DEVELOP GLOBAL LIMITED — Capital/Financing Update 2012

Dec 17, 2012

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ASX Announcement
ASX Code: VXR
Released: 18 Dec 2012
For further details
Michael Mulroney
Managing Director
T: +61 8 6389 7400
M: +61 412 443 806
michael.mulroney@venturexresources.com
Board
Tony Kiernan
Chairman
Michael Mulroney
Managing Director
Allan Trench
Non-Executive Director
John Nitschke
Non-Executive Director
Ray Parry
Non-Executive Director
Liza Carpene
Company Secretary
Contact Details
Registered Office
Level 2
91 Havelock Street
West Perth WA 6005
T: +61 8 6389 7400
F: +61 8 9463 7836
admin@venturexresources.com
www.venturexresources.com
ABN: 28 122 180 205
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PILBARA CU-ZN PROJECT DFS DELIVERS POSITIVE OUTCOME

• DFS confirms attractive base project fundamentals

• Annual payable metal production of 16,500 t copper, 30,000 t zinc and 200,000 oz silver

• Increase in defined Ore Reserves extends mine life to a minimum of 8.5 years

• Substantial upside evident with DFS to date incorporating only three of the six known mineral resources controlled by the Company in the Pilbara region

• Base case EBITDA of A$548 million, EBIT of A$234 million

• C1 cash costs estimated at US$1.57/lb after by-product credits[1]

• Financing discussions and approval process underway

Venturex Resources Limited (ASX: VXR) (“Venturex” or “the Company”) is pleased to announce the results from the Definitive Feasibility Study (DFS) of its 100% owned Pilbara Copper-Zinc Project (Project) in the Pilbara region of Western Australia.

The DFS results have confirmed the potential for a robust Project with an average payable metal production profile of 16,500tpa copper (Cu), 30,000tpa zinc (Zn) and 200,000ozs pa of silver (Ag) for at least 8.5 years. This defines the Pilbara Project as one of the largest emerging base and precious metals projects in Australia.

The project has a reported total Mineral Resource inventory of 26.37 Mt grading 1.2% copper (Cu), 3.4% zinc (Zn), 0.3% lead (Pb) and 18.9 g/t silver (Ag). The current DFS Ore Reserve estimate for the Project has significantly increased to:

8.37 Mt @ 1.8% Cu, 4.0% Zn, 0.3% Pb and 21.5g/t Ag

This confirms the decision to locate the Project at Sulphur Springs with approximately 85% of the DFS Ore Reserve being drawn from the Sulphur Springs deposit. The DFS provides for all operations to be totally focussed at the Sulphur Springs deposit for the first 6.5 years of the Project transitioning to a blended ore supply from the Whim Creek area in the later stages of the Project.

The DFS incorporates only three of the six known mineral resources currently controlled by the Company in the Pilbara region. The proximity of the recently acquired Kangaroo Caves resource provides an excellent

1 C1 Costs = Direct Opex + all concentrate transport and shipping costs + all TC/RC charges – all By Product Credits divided payable copper sold.

brownfields exploration target and potential future ore supply for the processing hub at Sulphur Springs. Preliminary modelling indicates that the additional resources could produce a potential project life in excess of 11 years at the currently planned throughput rate.

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Figure 1- Sulphur Springs Location Plan

The outcomes of the DFS results are summarised below:

PILBARA CU-ZN PROJECT	OUTCOMES
Processing Rate	1.0 Mtpa
Average annual payable metal production
	16,500 t Cu, 30,000 t Zn, 200,000 oz Ag
Average annual concentrate production	130,000 dmt
Current Reserve Mine Life	8.5 years
Life of Mine C1 Operating Cost2	A$1.57/lb payable copper
Pre-Production Capital Cost3	A$279 million (incl. EPCM and contingency)
Capital Intensity	US$10,500/t annual production CuEQ
Forecast EBITDA	A$548 million
Forecast EBIT	A$234 million
	Cu – US$3.50/lb Zn – US$0.95/lb Pb – US$0.95/lb Ag – US$25/oz A$/US$ - 0.95
Price Assumptions (flat real)

2 C1 Costs = Direct Opex + all concentrate transport and shipping costs + all TC/RC charges – all By Product Credits divided payable copper sold.

