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VRX Silica Sets Off Muchea Double Banger

THE BOURSE WHISPERER: VRX Silica (ASX: VRX) released a double banger by announcing details of a Bankable Feasibility Study (BFS) and maiden Probable Ore Reserve at the company’s Muchea silica sand project, located north of Perth in Western Australia.

VRX noted this is the third BFS for the company’s three advanced silica sand projects.

The Probable Ore Reserve for Muchea totals 18.7 million tonnes at 99.9 per cent silicon dioxide (SiO2) – as reported in accordance with the JORC Code 2012 – with 14.6 million tonnes at 99.9 per cent SiO2 contained within the area of the company’s Mining Lease application (M70/1390) for Muchea.

This Ore Reserve follows the company’s recent announcement of Probable Ore Reserves for Arrowsmith North and Central.

“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,” VRX Silica managing director Bruce Maluish said in the company’s announcement to the Australian Securities Exchange.

“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.”

The BFS was based on only 25 years production from a potentially long-term plus-100-year mine life.

The maiden Probable Ore Reserve of 14.6 million tonnes contained within the area of the company’s Mining Lease application and will support a 9 to 10-year project.

This is estimated from the Indicated Mineral Resource only and constitutes approximately 39 per cent of the estimated total production target – in terms of processed tonnes of silica sand – over the 25-year mine life.

VRX Silica intends to mine solely from Probable Ore Reserves during the initial 9 to 10 years of the project.

VRX Silica has developed a mining and rehabilitation methodology specific to the environment at Muchea, which will enable a successful restoration of mined areas.

A key challenge for industrial minerals projects is meeting market specifications.

The silica sand market has specifications for parameters such as purity in addition to tight specifications for trace elements in the glass industry.

The company is confident that it can meet specifications for the ultra-clear glass market from Muchea.

 

Email: info@vrxsilica.com.au

Web: www.vrxsilica.com.au

 

VRX Silica Upgrades Arrowsmith Central Resource

THE DRILL SERGEANT: VRX Silica (ASX: VRX) completed a Resource upgrade for the Arrowsmith Central silica sand project, located north of Perth in Western Australia.

VRX Silica completed the upgrade following a drill program undertaken during March 2019.

The Mineral Resource estimate (MRE) for Arrowsmith Central has been upgraded to an Indicated Mineral Resource of 28.2 million tonnes at 96.6 per cent silicon dioxide (SiO2) in addition to an Inferred Mineral Resource of 48.3 million tonnes at 96.9 per cent SiO2 for a total MRE of 76.5 million tonnes at 96.8 per cent SiO2.

All Mineral Resources are reported in accordance with the JORC Code 2012.

“The Arrowsmith Central silica sand project is ideally positioned for a unique logistics solution with the project traversed by the Eneabba to Geraldton rail line with a direct connection to the Geraldton Port,” VRX Silica managing director Bruce Maluish said in the company’s announcement to the Australian Securities Exchange.

“This Mineral Resource estimation will now allow the company to finalise estimates of Ore Reserves which will support the impending BFS.”

The company explained that the Indicated Mineral Resource is predominately within the Mining Lease application area for Arrowsmith Central and it expects that the majority of the Indicated Mineral Resource will convert to Probable Reserves and a long-life mining project.

“This Mineral Resource is complementary to our Arrowsmith North silica sand project and adds not only to our total inventory but will also produce alternative products for the glassmaking and foundry industries in Asia,” Maluish said.

VRX Silica is now working towards completing the process for Mining Lease Applications and Environmental Approvals at both the Arrowsmith North and Arrowsmith Central silica sand projects.

The total Indicated and Inferred Resources at the company’s three silica sand projects is now in excess of one billion tonnes.

 

Email: info@vrxsilica.com.au

Website: www.vrxsilica.com.au

 

VRX Silica Upgrades Muchea Mineral Resource Estimate

THE DRILL SERGEANT: VRX Silica (ASX: VRX) completed drilling at the company’s Muchea silica sand project north of Perth in Western Australia that has led to an upgraded Mineral Resource Estimate.

