“We consider this feature with Gold Fields is one of the simplest ways to advance the undertaking for Torq within the present market situations,” Torq chairman and CEO Shawn Wallace mentioned in a launch. “The proposed possibility phrases and supposed exploration program schedule will see vital new funding within the undertaking in a well timed method.”
The potential deal reveals one other instance of gold majors increasing publicity to copper for its vitality transition demand.
Gold Fields additionally holds 18% in Chakana Copper (TSXV: PERU), which is advancing the gold-copper-silver Soledad undertaking in Peru. Barrick Gold (TSX: ABX; NYSE: GOLD) is creating the enormous Reko Diq in Pakistan whereas pledging to enter the “premier league” of copper producers. Newmont (NYSE: NEM; TSX: NGT) purchased Newcrest final for its gold and copper belongings in one of many largest offers lately.
Salares Norte
Gold Fields additionally has the Salares Norte mine in Chile, the place it’s ramping up manufacturing after first gold in April. The corporate is the seventh-largest gold producer with 2.4 million gold-equivalent oz. produced final 12 months. It operates different mines in South Africa, Ghana, Peru and Australia. South Africa’s $164 billion state pension fund, the Public Funding Company, elevated its stake to twenty% final month.
The Torq-Gold Fields proposal for Santa Cecilia consists of two levels. The primary may see Gold Fields purchase 51% of Santa Cecilia after spending $18 million on exploration and different bills inside 30 months from closing. A $6 million funding would garner a ten% stake. Torq may purchase again the ten% for a similar quantity if Gold Fields wished to go away.
The second stage is for an extra 24% within the undertaking for $30 million over 42 months. If one firm’s share is diluted to lower than 10%, its possession curiosity within the three way partnership is to be transformed right into a 2% web smelter royalty capped at $20 million, the businesses mentioned.
Santa Cecilia, situated about 100 km east of the town of Copiapo, is beside the Norte Abierto undertaking owned by Barrick and Newmont. Its two deposits, Caspiche and Cerro Casale, comprise a measured and indicated useful resource totalling round 44 million oz. of gold and 11 billion lb. of copper, making it the world’s fourth-largest undeveloped gold undertaking.
Drilling
In Could, Torq reported drilling at Santa Cecilia reduce 120 metres grading 1.33 grams gold per tonne and 0.1% copper from 376 metres depth in gap 24SC-DDH-005. It included a quartz vein returning 2 metres at 47.9 grams gold from 414 metres downhole.
Torq additionally holds the early-stage Margarita iron oxide-copper-gold undertaking about 65 km north of Copiapo. Drilling on the Falla 13 goal there in 2022 reduce 90 metres grading 0.94% copper and 0.84 grams gold and a separate 98 metres of 0.94 grams gold and 0.68% copper. Final 12 months, crews discovered a parallel mineralized construction 200 metres west of Falla 13 intersecting 42 metres at 1.1 grams gold and 0.48% copper.
“The choice settlement greatest positions the corporate and its shareholders to capitalize on each the Santa Cecilia undertaking with a significant accomplice in addition to concentrate on the extremely potential Margarita undertaking the place there may be encouraging copper and gold grades from floor and wonderful entry to infrastructure,” Wallace mentioned. “The Margarita undertaking affords close to time period, expansive discovery potential that’s each close to floor and in a positive location.”
Shares in Torq Sources have been flat on Thursday at C$0.09 apiece in Toronto, valuing the corporate at C$12.4 million. They’ve traded in a 52-week vary of C$0.08 to C$0.54.