VRX Silica (ASX: VRX) has announced details of its Bankable Feasibility Study and maiden Probable Ore Reserve at its Arrowsmith Central Silica Sand Project, located 270km north of Perth, WA, the second BFS of the Company’s three advanced silica sand projects.
· Arrowsmith Central has compelling financial metrics and compliments Arrowsmith North
· Ungeared NPV10 of $147 million based on 25 years of a potential mine life of +35 years
· Total Probable Ore Reserve of 18.9 Mt @ 99.6% SiO2
· Mining Lease application area contains Probable Ore Reserve of 18.7 Mt @ 99.6% SiO2
· Studies identify four saleable silica sand products suitable for international and local markets
· Full BFS annexed to this announcement
The Probable Ore Reserve for Arrowsmith Central totals 18.9Mt @ 99.6% SiO2 as reported in accordance with the JORC Code 2012 edition, (JORC Code), with 18.7Mt @ 99.6% SiO2 contained within the area of the Company’s Mining Lease application (M70/1392) for Arrowsmith Central.
This follows the Company’s recent announcement of a Probable Ore Reserve for Arrowsmith North totalling 223 Mt @ 99.7% SiO2 in accordance with the JORC Code, with 204Mt @ 99.7% SiO2 contained within the area of the Company’s Mining Lease application (M70/1389) for that project.
VRX Silica Managing Director Bruce Maluish said: “This Reserve estimate is in accordance with our expectations and is complementary to our nearby Arrowsmith North Silica Sand Project.
“Arrowsmith Central is a smaller Resource than Arrowsmith North but has the potential to still be a very long-life project with additional drilling of the Inferred Resource expected to be sufficient to realise the production target.
“Arrowsmith Central will produce alternative products to Arrowsmith North and will add to our available catalogue of products to be produced from our silica sand projects,” said Mr Maluish.
Following pre-referral discussions with the State EPA and Federal DoTEE, follow up surveys this month at both projects will be incorporated into formal referrals for final environmental assessment.