- VRX Silica (VRX) has been granted mining leases for its Arrowsmith North and Arrowsmith Central silica sand projects in WA
- The mining leases cover a combined 3600 hectares, which together support a mine life of more than 100 years
- They follow a lease grant covering the Muchea Silica Sand Project, which is also located in WA
- Managing Director, Bruce Maluish, considers this a key step in becoming a global player in high-quality silica sand supplies
- Company shares have risen 22 per cent to trade for 25 cents
VRX Silica (VRX) has been granted mining leases for its Arrowsmith North and Arrowsmith Central silica sand projects in Western Australia.
The mining leases cover a combined 3600 hectares, which together support a mine life of more than 100 years.
This follows the recent grant of the 1008-hectare mining lease for the Muchea Silica Sand Project in WA.
“The grant of mining leases for our Arrowsmith Silica Sand Projects is another
significant milestone for VRX Silica, hot off the heels of the mining lease granted for our Muchea Silica Sand Project,” Managing Director Bruce Maluish said.
Arrowsmith North
Arrowsmith North is located 270 kilometres north of Perth between the regional towns of Eneabba and Dongara.
It has an indicated and inferred mineral resource of 771 million tonnes at 98 per cent silicon dioxide and a probable ore reserve of 204 million tonnes at 99.7 per cent silicon dioxide.
According to Arrowsmith North’s bankable feasibility study (BFS), the company is looking to produce 47.7 million tonnes of high-purity silica sand in the first 25 years of its mine life. This product is expected to be suitable for the glass making and foundry sand industries.
Positively, Arrowsmith North has a post-tax net present value of $242.3 million.
Arrowsmith Central
Arrowsmith Central has an indicated and inferred mineral resource of 76.5 million tonnes at 96.8 per cent silicon dioxide, along with a probable ore reserve of 18.7 million tonnes at 99.6 per cent silicon dioxide.
The project has a post-tax net present value of $147.6 million.
Like Arrowsmith North, this project will produce up to 18.9 million tonnes of high-purity silica sand for the glass making and foundry sand markets.
“With all three mining leases granted and development of our projects on-track, VRX Silica is truly a global player in high-quality silica sand supplies,” Bruce concluded.
Company shares have risen 22 per cent to trade for 25 cents at 11:27 am AEDT.