VRX Silica crashes on fears Arrowsmith North project near Eneabba will miss target
VRX was sold down from a closing price of 28.5¢ on Friday to 22¢ today before its shares were placed in a trading halt ahead of an announcement by the company.
The halt comes after the environmental watchdog ordered a public environmental review over Arrowsmith North citing concerns around the biodiversity of the area.
VRX has previously stated the $28.3 million project could be in production before the end of the year.
The EPA noted the potential impacts on flora, fauna and groundwater from the proposed clearing of 376.2ha of native vegetation. It also cited issues from operational noise, dust, vibration and emissions.
“Several preliminary key environmental factors require assessment as the proposal is in an area of high biodiversity,” the EPA said in a statement.
“Further information and detailed assessment is required to determine the extent of the proposal’s direct and indirect impacts, and how the environmental impacts could be managed.”
VRX submitted its proposal for assessment by the EPA in March.
In a recent quarterly update, it said the referral was the culmination of wide-ranging environmental studies over the past three years and extensive pre-referral consultation with the EPA.
The company says it has developed a unique and progressive mining and rehabilitation method specifically for Arrowsmith North and its other silica sand projects to minimise environmental impact of its activities.
The project is also subject to approvals under Federal environmental law.
