones most likely to rapidly increase the project’s resource base. The project has a previously reported existing 32,700oz JORC 2012 gold resource, most of which lies below and along strike from the existing HHH and Paris mines. The mineralisation, however, remains under-drilled, and a core focus for the Company will be to undertake an extensive program of drilling to explore for potential extensions to the known mines.

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Torque Metals Limited ASX Announcement 28[th] October 2021

Observation Prospect

A total of 22 RC holes for 1688 meters were drilled at Observation which lies 900 metres north of the HHH pit, under shallow cover, and has similar geology to the existing HHH and Paris areas. Initial assay results from RC drilling at Observation included an intersection of 9m at 11.52 grams per tonne gold from 63 metres in 21ORC009 .[3]

(See Table 1 for initial assay results received and Figure 2 and Figure 3 for schematic cross sections)

Importantly, a new mineralised zone has been identified from the initial assay results at Observation covering a current strike length of ~350 metres which remains open to the West, East and at depth. (See Figure 4)

In addition, the Observation results highlight an extension of the Paris Gold Corridor by a further 900 metres to the North to encompass mineralisation at Paris Pit, HHH Pit and now

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Observation.

Table 1: Significant Intersections from drilling at Observation - All samples are 3 metre composite samples

3 Refer to ASX announcement dated 18th August 2021

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Torque Metals Limited ASX Announcement 28[th] October 2021

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Figure 2: Schematic cross section showing significant intercepts with mineralisation envelope from first phase drilling campaign (21ORC010 and 21ORC009) and historical drilling at Observation Prospect.

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Torque Metals Limited ASX Announcement 28[th] October 2021

Figure 3: Schematic cross section showing significant intercepts with mineralisation envelope from first phase drilling campaign (21ORC008) and historical drilling at Observation Prospect.

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Figure 4: Collar location plan at Observation Prospect shows 350m strike length open to the West, East and at depth

Strauss Prospect

A total of 24 RC holes for 1,722 metres were drilled at Strauss with initial, 3m composite, assay results including intersections of 12 metres at 1.21 grams per tonne gold from 57 metres in hole 21SRC005.[4] (See Table 2 for initial assay results received and Figures 6 - 8 for schematic intersections).

The assay results have identified a new gold mineralised zone covering a current minimum strike length of ~150 metres which remains open to the North and South, and at depth with a shallow dip to the East. (See Figure 9)

Importantly, the Strauss prospect is an entirely new discovery unrelated to the Observation discovery where broad, high-grade gold was intercepted. (See Figure 5)

4 Refer to ASX announcement dated 15th September 2021

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Torque Metals Limited ASX Announcement 28[th] October 2021

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Table 2: Significant Intersections from drilling at Strauss

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Figure 5: Location of Strauss prospect in relation to other prospects at the Paris Project.

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Torque Metals Limited ASX Announcement 28[th] October 2021

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Figure 6: Schematic cross section showing significant intercepts with mineralisation envelope from first phase drilling campaign (21SRC005 and 21SRC022) and historical drilling at Strauss Prospect

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Figure 7: Schematic cross section showing significant intercepts from first phase drilling campaign (21SRC020) and historical drilling at Strauss Prospect

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Torque Metals Limited ASX Announcement 28[th] October 2021

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Figure 8: Schematic cross section showing significant intercepts with mineralisation envelope from first phase drilling campaign (21SRC021) and historical drilling at Strauss Prospect

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Figure 9: Collar location plan at Strauss Prospect shows minimum 150m strike length open to the north and south and at depth

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Torque Metals Limited ASX Announcement 28[th] October 2021

Paris & HHH Pits

Post quarter-end, Torque announced high-grade gold had been confirmed below and adjacent to the existing Paris and HHH pits.[5]

Latest assay results have been obtained from RC holes drilled adjacent to the Paris and HHH open pits to test for extensions to the known mineralisation.

