VRX Silica (ASX:VRX) Delivers Robust Performance in September 2020 Quarter

  • November 02, 2020 02:25 PM AEDT
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VRX Silica (ASX:VRX) Delivers Robust Performance in September 2020 Quarter

Summary

  • VRX Silica Limited (ASX:VRX) has released its Quarterly Activities report for the September 2020 quarter.
  • The Company progressed with the environmental and native title approvals for its advanced projects over the period, which accounted for a major chunk of exploration and evaluation expenditure in Q3 2020.
  • The silica sand explorer closed the quarter with a robust cash balance of $2.05 million as on 30 September 2020.
  • VRX continued discussions with prospective customers in Asia for long-term contracts for potential offtake of products from its Arrowsmith and Muchea Projects.
  • Going forth, VRX Silica intends to fast-track negotiations with potential customers to conclude sales contracts for high-quality silica sand products.

Australian silica sand player VRX Silica Limited (ASX:VRX) has released its Quarterly Activities report for the September 2020 quarter. The report covers a summary of the activities conducted by the Company at its Arrowsmith and Muchea silica sand projects during the quarter.

VRX Silica progressed with the environmental and native title approvals for its advanced projects over the period, which accounted for a major chunk of exploration and evaluation expenditure in Q3 2020. Moreover, the silica sand explorer closed the quarter with a robust cash balance of $2.05 million as on 30 September 2020.

Native Title Approvals

During the quarter, VRX Silica obtained confirmation that the terms of its planned Mining Project Agreement encompassing the areas of the Arrowsmith Projects have been endorsed by the Native Title claimants over the project areas. The Company reached a consensus with the Working Group for the Southern Yamatji People on the terms of Mining Project Agreement.

The approval predated the official requirement for execution by all twelve individual Native Title Applicants coupled with a separate State Deed between those individuals, the State and Ventnor Mining Pty Ltd (VMPL).

Subsequently, on 23 October 2020, the Company notified about getting a notice from the YMAC (Yamatji Marlpa Aboriginal Corporation) that stated the conclusive registration of the Yamatji Nation Indigenous Land Use Agreement (ILUA) was likely to occur on that day, as per ILUA terms. The conclusive registration paved the way for the grant of Mining Leases and related Miscellaneous Licences for the Arrowsmith Projects, which are now anticipated imminently.

With respect to the Muchea project, VRX Silica attained the grant of a Mining Lease post September 2020 quarter, which succeeded the Native Title clearance obtained in the June quarter. The granted Mining Lease (M70/1390) comprises an area of ~1,008ha that includes the development area appropriate for at least 25 years of production consistent with the Bankable Feasibility Study.

Environmental Approvals

As a component of the environmental approvals process for the grant of Mining Permits at Arrowsmith and Muchea projects, VRX Silica continued to compile necessary data to support referrals to the regulatory authorities during the quarter. These authorities comprise the Federal Department of Agriculture, Water and Environment (DAWE) and the State EPA (Environmental Protection Authority).

The Company, along with its environmental consultants, conducted pre-referral meetings with DAWE representatives and obtained valuable response as to conditions for these referrals.

Discussions with Potential Asian Customers

In September quarter, VRX Silica also continued discussions with prospective customers in Asia for long-term contracts for potential offtake of products from its Arrowsmith and Muchea Projects. These customers are primarily located in Thailand, Taiwan, Malaysia, and South Korea.

Amidst COVID-driven halt on the face-to-face meetings, the Company progressed discussions with these customers via video conferencing during the quarter. Despite the present economic climate in these countries, the customers’ interest remains strong for potential products from VRX Silica’s advanced silica sand projects.

Besides these developments, VRX announced the sale of Biranup Project to an unlisted public company, New Energy Metals Limited (NEM) in July this year. The Biranup Project was sold to enable VRX Silica to focus on its key objective of becoming an overseas producer of high-quality silica sand.

Going forth, VRX Silica intends to fast-track negotiations with potential customers to conclude sales contracts for high-quality silica sand products. Additionally, the Company looks forward to securing environmental approvals for its advanced silica sand projects to expedite their development.

As at 12:50 PM AEST, VRX Silica shares are trading ~2.6 per cent higher at $0.20.

 

 


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