VRX Silica (ASX:VRX) extends resources at Arrowsmith silica sand project area - Kalkine Media

Highlights

• VRX Silica has a new project at Arrowsmith with an Inferred Resource of 523 Mt @ 97.3% SiO₂
• Managing Director Bruce Maluish has said combined resources at the Arrowsmith projects provide VRX the "future pipeline of additional production"
• Notably, silica sand at the newly named Arrowsmith Brand project is similar to that at Arrowsmith North project

Advanced pureplay silica sand company VRX Silica Limited (ASX: VRX) has updated on the extension of resources at the Arrowsmith Silica Sand Project.

The latest Silica Sand Mineral Resource at VRX's Arrowsmith Brand Project is contiguous and south of the Arrowsmith North Silica Sand Project. The drilling activity has added 268 Mt @ 96.7% SiO₂ to the total VRX Mineral Resource Estimate.

Source: Company update 

The development

The Arrowsmith Brand Mining Lease Application spans 1,995 Ha, and it is contiguous with the Arrowsmith North Lease (granted). Notably, Arrowsmith Brand, which has a subset of Arrowsmith North mineral resource estimate, was created by splitting the North Project at the southern boundary of the mining lease. In December last year, a vacuum drilling program at the Arrowsmith North area was completed, stretching into the Arrowsmith Brand area. 68 holes were drilled by Altech for 786 metres.

A further 49 holes, for over 650 metres, were drilled on tracks present to the south. This is now termed the Arrowsmith Brand Project. The holes infill and extend the previously reported Arrowsmith North's mineral resource estimate. High-quality silica sand was intersected during drilling, with assaying and modelling showing the mineral resource estimate for the Arrowsmith Brand Area. Drilling, on an 800m x 800m drill hole grid, shows band of homogeneous yellow sand overlying white sand.

The drilling activity also encountered zones of clay rich fine sand (not included in the mineral resource estimate).

Altech mentions that potential silica sand products from the Arrowsmith Brand Project area are likely to have utility in a variety of industries including automobile, container glass manufacturing and foundry casting.

Source: Company update

Future work

The company has filed a mining lease application for Arrowsmith Brand (1,995 Ha area), and it is in the final stages of the DIMRS process. VRX Silica expects the grant of licence over the near term, following which activities including environmental surveys, metallurgical testwork, and marketing studies would be undertaken. These activities would help in scoping and pre-feasibility studies.

Statement by Mr. Bruce Maluish

The managing director has commented that the combined resources provide the company the "future pipeline of additional production". He is also hopeful that there is potential of production expansion, which can help meet the “ever increasing” demand of silica sand.

Shares of VRX traded at AU$0.097 on 9 May 2023.