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Australia

Arrowsmith North Project

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Overview

Mine TypeOpen Pit
StagePermitting
Commodities
  • Silica
Mining Method
  • Dry mining
Mine Life... Lock
SnapshotArrowsmith North high-purity product of 99.7% SiO2 with <500ppm Fe2O3 and on track to become VRX’s first silica sand mine in production.

Arrowsmith North is considered a world class deposit and estimated to hold 25 years’ worth of production with potential for a 100+ year mine life.

The baseline project cost estimate, determined in BFS March 2024, is $66.8M (including 20% contingency). The cost estimate will be updated with key equipment re-tendered prior to FID.

The FID will be decided following final mining approvals, financial arrangements committed and adequate offtake agreements committed.

On 9 January 2025, the Western Australia EPA published its Assessment Report, recommending project approval with conditions accepted by VRX. On 30 January 2025, the Conservation Council of WA lodged an appeal.

VRX must respond to the appeal by 3 March 2025 while continuing to seek approval from the Commonwealth Department of Climate Change, Energy, the Environment and Water.
Latest NewsVRX inks new offtake deals     January 20, 2025

Owners

SourceSource
CompanyInterestOwnership
Ventnor Mining Pty Ltd. (operator) 100 % Direct
VRX Silica Ltd. 100 % Indirect
The Arrowsmith North Mining Lease and Exploration Licenses are held by Ventnor Mining Pty Ltd a 100% owned subsidiary of VRX Silica Ltd.

Deposit type

  • Sedimentary

Summary:

The project area straddles the Dongara, Beharra Springs and Donkey Creek Terraces which are located to the west of the Dandaragan Trough and to the east of the Beagle Ridge. The Dongara Terrace is located to the west of the Mountain Bridge Fault. The Beharra Terrace lies between the Beharra Springs Fault and the Mountain Bridge Fault. The Donkey Creek Terrace lies to the east of the Beharra Springs Fault to the Eneabba Fault.

The project area is located mainly between the Beharra Springs Fault to the east and the Mountain Bridge Fault which passes through the western tenement boundary. Both faults are east side down with the oldest lithologies to the west.

Locally the silica sand deposit is understood to be layered where yellow sand is deposited it is underlain by white sand. The silica sand deposit is bounded at depth by a basal limestone which is closer to the surface in the south and deeper in the north.

Silica sand mineralisation at Arrowsmith North occurs within the coastal regions of the Perth Basin, and the targeted silica sand deposits are the aeolian sand dunes that overlie the limestones and paleo-coastline.

Within the project area, data obtained from the Department of Agriculture soil mapping shows there are pale (logged by VRX as white sands) and yellow deep sands predominating, with lesser swampy areas and occasional iron rich sand ridges.

The aircore drilling demonstrated that the white sand layer extends to the west, past the interpreted contact, under the yellow sand in approximately the northern half of the modelled area. The basal surface of the yellow sand is defined by this lithological contact, or is limited by interpretation of nominal average thickness of the sand layer based on the data from surrounding deeper drill holes as required. The white sand layer basal surface is similarly defined by the drilling data and or is limited by interpretation of nominal average thickness of the sand layer based on data from surrounding deeper drill holes as required. The horizontal extents of the interpreted sand layers are limited to within the VRX nominated Arrowsmith North target area and with reference to the publicly available soil mapping data.

The surface humus layer is typically about 300mm thick. In consultation with VRX, the upper 500 mm (overburden) is likely to be reserved for rehabilitation purposes. This overburden surface forms the upper boundary of the estimated Mineral Resource and is depleted from the reported Mineral Resources. Comparatively minor areas that are mapped as iron richer sand ridges, swamp or sandy swamp are also depleted from the Mineral Resources.

A surficial zone of enriched CaO was modelled in the area drilled in 2021. This CaO zone is within the yellow sand domain and SiO2 population is reduced by negligible amounts compared to the non-calcareous domain. The purpose of the domain was to separate high and low grade CaO populations.

The basal 2 m of the sands unit is not intended to be mined, and is therefore not reported as part of the Mineral Resource.

Despite both white and yellow sands being readily amenable to beneficiation, they have been separately modelled, based on the drill logging data and mapped soil type boundaries, as they are separately estimated due to differences in grades of the various mineral components.

Assumptions have been made on the horizontal extents of the mineralisation based on the soil mapping data and the spacing and extents of the drilling information. The nominal maximum interpreted combined layer sand vertical thickness is roughly 25 m and the nominal average interpreted thickness of sand is about 12 m. Approximately 15% of the modelled mineralisation zones can be considered to be extrapolated.

Continuity of geology and grade can be identified and traced between drillholes by visual and geochemical characteristics. Confidence in the grade and geological continuity is reflected in the Mineral Resource classification.

Dimensions
The modelled and classified extents of the yellow sand material within the target area are roughly 10 km north to south, and on average roughly 2.5km west to east.

The modelled and classified extents of the white sand material within the target area are roughly 4.6km north to south, and on average roughly 1.5km west to east.

The modelled aeolian sand is roughly horizontal, with low relief. The currently modelled thickness of the sands is on average about 12m, ranging up to a nominal maximum thickness of 25m.

Reserves

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Mining Methods

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Comminution

Crushers and Mills

Milling equipment has not been reported.

Processing

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Production

CommodityUnitsAvg. Annual
Silica Mt 2
All production numbers are expressed as sand.

Operational metrics

Metrics
Annual processing capacity  ....  Subscribe
Tonnes processed, LOM  ....  Subscribe
* According to 2024 study.

Production Costs

CommodityUnitsAverage
C2 total cash costs Silica AUD  ....  Subscribe
* According to 2024 study / presentation.

Project Costs

MetricsUnitsLOM Total
Initial CapEx $M AUD  ......  Subscribe
Gross revenue (LOM) $M AUD  ......  Subscribe
After-tax Cash Flow (LOM) $M AUD  ......  Subscribe
After-tax NPV @ 10% $M AUD  ......  Subscribe
After-tax IRR, %  ......  Subscribe
After-tax payback period, years  ......  Subscribe

Heavy Mobile Equipment

Fleet data has not been reported.

Personnel

Mine Management

Job TitleNamePhoneEmailProfileRef. Date
....................... Subscription required ....................... Subscription required Subscription required Feb 11, 2025
....................... Subscription required ....................... Subscription required ........... Subscription required ........... Subscription required Subscription required Feb 11, 2025

Aerial view:

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