The VRX Silica Ltd (ASX: VRX) share price is on the move, up 3.51% to 30 cents in late morning trade. This movement comes as the ASX resource explorer released its latest quarterly activity report today.
Below, we take a closer look at the announcement.
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What did VRX Silica report for the quarter?
VRX Silica's shares are moving higher today after the company updated the market on its drilling campaign at its Arrowsmith North Silica Sand Project in Western Australia.
During the March quarter, VRX said it completed a 130-hole grade control drill program. This occurred at the project over a period of 10 days. Furthermore, VRX forecasts that the grade control area contains roughly 10.2 million tonnes of probable ore reserve.
VRX does not expect the drill program will change its forecast tonnage. However, the company does believe it will lead to an upgrade in the area drilled to a measured resource and proven reserve. The program will also increase the company's general geological knowledge across the drilled area.
Assay results for the drill program are expected in late May.
According to the release, the recently completed program "is another key pre-production activity being undertaken in preparation for the commencement of mining". VRX said the area being grade control drilled is where it plans to mine for the first 6—10 years.
The company added that the drilling has provided it with new commercial samples. In particular, these samples will be for its potential offtake partners, stating demand for its silica sand is ramping up:
Sources of supply of quality silica sand throughout the Asian region are shrinking at a rapid rate, and this has led to tremendous interest for VRX's silica sand from potential customers who are acutely aware of the supply problem.
VRX also provided an update on its progressive mining and rehabilitation methods. These methods are designed to minimise the environmental impact of its activities.
VRX Silica share price snapshot
Over the past 12 months, the VRX Silica share price has rocketed 228% higher. That handily beats the 34% gain posted by the All Ordinaries Index (ASX: XAO).
So far, 2021 has been more difficult for the VRX share price, with shares down 26% year-to-date.
