Vrx Silica Ltd. · ASX:VRX
Vrx Silica — Investor Presentation (May 2019)
29 slides from Vrx Silica's investor presentation, May 30, 2019
Slide 1: WA Silica Sand Projects
For personal use only WA Silica Ventnor SandLimited Resources Projects May 2019
Slide 2: Disclaimer
Disclaimer For personal use only • This document has been prepared by VRX Silica Limited (VRX). The information contained in this document is for information purposes only and has been prepared for use in conjunction with a verbal presentation and should be read in that context. • The information co
Slide 3: Competent Persons Statements
Competent Persons Statements For personal use only • The information in this Report that relates to Arrowsmith and Muchea Exploration Results is based on data collected under the supervision of Mr David Reid, in his capacity as Exploration Manager. Mr Reid, BSc (Geology), is a registered member of t
Slide 4: The world is facing a global sand crisis
The world is facing a global sand crisis For personal use only 4
Slide 5: Global Silica Sand Use
Global Silica Sand Use For personal use only Construction Sand Concrete Glassmaking Float, Containers, Architectural, Thin Film Metal Casting/Foundry Automobile parts Oil/Gas Well Stimulation Frac sand/proppant Target Market Metallurgical Ferrous and Non-ferrous Alloys Paint and Coatings Brightness
Slide 6: Market Outlook
Market Outlook For personal use only Asian glass making production increasing 5-6% per year (~8 - 10Mtpa Growth) Glassmaking silica sand demand by region* Market in Growth in Use Spec Asia Asia 4% 5% Float (Plate) Glass 99.5% SiO2 60 - 65Mt 5% - 6% 8% Container Glass 99.5% SiO2 70 - 75Mt 5% - 6% 47%
Slide 7: Silica sand strategy
For personal use only Identify and delineate large scale silica sand resources close to VRX’s silica infrastructure sand Explore opportunities for strategy further processing to value-add Develop plans for the mining and export of high quality silica sand 7
Slide 8: Perth Basin Setting
For personal use only Perth Basin Setting 8
Slide 9: WA Silica Sand Projects
WA Silica Sand Projects For personal use only 9
Slide 10: Project Locations
For personal use only Project Locations 10
Slide 11: Arrowsmith Project
For personal use only Arrowsmith Project 11
Slide 12: Arrowsmith – Overview
Arrowsmith – Overview For personal use only • 270km nth of Perth • South of Dongara with rail connections to Geraldton Port • Very large-scale potential • Preliminary testwork confirms glass- making quality (+99.7% SiO2) • Low capital intensity ($25M per plant) • Low environmental impact mining prop
Slide 13: Arrowsmith North Inferred Resource
Arrowsmith North Inferred Resource For personal use only 193.6 million tonnes @ 98% SiO2* * Details of Arrowsmith North Resource Estimate are contained in the ASX announcement of 2 October 2018 *Note: Interpreted mineralisation is domained into different sand types based on drill logging data and pu
Slide 14: Arrowsmith North Upgrade
Arrowsmith North Upgrade For personal use only 0.212mm – 1.0mm Screen • Removes majority of impurities • Upgrades to +99.5% SiO2 product • Delivers spec suitable for float and container glass market 14
Slide 15: Arrowsmith North Upgrade
Arrowsmith North Upgrade For personal use only 0.212mm – 1.0mm Screen • +90% Recoveries 15
Slide 16: Arrowsmith - Processing
Arrowsmith - Processing For personal use only Established processing techniques - No chemicals, Double attritioning 16
Slide 17: Processing Plant Design
Processing Plant Design For personal use only 17
Slide 18: Arrowsmith - Exploration
Arrowsmith - Exploration For personal use only • Exploration drill program completed using 4WD-mounted AC rig • Drilling to increase resource size and convert a large portion of resource to Indicated status • All exploration above the water table • Very low cost shallow drilling (10-15m) in free run
Slide 19: Arrowsmith Exploration
Arrowsmith Exploration For personal use only 19
Slide 20: Rail & Port Access (Geraldton)
Rail & Port Access (Geraldton) For personal use only Rail to Geraldton Geraldton Port 20
Slide 21: Muchea Project
For personal use only Muchea Project 21
Slide 22: Muchea - Overview
Muchea - Overview For personal use only • Muchea is potentially a world class high-grade silica sand deposit • Located on VCL • 50 km north of Perth Muchea • 14 km north of Muchea Silica Sand Project • Granted tenure 100% VRX • Adjacent to Brand Highway • Mining Lease application lodged (3,000 Ha) •
Slide 23: Muchea – Initial Results
Muchea – Initial Results For personal use only • Initial drilling program delineated high-grade Inferred/Indicated Resource (191Mt) • Preliminary testwork indicates simple processing can upgrade sand to specialised glass quality +99.9% SiO2 (Fe2O3 <100ppm) 23
Slide 24: Muchea Indicated/Inferred Resource
Muchea Indicated/Inferred Resource For personal use only 191Mt @ 99.6% SiO2 Million Classification SiO2% Al2O3% Fe 2O3% LOI% TiO2% Tonnes Indicated 19 99.7 0.03 0.03 0.2 0.08 Inferred 172 99.6 0.04 0.02 0.2 0.08 Indicated + Inferred 191 99.6 0.04 0.02 0.2 0.08 * Details of Muchea Resource Estimate a
Slide 25: Muchea - Exploration Program
Muchea - Exploration Program For personal use only • Exploration program completed using 4WD-mounted AC rig • Drilling to increase a portion of resource to Indicated status • All exploration above the water table • Very low cost shallow drilling (10-15m) in free running sand • Sand 2-3% moisture (no
Slide 26: Recoveries
Recoveries For personal use only Arrowsmith North Product Industry Recovery • Based on 3 iterations of testwork to Arrowsmith - N20 Foundry 24% date and subsequent process circuit Arrowsmith - N40 / NF500 Foundry/Glass 60% design Local Market/Filter/Bunker Filter/Bunker 6% • Confirmed high recoverie
Slide 27: Silica Sand Development Program
Silica Sand Development Program For personal use only • Indicated Resource targeted for Arrowsmith and Muchea (Q2 2019) • Engineering study completed (±15% capital cost estimate) • Quality samples from recent testwork to be sent to potential customers in Japan, China, India, Vietnam, Thailand, Taiwa
Slide 28: Investment Considerations
Investment Considerations For personal use only EMERGING IDEALLY OUTSTANDING PLACED TO AUSTRALIAN PROJECT CAPITALISE ON STRATEGIC ECONOMICS ROBUST SILICA SAND AND MARKET PRODUCER LOGISTICS OUTLOOK AND DEMAND POTENTIAL RAPID LARGE SAND PATHWAY TO RESOURCES FINANCING AND AND PRODUCTION PRODUCTION OTHE
Slide 29: Corporate & Capital Summary
Corporate & Capital Summary For personal use only Capital Structure Directors Shares On Issue (m) 400 Paul Boyatzis Options on Issue1 (m) 68 Non-Executive Chairman Share Price cents 6 Bruce Maluish Cash A$m 2.2 Managing Director Debt A$m Nil Peter Pawlowitsch Non-Executive Director Market Capitalisa