VRX Silica (ASX: VRX) advances silica sand projects in 3Q, eyes near-term development - Kalkine Media

Highlights

• In last quarter, VRX progressed to next stage of environmental approval process for its Arrowsmith North Project.
• VRX plans to undertake drilling at Muchea Project in 2Q24.
• Latest testwork on Muchea sand sample suggested its potential to produce the grade and quality required for raw material for high-quality silica flour production.
• The December quarter saw a geothermal exploration initiative by VRX.

Pure-play silica sand exploration and development company VRX Silica Limited (ASX: VRX) has released its quarterly activity report for the three-month period ended 31 December 2023.

In this article, we have listed out the key updates from the report highlighting the major developments conducted by VRX in the quarter at its silica sand projects at Arrowsmith, Muchea and Boyatup, in Western Australia.

The company has five high-value, advanced, very long-term silica sand projects in Western Australia.

Arrowsmith North environmental approvals process makes headway

The company is advancing work related to environmental approvals from the Environmental Protection Authority of Western Australia (EPA) for its Arrowsmith North Silica Sand Project (Proposal).

The Environmental Protection Authority of WA is still considering VRX’s responses to public submissions on its application, post which the EPA would draft an assessment report for the WA Environment Minister in respect of the proposal.

This approval is crucial and linked to the company’s ability to secure other necessary approvals for mining.

The company is targeting near-term development opportunities for the project. It plans to begin production in the next 6-8 months after receiving all essential environmental approvals.

Image source: Company update

Drilling planned at Muchea Silica Sand Project in 2Q24

The company received approval for a Program of Works (PoW) for drilling on existing tracks, south of the granted mining lease M70/1390, in April 2023, from the Department of Energy, Mines, Industry Regulation and Safety.

VRX conducted vacuum drilling at the site, completing 69 holes over 953.5 metres, in the December 2023 quarter.

Vacuum drilling at Muchea

With holes being drilled to the full depth allowable, high-quality white sand has been intercepted during the drill campaign. Going forth, the second phase of drilling will be conducted, post which VRX will update the Mineral Resource Estimate (MRE).

VRX has sent a Proposal to the Federal Department of Climate Change, Energy, the Environment and Water (DCCEEW), for an assessment under the EPBC Act concerning further exploration drilling and trials of the Vegetation Direct Transfer rehabilitation methodology within M70/1390 of Muchea. The DCCEEW has approved continuation of work at the site under specific conditions.

As of now, VRX has planned to conduct the drilling program and VDT trials in 2Q 2024.

Notably, VRX had sent a 1,000kg sample of selected sand from Muchea Project to a lab in Germany in November 2023, to find out the potential yield, quality and power needs to produce a suitable silica flour for manufacturing of LCD glass. The results suggest that Muchea silica sand is apt for making high-grade silica flour for LCD glass.

Dandaragan Geothermal Project

VRX has inked a Farm-In and Joint Venture Agreement with Hydro X Gen Pty Ltd for its granted Geothermal Exploration Permit 44 at Dandaragan, WA. As per the agreed terms, VRX will not have to provide funds for geothermal development of the project. It will hold the rights to any minerals that may be found during development of the geothermal project.  

VRX has initiated this geothermal exploration to support its silica sand projects and long-term ambitions for the production of glass in Western Australia.

As per the company’s latest announcement, GEP 44 has been transferred by VRX to its subsidiary VRX Geothermal Pty Ltd. VRX shares traded at AU$0.105 on 25 January 2024, up 5% from the last close.