THE DRILL SERGEANT: VRX Silica (ASX: VRX) reported results of rock chip samples from the company’s Warrawanda project, located south of Newman in Western Australia.
VRX Silica has held the Warrawanda project since 2011, when it listed on the ASX as Ventnor Resources.
At that time, however, the company’s focus was on the project’s nickel prospectivity, namely on a massive ultramafic intrusion which runs east-west across the tenements.
Since having changed direction to supply the Silica Sand market, VRX re-evaluated the tenement to examine the quartz outcrops that dot the landscape in the granites adjoining the ultra-mafic intrusion.
Three outcrops were initially sampled producing results at each the company considers to indicate the potential to produce a High Purity Quartz (HPQ) product.
“This is potentially yet another product we can supply in to the Silica market,” VRX Silica managing director Bruce Maluish said in the company’s announcement to the Australian Securities Exchange.
“The HPQ market is much smaller and industry specific than the silica sand market for glassmaking but it is significantly higher value with prices up to US$300 per tonne for crushed and bagged HPQ.
“High purity quartz is a special category of silica and used in high added value products, particularly optical fibres, LED lights, silicon manufactured for use in the electronics industry, photovoltaic cells and high-tech glass.
“There is significant growth in the production of LED lights and a high market demand for HPQ.
“The Warrawanda HPQ project is close to the town of Newman and immediately adjacent to Great Northern Highway which connects to Fremantle with ample opportunity for backloads from trucks servicing the Pilbara.
“The company will conduct a diamond drill program to test the extent and quality of the deposits mid-year following an Aboriginal Heritage survey.”