VRX Silica (ASX: VRX) has released results for the December quarter for activities conducted at its flagship Muchea Silica Sand Project, including its maiden Probable Ore Reserve and Bankable Feasability Study (BFS).
HIGHLIGHTS:
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Muchea has outstanding financial metrics and is capable of producing very highgrade silica sand products
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Ungeared NPV10 of $338 million based on 25 years of a potential mine life of +100 years. Other key BFS outcomes:
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Total Probable Ore Reserve of 18.7 Mt @ 99.9% SiO2 with 14.6 Mt @ 99.9% SiO2 in the Mining Lease application area
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Studies identify three high-grade high-value silica sand products in high demand in international markets
Exploration and Project Development
Muchea BFS and Maiden Ore Reserve The Muchea Silica Sand Project is located 50km north of Perth. The Probable Ore Reserve for Muchea totals 18.7 Mt @ 99.9% SiO2 as reported in accordance with the JORC Code, with 14.6Mt @ 99.9% SiO2 contained within the area of the Company’s Mining Lease application (M70/1390) for Muchea.
This Reserve estimate is only a small portion of the silica sand Inferred Resource Estimate for the project but produces a very high-grade product which is in high demand in specialist Asian markets.
Muchea is a world class high-grade silica sand project which can support a substantial export industry for WA providing benefits to the State and the Muchea-Gingin district. Muchea will produce alternative high-grade products to Arrowsmith and will add to our available catalogue of products from our silica sand projects.
The Company has already had significant interest in the Muchea product which will command higher prices than products from the Company’s Arrowsmith North and Central silica sand projects.
