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Arrowsmith North to cost A$28m

28th August 2019

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – The Arrowsmith North silica sand project, in Western Australia, would require a capital investment of A$28.26-million to develop, ASX-listed VRX Silica reported on Wednesday.

A bankable feasibility study (BFS) into the project found that some 47.7-million tonnes of silica sand would be produced over an initial 25-year mine life, generating cash flows of some A$835-million.

The BFS estimated a post-tax net present value of A$242.3-million and an internal rate of return of 79% for the Arrowsmith North project, with life-of-mine C1 costs estimated at A$30.18/t.

“We are delighted with the results of ongoing work for Arrowsmith North and, following our BFS, the conversion of the mineral resource estimate into a maiden probable ore reserve,” said VRX Silica MD Bruce Maluish.

“These results support our continued assessment of Arrowsmith North as a compelling silica sands project with world-class potential.”

The project is expected to produce four saleable silica sand products suitable for international glass making, foundry and ceramic markets, with Maluish saying on Wednesday that the company was continuing offtake discussions.

Work is also continuing on the environmental and mining approvals for the Arrowsmith North project.

Edited by Creamer Media Reporter

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