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The Department of Mines, Petroleum, and Exploration in Western Australia has given VRX Silica (ASX:VRX) the formal go-ahead for the $65 million smallcap explorer’s Arrowsmith North Silica Sand Project in Geraldton’s Sandplain.
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“In what is another significant milestone for VRX and development of the project, we are delighted to receive approval from the Department of Mines, Petroleum, and Exploration for our proposal,” said VRX managing director Bruce Maluish.
This tick follows June’s confirmation that the Minister for the Environment had deemed Arrowsmith North “adequate” under the Environmental Protection Authority.
VRX had been waiting to hear about the mining proposal for several months; with the application approved, the Australian explorer can now start mining.
The ASX-listed silica pure play’s main objective as mining begins is to quickly meet growing demand for high-purity silica, which is critical in high-tech applications like glassmaking, solar panels, and 3D printing.
The Arrowsmith North deposit boasts a JORC Reserve of 221Mt, which graded at 99.5% SiO2, and is expected to produce over the next 100 years.
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HotCopper understands VRX already has several potential offtake partners lined up in Asia too, with extensive testwork run as the company awaited government approval suggesting that was the best path towards cashflow.
VRX has instantly jumped +14.9% at open on Friday to sell at 10cps.
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