VRX Silica announced the JORC 2012 Mineral Resource Estimate for the Muchea silica sand project, which has been upgraded to 208 million tonnes at 99.6 per cent silicon dioxide (SiO2) comprising a 49 per cent increase to the JORC 2012 Indicated Resource estimate of 29 million tonnes at 99.6 per cent SiO2 and a four percent increase to the JORC 2012 Inferred Resource estimate of 179 million tonnes at 99.6 per cent SiO2.

“This drill program is over an area of 217ha, which is still only a small portion of the 2,900ha Mining Lease Application area,” VRX Silica managing director Bruce Maluish said in the company’s announcement to the Australian Securities Exchange.

“Testwork indicates that high-grade silica sand can be produced from Muchea for which there is strong demand for glassmaking in Asia.

“With low variability of results over the Resource area our expectation is that the majority of the Indicated Resource will convert to Probable Reserves in our impending BFS.”

The company explained the Resource estimate only includes sand three metres above the year 2000 mapped water table level and discounts the top half metre of topsoil, which will be used for rehabilitation.

VRX claims metallurgical testwork it has carried out to-date confirms its updated silica sand model to be readily amenable to upgrading by conventional washing and screening methods to produce a high-purity silica sand product with high mass recoveries.

The high-purity silica sand product specifications are expected to be suitable for industries such as the glass making and foundry industries.

VRX Silica anticipates that further testwork focusing on currently discounted sand layers may result in further reinterpretation and upgrades to the Muchea MRE.

The company indicated future drilling and estimations will include this zone of sand which is expected to add to the Resource inventory.

A more extensive Program of Work (PoW) has been lodged to enable an aircore drill program over areas that have been previously hand augered.

Drilling is planned for the September quarter 2019.

 

Email: info@vrxsilica.com.au

Website: www.vrxsilica.com.au

 

AMEC 2019 Convention

THE CONFERENCE CALLER: The Roadhouse attended the 2019 AMEC Convention this week and caught up with the latest goings on for some of our regulars.

Obviously this is a new innovation we are learning to use, so try not to stand too close to the screen when checking out the pics.

Fortunately it is all about listening so sit back and relax and hear what these MDs have to say.

 

BRUCE MALUISH managing director VRX Silica (ASX: VRX)

 

MIKE YOUNG managing director Vimy Resources (ASX: VMY)

 

SEAN GREGORY managing director Barra Resources (ASX: BAR)

 

PATRICK MUNTZ managing director Image Resources (ASX: IMA)

 

VRX Silica Achieves High Recoveries from Silica Sand Process Plant Design

THE BOURSE WHISPERER: VRX Silica (ASX: VRX) received results of testwork and confirmation assays for recoveries of silica sand commercial products carried out at the company’s Western Australia silica sand projects.

VRX Silica undertook the work on the Arrowsmith and Muchea silica sand projects.

The company has now conducted three trials of the testwork, with the final trial completed in March of this year by testwork laboratory and process plant fabricator CDE Global, based in Northern Ireland.

VRX has since completed confirmation assays on final products from that testwork through Nagrom Laboratories in Perth.

The company recently released a process circuit design, engineering and cost estimate by CDE Global for a plant which was based on this testwork and the final determination of recoveries is based on this circuit design, which included the attritioning step being conducted twice.

VRX explained attritioning as a high-energy interaction of grains rubbing on grains which liberates attached fine particles and reduces particle size by breakage on corners and grain boundaries

his reduces contaminants and improves particle shape.

“We are now confident in the process circuit design and the final silica sand products capable of production, which have been compiled into our products catalogue,” VRX Silica managing director Bruce Maluish said in the company’s announcement to the Australian Securities Exchange.

“We will continue to distribute our catalogue and gauge the response, which to-date has been extremely positive.”

The company indicated it has fielded strong interest for potential offtake of silica sand products from the Asian region.

The recoveries mentioned here are of products which will it expects comply with the requirements from interested customers to date.

 

Email: info@vrxsilica.com.au

Website: www.vrxsilica.com.au

 

VRX Silica Fields Strong Silica Sand Interest

THE BOURSE WHISPERER: VRX Silica (ASX: VRX) declared it has received strong interest for the purchase of large tonnages of silica sand products from the company’s two Arrowsmith silica sand projects and its Muchea silica sand project north of Perth in Western Australia.

