VRX Silica (ASX: VRX) has announced details of its Bankable Feasibility Study and maiden Probable Ore Reserve at its Muchea Silica Sand Project, located 50km north of Perth; the third BFS for the Company’s three advanced silica sand projects.
· Muchea has outstanding financial metrics and is capable of producing very high-grade silica sand products
· Ungeared NPV10 of $338 million based on 25 years of a potential mine life of +100 years
· Total Probable Ore Reserve of 18.7 Mt @ 99.9% SiO2 with 14.6 Mt @ 99.9% SiO2 in the Mining Lease application area
· Studies identify three high-grade high-value silica sand products in high demand in international markets
The Probable Ore Reserve for Muchea totals 18.7 Mt @ 99.9% SiO2 as reported in accordance with the JORC Code 2012 edition1 (JORC Code), with 14.6Mt @ 99.9% SiO2 contained within the area of the Company’s Mining Lease application (M70/1390) for Muchea.
This follows the Company’s recent announcement of Probable Ore Reserves for Arrowsmith North and Central.
VRX Silica Managing Director Bruce Maluish said: “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.
“We have already had significant interest in the Muchea product that will command higher prices than products from our Arrowsmith North and Central silica sand projects.
“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,” said Maluish.