The results are part of Torque’s first phase of drilling since listing less than four months ago, and confirm very strong, broad zones of high-grade gold both up and down dip at Paris and HHH, demonstrating considerable potential for growth in gold resources below and adjacent to the existing pits. Assay highlights from drilling adjacent to Paris open pit include intersections of:

  • 6m @ 34.6 g/t Au from 141m, within a larger zone of 24m @ 10.70 g/t Au in hole 21PRC025 drilled to North of the Paris pit in a Southern direction to test gold resource potential, adjacent to the existing pit.

  • 6m @ 15.2 g/t Au from 123m, within a larger zone of 9m @ 10.56 g/t Au in hole 21PRC021 drilled to the South of Paris pit in a Northern direction.

This successful drilling has indicated strong down-dip gold resource potential below the existing pit.

Assay highlights from drilling adjacent to HHH open pit include intersections of:

  • 3m @ 3.89 g/t Au from 87m in hole 21HRC003 drilled north of HHH pit on a Southern direction confirming down dip extensions to gold resource below the existing pit

  • 3m @ 1.93 g/t Au from 90m in hole 21HRC001 drilled North of HHH pit in a Southern direction confirming down dip extensions to gold resource below the existing pit

(See Table 3 for significant assay results received, Table 4 for drill hole summary, Figure 1011 for schematic cross sections and Figure 12 for collar location plan.)

Given the significance of these high-grade results, the Company has immediately moved to secure an RC rig with ~300m capacity for follow up drilling at these and other Paris prospects.

Hole ID Depth
From (m)
Depth To
(m)
Element Interval
Width (m)
Grade
(Au)
Intercept Description
21PRC021 123 132 Au_g/t 9 10.56 [email protected] g/t
21PRC021 123 129 Au_g/t 6 15.2 [email protected]/t
21PRC025 141 165 Au_g/t 24 10.7 [email protected]/t
21PRC025 141 147 Au_g/t 6 34.6 6m@ 34.6 g/t
21HRC001 90 93 Au_g/t 3 1.93 [email protected] g/t
21HRC002 87 93 Au_g/t 6 0.63 6m@ 0.63 g/t
21HRC003 87 90 Au_g/t 3 3.89 3m@ 3.89 g/t

Table 3: Significant Intersections from drilling adjacent to Paris and HHH open pits - All samples are 3 metre composite samples

Project area Easting Northing RL Hole ID Hole
Depth
Inclination/

5 Refer to ASX announcement dated 18th October 2021

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Torque Metals Limited ASX Announcement 28[th] October 2021

Azimuth
Paris - Harolds 402735 6504560 299 21PRC020 205 -60/020
Paris - Harolds 402769.862 6504599.873 299 21PRC021 150 -60/030
Paris - Plunge 402710 6504760 298 21PRC022 84 -60/200
Paris - Plunge 402593 6504815 299 21PRC025 180 -60/200
HHH 402126 6505831 304 21HRC001 120 -55/180
HHH 402180 6505827 304 21HRC002 94 -55/180
HHH 402220 6505820 306 21HRC003 94 -55/180

Table 4: Drill hole summary

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Figure 10: Schematic cross section showing 21PRC025

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Torque Metals Limited ASX Announcement 28[th] October 2021

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Figure 11: Schematic cross section showing 21PRC021

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Figure 12: Collar location plan at Paris and HHH pits

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Torque Metals Limited ASX Announcement 28[th] October 2021

Maynard’s Dam Prospect

During the quarter, new gravity geophysics were conducted by SensOre Ltd (“SensOre”) at the Maynard’s Dam Prospect (EL15/1752).[6]

Maynard’s Dam lies north of the Paris and HHH Gold Projects (Figure 13) and forms part of Torque’s joint venture agreement with Jindalee Resources (ASX: JRL).

Figure 13: Main prospects in the Paris Project tenure

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SensOre subsidiary, Yilgarn Exploration Ventures, is acquiring up to 70% of EL15/1752. Historical scout drilling records at Maynard’s Dam indicate drilling intercepts of up to 3m at 28g/t Au.

