Hi Popeye, Before I originally bought into VRX I did some due...

Hi Popeye,

Before I originally bought into VRX I did some due diligence on the sand industry as such.

As we are all aware, its very much a closed book and difficult to find out much.

But one of the first locations I loooked at was at the Cape Flattery mine which is owned by Mitsubishi.
They 100% own the jetty there which they purpose built as a very efficient loading facility.

I looked at the areas around the cape Flattery mine and at the DRX site.
The problem is it is TOTALLY isolated and there is no way that Mitsubishi would allow then access to their loading facility...Full stop.

The Cape Flattery sand is a much lesser grade than the VRX deposits and sells for, I believe, around $20 per ton
It is mainly used in the construction industry.
Cape Flattery can make good $s on this because they are right next door to their loading jetty and I did hear somewhere their FOB price for the sand was/is around $12.
And as their is no power there, that $12 includes using their own diesel generators to power the mine.
But of course as a private company they are not mentioning anything about pricing.
So there is some speculation in my figures.

By extension, the surrounding deposits are probably a similar grade of sand to Cape Flattery.
But with no power, roads, rail, access to port, nearby civilisation/towns etc ...that is with NO infrastructure whatsoever, it would be a very expensive operation to set up,and the costs to produce the sand and get it to market would almost certainly make it unviable.

After coming to this conclusion,
I dismissed looking in the Cape Flattery area.
and finished up with VRX.

As always, this is my OPINION,
and I may be wrong.

DYOR.
Caveat emptor.

bendigo