VRX Silica released Silica Sand Product Catalogues for silica sand products capable of production from the Arrowsmith and Muchea projects in February.

These included two products from each of Arrowsmith and Muchea for the glassmaking industry and four products from Arrowsmith for the foundry industry.

The company has identified numerous markets in the Asia-Pacific region and has met with several potential offtake customers for the sale of silica sand products from Arrowsmith and Muchea.

VRX Silica indicated it will be able to commit to binding offtake agreements following the approval of Mining Permits at its silica sand projects.

“We are encouraged by the strong interest for silica sand products from our Arrowsmith and Muchea projects, and the fact that this has arisen in the brief time since our testwork determined product types and the distribution of our Silica Sand Products Catalogue to potential customers across the Asia-Pacific region,” VRX Silica managing director Bruce Maluish said in the company’s announcement to the Australian Securities Exchange.

“We expect to receive further enquiries for silica sand products and will look to progress this strong interest into binding offtake agreements before committing to funding arrangements for processing plant requirements.”

 

Email: info@vrxsilica.com.au

Website: www.vrxsilica.com.au

 

VRX Silica Raises Finds to Progress Arrowsmith and Muchea Projects

THE BOURSE WHISPERER: VRX Silica (ASX: VRX) announced it has received commitments for a capital raising via a share placement to professional and sophisticated investors to raise approximately $2.26 million before costs.

VRX Silica said the placement received strong support from a range of sophisticated and institutional investors together with existing shareholders and will result in the issue of approximately 37.67 million new fully paid ordinary shares at an issue price of six cents per share.

VRX directors committed to subscribe for an aggregate of shares under the placement, representing approximately $260,000, subject to shareholder approval.

“We are delighted with the strong support received for the Placement from a wide range of investors,” VRX Silica managing director Bruce Maluish said in the company’s announcement to the Australian Securities Exchange.

“The Placement positions VRX to continue to rapidly progress both the Arrowsmith and Muchea silica sand projects.

“Near term activity includes an updated JORC Resource following the completion of our recent drilling program and the release of a bankable feasibility study, currently targeted to be completed in the early part of the September quarter 2019.”

VRX indicated the funds raised will be allocated to completion of feasibility studies and progression of environmental approvals and mining lease applications at the company’s Arrowsmith and Muchea projects

A portion of the net Placement proceeds will be directed towards exploration activities at the company’s Boyatup silica sand project and Warrawanda HPQ project and for general working capital.

 

Email: info@vrxsilica.com.au

Website: www.vrxsilica.com.au

 

VRX Silica Acquires Boyatup Silica Sand Project

THE BOURSE WHISPERER: VRX Silica (ASX: VRX) completed an agreement with Silatec Pty Ltd for the acquisition of the Boyatup silica sand project, located 100 kilometres east of the Western Australian port town of Esperance.

VRX Silica will issue two million of the Company’s ordinary fully paid shares plus $10,000 in full consideration for the acquisition of Boyatup, located on E69/3560 which has a total area of 105.7 square kilometres.

The project is connected to the Esperance Bulk Port via a sealed road which by-passes the city of Esperance.

The tenement is almost totally covered by vacant crown land (VCL), only a very small section is over farming freehold land which is of no interest.

The Esperance Deep Water Bulk Port has been the exit port for bulk nickel and iron ore commodities and can load ships of up to 200,000 tonnes.

“The Boyatup deposit is subtlety different to the company’s Arrowsmith and Muchea silica sand projects and can provide yet another option in the product range that the company can market in Asia,” VRX Silica managing director Bruce Maluish said in the company’s announcement to the Australian Securities Exchange.

“The company will conduct a first pass drill program following an Aboriginal Heritage study on the granted PoW drill sites.

“The drill program will also provide adequate sample for a preliminary testwork program to determine the final sand quality, a preferred process circuit design and supply potential product samples to be forwarded to interested buyers

“The company, and its International Marketing Manager have now compiled a significant number of potential buyers for glass making and foundry industry raw materials.”

 

Email: info@vrxsilica.com.au

Website: www.vrxsilica.com.au