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
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 probable ore reserve of 223-million tonnes grading 99.7% silicon oxide and mineral resources estimated at 771-million tonnes grading 98% silicon oxide.
The project’s August 2019 bankable feasibility study is based on only 25 years of production from a considerably longer mine life exceeding 100 years.
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 project has 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 project is estimated at A$28.26-million.
Planned Start/End Date
Construction is expected to start in January 2023 and is expected to take six months.
Latest Developments
VRX Silica has marked a significant milestone in the development of its Arrowsmith North silica sands project, with the state’s Environmental Protection Authority (EPA) approving the project’s environmental scoping documents (ESD).
The ESD is a precursor to the environmental review document and is required under the EPA’s public environmental review process.
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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