VRX Silica (ASX: VRX) completes engineering at Arrowsmith North Silica Sand Processing Project

Highlights

• The pureplay silica sand company has completed detailed engineering and finalised mechanical equipment list
• VRX has prepared the supply tender documents and critical timelines have been established
• The engineering work relates to the construction of a 2 million tonne per year silica sand processing plant

VRX Silica Limited (ASX: VRX) -- a pureplay silica sand company having multiple projects in Western Australia (WA) -- has informed about the completion of all material engineering work at its Arrowsmith North Project. These works relate to the construction of a 2 million tonne/ year silica sand processing plant at the WA-based project, which lies 270 km north of Perth, Western Australia. 

Over the short-term, VRX Silica is intending to rearrange the execution cost estimate to reflect costs by area, not by task. The company also wants to refine the execution schedule estimate considering recent retendered equipment and other information.

Source: Company update  

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VRX Silica is constructing a 2 million tonne/ year silica sand processing plant at Arrowsmith North. All material engineering work in this respect is now complete. The company states that the detailed design phase is largely complete, and the remaining minor areas/ items will be detail designed in the execution phase, with no change in the execution schedule.

This engineering phase has been based on a "comprehensive metallurgical testwork program", VRX states. The design has innovative processing techniques allowing flexibility to produce multiple products depending on market requirements for foundry and glassmaking silica sand. The functional control philosophy document is in the process of development.

The mine plant area, including feed hopper, transfer conveyors and some other areas/ items are concept designed. They will be detail designed or completed during the execution phase. Major equipment has been tendered, selected as preferred and used in the detailed design. Many items of second-hand process equipment have been purchased and refurbished.

Schenk vibrating banana screen; Source: Company update

Project execution schedule

VRX states that the most recent schedule uses milestones including finalising finance, site access date to build northern access road, approval to place orders for major long lead equipment, and site access date for plant construction before the decision to commence construction.

The short-term ongoing works include evaluating recent retendering of key major equipment, producing a manning histogram for the execution phase, reviewing the operating & control philosophy, and liaising with the power provider for development of the preferred power option.

VRX Managing Director Bruce Maluish has commented that the design work will enable a "very long production regime" at the Arrowsmith North Silica Sand Project, with low emissions and carbon footprint.

VRX Silica's shares traded at AU$0.11 at the time of writing on 29 May 2023.