Published On: July 30th, 2023
VRX Silica Limited (ASX: VRX) has been granted a Geothermal Exploration Permit, GEP 44, consisting of 8 blocks at Dandaragan, situated 145 km north of Perth, Western Australia. Geothermal technology has the potential to produce long-term dispatchable renewable energy for the Mid-West region as well as Arrowsmith Silica Sand Projects and green hydrogen for the manufacture of glass.
Figure 1: Location of Dandaragan Geothermal Exploration Permit
Denoted as Dandaragan Geothermal Project, the grant area includes other fields such as Walyering Gas Field, jointly being developed by Strike Energy and Talon Energy, with a share of 55% and 45%, under joint venture EP447. VRX Silica sees the new permit grant as an opportunity to work with these companies to leverage their extensive research and historical data to explore potential geothermal power options.
Managing Director Bruce Maluish’s Views
According to Managing Director Bruce Maluish, this initiative is taken by VRX Silica considering its long-term ambitious plans to support silica sand projects, which VRX Silica is actively assessing, as well as the production of green hydrogen for glass manufacturing. MD Bruce Maluish said, “Geothermal energy is reliable, long-term renewable energy source with the ability to power our silica sand projects and provide base-load renewable generation to backstop variable renewable sources, such as wind and solar”.
The History of GEP 44
VRX Silica lodged an Acreage Release nomination with the Department of Mines Industry Regulation (DMIRS) in December 2021. This nomination was for the Mid-West areas to be included in the Geothermal acreage release. In January 2022, DMIRS released 21 areas for GEPs. VRX Silica has made an application for three GEPs.
VRX Silica has been notified that they are progressing with the section 69A PGERA consultation phase for the other two permits. There is no timeline defined for this process. The Permit for GEP 44 has been granted for 6 years.
Figure 2: Silica Sand – The Second most consumed material on Earth
About VRX Silica
Figure 3: Location of VRX Silica’s Projects
VRX SILICA LIMITED is one of the pure-play Silica Sand mining Companies in Western Australia and is listed on ASX. The Company, led by MD Bruce Maluish and a highly experienced management team, is positioned to meet rising global Silica Sand demand. The Company is advancing its portfolio by having high-quality silica-sand projects, namely, the Arrowsmith North Silica Sand Project, the Arrowsmith Central Silica Project, and the Muchea Silica Sand Project.
About Managing Director Bruce Maluish
Bruce Maluish, the Managing Director of VRX Silica, has accumulated over 40 years of experience and unmatched knowledge by working in mining and resource sectors such as gold, nickel, and mineral sands. He has played critical roles in organisations such as Matilda Minerals, Abelle, Hills 50, etc. He is well-known in the industry for his many skills, which expand from setting up and marketing IPOs to the identification of projects and negotiations with clients in Asian markets.
Figure 4: Mr Bruce Maluish, Managing Director of VRX Silica Limited
Investor Outlook
- VRX Silica’s share price stood at AUD 0.170 per share as of July 28th, 2023, with an average 52-week stock trading range between AUD 0.185 to AUD 0.093 per share and a market capitalisation of AUD 95.27 million.
- Geothermal Exploration Permit enables the Company to power its Arrowsmith Project and green hydrogen production for glass manufacturing.
- Earlier this month, the Company was awarded a $2M grant from Government to produce silica flour which would bolster Western Australia’s Economy, and it shows Company’s strong portfolio and potential for the future.
- The Company is 100% owner of five high-value silica sand Projects in Western Australia, a Tier 1 mining region. All of the Projects have multi-decade-scale contiguous sand deposits with significant high-grade resources.
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