The cloth torch is a light that's brighter than the Crude Torch, plus, you can set fire to things!
Cloth Torch[]
A useful gadget for lighting up dark caves, and by clicking a flammable object you can set fire to it. When burning things a bar will appear (similar to the forage tool, but RED), when the bar fills the object will catch fire. It's often helpful to set fire to un-mined coal with the Cloth Torch to smelt your mined metals.