Ventnor Resources Limited (ASX:VRX) has released its quarterly report for the three months to September 30, with work progressing on its Arrowsmith silica sand project 270km north of Perth. The Company has evaluated numerous prospects, acquired topographic data and undertaken various work programs to better understand the geology of the area, and is excited by the outlook for demand in the Asia Pacific region for construction and silica sand.
Ventnor Resources Limited (ASX: VRX) (Ventnor or the Company) provides the following summary of activities conducted during the September 2017 quarter.
During the September quarter, the Company evaluated numerous exploration and mining prospects. During the June quarter, the Company had become aware of the burgeoning demand in the Asia/Pacific region for construction and silica sand. While the market had been investigated in previous years, the looming shortage of product for the market caused increasing prices, making Australian prospects more competitive – despite the additional distance and shipping costs. The Company investigated prospective sites which had had some prior exploration indicating suitable sand — along with an important logistics solution – proximate to either a port or connecting rail. Certain areas along the under-utilised EneabbaGeraldton rail line were more closely examined; EL applications were made for ground which was intersected by the rail line.
During the September quarter Ventnor applied for ELA70/5027 which land is contiguous to that of earlier applications made in the June quarter at Eneabba, WA. Ventnor has nominated these tenements collectively as its Arrowsmith Project. The combined area has some historic exploration, predominantly for heavy mineral sand, which indicated potential for significant sand resources. While generally Vacant Crown Land, Arrowsmith has very little Freehold land and has significant clearing from previous seismic programs for oil and gas exploration.
The Company acquired topographic data which better indicates the dune systems which were more closely investigated. During the quarter Ventnor conducted field trips to selected areas of the tenement, took surface and near surface samples and early stage mapping surveys, in an effort to understand the geology of the area. Ventnor believes the Arrowsmith Project is highly prospective for high-quality silica and construction sand.
Further investigation revealed a global market demand for high quality sand, and specifically, an Asian/Pacific regional market demand for quantities of construction-quality sand. Contact has been established with the two largest importers of construction sand in to Singapore; samples have been forwarded for their test work. Further discussions will be undertaken following the test results next quarter.
Investigations in to the potential market were extensive, wide ranging and time consuming, resulting in a comprehensive collation of market data.
Events Subsequent to the Quarter
On 12 October 2017 Ventnor made an announcement to the market headed ‘New Arrowsmith Silica Sand Project’ which contained comprehensive details of the results of the enquiries conducted throughout the September quarter. The contents of that announcement follows:
Ventnor Resources Ltd (Ventnor) (ASX: VRX) announced a new silica sand project at Arrowsmith, 270km north of Perth, WA.
During the June and September quarters Ventnor applied for three Exploration Licenses totaling 350 km2 holding significant sand prospects.