3 Contingency = Variable from 2.5% - 9.0% on estimated capital costs.

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Total pre-production capital for the Project is estimated at A$279 million which is comprised of the following elements:

Item	A$ Amount
Process Plant and Equipment	$110.7 million
Infrastructure	$106.3 million
Mine Development	$62.0 million
Total	$279.0 million

Table 1 – Capital Expenditure

The bulk of the pre-production capital is dedicated to the construction of a standalone 1Mtpa processing plant and all associated surface infrastructure at the Sulphur Springs site. This amount includes a future provision for the installation of a lead recovery circuit in year 6 to coincide with the commencement of ore production from the Mons Cupri deposit. Construction time for the process plant and infrastructure is 15 months.

The mine development costs for the construction of the new underground mine and associated surface infrastructure at Sulphur Springs represents capitalised ore and waste development up to first concentrate production and is scheduled to commence 15 months prior to first concentrate production.

The Company is evaluating a range of transport and logistics options to get its product to market. These options include a containerised “mine to ship solution” and are expected to be completed early in 2013, when more information will be provided to the market.”

Venturex Managing Director Michael Mulroney said, “The DFS has confirmed the robust economics of a significant new copper-zinc operation centred in the mining heartland of the Pilbara region. The Pilbara Copper-Zinc Project is globally competitive against other forecast new sources of copper-zinc production with excellent cash costs and attractive capital intensity in an area with abundant mining and transport infrastructure.

The growth in the Sulphur Springs Ore Reserve is an excellent result and there remains considerable additional value upside to be unlocked. The evaluation of Venturex’s other Resources, particularly at the recently acquired Kangaroo Caves area, will provide long term potential to further enhance the value of the Pilbara Copper-Zinc Project and extend the mine life of the project. We will be advancing permitting and financing options over the next six months.”

Venturex has commenced work on the Project approvals and the financing strategy for the Pilbara Copper-Zinc Project. It is anticipated that the required WA Government approval documentation will be completed and submitted in late February 2013, with Government project approvals expected to be completed in mid-late 2013.

MICHAEL MULRONEY Managing Director

For further information, please contact:

Michael Mulroney / Liza Carpene – Venturex Resources Limited on (08) 6389 7400 Tony Dawe – Professional Public Relations on 0405 989 743 / (08) 9388 0944

About Venturex Resources Limited

Venturex Resources Limited (ASX: VXR) is an exploration and development company with a significant portfolio of VMS projects in the Western Pilbara. Venturex owns or controls significant resources of copper, zinc, lead, silver and gold at Sulphur Springs, Kangaroo Caves, Whim Creek, Mons Cupri, Salt Creek and Liberty‐Indee. The Company is committed to a strategy of consolidating VMS projects in the Western Pilbara and developing a centralised processing hub at Sulphur Springs. Venturex is also exploring for gold in Brazil through its wholly owned subsidiary CMG Mineração Ltda.

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Pilbara Copper-Zinc Project

Introduction

The Sulphur Springs site is located approximately 155 kilometres (kms) by road south east from the town of Port Hedland. The Whim Creek site is located approximately 120 kms south west by road from Port Hedland.

Venturex has 100% ownership of Mining Leases, Exploration Licences and Miscellaneous Licences at the Sulphur Springs and Whim Creek sites and 70% ownership of the Mining Lease and Exploration Licences comprising the Liberty-Indee Joint Venture located 35 kms south of Whim Creek.

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Figure 2 – Project Location

Project Layout

The Project development involves the establishment of a new underground mining operation and processing facility at the Sulphur Springs site owned by Venturex Resources Limited. Figures 3 and 4 below shows the indicative project layout for the project.

