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VRX Silica (ASX:VRX) signs LOI with ResourcesWA for power supply at Arrowsmith North - Kalkine Media

March 07, 2023 03:35 PM AEDT | By Manisha
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Highlights

  • VRX Silica has executed a letter of intent (LOI) with ResourcesWA to explore a proposed power supply solution for the company’s Arrowsmith North Silica Sand Project.
  • Under the LOI, the company will analyse the potential to set up a powerhouse, with containerised gas reciprocating engines, at a nearby gas wellhead site.

VRX Silica Limited (ASX:VRX) has executed a letter of intent (LOI) with ResourcesWA to explore a proposed power supply solution over a period of six months for the company’s Arrowsmith North Silica Sand Project by use of gas directly from a local wellhead.

The LOI has been signed with the prime objective of analysing the potential to set up a powerhouse, with containerised gas reciprocating engines, at a nearby gas wellhead site with direct offtake from a current gas plant and reticulation to the Arrowsmith North site through a dedicated transmission line.

Data source: Company update dated 07 March 2023

A snapshot of Arrowsmith North Silica Sand Project

One of the company’s most advanced project, the Arrowsmith North Silica Sand Project has a Total Ore Reserve of 223 MT at 99.7% SiO2 and Total Mineral Resource of 771 MT at 98.0% SiO2.

Situated next to the Brand Highway and Geraldton-Eneabba railway and ~270km north of Perth, Arrowsmith North allows a direct link to the Geraldton Port, and consequently, opens way for bulk exports.

A bankable feasibility study was conducted for the project on the basis of the first 25-year mine life. A modest AU$40 million capital expenditure (CapEx) will be needed to establish the 2Mtpa operation. Once functional, the project is likely to yield AU$2.7 billion in revenue over the first 25 years, reports VRX.

The production is scheduled to take place this year.

VRX shares were trading at AU$0.115 on 07 March 2023.


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