VRX Silica (ASX: VRX) reports positive silica flour testwork results, shares jump

Highlights

• VRX has received positive preliminary results from specific high-grade silica flour comminution testwork on Muchea silica sand project products.
• The company would send samples to potential buyers and initiate marketing campaign for prospective end users.
• 50% of costs is covered by the WA Government Grant.

VRX Silica Limited (ASX: VRX) has reported encouraging preliminary results from specialist comminution testwork on Muchea Silica Sand Project products, undertaken at a specialist laboratory in Germany.

Triggered by the update, VRX shares jumped ~5% to trade at AU$0.105 apiece on 8 January 2024.

Testwork Overview

In November 2023, the company airfreighted a 1,000kg sample of selected Muchea sand to the German lab for comminution testwork. The aim of the testwork was to determine the quality and yield of silica flour that can be generated from the raw material selected from Muchea Silica Sand Project.

Of the total, 50% of the costs is being covered by WA Government Grant. Under the Investment Attraction Fund (IAF), part of the State Government’s Diversify WA initiative, VRX had received grant of AU$2 million in matched funding. IAF is a collaboration between industry, government and the community to support the WA government’s commitment to create quality and secure jobs, grow and diversify the economy and attract new investments.

Data source: Company update

Positive Testwork results

Through testwork, two critical outcomes have been ascertained-

• The preferred product yield
• The bond work index (BWI) needed to reduce the particle size of the Muchea sand feed to that required for the product specification

The determined BWI is 23.7kW/t with a product yield of 44.1%. The results are in line with the company’s expectations for this level of study.

With this development (BWI), the company plans to finalise a pilot plant scaled list of equipment.

It is expected that OEM would provide basic and equipment layouts. Moreover, the company would employ a local engineering firm to design and build the pilot plant. Once the plant becomes operational, it will be fine-tuned to ensure that it meets the necessary specification, with an anticipation to boost product yield.

All testing products and materials have been sent to VRX for elemental analysis to ensure they meet the product specification for key elements, especially iron.

The company informed that the final product samples would be transported to major silica flour customers in Asia to ensure they meet the required specifications. In addition to this, by-product or overground fines would be promoted in Asia and in local industries such as epoxy filler applications, paint and fibreglass.

After receiving the product, VRX would assess other downstream processing alternatives. These R&D activities, which begin with silica flour production, are expected to lead to high-value downstream processing opportunities.