Published On: May 11th, 2023
VRX Silica Limited (ASX: VRX) (VRX or Company) is extending its resources under Arrowsmith Silica Sand Project by splitting the existing Arrowsmith North Project at the southern boundary of the granted mining lease M70/1389 to create the Arrowsmith Brand Silica Sand Project. The new resources are adjacent to the south of the existing Arrowsmith North Project and bounded to the south by the Brand Highway road reserve.
According to MD Bruce Maluish, the combined resources at the Arrowsmith Projects now provide a future pipeline of additional production utilising some of the infrastructure to be developed at the Arrowsmith North Project.
He further said, “Although the development of Arrowsmith Brand Project is not a priority at the moment, VRX is cognizant of the extended timelines that are now commonplace for mining approvals, and this project has the potential to expand production to meet the ever-increasing demand for silica sand products.”
Also, MD Bruce Maluish provided an update “Following the production of the preliminary estimate at Brand, VRX has lodged an application for a Mining Lease at Brand, and this is pending.”
The Arrowsmith Brand Project lease application M 70/1418 has an area of 1,995 Ha, predominantly within Exploration License E70/5027, partially within E70/5109, and is contiguous with the granted Arrowsmith North Mining Lease M70/1389.
Last year in December 2022, VRX conducted vacuum drilling in the Arrowsmith North Project area extending into the Arrowsmith Brand Project area. The test material was gained from M70/1389 from 68 holes, each 786 metres deep. Those holes infill the existing 50 metres spaced grade control drilling used to estimate the resources. Further, 49 holes of 656 metres depth were drilled on existing tracks in the Arrowsmith Brand Project Area, which also infilled and extended the prior reported Mineral Resources Estimate (MRE).
The Arrowsmith Brand MRE was assayed as per JORC Code 2012. The competent person agreed that deposits from Arrowsmith Brand Project should be suitable for producing ceramic, glass, and foundry markets based on the composite drill sample test work.
Basis of Reasonable Prospects for Eventual Economic Extraction
- Available testwork indicates the high quality of silica sand beneficial to produce glass, ceramics, and foundry sand
- Project location and favourable logistics support the classification of the Arrowsmith Brand deposit as an industrial Mineral Resource in JORC Clause 49.
- The Mineral resource has a shallow depth
- The deposit’s proximity to major road and rail infrastructure benefits transport and a qualified workforce for the project development
The Future Action on Arrowsmith Brand Silica Sand Project
VRX Silica has applied for the mining lease area of 1,995 Ha. The Company expects the grant soon as the project application is in its final stage of the DIMRS process.
The Arrowsmith North Silica Sand Project and Arrowsmith Central Silica Sand Project
Located about 270km north of Perth, The Arrowsmith North Silica Sand Project is VRX Silica’s most advanced in Western Australia. This project benefits from Brand Highway and Geraldton-Eneabba railway and thus has a connection to Geraldton Port for bulk exports. This project has 513 million tonnes of Mineral Resources and 221 million tonnes of Ore Resources.
Arrowsmith Central resources constitute a small portion of the tenement area. It has 76.5 million tonnes of Mineral Resources and 18.9 million tonnes of Ore Resources. Last year, VRX submitted the Environmental Scoping Document (ESD) to the EPA, which details the environmental studies required to allow the assessment of the project.
Muchea Silicon Sand Project
Muchea Silicon Sand Project is located 50km north of Perth. It is also an attractive project because of its strategic location, proximity to bulk transport routes and reliable energy supplies, including a rail connection to the Kwinana Port and Brand Highway.
Muchea is also one of the locations with an outstanding grade of 99.9% SiO2 purity and low iron content, which is best, suited for the solar panel flat glass industry. It has 208 million tonnes of Mineral Resources and 18.7 million tonnes of Ore Resources, per the latest announcement.
Figure 6: Location of Muchea Silica Sand Project
Boyatup Silica Sand Project
Boyatup Silicon Sand Project is 125km east of Esperance in Western Australia. It is sealed to the road to the Esperance port. This project is different from the other project, and a comprehensive marketing study will drive its economic value. It has a total of 67.8 million tonnes of Mineral Resources.
The total Mineral Resources and Ore Resources summary is listed below.
About VRX Silica
VRX Silica Limited is a Western Australia-based mining developer. The Company has developed its high-quality pure-play silica sand projects led by MD Bruce Maluish and a highly experienced management team. Advancing the projects, namely, the Arrowsmith North Silica Sand Project, the Arrowsmith Central Silica Project, and the Muchea Silica Sand Project, VRX is meeting global Silica Sand demand.
About Managing Director Bruce Maluish
Mr Bruce Maluish, Managing Director of VRX Silica Limited, has more than 40 years of experience in the mining industry and has worked in various resource sectors, including gold, nickel, and mineral sands from both open pits and underground mines. He has been essential in various organisations such as Matilda Minerals, Abelle, Hills 50, etc. His international experience includes the identification of projects and negotiations with clients in Asian markets.
- VRX Silica’s Share price stood at AUD 0.097 per share as of May 9th, 2023, with an average 52-week range of AUD 0.097 to AUD 0.100
- As of May 9th, 2023, VRX Silica’s market capitalisation stood at AUD 54.35 million
- The recent announcement, including March 2023 Quarterly activity report, shows significant progress on various projects
- Silica Sand is in high demand within the Asia-Pacific region with a global supply pitfall. Also, 47% of the world’s glass is manufactured in Asia, which shows potential for VRX
- Arrowsmith Brand Project has the potential to cater for the silica products demand with production expansion
The Content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations, and video (Content), is a service of COLITCO LLP and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is not a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Colitco LLP is neither licensed nor qualified to provide investment advice through this platform. Users should inquire about any investments, and Colitco LLP strongly suggests that users seek advice from a financial adviser, stockbroker, or another professional (including taxation and legal advice) as necessary. Colitco, at this moment, disclaims any liabilities to any user for any direct, indirect, implied, punitive, special, incidental, or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Colitco LLP. Some images/music used on this website is copyrighted to their respective owner(s). Colitco LLP does not claim ownership of any pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions, or are believed to be in the public domain. We have used reasonable efforts to accredit the head wherever it was indicated as or found to be necessary.