VRX Silica’s Arrowsmith and Muchea Projects: Exceptional Geology, Resources and Reserves

Silica sand explorer, VRX Silica Limited (ASX: VRX) has progressed substantially with its advanced silica sand projects - Arrowsmith and Muchea projects. The company’s key projects have demonstrated compelling financial metrics in their recently released Bankable Feasibility Study (BFS), backed by their outstanding geology, resources and reserves.

Let us take a closer look at the resources, geology and reserves of Arrowsmith and Muchea projects below:

Geology

The company noted that the most economically significant silica sand deposits in Western Australia are found in the coastal regions of the Perth Basin, and its targeted silica sand deposits are the aeolian sand dunes that cover the Pleistocene limestones and paleo-coastline, which also host the regional heavy mineral deposits.

Arrowsmith Projects - North and Central

VRX Silica’s Arrowsmith North and Arrowsmith Central Silica Sand Projects are situated at 270 km to the north of Perth, comprising two pending mining lease applications (MLAs) and five granted exploration licences. The projects are located adjacent to the Geraldton-Eneabba Railway and the Brand Highway, with a direct railway access to Geraldton Port.

The company informed that the soil mapping by Department of Agriculture demonstrated that there are pale and yellow deep sands prevailing with lesser swampy areas and occasional ironstone ridges within the Arrowsmith project area.

Muchea Project

The company’s Muchea silica sand project is located 50km to the north of Perth in Western Australia, comprising one pending MLA and one granted exploration licence. The project is located adjacent to the Brand Highway and the Moora–Kwinana Railway, with a rail connection direct to Kwinana Bulk Terminal.

The soil mapping by Department of Agriculture demonstrated that the Muchea project area is predominantly covered by deep Bassendean Sands, leached of nutrients.

Resources

VRX Silica has so far completed drilling over the Arrowsmith and Muchea project areas by means of hand auger along existing tracks and aircore drilling.

Arrowsmith Projects - North and Central

Recently, the company notified about the updated Mineral Resource estimate or MRE for the following projects:

• Arrowsmith North: Total MRE of 771 Mt @ 98% SiO₂ - Indicated Resource of 248Mt @ 97.7% SiO₂ and Inferred Resource of 523 Mt @ 98.2% SiO₂.
• Arrowsmith Central: Total MRE of 76.5 Mt @ 96.8% SiO₂ - Inferred Resource of 48.3 Mt @ 96.9% SiO₂ and Indicated Resource of 28.2 Mt @ 96.6% SiO₂.

The Arrowsmith North MRE is based on the results obtained from 108 air core (AC) drill holes for 1,176 m and 62 hand auger drill holes for 234.6 m, while the Arrowsmith Central MRE is based on the results obtained from 76 AC drill holes for 247.4 m, and 39 hand auger drill holes for 98.6 m.

Muchea Project

The company reported that the updated MRE for the Muchea Deposit comprises total MRE of 208 Mt @ 99.6% SiO₂, comprising an Indicated Resource of 29 Mt @ 99.6% SiO₂, and an Inferred Resource of 179 Mt @ 99.6% SiO₂.

The company mentioned that the MRE is based on the drilling results obtained from 103 AC drill holes for 1,401 m, and 44 hand auger drill holes for 260.7 m, to define the modelled silica sand layer.

The metallurgical testwork that has been completed to-date shows that the silica sand at Arrowsmith North and Central, and Muchea projects is readily amenable to upgrading by standard washing and screening techniques to deliver a high-grade silica sand product with superior mass recoveries.

Reserves

The company has completed the necessary work to transform the Indicated Mineral Resource (Arrowsmith North, Arrowsmith Central and Muchea Projects) to Probable Ore Reserves. In its BFS, the company provided the details of the Probable Ore Reserve that will be generated from processing in its wet sand processing plant and mining of the Indicated Mineral Resource.

Arrowsmith Projects - North and Central

VRX Silica reported the following Probable Ore Reserve:

• Arrowsmith North: 223 Mt @ 99.7% SiO₂, with 204 Mt @ 99.7% SiO₂ contained within the MLA area (MLA70/1389).
• Arrowsmith Central: 18.9 Mt @ 99.6% SiO₂, with 18.7 Mt @ 99.6% SiO₂ contained within the MLA area (MLA70/1392).

VRX mentioned that the plant will produce four saleable silica sand products suitable for domestic and international markets, each from Arrowsmith North and Central’s Probable Ore Reserve.

Muchea Project

The company informed that the Probable Ore Reserve for Muchea totals 18.7 Mt @ 99.9% SiO₂, with 14.6 Mt @ 99.9% SiO₂ contained within the MLA area (MLA70/1390). The company also cited that the plant will produce three high-grade silica sand products with the Probable Ore Reserve.

One can infer that VRX Silica’s Arrowsmith and Muchea projects hold a strong position in terms of geology, reserves and resources, besides having a significant potential to produce very high-grade silica sand products.

Stock Performance: On 22 October 2019, VRX is currently trading at $0.150 (as at 2:58 PM AEST). The stock has delivered a massive return of 163.16 per cent in the last six months.

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