A desktop review, compilation of historical exploration activity and reprocessed newly available gravity geophysics at 100m x 200m spacing undertaken by SensOre has provided enhanced information on the lithologies and structures controlling mineral potential in the area and will be used to assist identifying drill site locations on the DPT® 1 generated targets.

6 Refer to ASX announcement dated 8th July 2021

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Torque Metals Limited ASX Announcement 28[th] October 2021

According to SensOre, targets predicted by the DPT® system are interpreted as potentially analogues for both St Ives (Gold Fields) and Norseman (Norseman Gold & Pantoro JV) style gold systems consisting of intrusion related and structurally controlled auriferous quartz veins. A splay off the Boulder-Lefroy Fault, a regionally fertile structure in the Eastern Goldfields passes down the western side of the project area.

SensOre is earning a 51% stake in the prospect by expending $3 million over a three-year period with guaranteed minimum expenditures of $300K in year 1 and $700K in year 2. Thereafter they may earn up to a 70% stake by completing a comprehensive mining feasibility study. Torque may subsequently buy back 10% from Yilgarn for $500K.

Bullfinch Project

Database compilation and a review of historic results was undertaken on the Bullfinch Prospect during the Quarter. Programme of Works (PoW’s) are in place and drill rig contracted for first pass RC drilling programme at Bullfinch which is anticipated to take place in the current quarter. Drilling is expected to concentrate on the high-grade gold targets at Withers and Rutherford’s Find.

Withers prospect

Geochemical work by the Company demonstrated a series of six or seven parallel, gold bearing quartz reefs could exist over a +3km strike length at the Withers prospect alone – just 6km WNW of the historic Copperhead mine site.

While there has virtually been no previous drilling undertaken at Withers, informal mining has been carried out on one of these quartz reefs which produced 1472 tonnes of ore at a recovered grade of 35.7g/t (1688 ounces). See Figure 14

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Figure 14: Gold bearing quartz reefs located over a potential +3km strike length at Withers

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Torque Metals Limited ASX Announcement 28[th] October 2021

Rutherford’s Find prospect

Only twelve historic RC holes have been drilled at Rutherford’s Find with 10 gold intersections of commercial grade. (See Figure 15)

Of these, two holes hit wide zones of:

  • 8m @ 5.4g/t gold, including 4m @ 10.1g/t gold, including 2m @ 18.7g/t gold and open at depth (BRC30)

  • 8m @ 3.9g/t gold, including 2m @ 9g/t gold, including 2m @ 6.2g/t gold (BRC19)

Historical production was also carried out Rutherford’s Find of 194oz from 308 tonnes at an average recovered grade of 19.6g/t Au.

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Figure 15: Historical drill intersections at Rutherford’s Find.

Upcoming Work Programme

Paris

  • First pass drilling campaign to re-commence at Paris Project immediately

  • Auger drilling and soil sampling over two prospective areas south of Paris mine

  • • Follow up drilling adjacent to and below Paris and HHH pits and at the newly discovered Observation and Strauss prospects anticipated early in the new year.

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Torque Metals Limited ASX Announcement 28[th] October 2021

Bullfinch

  • First pass RC drilling to commence at Bullfinch in current quarter - PoW’s in place and drill rig contracted

  • Drilling to concentrate on the high-grade gold targets at Withers and Rutherford’s Find

CORPORATE

Cash on hand as at 30 September 2021 was $3.627million.

COMPETENT PERSON STATEMENT

Exploration results contained in this announcement were previously included in Torque Metals Limited Prospectus dated 14 April 2021. Torque Metals Limited confirms that it is not aware of any new information or information that materially affects the information contained in this quarterly report.

FORWARD LOOKING STATEMENTS

This document may include forward looking statements. Forward looking statements include, but are not limited to statements relating to Torque Metals Limited planned exploration programmes and other statements that are not historical facts. When used in this document words such as “could”, “would”, “plan”, “estimate”, “expect”, “intend” , “may” “potential”, “should” and similar expressions are forward looking statements.

