Published On: January 19th, 2023
VRX Silica (ASX: VRX) releases its December 2022 Quarterly Report highlighting the activities and advancements of the silica sand project for the past quarter.
Here is an overview of VRX Silica’s progress during the December 2022 quarter.
Critical Minerals Publication
The Austrade Critical Minerals Prospectus 2022 Edition, published by the Australian Trade and Investment Commission, included VRX Silica’s Arrowsmith North and Muchea silica sand projects.
So far, the critical minerals prospectus has gained compelling recognition among interested foreign investors and buyers, Australian corporates, and the Australian government.
The prospectus highlighted the potential of VRX Silica’s silica sand projects to address anticipated production shortfalls, build supply chain security, and aid a net-zero future, which can be a significant step forward for the Company. The publication will also promote VRX products to potential buyers and investors overseas.
VRX Silica will continue to contact potential buyers who received samples of products from Arrowsmith North and Muchea silica sand projects.
Silica Sand Project Advancements
VRX ensures a disciplined, staged development of its world-class silica sand projects.
The Arrowsmith North silica sand project will lead a disciplined development program, followed by Muchea and Arrowsmith Central silica sand projects.
Arrowsmith North Silica Sand Project
The low-impact mining with long-term production at Arrowsmith North silica sand project is said to commence this year and is subject to EPA approval.
Arrowsmith North has a resource potential of 221 Mt Proved and Probable Ore Reserve at 99.7% SIO2. A revised capital estimate on a tailored 2 Mtpa processing plant is currently in progress.
The tendering and specification of long lead time equipment are complete. Upon final mining approval and financing, VRX will commence the procurement of major equipment.
As requested by the EPA, VRX Silica lodged a revised Environmental Review Document (ERD) and response table in December 2022. The Company awaits a response or approval for the ERD for publication.
Arrowsmith North Mineral Resource and Ore Reserve Update
A recent update on Mineral Resource Estimate (MRE) and Ore Reserve Statement (ORS) was announced in November 2022, showing an Ore Reserve of 9.2Mt, an updated total Ore Reserve of 221Mt and a Mineral Resource of 768Mt @ 98.0% SiO2. The results of the test work confirm product specifications for marketing and offtakes.
VRX Silica has completed all mining and processing pre-production works and bulk production material for final products. The design of the planned processing plant is nearly complete.
Arrowsmith Central Silica Sand Project
Arrowsmith Central silica sand project, the second most crucial project of VRX Silica, has moved to the next stage of Environmental Protection Authority (EPA) approval. The Environmental Scoping Document (ESD) lodged by VRX is under assessment, and the Company awaits a response from the EPA.
VRX announced the completion of the test holes for two production water bores on 6 September 2022. The construction, borehole drilling, test pumping and downhole
logging are complete. The required data for the abstraction licence will be compiled for the H3 assessment.
Muchea Silica Sand Project
As per VRX Silica’s project development pipeline, the Muchea silica sand project will follow development at Arrowsmith North.
The final flora and vegetation report with detailed springtime flora and vegetation studies is expected in early 2023. The final report will form the basis of the EPA Proposal Referral for the Muchea Project.
The Muchea project has several inquiries from Asian markets and interests from offtake partners. The drilled samples obtained in the previous quarter will undergo metallurgical test work, and samples generated further will be sent to potential buyers for testing.
Boyatup Silica Sand Project
The first pass metallurgical test work program to identify the potential products that can be produced at Boyatup is under progress. Upon identification of products, VRX has planned a marketing study to determine the focus to maximise the project’s economic value.
Other Highlights of the Report
- VRX has not received any notification for its Geothermal Exploration Permit Applications
- The Company plans to lodge an additional claim for an R&D Tax Incentive Application for the June financial year 2022.
- VRX Silica lodged a preliminary application under Stage 1 of the WA Investment Attraction Fund in May 2022 and was shortlisted and invited to progress to stage 2 for a detailed application. The detailed application was sent on October 12, 2022.
About VRX Silica
VRX Silica Ltd (ASX: VRX) is a pure-play silica sand company developing world-class, high-grade silica sand projects in Western Australia.
The Arrowsmith North and Arrowsmith Central Silica Sand Projects, located 270 km north of Perth, have five granted exploration licences and two granted mining leases. The Muchea Project, located 50 km north of Perth, comprises two granted and one under-application exploration licence and one granted mining lease. The Boyatup Silica Sand Project, located 100 km east of Esperance, comprises two adjacent granted exploration licences.
For more details on VRX Silica’s project updates and investment, check out the official website.