Written by 3:47 pm Australia, Mining, Top Stories, VRX Silica

VRX Silica: A Sustainable Way Of Catering To The Global Demand For Silica Sand

VRX Silica: A Sustainable Way Of Catering To The Global Demand For Silica Sand

The UN observes that the world uses 50 bn tonnes of silica sand annually, and the demand is anticipated to rise exponentially.

VRX Silica (ASX: VRX) is a pure-play silica sand company based in Perth, Western Australia. The Company is one of the giant silica sand suppliers fully dedicated to catering to the global demand for high-purity silica sand. The company is listed on the ASX and is led by an experienced board and management team led by MD Bruce Maluish, along with Paul Boyatzis as the Non-Executive Chairman, and Peter Pawlowitsch and David Welchas as the Non-executive Directors.

Besides, the supreme quality silica sand deposits owned by the Company sit on granted Mining Leases with a fixed tenure and a combined Mineral Resource of over 1 billion tonnes of 99.6%-99.9% SiO2 grade silica sand.  

Read More: VRX Silica Announces Updates on Mineral Resource and Ore Reserve at Arrowsmith

Arrowsmith North Silica Sand Project

An overview of the exploration licences and mining areas at Arrowsmith North and Arrowsmith Central.

The Arrowsmith North Silica Sand project has a strategic location as it is 270 km north of Perth and adjacent to the Brand Highway and Geraldton-Eneabba railway, which brings proximity to the Geraldton Port for exports. It is one of the most advanced projects of the company, and its production is projected to begin in 2023.

The project has a total mineral resource of 771 MT at 98.0% SiO2 and an ore reserve of 223 MT at 99.7% SiO2. Additionally, the feasibility report released by the Company indicates an initial 25-year life of mine . Building the 2Mtpa operation requires a capital expenditure (CapEx) of AUD40m. Furthermore, the project is expected to generate AUD2.7bn turnover over the initial 25-year mine life. 

Arrowsmith Central Silica Sand Project

The survey of crucial infrastructure and mining areas at Arrowsmith North and Arrowsmith Central.

The Arrowsmith Central Silica Sand Project is situated 30km from the Arrowsmith North Project An air-core drilling program at The Arrowsmith Central Silica Sand Project,’ was completed during the first quarter of 2019 and leveraged the analytical reports to update the mineral resource estimate for the project.

During August 2019, the resource estimate was updated to 76.5 Mt @ 96.8% SiO2, including an Indicated Resource estimate of 28.2 Mt @ 96.6% SiO2 and an Inferred Resource estimate of 48.3 Mt @ 96.9% SiO2. In other words, there was an overall rise of 273% on the maiden estimate. In September 2019, a Maiden Probable Ore Reserve was declared for the Arrowsmith Central Silica Sand Project of 18.9Mt.

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The company is also progressively commencing in seeking regulatory approvals for the project. As per requirement from EPA, the project has shared the Environment Scoping Document (ESD) to EPA. 

Muchea Silica Sand Project

An insight into the exploration licences and mining area at the Muchea Silica Sand Project.

The Muchea Silica Sand Project is another extensive project by VRX Silica Limited. It is one of the rarest world-class silica sand projects with an exceptional purity standard of 99.9% SiO2. It has critical low-iron content and is suitable for supplying sand for the booming ultra-clear, solar panel flat glass industry. Muchea is located 50 km north of Perth and has proximity to bulk transport routes and reliable energy supplies.

Besides, it is adjacent to the Brand Highway and has a rail connection to the Kwinana Port. It is a low capital intensity project which will requires a capital expenditure of AUD40m to build the 2Mtpa operation, which is expected to yield AUD3.3bn revenue the initial 25-year mine life.

Muchea has a total Indicated and Inferred Mineral Resource of 208 MT at 99.6% SiO2 and an Ore Reserve of 18.7 MT at +99.9% SiO2. The project also has one granted Exploration Licence, two Exploration Licence Applications, one granted Mining Lease, three granted Miscellaneous Licences and one Miscellaneous Licence Application for an area of 74.4km². 

Boyatup Silica Sand Project

A detailed view of the exploration licences at the Boyatup Silica Sand Project

Located about 125 km east of Esperance in Western Australia, the Boyatup Silica Sand Project is connected by a sealed road to the Esperance Port. It is based on two tenements, E69/3560 and E69/3668, for an entire project area of 124 km². Boyatup has a total Mineral Resource of 60 MT @ 97.8% SiO2. 

Investor Outlook

All the silica sand projects by VRX Silica are based in Tier 1 mining areas of Western Australia. VRX has accomplished original feasibility research and analysis on the Arrowsmith North, Arrowsmith Central and Muchea projects. They primarily indicate 25 years of economic production, with a remarkable capacity of producing high-quality silica sand for over 100 years. Additionally, the projects benefit from adjacent rail lines linking the ports in Geraldton (Arrowsmith) and Kwinana (Muchea) and by road to the dock at Esperance (Boyatup). The Company’s impeccable potential to reach even greater heights in the short and long term make it a conducive and ROI-rich site for investments.

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