VRX Silica (ASX:VRX) has been granted its fourth silica sand mining lease (M70/1418) at its Arrowsmith Brand Silica Sand Project in Western Australia.
The $92.46 million market capitalisation company says the mining lease includes a portion of the previously announced Arrowsmith Brand resource of 523 million tonnes (Mt) @ 97.2% SiO2.
VRX is expecting to advance the project using ‘well-developed’ processes that have been followed at its other silica sand projects currently in development.
These activities will include environmental surveys, further metallurgical testwork, marketing studies, and mine planning studies. VRX says these activities will inform scoping and pre-feasibility studies for the project.
Commenting on securing the mining lease, VRX Silica Managing Director Bruce Maluish says: “This application for a mining lease at Arrowsmith Brand is another extensive application of 1,995 hectares and substantially covers the previously identified mineral resource.
“The Arrowsmith Brand mining lease is part of the very long-term planning that VRX Silica has at Arrowsmith that allows for flexibility in selecting low-impact areas for development”
The Arrowsmith Brand mining lease is part of the very long-term planning that VRX Silica has at Arrowsmith that allows for flexibility in selecting low-impact areas for development.”
Further to today’s announcement, VRX announced yesterday (18 July 2023) that it had received a $2 million grant from the Western Australian State Government under the Investment Attraction Fund (IAF) for a planned High Purity Quartz (HPQ) flour project in Western Australia.
The project aims to investigate the potential to develop an HPQ flour manufacturing process and pilot plant in Western Australia.
If successful, VRX says this will lead to the development of a larger commercial plant for ‘large-scale’ processing.
The company’s share price closed 10% higher at $0.165 on Tuesday afternoon.
Commenting on the project, Maluish says: “The company has developed a thorough understanding of the characteristics of each of its deposits and how those projects can produce silica products that are most in demand.
This is another opportunity to supply products into a niche market and add further value to our silica sand projects.”
VRX Silica is a silica sand company developing its wholly owned silica sand projects at Arrowsmith, Muchea, and Boyatup in Western Australia.
On 31 March 2023, the company had $3.303 million cash and cash equivalents at hand, according to its latest quarterly report published on 28 April 2023.
Write to Aaliyah Rogan at Mining.com.au
Images: Vrx Silica Ltd