VRX Silica will save best with the latter when BFS reveals the outstanding finances of the Muchea project

VRX Silica will save best with the latter when BFS reveals the outstanding finances of the Muchea project

VRX Silica Ltd (ASX: VRX) rescued the latter with the best of its third bankruptcy early feasibility study (BFS) for the WA Muchea silica sand project, showing outstanding financial metrics.

The BFS, which outlines a $ 338 million non-dedicated NPV10 based on a 25-year potential mine clearance period of 100 plus years, shows that Muchea is capable of producing very high quality silica sand products.

As such, he said it was the most impressive of the three bankable feasibility studies completed for the silica sand projects north of Perth and the project also planned to export rail links to the port of Kwinana.

The study covers a probable baseline ore of 18,7 million tonnes 99.9% SiO2 and 14.6 million tonnes 99.9% SiO2 in the mining application area.

Maluish said: “This reserve estimate is only a small part of the project’s estimated silica sand stocks, but it provides a very high quality product that is in high demand in specialized Asian markets.

"We have already had significant interest in the Muchea product, which offers higher prices than the products of our North and Central Silica Sand projects in Arrowsmith."

MD said quality such as that of the increasingly important solar panel glass industry is very important for specialized glass manufacturers.

It is estimated only on the basis of this mineral resource and represents approximately 39% of the estimated total production target (tonnes of processed silica) over the 25-year life of the mine.

The residue comes from mineral resources derived from the proposed mining area, which is 61.4 million tonnes with 99.6% SiO2 content, which the company plans to extract from 10 years onwards.

Muchea is a potentially new long-term industry for Western Australia with significant economic benefits, including long-term employment and royalties, which make a significant economic contribution to the Muchea-Gingin district.

Maluish said: “Muchea is a world-class, high-quality silica sand project that can support WA's important export industry, benefiting the state and the Muchea-Gingin community.

"Muchea will be producing alternative high quality products for Arrowsmith and will include in our available product catalog of our silica sand projects."

Silica sand is in a phase of growth worldwide due to growing demand in the construction sector, both in volume and value worldwide.

This was due to its applications in a wide range of industries including glass making as well as foundry casting, water filtration, chemicals and metals, as well as the hydraulic fracturing process.

The acceleration of construction costs and manufacturing output worldwide is expected to accelerate significant growth in the sand-consuming industry, including the glass, foundry and building glass sectors.

The hydraulic fracturing market is expected to grow significantly as the horizontal drilling of shale oil and gas resources expands, mainly in North America.

Asia-Pacific is expected to remain the largest regional consumer of industrial sand by 2025, supported by the dominant Chinese market.

The national container glass industry is further promoting the sales of silica sand, supported by the increasing production of glass bottles, especially in the alcoholic beverages sector, including wine and beer.

The foregoing is published by Proactive Investors Limited ("the Company") on its website and will be made available in accordance with the terms of use of its website (see T&C). ...

Bruce Maluish, Managing Director of VRX Silica Ltd (ASX: VRX), is updating a Proactive Feasibility Study (BFS) and probable ore reserve for its Muchea silica sand project in Western Australia. It is the third of the VRX's three advanced silica sand projects north of Perth and ...