About VRX

VRX Silica is focused on supplying the global demand for silica sand

VRX Silica is the most advanced pure-play silica sand company on the ASX led by a highly experienced board and management team. VRX Silica is developing its portfolio of five high-quality silica sand projects – the Arrowsmith North, Brand Silica and Central Silica Sand Projects, located 270km north of Perth, the Muchea Silica Sand Project 50km north of Perth, and the Boyatup Silica Sand Project, 100km east of Esperance all located in Western Australia.

The Arrowsmith North Silica Sand Project is VRX Silica’s most advanced project, with production scheduled to commence in 2024 subject to environmental approval.

The Boyatup Silica Sand Project has a total project area of 124 km² and is situated 100km east of the port town of Esperance. The tenement is almost totally unallocated crown land, with only a very small section over farming freehold land.

 

VRX SILICA

The most advanced pure-play silica sand company on the ASX

Tier-1 mining destinations and proximity to infrastructure for the ethical sourcing and supply of silica sand to a global market

Legally Sourced Silica Sand is Scarce

Globally, stocks of silica sand are being depleted faster than they are being discovered. The impacts of illegal sand mining have been so devastating that, in many Asian countries, including in parts of China and India, sand mining has been outlawed in rivers and lakes.

Global stocks of silica sand are being exhausted much faster than they are being discovered, and if shoring up supply of the world’s second-most used commodity after water is not already front of mind for investors, governments, and regulators around the world, it will be.

VRX’ Silica Sand is Responsibly Sourced

VRX Silica understands the impending shortage of silica sand, the need for responsible sourcing, and why the company’s five multi-decade silica sand projects in Western Australia are a part of the global supply solution. VRX Silica will responsibly source silica sand in Western Australia to meet global demand.

Silica sand is the primary ingredient for all glass and concrete and is the foundational ingredient of the modern city. The UN estimates that every year the world currently uses 50 billion tonnes – or enough sand to build a wall 27m wide and 27m high around the planet.

Illegally Sourced Silica Sand is Environmental Vandalism

There is already a global supply squeeze on silica sand and, as populations within the developing world continue to rapidly urbanise, the demand is forecast to grow significantly year on year. As supply sources dwindle, miners are increasingly sourcing silica sand from vulnerable ecosystems and waterways.

There are well-documented environmental impacts of silica sand mining in marine and riverine systems leading to erosion, salination of aquifers, loss of protection against storm surges, and impacts on biodiversity. These threaten livelihoods through negative impacts on water supply, food production, fisheries, and tourism.

VRX has 100 Years Supply of Silica Sand

VRX Silica Limited’s (ASX: VRX) five significant silica sand projects located in the Tier 1 mining destination of Western Australia (WA) – Arrowsmith North, Arrowsmith Central, Arrowsmith Brand, Muchea and Boyatup have the potential to supply responsibly sourced, high-grade silica sand for more than 100 years.

The company’s silica sand deposits sit on granted Mining Leases with secure tenure and a combined Mineral Resource of 1.4 billion tonnes of 96%-99.6% SiO2 grade silica sand. Bankable feasibility studies demonstrate that the three of the five projects have an initial mine life of 25 years of economic production.

Muchea – An Opportunity for High Value Glass Manufacturing

The board and management is firmly of the view that a perfect opportunity for Western Australia exist to establish a new industry, just 50km from the Perth CBD at its Muchea project. “Muchea is near Perth’s northeast corridor, with the newly completed $1.2bn NorthLink WA infrastructure project connecting to a large, qualified workforce in the northern metropolitan region of Perth, and a secure domestic gas supply underpinning downstream processing and glass products from Muchea silica sand.

VRX – Large Quantities of High Value Silica Sand

To meet the requirements of modern industry, high-grade silica sand must contain a concentration of silica of more than 99.5% SiO2. VRX’s Arrowsmith North and Arrowsmith Central projects exceed this purity requirement at 99.7% SiO2 and 99.6% SiO2 purity, respectively.

The lucrative market for high-tech glass used in solar panels and smartphones requires ultra-high 99.9% purity silica sand. Muchea is one of a handful of world-class silica sand projects with an outstanding grade of +99.9% SiO2 and, most importantly, low impurities and less than 100ppm Fe2O3.

Western Australia – A Reliable and Safe Tier 1 Mining Jurisdiction

VRX Silica’s five silica sand projects are located on passive dune deposits in the highly desirable and safe mining jurisdiction of Western Australia. Western Australia’s rigorous environmental assessment and approval processes ensure that any new mining operations meet and exceed social and environmental standards.

VRX Silica has selected its projects in inland areas where, due to the predominantly low-lying scrub covering the land, clearing land for mining will cause minimal disturbance to native flora and fauna.

Arrowsmith North Mineral Resource is 513mt at 98.0% SiO₂

Arrowsmith North has a Total Mineral Resource of 513 MT at 98.0% SiO2, and a Total Ore Reserve of 221 MT at 99.5% SiO2. The company published a bankable feasibility study based on an initial 25-year mine life. The initial  $40m capital expenditure (CapEx) is currently being reviewed to reflect current day costings required to build the 2Mtpa operation, and the project is expected to yield $2.7bn in revenue over the initial 25-year mine life.

