VRX Silica (ASX: VRX) has provided its annual report for the financial year ended 30 June 2020.
In the letter from the board of directors, company managing director Bruce Maluish said:
This year VRX Silica Limited achieved significant milestones in the Company’s progression to becoming a global supplier of high-grade silica sand, whilst always being guided by the levels of social and environmental responsibility expected of a responsible corporate citizen.
Management was very early in proactively engaging with the Native Title Claimants of the Arrowsmith and Muchea silica sand project areas. Our negotiations in good faith aimed to reach a set of shared long-term objectives for all parties, and a range of measures designed to achieve those objectives over the terms of all agreements.
The Company was pleased to announce in January 2020 these negotiations with the Whadjuk People Native Title Claimants and their representative body had resulted in the parties entering into a Native Title Mining Project Agreement for the Muchea Silica Sand Project.
Subsequent to the end of the financial year the Company received confirmation that the Working Group for the Southern Yamatji People, Native Title claimants over the Arrowsmith North and Arrowsmith Central Silica Sand Projects project areas, had approved the terms of its proposed Mining Project Agreement covering the areas.
On the ground the Company has undertaken sufficient drilling to assume geological and metallurgical continuity of the sand deposits, released substantial resource upgrades and robust Bankable Feasibility Studies (BFS) for Arrowsmith North and Central as well as our Muchea Project.
Continued and extensive metallurgical test work commissioned by VRX Silica during the year has allowed for the creation of a catalogue of silica sand products that can be produced from each of the Silica Sand Projects. This test-work indicates likely qualities for the manufacture of glass, ceramics and foundry sand products considered appropriate for eventual economic extraction from the Arrowsmith projects which has favourable logistics with a rail line to the Geraldton Port and Muchea which has a nearby rail link to the bulk terminal at Kwinana.
VRX Silica has developed a unique mining and rehabilitation methodology specific to the environment at our Silica Sand Projects which will enable a successful restoration of mined areas by keeping the top half metre of topsoil intact and relocated to previously mined areas.
The COVID-19 virus has intruded into all facets of our daily lives and business this year and looks to continue doing so for the near future. Despite this we continue to engage with our potential offtake customers by video meetings.
We expect to maintain the momentum and to this end, on behalf of the Board, I would like to thank all staff and contractors for their valuable contribution during the year. I would also like to thank our shareholders for their support.