MINERAL RESOURCE ESTIMATES

The Paris Gold Mining Area contains a JORC Code (2012) Mineral Resource Estimate of 314,000 tonnes at 3.24 g/t. Au, for 32,700 oz. of gold has have previously been reported in the Torque Metals Limited Prospectus dated 14 April 2021, in the Independent Technical Assessment Report prepared by Agricola Mining Consultants Pty Ltd.

The estimates were compiled by BM Geological Services (BMGS) and took into account the mining activities of Austral Pacific Pty Ltd since the 2017 Resource Estimates and were depleted for the open pit and underground mining activity to August 2017. The Mineral Resources for both HHH and Paris have been classified as Indicated Mineral Resources. The Paris Mineral is reported above a block grade of 0.5 g/t Au using a 35 g/t Au top cut. The HHH Mineral Resource is reported above a block grade of 0.5 g/t Au using a 50 g/t Au top cut.

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Torque Metals Limited ASX Announcement 28[th] October 2021

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The Mineral Resource Estimate was included and discussed in the Company’s Prospectus released to ASX on 14 April 2021, the Replacement Prospectus released to the SSX on 10 September 2020 and in the further SSX releases: Torque Metals Limited, 2020. Quarterly Report for the 3-month period ended 30 September 2020, SSX Release, 30 October 2020 (SSX:8TM), and Table 1 attached.

This announcement has been authorised for release by Mr. Ian D. Finch, Executive Chairman on behalf of the Board Torque Metals Limited

ENDS

For further information, please contact:

Ian D. Finch Executive Chairman [email protected] M: +61 414 270 248

Media

David Tasker / Colin Jacoby Chapter One Advisors [email protected] / [email protected] M: +61 433 112 936 / +61 439 980 359

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Torque Metals Limited ASX Announcement 28[th] October 2021

Appendix 1

INTEREST IN MINING TENEMENTS

Tenement Registered Holder Area Status Project
Beneficial
Interest
M 15/1175
M 15/479
M 15/480
M 15/481
M 15/482
M 15/496
M 15/497
M 15/498
M 15/1719
P 15/5992
P 15/6149
E15/1736
E15/1747
E15/1752
E77/2522
E77/2222
E77/2251
E77/2350
E77/2607
Torque Metals Limited.
Torque Metals Limited.
Torque Metals Limited.
Torque Metals Limited.
Torque Metals Limited.
Torque Metals Limited.
Torque Metals Limited.
Torque Metals Limited.
Torque Metals Limited.
Torque Metals Limited.
Torque Metals Limited.
Jindalee Resources Ltd1
Jindalee Resources Ltd1
Jindalee Resources Ltd1
Torque Metals Limited.
Torque Metals Limited.
Torque Metals Limited.
Torque Metals Limited.
Torque Metals Limited.
9.229 ha
965.2 ha
976.65 ha
930.85 ha
855.6 ha
911.5 ha
989.85 ha
998.55 ha
120.15 ha
8.84 ha
30 ha
1 bl
4 bl
20 bl
70 bl
27 bl
2 bl
64 bl
16 bl
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Paris Gold
100%
Paris Gold
100%
Paris Gold
100%
Paris Gold
100%
Paris Gold
100%
Paris Gold
100%
Paris Gold
100%
Paris Gold
100%
Paris Gold
100%
Paris Gold
100%
Paris Gold
100%
Paris Gold
0%
Paris Gold
0%
Paris Gold
0%
Bullfinch
100%
Bullfinch
100%
Bullfinch
100%
Bullfinch
100%
Bullfinch
100%

Note 1 Jindalee Resources Limited 1st year Farm-In earning interest

Note 2 Torque Metals Limited is the Manager of all Tenements P Prospecting Licence

  • E Exploration Licence M Mineral Licence

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