The key elements of the Project include:

• 61 km access road from the sealed Port Hedland to Marble Bar highway

• Processing facility

• Paste Plant

• Tailings Storage Facility (TSF)

• Portal and decline

• Mine Camp and Administration buildings

• Diesel generator power station

• Water bore fields

• Sealed airstrip suitable for 100 seat jets

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Figure 3 – Project Layout

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Figure 4 – Processing – Mine Site Layout

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MINERAL RESOURCES

On 22 November 2012, Venturex updated the Mineral Resource Estimate for the Project following the completion of recent drilling at the Sulphur Springs deposit. The total Mineral Resources increased to 26.37 Mt grading 1.2% Cu, 3.4% Zn, 0.3% Pb and 18.9 g/t Ag.

		PROJECT MINERAL RESOURCES
		JORC	Tonnes ('000t)
				Cu %	Zn %	Pb %	Ag g/t	Au g/t
Location		Classification
		Indicated	967	2.1	1.1	0.2	10.3	0.1
**Whim Creek **		Inferred	4	0.5	2.3	0.6	13.9	0.1
		Sub-total	972	2.1	1.1	0.2	10.3	0.1
		Measured	1,273	1.5	1.7	0.8	41.1	0.3
		Indicated	3,286	0.7	1.1	0.4	17.7	0.1
Mons Cupri
		Inferred	48	0.7	0.6	0.1	9.0	0.0
		Sub-total	4,607	0.9	1.3	0.5	24.1	0.1
	Zn	Indicated	475	0.2	14.1	4.4	107.1	0.5
Salt Creek		Indicated	423	3.7	0.9	0.1	2.7	0.1
	Cu
		Inferred	105	3.5	0.1	0.0	1.5	0.0
	Zn/Cu	Sub-total	1,003	2.0	7.0	2.1	52.0	0.3
		Indicated	453	2.2	4.5	0.4	42.0	0.9
Liberty-Indee		Inferred	204	1.0	1.8	0.2	22.4	0.4
		Sub-total	657	1.8	3.7	0.3	35.9	0.8
		Indicated	8,300	2.0	5.5	0.3	22.3	0.1
Sulphur Springs		Inferred	4,531	0.7	1.5	0.1	8.9	0.1
		Sub-total	12,831	1.5	4.1	0.2	17.6	0.1
		Indicated	4,300	0.6	3.3		14.0
Kangaroo Caves		Inferred	2,000	0.3	3.4		8.0
		Sub-total	6,300	0.5	3.3		12.1
		Measured	1,273	1.5	1.7	0.8	41.1	0.3
All Locations		Indicated	18,205	1.4	4.0	0.3	21.1	0.1
		Inferred	6,892	0.6	2.0	0.1	8.9	0.0
		Total Resources	26,370	1.2	3.4	0.3	18.9	0.1

Table 2- Pilbara Cu-Zn Project Mineral Resources

The estimate has been reported on various a cut-off grades as outlined in in the full Resource Estimation Parameters contained in the Appendix.

ORE RESERVES

The estimate has been reported on a “Net Smelter Return (NSR)” cut-off generated for each deposit. This is considered the best representation of the base metal ore deposit. Ore Reserve block cut off grades were calculated taking into account mining recovery, dilution, process recoveries, pricing assumptions, operating costs and TC/RC costs based on long term forecasts. Full Ore Reserve parameters are appended.

The final Project Mine Plan delivered a Probable Ore Reserve 8.37 Mt @ 1.8% Cu, 4.0% Zn, 0.3%

Pb and 21.5 g/t Ag.

	PROJECT ORE RESERVES	PROJECT ORE RESERVES	PROJECT ORE RESERVES	PROJECT ORE RESERVES
Location Whim Creek	JORC	Tonnes	Cu	Zn	Pb	Ag	Au g/t 0.3
	Classification	('000t)	%	%	%	g/t
	Probable	221	2.7	1.3	0.7	47.1
Mons Cupri	Probable	951	0.9	1.3	0.5	24.1	0.1
Sulphur Springs	Probable	7,200	1.8	4.3	0.1	18.5	0.0 0.1
Total		8,372	1.8	4.0	0.3	21.4

Table 3 – Current Project Ore Reserves

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MINING METHOD

The Sulphur Springs underground mining study was managed by RMDSTEM using work completed by consultants including Mining Solutions Consultancy, Mining One Pty Ltd, Entech Mining and Engineering Management, Mine Ventilation Australia, Itasca and Backfill Specialists. Two mining methods are used: long hole open stoping for stoping widths up to 13 metres (m); and transverse stoping for stoping widths in excess of 13 m.

