VRX Silica (ASX: VRX) continues silica sand rush with Arrowsmith and Muchea project developments - Kalkine Media

Highlights

• VRX is focused on securing the Arrowsmith North environmental approvals.
• In 1HFY24, the company raised AU$3 million to advance its silica sand projects.
• Latest drilling activities at Muchea encountered high-quality white sand, with assay results awaited.
• Muchea silica flour testwork reported positive results, enabling the commencement of marketing programs for prospective customers.

VRX Silica Limited (ASX: VRX) is a Western Australia-based company focused on tapping opportunities in the silica sand market.

The recently released half-year report for six months ended 31 December 2023 by the company highlights key developments across its Arrowsmith and Muchea projects. These projects sit within the highly prospective region of Western Australia. With the development of these projects, the company is primarily eyeing to meet the growing demand from the glass manufacturing industry.

During the reported period, the company closed a capital raising program of AU$3 million, which included AU$1.5 million in a share placement and AU$1.5 million in a share purchase plan. The capital raising program included one free-attaching option for every two shares subscribed. At December end, the company held cash and cash equivalents of more than AU$2.16 million.

Arrowsmith North environmental approvals process advances

During the first half, the company advanced its environmental approval application for Arrowsmith North to the next stage. The public environmental review (PER) period was closed, and summary of the public submissions was received from the Department of Water and Environmental Regulation (DWER). The company sent its response to the public submissions for review by the Environmental Protection Authority of Western Australia (EPA).

This application is significant for the company, enabling its ability to obtain other required approvals for mining.

Mining lease granted at Arrowsmith Brand

In July last year, VRX secured a mining lease (M70/1418) at Arrowsmith Brand, covering an area of 1,994 hectares.

The company believes that the combined resources at this project hold the potential for additional production.

VRX prepares for drilling at Muchea

In April 2023, the Department of Energy, Mines, Industry Regulation and Safety (DMIRS) granted approval for a Program of Works (PoW) aimed at drilling on existing tracks located south of the mining lease M70/1390. This program was designed to infill a previous hand auger program, which was conducted as part of the project's due diligence process prior to its acquisition.

Vacuum drilling was carried out over a span of 5 days in November 2023, resulting in the completion of 69 holes covering 953.5 metres.

The drilling encountered high-quality white sand, meeting the company’s expectations, with holes drilled to the maximum permissible depth. Assays are currently awaited.

Approval has been granted for a second round of drilling, and once completed, the MRE will be revised.

Silica flour testwork progressed at Muchea

In November 2023, the company transported a 1,000kg sample from its Muchea Project for silica flour testwork to a specialised laboratory, located in Germany. This testwork would assist in ascertaining the potential quality, yield and power requirements to produce that silica flour which is employed in LCD glass manufacturing.

After the end of the first half, the company released the initial results of the testwork. The results aligned with the company expectations, indicating that Mucha silica sand is appropriate for silica flour production for the LCD glass market.

This testing on Muchea silica sand has also identified the necessary parameters for conducting an economic assessment to evaluate the feasibility of establishing a new industry in Western Australia. This assessment will follow the completion of the testwork program.

Additionally, the testwork provided information about the quantity of samples to be sent to potential customers. With this information, the company can now commence its marketing program for prospective end users.

VRX shares traded at AU$0.098 on 15 March 2024, up over 3% from the last close.