Highlights

• VRX Silica is focused on advancing its 100% owned projects in Western Australia.
• The projects are believed to hold the potential to operate independently and supply processed materials.
• The company is eyeing to tap opportunities in the foundry, solar panels, and other high-tech glass markets.
• Production at Arrowsmith North project is expected to commence after final environmental approvals are granted.
• The company highlights strong interest from customers in Southeast Asia.

Advanced pureplay silica sand company VRX Silica Limited (ASX: VRX) is focused on developing its projects in Western Australia (WA).

The company highlights that its WA assets are high-grade, large-scale and low-impurity silica sand projects with the potential to operate independently and supply processed material to targeted markets. Owing to their scale, the projects can provide long-term opportunities for the export of silica sand and potential glass manufacturing and downstream processing in Western Australia, says VRX.

The projects have access to established infrastructure such as rail lines, logistics, power, gas pipelines and water.

Advancements across the projects

Over four projects, mining leases have been granted, and infrastructure and permitting preparations are advancing well.

Arrowsmith North –This project has a mine life of at least 25 years, capable of delivering high-grade silica sand of over 2Mt tonnes per year.

The company considers this asset as a near-term development opportunity. Production is expected to begin in 6-8 months once final environmental approvals are secured.

Under the EPBC act, the company has got confirmation from the Commonwealth Department of Agriculture, Water and the Environment (CDAWE) of accredited State approval. In 2022, the Environmental Scoping Document (ESD) was approved, and the Environmental Review Document (ERD) has been published for public review by the EPA. Meanwhile, the company has submitted the mining proposal with DMIRS for assessment.

WA Silica Sand Projects (Image source: company PPT)

Arrowsmith Central – For the project, the company has received confirmation from the CDAWE of accredited state approval under the EPBC Act. The ESD has already been lodged, which once approved would lead to the ERD submission.

Arrowsmith Brand –The inferred resource of Arrowsmith Brand is estimated at 523Mt at 97.3% SiO₂. A mining lease has been granted to this project.

Muchea – It is a large-scale, low-impurity silica sand project that has secured mining lease and miscellaneous licences for access.

VRX expects first production from the Arrowsmith North project during 2023, followed by Muchea, Arrowsmith Central, Boyatup and Arrowsmith Brand. Meanwhile, the company is looking to tap other potential cost saving options and downstream products.

VRX has recently secured a geothermal permit at Dandaragan. Read more here.