Name of the Project
Arrowsmith North silica sand project.

Location
The project is located 270 km north of Perth, Western Australia.

Project Owner/s
VRX Silica.

Project Description
Arrowsmith North is the first of three high-quality, world-scale projects, and the most advanced pure silica sand development opportunity in Western Australia.

The project has a total mineral resource of 513-million tonnes at 98% silicon oxide, and a total ore reserve of 221-million tonnes at 99.5% silicon oxide. The company published a bankable feasibility study in 2019, based on an initial 25-year mine life.

Steady-state production from probable reserves over life-of-mine is estimated at one-million tonnes a year over the first three years of production and at two-million tonnes a year thereafter.

Production is estimated at 47.7-million tonnes over the initial 25-year mine life.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The 2019 feasibility study estimated an after-tax net present value, at a 10% discount rate, of $242.3-million and an internal rate of return of 79%, with a payback of 2.4 years.

Capital Expenditure
The 2019 feasibility study estimated capital expenditure at A$28.26-million.

Planned Start/End Date
Construction is expected to take six months.

Latest Developments
Western Australia's Mines, Petroleum and Exploration department has approved the mining proposal, marking a milestone for VRX Silica, as the company is now permitted to start mining operations, subject to standard mining and closure conditions, including environmental approval. 

The development follows confirmation in late June that the Environment Minister determined the Environmental Protection Authority of Western Australia’s assessment of Arrowsmith North was adequate, and that further assessment is not required, clearing the pathway for environmental approval.  

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
VRX Silica, tel +61 8 92263780 or email info@silicasand.com.au.