VRX Silica (ASX: VRX) has provided its annual report to shareholders for the year ended 30 June 2023.
The 2023 financial year was underpinned by solid progress in the advancement of the company’s silica sand projects in Western Australia.
VRX holds the most advanced silica sand projects of any ASX-listed company. The total Mineral Resource within all of the company’s silica sand projects was upgraded during the year to 1,381 million tonnes, highlighting the long-term opportunity for silica sand export and downstream value-adding (including glass manufacturing) in Western Australia.
Arrowsmith North remains on track to become VRX’s first silica sand mine in production.
A significant milestone was reached during the year with the Environmental Protection Authority of Western Australia approving release of the Arrowsmith North Environmental Review Document for a 4 week public review period.
The public review and response process is the final step before the EPA prepares an assessment report and recommendations for the proposal for the State Minister for the Environment. VRX is currently working through this process with the EPA. Environmental approval for Arrowsmith North is crucial and a precursor to the company’s ability to secure other necessary approvals for mining.
Other developments at Arrowsmith North during the year include completion of metallurgical testwork, process circuit design and engineering to fabrication stage with a construction program and an orderly procurement process. Specifications and long lead items for processing equipment have been identified and tender documentation prepared.
Solutions for key processing and export infrastructure are well-advanced, with a competitive power solution identified and approval by Main Roads WA of the Brand Highway road intersection design and construction. Additionally, the company is in advanced discussions with Mid West Ports Authority for a long term export solution at Geraldton Port with a dedicated storage and ship-loading facility.
At the Arrowsmith Central and Muchea silica sand projects, the company has undertaken further metallurgical testwork and process circuit design to identify additional silica sand products that may be produced from these sites. The company has also progressed additional survey work ahead of environmental approval applications for those projects.
Other initiatives during the year include the company’s successful application for a grant from the WA State Government Investment Attraction Fund for $2 million in matched funding to produce high purity quartz (or HPQ) flour.
The formation of a strategic research partnership with the School of Photovoltaic and Renewable Energy Engineering of the University of New South Wales to investigate the market potential for a local, low carbon, solar panel glass recycling program in Australia.
Demand for silica sand from VRX’s projects, and Muchea in particular, is sizeable as global supply side constraints continue to worsen. Both the Arrowsmith North and Muchea silica sand projects were included in Austrade’s 2022 Australian Critical Minerals Prospectus, demonstrating the Australian Government’s recognition of silicon and silica sand as critical minerals.
Finally, with the completion of VRX’s recent capital raising initiative, the company is well-funded to progress through the present approvals phase into development at Arrowsmith North.
