Australian silica sand producer VRX Silica (ASX:VRX) has executed a non-binding letter of intent (LOI) with specialist energy and mining consultancy ResourcesWA to investigate a power supply solution at the Arrowsmith North Silica Sand Project in Western Australia.
The purpose of the LOI is to investigate the potential to establish a powerhouse with containerised gas reciprocating engines at a nearby gas wellhead site, with direct offtake from the existing gas plant and reticulation to the Arrowsmith North site through a dedicated transmission line.
VRX Silica notes ResourcesWA has a fully resourced and operational project development, delivery, and asset management team. The proposal is also inclusive of all design, construction, and operational requirements to provide a 100% turn key build, own, and operate solution.
Commenting on the LOI, VRX Silica Managing Director Bruce Maluish says: “We have been considering for some time how we can best take advantage of the abundant supply of gas from nearby gas fields to meet our power requirements at Arrowsmith North.
Our desktop modelling indicates that the gas-driven powerhouse and transmission solution is not only cost effective but will reduce our project footprint and expected greenhouse gas emissions.”
“Our desktop modelling indicates that the gas-driven powerhouse and transmission solution is not only cost effective but will reduce our project footprint …”
VRX Silica reports the LOI sets out details of the proposal and is a statement of the parties’ current intentions over a 6-month term.
VRX Silica is an Australian silica sand producer focused on its portfolio of ‘high-grade’ silica sands projects across Western Australia.
The Arrowsmith North and Arrowsmith Central Silica Sand projects are located 270km north of Perth and comprise 5 granted exploration licences, and 2 granted mining leases. The company says Bankable Feasibility Studies (BFS) completed for both projects have demonstrated ‘exceptional’ financial metrics.
The Muchea Silica Sand Project is located 50km north of Perth and comprises 2 granted and an under-application exploration licence, as well as 2 granted mining leases. The company reports Muchea is a ‘world-class’ project with ‘high-purity’ silica sands.
The Boyatup Silica Sand Project is located 100km east of Esperance and comprises 2 adjacent granted exploration licences. The company says initial indications suggest this project could complement the Arrowsmith and Muchea projects and add to the range of silica products VRX Silica could produce.
Silica sand is a form of silicon dioxide used in the production of glass, metal casting and production, paints and coating, ceramics, and industrial abrasives.
Images: VRX Silica Ltd