Mining will be staged bottom-up utilising a combination of rock fill and paste fill for ground support. The placement of cemented paste fill in the transverse stopes will facilitate a mining sequence of primary and secondary stopes mined adjacent to each other without the need for permanent pillars.

All development will be undertaken by conventional drill and blast excavation techniques that are common in Australian underground mines.

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Figure 5 – Sulphur Springs Underground Mine Layout

The open pit mining study for the Whim Creek and Mons Cupri deposits consists of simple cut backs of the existing oxide open pits using industry standard open pit mining techniques.

PROCESSING

The process flow sheet was developed following extensive testwork, incorporating the substantial historical work completed at the Sulphur Springs and Whim Creek sites.

The major components of the processing plant design are:

• 3 Stage crushing circuit and with variable grind size dependent on ore supply (55-80 micron)

• Two stage flotation circuit to produce separate copper and zinc concentrates with provision for the future addition of a lead recovery circuit

• Separate concentrate and tailings thickeners

• Large scale concentrate storage and loading facility

• Paste plant to produce a filtered tailings product for placement underground and into the tailing storage facility

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Engineering, design and costing of the processing plant and surface infrastructure was undertaken by GR Engineering. Final concentrate grades generated from the DFS are summarised below:

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Table 4 - Concentrate Specifications

The zinc concentrate will be shipped to Toho Zinc Limited in Japan under the Sulphur Springs acquisition agreement for the Sulphur Springs deposit. Toho Zinc is entitled to receive up to 230,000 tonnes of zinc metal in concentrate from the Project at “arms-length” international benchmark pricing. Discussions are in progress with a range of interested parties for the future sales of the copper concentrate.

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Figure 6 – Simplified 3D overview of Sulphur Springs Processing plant

PRE-PRODUCTION CAPITAL COSTS

Total pre-production capital for the Project is estimated to be A$279 million including all surface and process plant infrastructure and pre-production mine capital development costs to first concentrate production as summarised below:

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Item	A$ Amount
Process Plant and Equipment	110.7 million
Infrastructure	106.3 million
Mine Development	62.0 million
Total	279.0 million

Table 5 – Capital Expenditure Breakdown

Capital invested to establish the Sulphur Springs Processing Hub will provide a solid platform for a potential expansion to include Kangaroo Caves and other regional resources.

OPERATING COSTS

Mining

The operating cost estimates have been based on schedules of rates submitted by reputable Australian underground mining and open pit mining contractors who completed the tendering process for the respective mining operations.

Processing

The operating costs for the Processing Plant have been estimated from first principles by GR Engineering Limited.

Onsite operating costs are summarised below:

Item	A$ Cost /tonne ore
Open Pit Mining	40.53
Open Pit Ore Haulage	29.60
Underground Mining (fixed and variable)	40.92
Processing	38.45
Site Administration	14.23
TOTAL Onsite Operating Costs	94.70
Offsite Costs (Haulage, shipping, TC/RC costs)	33.65

Table 6 – Project Operating Costs

PERMITTING

The DFS Project design has resulted in a considerably reduced footprint size targeting an overall lower environmental impact than previous studies. All Potentially Acid-Forming (PAF) material is to be returned underground as fill with a significant quantity of the tailings returned underground as paste. The remaining volume of tailings will be deposited into a compact tailings storage facility as either paste or via a dry tailings disposal system. All flora/fauna studies are complete with no issues of significant concern identified.

Stakeholder engagement process is well advanced and the Company anticipates assessment under the Mining Proposal regime. Permitting of joint access road development with Atlas Iron is virtually complete.

Preparation of the Project permitting application documentation has commenced and targeted for lodgement in late February 2013.

