VRX Silica (ASX: VRX) today announced that it has been granted a mining lease for the Muchea silica sand project, located 50km north of Perth, WA.
HIGHLIGHTS:
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Mining Lease granted for Muchea Silica Sand Project.
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Grant area of over 1,000ha supports +25-year mine life.
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Grant area contains Probable Ore Reserve of 14.6Mt @ 99.9% SiO2 and Inferred Mineral Resource of 61.4Mt @ 99.6% SiO2.
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Mining Lease grant clears pathway for development of a project with a post-tax NPV10 of $338m.
The Mining Lease (M70/1390) covers approximately 1,008ha including the development area, sufficient for at least 25 years of production as per the Muchea Project’s Bankable Feasibility Study (BFS) released in October 2019.
VRX’s Managing Director Bruce Maluish said:
“The grant of the Mining Lease is a significant milestone for VRX Silica and a major step forward in our journey to becoming a global, long-life supplier of high-quality silica sand.
“Demand from potential customers for long-term supply of silica sand from the Muchea Project is strong. With the Mining Lease secured, we look forward to stepping up negotiations to finalise sales contracts for high-quality silica sand products and secure the necessary funding for the project’s $32 million development.
“The Muchea Project is a world-class, high-grade and low environmental impact silica sand project with outstanding economics and located in a Tier 1 jurisdiction. Its development will support a substantial export industry in Western Australia and provide significant financial and employment benefits in the north-eastern corridor of Perth.”
