An updated mineral resource includes an indicated resource estimate of 248 million tonnes at 97.7% silica and an inferred resource estimate of 523 million tonnes at 98.2% silica.
Within the resource is 313 million tonnes of white sand at 98.7% silica.
Shares have been up as much as almost 27% to an intra-day high of 12 cents.
The update shows that Arrowsmith North, which is within the broader Arrowsmith project, is developing into a world-class deposit capable of producing silica sand products suitable for glass making, foundry and ceramics industries.
VRX Silica managing director Bruce Maluish said: “The mineral resource includes an unpredicted 313 million tonnes of white sand at 98.7% silica.
“A high-grade final product can be produced from the higher-grade feed stock which is in demand for the foundry and glassmaking industries.
“This mineral resource estimation will now allow the company to finalise estimates of ore reserves which will support the impending BFS.”
The estimate was updated after the company received analytical results from a drilling program undertaken during March 2019.
VRX Silica is now focused on completing a feasibility study as well as estimating an ore reserve for the project.
A positive PFS will allow for the project to progress through mining approvals, financing and into construction and the beginning of mining operations.
Although drilling is not required for the start of mining operations, VRC Silica will undertake a test work program on the white sand aimed at determining the quality of products that can be generated from the higher-grade source.
Process plant recoveries for each of the Arrowsmith North products.
Metallurgical test work has been completed at the CDE Global sand testing laboratory in Cookstown, Northern Ireland, which confirms that high-quality glass and foundry sand can be produced from Arrowsmith North.
This work resulted in the generation of a catalogue of products that can be produced.
The Arrowsmith North project is north of Eneabba, 270 kilometres north of Perth.
VRX Silica also has the Muchea Silica Sand Project, 50 kilometres north of Perth, comprising one granted exploration licence, with one exploration licence and one mining lease application pending.