Investment Summary
VRX Silica (ASX: VRX) has five high-grade, low impurity silica sand projects in WA boasting multi-decade scale deposits with a combined +1.38 billion tonne Mineral Resource of 99.6% to 99.9% SiO2 grade silica sand. The Arrowsmith North Project is the first project to be developed. Mining Leases have been granted with Native Title and Aboriginal Heritage agreements in place. Environmental and mining approvals are well advanced and completion expected early 2025. VRX is targeting commencement of production in late 2025.
Silica sand is the raw material required to produce critical silicon components to meet global decarbonisation commitments with global supplies of silica sand dwindling rapidly, particularly in Asia. Arrowsmith North Silica Sand range of uses include; glassmaking, three foundry products, solar panel backing plate glass, thermal sponge “blade” for thermal protection between battery packs in Li ion batteries, and high tensile fiberglass yarn that covers wind turbine blades.
Offtakes have been agreed for export with indicative pricing for South Korean and Taiwanese foundry markets subject to final approvals.
Investor information
Financial information
Investment sought: $41 - $70 million
Project website:
https://vrxsilica.com.au/projects/arrowsmith-project/
Project status update:
Production anticipated in late 2025
Project dependencies:
TBC
Project information
Project highlights:
Arrowsmith North is located 270km north of Perth adjacent to highway and rail connections to Geraldton Port.
Exploration, metallurgical test work, process circuit design and detailed engineering has been completed. Loose sand will be mined from the surface to 8-12m deep with loaders feeding a mobile trommel and progressive Vegetation Direct Transfer (VDT) style of rehabilitation. Processing on-site will include; screening, attritioning, flotation and classification to produce a range of silica products.
With production anticipated in late 2025 key items including a screen, trommel and modified loader bucket for VDT rehabilitation have been purchased.
Project timeline:
Expected start date:
01 January, 2024
Expected end date:
01 January, 3024
Funding round finish date:
31 December, 2023
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