Torque Metals reaches another drill for equity agreement with Topdrill for more drilling at its Paris gold project
Topdrill will receive up to 50% of drill costs in shares up to maximum of $1m value
Drill program will follow-up previous significant intervals to increase the amount of shallow, high-quality gold ounces
Special Report: Costs of an upcoming drill campaign aimed at expanding gold mineralisation at Torque Metals’ Paris gold project will be paid partially in shares to contractor Topdrill.
The newest drill for equity agreement follows an earlier agreement that saw Topdrill agreeing to receive shares in lieu of cash to a cap of $500,000 in March.
Drilling has since validated Torque Metals’ (ASX:TOR) belief that its Paris project in WA’s Goldfields region hosts a large gold camp after returning thick mineralised zones.
To date, reverse circulation drill programs has yielded standout intersections such as 35m grading 14.12g/t gold from a down-hole depth of 157.85m, including 2.49m at 40.6g/t gold from 167.8m in hole 23PRCDD076 and 41m at 5.93g/t gold from 188m and 2m at 59.35g/t gold from 204m in 22PRC056.
Additionally, it has made a new shallow discovery in the previously untested 1.5km gap between the HHH and Paris pits with a top assay of 16m at 4.19g/t gold from 66m providing evidence that the two pits are connected.
Gold drilling for equity
The results were clearly in line with what Topdrill was expecting and it has now signed up for a second drill for equity agreement with the company.
Under the new agreement, up to 50% of drill costs in the new drill campaign will be satisfied through the issue of TOR shares up to a cap of $1m.
The issue price will be referenced to the volume weighted average price for the five days prior to the date of invoice and will be subject to a voluntary six-month escrow period.
TOR plans to carry out 8000m of RC drilling and 1000m of diamond drilling to follow up on significant gold intervals identified in previous work across several prospects to increase the amount of shallow, high-quality gold ounces for the purpose of a future resource estimation.
These deposits are characterised by parallel structures extending 2.5km by 1km that remain open in all directions.
“We are pleased to initiate this equity drill agreement with Topdrill, which aligns with our strategic goals and offers a cost-effective approach to our upcoming drilling campaign. The voluntary six-month escrow period demonstrates Topdrill’s confidence in the Paris gold project and trust in Torque’s technical team,” managing director Cristian Moreno said.
“Results from recent drilling activity will feed into the strategy for this upcoming iteration of drilling, as we focus on in-fill and extensional drilling to build the gold endowment at our flagship Paris gold project.”
Coming activity
TOR’s crew has mobilised on site in preparation for works ahead of the drill campaign, which will start in mid July.
It is also progressing the maiden resource estimate for Paris with results from the coming drilling expected to increase its size.
This article was developed in collaboration with Torque Metals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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