Five crucial facts to know about VRX Silica Limited (ASX:VRX)

Highlights

• VRX Silica Limited (ASX:VRX) is developing its high-quality silica sand projects based in Western Australia.
• The Company’s three large-scale, high grade and low-impurity silica sand projects comprise Arrowsmith North, Arrowsmith Central and Muchea.
• The current market dynamics for silica sand offer a significant export opportunity for VRX Silica.

Australia-based silica sand explorer VRX Silica Limited (ASX:VRX) has continued to make great strides since its listing on the Australian Stock Exchange in February 2011. The pure-play silica sand mining player is advancing its high-grade silica sand projects based in Western Australia.

Good Read: VRX Silica (ASX:VRX) tapping opportunities in WA’s glass manufacturing industry

The Company has multi-decade-scale contiguous sand deposits with a Mineral Resource of 1,056 million tonnes (Mt), ranging in grade from 99.6% to 99.9% SiO₂. These deposits lie on granted Mining Leases with secure tenure.

Against this backdrop, let us discuss five crucial facts about VRX Silica, which is focused on becoming the Australian company of choice for high-quality silica sand:

1.      Corporate strategy

VRX Silica’s strategy is to become a global producer, exporter, and supplier of choice for high-grade silica sand. To achieve this, the Company has secured long-term mining leases at three large-scale, high quality and low-impurity silica sand tenements in Western Australia, with the first one being in the most advanced stage of development.

All three projects offer the potential for substantial mineral reserves, benefit from the existing and adjacent road and rail lines to major export ports and are close to established infrastructure (logistics, power, water).

2.      Prospective producer of silica sand

VRX Silica is an explorer and prospective producer of silica sand with a focus on exporting the commodity to meet rising demand in the Asia Pacific region. The Company is headquartered in Perth, Western Australia, with operations at three silica sand mine sites across the State.

Silica sand is the primary component of a range of standard and specialty glass and is used for metal casting (foundries), metal production, chemical production, paint and coatings, ceramics, filtration and water production, and oil and gas recovery. Specifications of high-quality silica sand is also used to produce the high demand ultra-clear glass covering solar panels.

Rising global demand and prices for silica sand – coupled with an increasing shortage due to dwindling local supplies and environmental restrictions, specifically on dredging – offers a significant export opportunity for VRX Silica.

3.      Most advanced non-private projects in Australia

The Company has most advanced non-private silica sand projects in Australia, with planning, heritage and environmental studies having commenced in 2017. The three low impurity silica sand projects owned by the Company include Arrowsmith North, Arrowsmith Central and Muchea. Each of these projects can be operated independently and supply raw materials to different markets.

Must Read: Why Arrowsmith North is a near-term development opportunity for VRX Silica (ASX:VRX)?

Among these projects, Arrowsmith North is on track to gain final EPA (Environment Protection Authority) approval in December, with the six-month construction phase slated to commence in January 2023.

4.      Simple and low-impact mining and processing

VRX Silica’s low-impact approach to silica sand mining means that no chemicals will be used in its production process, and minimal dust will be produced during mining activities. The Company is also deploying innovative new measures to ensure that any vegetation removed during its mining activities can be used for continuous rehabilitation.

Related Read: VRX Silica (ASX: VRX) focused on contributing to net-zero future

Moreover, the area of VRX Silica projects has been selected for its minimal impact on the native vegetation, landforms and fauna. The mining of sand will be undertaken to leave an undulating landform with the vegetation and habitat lower than originally encountered but largely intact.

5.      Robust management team

VRX Silica’s Board and leadership team holds extensive experience in mineral exploration and mine development to-production and in the management of publicly listed mining and exploration companies.

The Company’s Board comprises the following members:

VRX Silica shares closed the trading session at A$0.135 on 20 June 2022.