I think it would be really cool if you could drop a Torch and have it still give off light(and have physics as when normally dropped). You could then drop them down dark shafts to gauge how deep they go.
They could stay lit for 5 minutes, then go out.
They would have to eventually despawn if not picked up again, so as to prevent them slowly accumulating in the world.
Thoughts? 
Sounds good! We've already planned to implement flares, but torches also make sense. Let's see if we can get this into the game soon 
If there are say.. oil pockets or pools, or some kind of natural gas.. a lit torch dropped into one should make things fairly interesting.. 
Dropping torches with a timed life sounds like a great idea. Flares could have a number of improvements but require additional fabrication, such as being hold-to-throw able and floating. I suggest a calcinator and alembic be implemented for processing, animal sewage, seawater and natural saltpeter for them.
Droppable torches may be an interesting thing to add, but there's some things to consider:
* I question dropping a torch down a hole to see how deep it is. To me, if the hole is really dark, it's too deep to fall into.
* It's a waste of a good torch, and the hole is only lit for a few seconds. After a few feet, would you really be able to see any ores, etc. down there?
* If you want to see how deep a hole goes, or what's down there, I prefer my Rope idea.
* I'd like to think that while I'm holding it, it's in a torch holder, or in inventory, that it stays lit forever. I'd hate to have to replace them periodically in caves, houses, etc.
* If you put it down, it may only stay lit for a few minutes... but it (should) set on fire anything flammable it's put down on, like grass, wood blocks, etc. (Hey, torches aren't just for light- don't forget that they're an open flame too.)
Flares would be cool, even though it could take some expensive crafting and they're a one-time use thing, IF they stay lit for an extended period of time (15 minutes?), they put out more light than torches, and they work underwater(!)
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