Arrowsmith Central Mineral Resource is 76.5mt at 96.8% SiO₂

VRX Silica’s second project, Arrowsmith Central, is located just 30km from the Arrowsmith North project, and is broadly similar in its silica sand purity and access to road and rail. The project is immediately adjacent to the Eneabba-Geraldton rail line to bulk export products from Geraldton. Arrowsmith Central has a Total Mineral Resource of 76.5 MT at 96.8% SiO2, and a Total Ore Reserve of 18.9 MT at 99.6% SiO2. Similar to Arrowsmith North, the 2Mtpa project has a low CapEx of about $40m. The project is expected to generate more than $2.1bn in revenue over an initial 25-year mine life.

Completed Heritage Surveys

VRX Silica has also completed the final Aboriginal heritage surveys at Arrowsmith, meaning archaeological and ethnographic clearance has been granted for works over long-term mining and critical infrastructure projects for both Arrowsmith North and Arrowsmith Central silica sand projects.

Mr Maluish said: “We have a strong and supportive relationship and consultative approach with the local Yamatji Nation. We appreciate their efforts in progressing the conduct of the surveys and reports and look forward to continuing to work closely with them as we progress project development.”

Muchea Silica Sand at 99.9% SiO₂ Purity

The Muchea silica sand project is one of the few world-class silica sand projects with an outstanding grade of 99.9% SiO2 purity. This level of purity, and critical low-iron content, is perfectly suited to supply sand for the booming ultra-clear, solar panel flat glass industry. Muchea is located 50km north of Perth and, like the projects at Arrowsmith, is strategically located close to bulk transport routes and reliable energy supplies. Muchea is adjacent to the Brand Highway and a rail connection to the Kwinana Port, suitable for bulk shipping.

Muchea Silica Sand Mineral Resource 208mt at 99.6% SiO₂

Muchea has a total Indicated and Inferred Mineral Resource of 208 MT at 99.6% SiO2, and an Ore Reserve of 18.7 MT at +99.8% SiO2. Muchea has a low CapEx of $40m required to build the 2Mtpa operation, which is expected to yield $3.3bn in revenue over a 25-year mine life. Muchea’s substantial ultra-high purity, low iron content silica sand deposit, and proximity to reliable energy and transport infrastructure, make it the perfect location to establish a sustainable glass-making and downstream processing industry to meet the booming demand for ultra-clear glass for solar panels and other high-tech products.

Muchea – An Opportunity for Downstream Processing

Mr Maluish said “Muchea is the perfect location to establish a glass making and glass recycling industry in Western Australia. The establishment of a glass manufacturing industry would create new highly-skilled jobs and attract more than $1bn in international investment to regional areas due to the soaring demand for solar panels around the world as economies transition to net zero emissions.”

VRX Silica is focused on supplying the global demand for silica sand

VRX Silica is the most advanced pure-play silica sand company on the ASX led by a highly experienced board and management team. VRX Silica is developing its portfolio of five high-quality silica sand projects – the Arrowsmith North, Brand Silica and Central Silica Sand Projects, located 270km north of Perth, the Muchea Silica Sand Project 50km north of Perth, and the Boyatup Silica Sand Project, 100km east of Esperance all located in Western Australia.

The Arrowsmith North Silica Sand Project is VRX Silica’s most advanced project, with production scheduled to commence in 2024 subject to environmental approval.

The Boyatup Silica Sand Project has a total project area of 124 km² and is situated 100km east of the port town of Esperance. The tenement is almost totally unallocated crown land, with only a very small section over farming freehold land.

 

VRX Silica Board

Paul Boyatzis.

B Bus, ASA, MSDIA, CPA Non-Executive Chairman

Bruce Maluish

BSc (Surv), Dip Met Min Managing Director

Peter Pawlowitsch

B.Com, MBA, CPA Non-Executive Director

David Welch

Non-Executive Director

Project Locations

VRX Silica is developing its portfolio of high-quality silica sand projects the Arrowsmith North Silica Sand Project, Arrowsmith Brand Silica Sand Project and Arrowsmith Central Silica Sand Project, located 270km north of Perth, the Muchea Silica Sand Project, 50km north of Perth, and the Boyatup Silica Sand Project, 100km east of Esperance all located in Western Australia.

VRX has completed bankable feasibility studies on the Arrowsmith North, Arrowsmith Central and Muchea projects that all support 25 years of economic production, with the potential to produce high-quality silica sand for more than 100 years.

The projects also benefit from adjacent rail lines connecting to ports in Geraldton (Arrowsmith) and Kwinana (Muchea), and by road to the port at Esperance (Boyatup).

See Projects

Silica Sand

The Asia-Pacific region accounts for 47% of global demand for silica sand and is predicted to grow by 7.7% during 2021 – 2027.

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