VRX Silica (ASX:VRX) progresses environmental approvals for Arrowsmith North in recent quarter

Highlights

• VRX Silica lodged the final Response to Submissions (RTS) for environmental review in September 2024.
• The EPA approved an amendment to the Mine Development Envelope (MDE) in late October 2024.
• A site visit was conducted with government representatives to assess the environmental impact of Arrowsmith North.
• Approval for the Mining Proposal and water licence is anticipated alongside environmental approval.
• Prospective buyers have expressed interest in long-term contracts for silica flour production.

VRX Silica Limited (ASX:VRX) is actively working to secure approvals for its Arrowsmith North Silica Sand project in Western Australia. Multiple approvals are being pursued from State and Federal Government agencies, with  applications progressing in parallel.

Data source: Company update

Progress of environmental approvals for Arrowsmith North

During the quarter ended 30 September 2024, VRX engaged with representatives from the DCCEEW and the Environmental Protection Authority (EPA) to advance the approvals process.

In September 2024, the final Response to Submissions (RTS) document was lodged, addressing the July 2023 Public Environmental Review. The RTS, supported by peer-reviewed reports, includes minor revisions to minimise impacts on significant flora and highlights VRX’s commitment to best rehabilitation practices.

The EPA approved an amendment to the Mine Development Envelope (MDE) in late October 2024 to ensure minimal disturbance to priority species. 

After the quarter, VRX hosted a site visit for representatives from WA State Government Departments, the EPA, and other regulatory bodies to provide a first-hand view of the project's environmental impact. This visit is a key step in the final assessment of the proposal.

Site visit. Image source: Company update

Reliable source of water supply

The Arrowsmith North processing facility will rely on water from the nearby Yarragadee aquifer, accessible through a Groundwater Abstraction Licence from the DWER.

The company applied for a water allocation and bore construction permit in September 2021, with the bore completed in January 2022. After extensive testing, a a licence request was lodged in October 2022. The proposal was advertised for public comment in August 2024, receiving no objections. The final licence approval is expected alongside environmental approval for the Arrowsmith North project.

Progress of mining proposal

A Mining Proposal, submitted to DEMIRS in September 2023, is critical for ensuring that mining activities meet legal, environmental, and safety standards. The company submitted its Mining Proposal in September 2023 and responded to a request for additional information in September 2024 after a comprehensive analysis of mining soil profiles.

The approval is expected to be finalised alongside the environmental approval.

VRX targets exposure to silica flour

Previously, VRX sent bulk samples from the Muchea Silica Sand project to a specialised lab in Germany, confirming the sand's suitability for grinding to required specifications.  Afterwards, samples were sent to prospective customers to ascertain the suitability for their use.

During the quarter, prospective buyers verified that the samples met their needs and expressed interest in long-term contracts. The company has also finalised a business case for silica flour production.

VRX shares traded 2.63% higher at AU$0.039 apiece at the time of writing on 29 October 2024.