Arrowsmith North silica sand project, Australia – update


Name of the Project
Arrowsmith North silica sand project.
Location
The project is located 270 km north of Perth, Western Australia.
Project Owner/s
Silica sand company 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
VRX Silica has shifted its focus to finalising infrastructure solutions, binding offtake agreements and project finance, confirming its goal of first production next year.
This comes as the Western Australian Environment Minister approved the project for development, clearing the pathway for VRX to finalise the remaining approvals and permitting.
The Western Australian Department of Mines, Petroleum and Exploration approved VRX’s mining proposal for Arrowsmith North last month, allowing for the start of mining operations, subject to standard mining and closure conditions, including environmental approval.
Federal environmental approval under the accredited assessment regime from the Department of Climate Change, Energy, the Environment and Water is expected in six to eight weeks.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
VRX Silica, tel +61 8 92263780 or email info@silicasand.com.au.
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