VRX Silica Announces Silica Sand Processing Plant Design And Costs

  • Mar 27, 2019 AEDT
  • Team Kalkine
VRX Silica Announces Silica Sand Processing Plant Design And Costs

VRX Silica Limited (ASX: VRX) announced an independent process design and cost estimate for a processing plant for its Arrowsmith Silica Sand Projects. This project is located 270 km north of Perth, and its Muchea Silica Sand Project (Muchea), located 50 km north of Perth.

CDE Global, which is a global leader in the construction of sand mining wet processing plants has undertaken the independent processing test work, process circuit design and engineering for this project. It has provided VRX with a cost estimate for a 2 million tonne per annum (Mtpa) processing plant at £9,760,000. Due to its modular nature, it is a detailed proposal and accurate to the limit of plus/minus 15% in pricing. (1GBP = 1.87 AUD)

  • (Processing cost for) Mechanical Equipment, lighting, wiring, pipework at (CDE Quote GBP) £6,800,000
  • WHIM Module (optional) at £700,000
  • Installation & commissioning Labour at £1,100,000
  • Crane Hire and EWP’s at £400,000
  • Freight (C.I.F Fremantle) (65 containers) at £420,000
  • Contingency (5% of mech.) at £340,000

As per the company estimates, costs for water supply, plant feeder and contingency would increase the capital cost for a 2 Mtpa processing plant to around $25 million.

The plant design incorporates features to ensure high utilization, as well as performance with the duplicated critical pumps and variable speed drives on all pumps. Three iterations of test work have been carried out on the Arrowsmith and Muchea projects. Significantly, the attritioning cycle has been demonstrated to be particularly effective in removing impurities from the quartz grains.

Attritioning is an agitated high-density slurry, which allows for a high energy interaction of grains rubbing on grains, which liberates attached fine particles as well as reduces particle size by breakage on grain boundaries. This process is repeated twice in VRX’s process circuit design.

The plant is designed to produce a high purity silica sand products suitable for the glass-making industry and is the same for each of company’s three projects, i.e. Arrowsmith North and Arrowsmith Central and Muchea.

About the Company: VRX Silica Limited is a mineral exploration and development company in Australia. It majorly explores for nickel, silica, gold, and other base metals. It comprises projects such as:

  • Arrowsmith Silica Sand Project, 270 km north of Perth, Western Australia
  • Muchea Silica Sand Project, 50 km north of Perth, Western Australia
  • Boyatup Silica Sand Project, 100 km east of Esperance, Western Australia
  • Warrawanda HPQ Project south of Newman, Western Australia
  • Biranup gold Project and base metals adjacent to the Tropicana Gold Mine

It is currently headed by Bruce Maluish, Managing Director of VRX Silica.

At the time of writing (27 March 2019 AEST 02:57 PM), the stock of VRX was trading at the price of $0.07, down 20.455% with the market capitalization of ~$32.27 million. Today, it made day’s high at $0.087 and day’s low at $0.070 with a daily volume of more than 1,815,897. Its 52 weeks high was at $0.19 and 52 weeks low at $0.056, with an average volume of 313,838. Its absolute return for five-year, one year, and six months are 115.65%, 23.94%, and -32.31%, respectively.


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