Project Overview

The Torrington Project comprises EL 8258 and adjoining EL 8355 held by Torrington Minerals Pty Ltd a wholly owned subsidiary of TopTung Limited (TopTung). The project is located in northern New South Wales, 240km south-west of Brisbane, Queensland, and 400km north of Newcastle, NSW, in proximity to the Torrington Township approximately 65km by road south-west of the local Shire town of Tenterfield (Figure 1). Generally, infrastructure is very good and includes a 22kVA power line to site. The Project area encompasses 53km2 and covers most of the numerous historic shallow tungsten mines and workings located within the State Forest Reserve and on private land holdings (see Figure2). Initial exploration will be restricted to the REF Area within the State Forest Reserve and Lot 20 (for which Company has concluded access and compensation agreements).

The Torrington region and particularly the area of the Torrington Pendant, within which the Torrington Project is located, contains potential economic concentrations of tungsten, topaz, bismuth, and gold mineralisation. The area has been mined since the early 1880’s, initially for tin and tungsten, and more recently within the EL areas for its topaz content (for refractory feedstock and abrasive purposes). Numerous small rich tin and tungsten lodes were exploited into the 1980’s, since then however, low prices for these commodities have restrained further exploration in the region for these metals. The Company’s interest is in the potential of both the tungsten and topaz mineralisation.

Figure 1: Location of EL 8258 & EL 8355 Torrington in northern NSW

Figure 2: Land Use within the Torrington Project

Following the evaluation of a number of projects (Australia-wide and offshore) the board decided to focus on the historic Torrington tungsten and topaz mining area held under exploration licences by Resolve Geo (Pty) Limited (Resolve). The Company reached agreement with Resolve to acquire 100% of EL 8258 and EL 8355 as announced to the ASX on 15 April 2015 with the project becoming the principal focus of the Group’s activities.

Under the terms of the acquisition, Resolve were contracted to complete an update of the mineral resource utilising a recently flown LiDAR survey to provide an accurate topographic surface and allow delineation of volumes associated with previous mining operations.

The updated (August 2015) Indicated and Inferred JORC 2012 Mineral Resource estimate contained 2,146,000 tonnes at 0.23% WO3 for 4,965 tonnes WO3 as given in the Table 1 below and detailed under the JORC 2012 tab.

Table 1: Summary Indicated and Inferred Tungsten Resources – August 2015

Resource Category Silexite (t) Grade (% W) Grade (% WO3) W (t) WO3 (t)
Indicated 422,000 0.20 0.25 827 1,043
Inferred 1,724,000 0.18 0.23 3,110 3,922
Total (rounded) 2,146,000 0.18 0.23 3,937 4,965

(Cut-off grade is 0.05% W and is equivalent to 0.063% WO3)

Resolve also completed an evaluation of the Exploration Target potential of the Torrington Project based on the extent of the historic workings as well as previous drilling and mining records. The Exploration Target* is expressed as a range of tonnes and grade as required by JORC 2012 and comprises 5 to 39 million tonnes at 0.063 to 0.5% WO3(as detailed in the JORC Resource section)

The Indicated and Inferred Resource together with the potential of the Exploration Targets* provided the confidence to proceed with the necessary regulatory applications to allow resource drill programme to be undertaken targeting resources in excess of 10,000 tonnes of contained WO3.

The Company is targeting a production profile of 500,000 to 700,000tpa** of ore at a grade of 0.22% WO3.

Details of the exploration programme are given under the Exploration page. The drilling programme will commence once all approvals are in place.,

(*The potential quantity and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource for the areas covered by the Exploration Target).

(**Initial target production profile of 650,000tpa (inclusive of dilution) at an ore grade of 0.22% WO3 was announced to ASX on 15 April 2015. There has been no change to the material assumptions underpinning the production target. As per ASX Listing Rule 5.16.4 and 5.16.5 the Company clarifies this production profile is based on a part inferred mineral resource and, as such, under this low level of geological confidence there is no certainty that further exploration work will result in the determination of indicated mineral resources or that the production target itself will be realised; and that the potential quantity and grade of the exploration target is conceptual in nature and there has been insufficient exploration to determine a mineral resource and there is no certainty that further exploration work will result in the determination of mineral resources or that the production target itself will be realised).