VRX Silica’s Muchea Silica Sand Project is situated 50km north of Perth and is strategically located adjacent to the Brand Highway and a rail connection to the Kwinana Port, which is suitable for bulk shipping. It comprises one granted Exploration Licence, two Exploration Licence Applications, one granted Mining Lease, three granted Miscellaneous Licences and one Miscellaneous Licence Application for an area of 74.4km².
Muchea Silica Sand Project Location
On 17 June 2019 VRX Silica announced an updated Mineral Resource Estimate (MRE) for the Muchea Project. It comprises a combined total of Indicated and Inferred Mineral Resources of 208Mt @ 99.6% SiO2 reported in accordance with the JORC Code 2012 Edition. The Indicated component comprises 29Mt @ 99.6% SiO2, with the Inferred component 179Mt @ 99.6% SiO2 , confirming the Muchea Silica Sand Project is a world class deposit. The estimate was based on 44 hand auger drill holes and 103 aircore holes and defines the upper white silica sand layer.
As announced on 18 October 2019, a Maiden Probable Ore Reserve was declared for the Muchea Silica Sand Project of 18.7Mt.
Since the High Court decision on 26 November 2020, implementation of the South West Settlement has been taking place. This has included (among other things) the registration on 17 October 2018 of the six Noongar Indigenous Land Use Agreements (ILUA’s) and the conclusive registration of the six ILUA’s on 27 January 2021.
Prior to the implementation of the South West Settlement VRX Silica had proactively engaged with the South West Aboriginal Land and Sea Council (SWALSC) and over a period of many months had completed a Mining Agreement with the Whadjuk People on the Muchea Silica Sand Project.
Image 1: Exploration licences and mining area at the Muchea Silica Sand Project.
Mineral Resources and Ore Reserves
Comparison to Previous Year
The Mineral Resource announcement for Muchea, including JORC Table 1 information, can be found here.
The Company will drill additional infill holes in and around the Indicated Mineral Resource area to increase the amount of Indicated Mineral Resource for grade control and for inclusion into a mine plan.
The samples generated in this drill program will enable further testwork to be conducted. The Company continues to fine tune the process for improving the quality of the Muchea Silica Sand, with success in further improving the quality of the potential final products.
The Company has been actively progressing detailed engineering and mining studies to support mining proposals and scheduling.
Work on the process circuit design, engineering and capital cost estimates will be very similar to those at the Arrowsmith North Silica Sand Project which will result in cost savings as a lot of the work will not have to be duplicated.