Joint venture formed for Dandaragan geothermal exploration in Australia

Joint venture formed between VRX Silica and Steam Resources for geothermal exploration in Western Australia

Silica sand company VRX Silica has entered into a Farm-in and Joint Venture Agreement with Hydro X for a Geothermal Exploration Permit at the Dandaragan site in Western Australia.

The Geothermal Exploration Permit 44 (GEP 44) was awarded to VRX Silica earlier this year following a bid round for 21 geothermal exploration areas that was announced by the Government of Western Australia in 2022. GEP 44 was only one of six geothermal exploration permits granted by the West Australian Department of Minerals, Industry, Resources, and Safety (DMIRS).

GEP 44 consists of eight contiguous blocks including the Walyering gas field. The project provide s an alternative energy solutions of the silica sand assets of VRX Silica and its long-term ambitions of glass production in Western Australia. The permit was granted on July 2023 and has a term of six years.

The joint venture provides Hydro X with an exploration play with the expertise on hand to developed untapped geothermal resources for a planned entry into the Australian Stock Exchange as Steam Resources (Steam). The permit also represents a unique development opportunity for geothermal energy production in Western Australia which will complement other assets in the Northern Territory and South Australia.

“Recent developments in supercritical CO2 geothermal plant design greatly increases the potential for significant baseline production of green geothermal energy in Western Australia,” said Josh Puckridge, Managing Director of Steam Resources. “Leveraging Steam’s work in the geothermal industry with Permit 44 is of great value to our shareholders and the shareholders of VRX.”

“We are impressed by the credentials of Steam’s management team and look forward to working with them to realise the full potential of the Dandaragan geothermal project,” added Bruch Maluish, Managing Director of VRX.

“In the meantime, VRX Silica continues work on the development of our silica sand projects at Arrowsmith, Muchea and Boyatup as we strive to become a leading supplier globally of high-quality silica sand products.”

Source: Market Open Australia