Recent drilling by TopTung at its only project has “severely reduced the tungsten resource”, the topaz and tungsten junior told investors.

“This will affect the company’s future strategy,” TopTung (ASX:TTW) said.

Tungsten, which is used to harden steel in ballistic missiles and drill bits, has witnessed supply cutback issues in China, which produces 80 per cent of global tungsten.

TopTung previously warned investors it would probably deliver a smaller resource than expected for its Wild Kate prospect in New South Wales.

Chairman Leon Pretorius told Stockhead that everything TopTung is doing at its Torrington project is “not bleeding cash” from the company, it just has a long lead time.

“So even if we had enough tungsten to start a tungsten mine or producing operation, it would take us 18 months to two years before we get all the permits in place,” he said.

The company’s goal was to produce both topaz and tungsten at its Torrington project.

Success in breaking into the bulk industrial markets with topaz as a feedstock is also an unknown, TopTung noted.

The company is currently trading at around cash backing at a share price of 2.4c, which has more than halved since April last year.

TTW shares over the past year.
TTW shares over the past year.

TopTung is now on the hunt for a new project, with around $3.8 million in the bank.

The company says it has received a number of unsolicited approaches and offers of projects at various stages of development to get involved in.

While TopTung has assessed a few of them, none have met the company’s acquisition criteria.

TopTung is looking for a simpler project while it continues work on its Torrington project.

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“The main thing is the company is semi-adverse to getting involved in chemical extraction plants, whether it be potential legacy tailings and all that,” he said.

“We want simple gravity-type stuff. We haven’t killed Torrington, we just don’t want to spend money chasing more of the same until we understand what we are chasing.”