VRX Silica Limited (ASX: VRX) is an ASX listed metals and mining company based in West Perth, Australia. It has an interest in exploring and mining base metals and gold projects.
The company has several projects in its portfolio as follows:
- The Arrowsmith Silica Sand Project comprises of four granted exploration licences.
- Boyatup Silica Sand Project consist of one granted exploration licence and will complement both Arrowsmith and Muchea while adding to the silica products company would potentially produce.
- The Muchea Silica Sand Project contains one granted exploration licence.
- Warrawanda HPQ Project has prospective for high purity quartz and nickel sulphides.
- Biranup Project consist of high prospect for gold and base metals.
On 2nd May 2019, the company announced the results of the testwork and gave confirmation assays on high recoveries of silica sand commercial products from its Arrowsmith and Muchea projects.
CDE Global has conducted a total of three iterations of the testwork for the projects mentioned above, and the last one was concluded in March 2019. CDE global is an established testwork laboratory and process plant fabricator based in Northern Ireland.
Besides, the confirmation assays have been completed, by the company on the final products from the testwork via Nagrom Laboratories in Perth, WA.
Recently, CDE Global had prepared process circuit design, engineering and cost estimate for a plant, which was based on the above-mentioned testwork. It was released by VRX Silica, wherein the final determination of the recoveries was based on circuit design.
The Attritioning step was also being conducted twice in the circuit design, which helps in reducing the contaminants and improving the particle shape. The procedure includes of rubbing grains to liberate the attached fine particles and breaking the corners and grain boundaries.
The Managing Director, VRX Silica, Bruce Maluish stated that the company is positive about the process circuit design and the final silica sand products capability for production.
Highlights from March 2019 quarterly report
- On 17th January 2019, the company had lodged a mining lease application (MLA70/1390) for its Muchea Silica Sand Project.
- On 4th February 2019, it announced the acquisition of the Boyatup Silica Sand Project for 2 million ordinary shares at a price of $10,000.
- On 14th February 2019, mining lease application (MLA70/1392) was announced for its Arrowsmith Central prospect by the company, which included 96% of the total previously announced resource.
- Further drilling programme was announced at the Arrowsmith and Muchea project consisting of 189 and 57 holes respectively and was completed during the quarter.
March 2019 Cashflow statement
On 1st May 2019, the company released its cash flow statement for the March 2019 quarter. Wherein, it reported a total cash outflow of A$823,000 used in the operating activities, including A$333,000 and A$303,000 being used towards administration and corporate costs and exploration and evaluation costs respectively.
The net cash of A$10,000 was used toward investing activities, and no cash flow has been generated from the financing activity. At the end of the quarter, the company reported net cash of A$320,000.
The company estimated a total cash outflow of A$400,000 for the next quarter, with the highest cost expected to be incurred on staff costs.
On 5th March 2019, the company announced the results of rock chip samples from Warrawanda Project.
The stock traded at A$0.060, up by 5.263% compared to the previous closing of A$0.057, as of 2nd May 2019 (AEST: 3:30 PM). The YTD return of the stock stands at negative 56.15%.
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