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VRX Silica receives EPA’s consent for amendment of Arrowsmith North proposal

Highlights

  • VRX Silica Limited (ASX:VRX) has sought consent from the EPA to amend the proposed development at Arrowsmith North during the evaluation phase.
  • The Company intends to install a solar power facility with associated battery support over the medium term.
  • The plant engineering and design work at Arrowsmith North has moved to the detailed design and documentation phase.

Silica sand explorer VRX Silica Limited (ASX:VRX) has recently released an update on the development of its Arrowsmith North Silica Sand Project. The Company has sought consent from the EPA (Environmental Protection Authority) to amend the proposed development at Arrowsmith North project during the assessment phase.

The EPA has given its consent to the Company’s amendment, which will allow the proposed action to continue to be evaluated by accredited assessment by DAWE (Department of Agriculture, Water and the Environment).

Also Read: Here’s how VRX Silica Limited (ASX:VRX) performed in FY 2021

Details of amendment

The Arrowsmith North amendment includes the following:

  • Relocation of the silica sand processing plant within the Mine Development Envelope from the Access and Processing Development Envelope.
  • Removal of the solar farm area.
  • Removal of the train loadout facilities.
  • Reducing the extent of the Access and Processing Development Envelope to 61 hectares from 447 hectares and renaming it as the Access Development Envelope.
  • An overall reduction in the extent of clearing to 366.5 hectares from 412.2 hectares.

Initially, the Arrowsmith North project will require a trucking transport solution to Geraldton Port, given the unparalleled demand that iron ore exporting has placed on train unloading facilities at the Port.

VRX Silica is actively engaging with the Port operator and the rail owner for the construction of a ship loader, storage facilities and a dedicated silica sand train unloader in the medium to long term. The Company informed that the amendment facilitates an alternative means for export over the short run.

Arrowsmith North project will require a trucking transport solution

Restricting the Arrowsmith North project to use of the southern access route for trucking in the short term reduces the project footprint and removes the complexities surrounding the western access option. As per VRX Silica, the southern route will provide for the advancement of a rail loadout facility in the future.

In the medium term, the Company still intends to install a solar power facility with associated battery support. It has completed its GHG (Green House Gas) Emissions study and validated that the level of emissions from Arrowsmith North are below the minimum emissions reporting level needed for the National Pollutants Inventory. VRX Silica will continue to monitor its expected emissions levels and conduct further studies to lessen its carbon footprint at Arrowsmith.

Must Read: VRX Silica continued to make inroads into Arrowsmith North Project in June 2021 quarter

Progress in plant engineering and design work

The plant engineering and design work for Arrowsmith North has moved to the detailed design and documentation stage from the preliminary design phase. Industry specialists ProjX are currently progressing with the plant engineering and design work.

The processing plant design has advanced with procurement of different long lead time and strategically selected process equipment currently underway and key process equipment now specified. Moreover, civil design comprising plant civils, ponds, site access roads, and site drainage has proceeded to detailed documentation. This comprises about 6km long southern access road and the Brand Highway intersection design.

Capital cost estimating and project execution scheduling tasks have been completed by ProjX. These tasks will continue to be refined as the detailed design progresses. Long lead items have been identified, and final quotes have been evaluated for procurement.

VRX Silica’s shares are trading at AU$0.205 as of 4:21 PM AEDT.

Do Not Miss: VRX Silica kicks off drilling of a water production bore for Arrowsmith North project

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