- Silica sands company VRX Silica (VRX) has been granted a mining lease for the Muchea Silica Sand Project in WA
- The mining lease covers 1008 hectares, supports a 25-year mine life and has a post-tax net present value (NPV) of $338 million
- Muchea has a mineral resource estimate of 208 million tonnes at 99.6 per cent silicon dioxide
- Managing Director, Bruce Maluish, describes the project as a world-class, high-grade and low environmental impact silica sand project
- VRX is currently finalising further studies and compiling data to receive environmental approvals and a mining permit
- Company shares are trading a healthy 11.8 per cent higher for 19 cents
VRX Silica (VRX) has been granted a mining lease for the Muchea Silica Sand Project in Western Australia.
The mining lease covers around 1008 hectares and supports a mine life of at least 25 years.
“The grant of the mining lease is a significant milestone for VRX Silica and a
major step forward in our journey to becoming a global, long-life supplier of high-quality silica sand,” Managing Director Bruce Maluish said.
The Muchea Project is located 50 kilometres north of Perth between the regional towns of Muchea and Gingin.
The project has an inferred and indicated mineral resource estimate of 208 million tonnes at 99.6 per cent silicon dioxide. This mineral resource estimate is based on results from 44 auger holes and 103 aircore holes used to define the modelled silica sand layer.
Additionally, Muchea has a probable ore reserve of 14.6 million tonnes at 99.9 per cent silicon dioxide.
“The Muchea Project is a world-class, high-grade and low environmental impact silica sand project with outstanding economics and located in a Tier 1 jurisdiction,” Bruce added.
Based on metallurgical test work, the silica sand at the project is ready to be upgraded by conventional washing and screening methods to produce a high-purity product. The end product is expected to be suitable for the glass making and foundry sand industries.
Positively, the Muchea Project has a post-tax net present value (NPV) of $338 million which was calculated in a bankable feasibility study completed last year.
VRX is currently finalising further studies and compiling data to support referrals to the Federal Department of Agriculture, Water and Environment and the State Environmental Protection Authority to secure environmental approvals.
The company will also advance approvals for its mine plan and the issue of a mining permit from the Department of Mines, Industry Regulation and Safety.
Company shares are trading a healthy 11.8 per cent higher for 19 cents at 11:37 am AEDT.