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SUMMARY OF DFS COMPONENTS

The chief consultants on the DFS were RMDSTEM Consultants, who managed the mining, environmental and ancillary studies; and GR Engineering Services, who undertook the design of the processing plant and infrastructure. In addition, a number of independent participants were engaged to complete various components of the DFS, including those set out below:

Discipline	Provider
Geological Data and Resource Estimation Audit	Snowden
Metallurgy	Amdel Mineral Laboratories
Geotechnical and Mine Design	Mining One Mining Solutions MineRP Entech Consulting
Paste	Backfill Specialists Itasca
Ventilation	Mine Ventilation Australia
Water and Hydrology	URS RPS Aquaterra
Tailings Dam	Doug Cooper
Environmental Studies	Outback Ecology

Table 7 – Study Participants

APPENDIX

	RESOURCE ESTIMATION PARAMETERS	RESOURCE ESTIMATION PARAMETERS	RESOURCE ESTIMATION PARAMETERS
	Mons Cupri & Whim Creek	Salt Creek	Sulphur Springs	Liberty-Indee
Tenements	M47/238, M47/236, M47/443	M47/323	M45/494	M47/1455
Geology	Archaean polymetallic (Cu, Zn, Pb, Ag, Au) VMS deposits hosted by volcanogenic sediments. Two principal styles of mineralisation: stratabound massive sulphide and stringer/feeder.
Drilling Techniques	Diamond & RC. Diamond core size is HQ and NQ. Core recovery generally excellent. Core orientations where possible. Hole intersections points generally spaced 15 – 50 metres, with the majority less than 20 metres. Down hole orientation information is mainly from 30 metres-spaced single shots with somegyro. Hole orientation is 30 – 90 degrees to the stratiform component of the ore zones.
Logging and Photography	Geological logging is sufficient and representative across the deposits. Wet core photographs have bee the last 6 years.			n taken of holes drilled mainly in
Sampling Technique	Approximately 50% diamond core and 50% RC chips. Core samples ar RC samples are generally 1m splits.		e generally <1.5 metres. Recent	Approximately 10% diamond core and 90% RC chips. Core samples are generally <1.0 metres.
Sample Preparation and Assay Techniques	Recent samples were analysed at Ultra Trace and ALS Laboratories, Perth, WA. Samples were dried, crushed, split with a riffle splitter and pulverized. Au, Cu & Zn was determined by ICP Optical Emission Spectrometry. Ag & Pb was determined by ICP Mass Spectrometry.		Recent samples were analysed at Ultra Trace and ALS Laboratories, Perth, WA. Samples were dried, crushed, split with a riffle splitter and pulverized. Analysis is by 4 acid digest with Ag, Cu, Zn, Pb determined by ICP-AES and Au determined by 30gm fire assay with AA finish.	The samples were analysed at Ultra Trace Laboratories. Samples were dried, crushed, split with a riffle splitter and pulverized. Au, Cu & Zn determined by ICP Optical Emission Spectrometry. Ag & Pb determined by ICP Mass Spectrometry.
Database & QAQC	DataShed™was used for drill hole and sample data storage and validation. Samples with QAQC data were evaluated using QAQCR assay quality reporting software. QAQC data evaluation included field duplicates, lab standards, repeats and lab blank flushes.		DataShed™was used for drill hole and sample data storage and validation. Samples with QAQC data were evaluated using QAQCR assay quality reporting software. QAQC data evaluation included field duplicates, lab standards, repeats and lab blank flushes.	DataShed™was used for drill hole and sample data storage and validation. Samples with QAQC data were evaluated using QAQCR assay quality reporting software. QAQC data evaluation included field duplicates, lab standards, repeats and lab blank flushes.

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	RESOURCE ESTIMATION PARAMETERS	RESOURCE ESTIMATION PARAMETERS	RESOURCE ESTIMATION PARAMETERS
	Mons Cupri & Whim Creek	Salt Creek	Sulphur Springs	Liberty-Indee
Interpretation	Geological confidence is high for the main high grade stratabound zone in both deposits. At Mons Cupri geological confidence is moderate in the lower zinc zone and the stringer/feeder zone where grade distributions are more erratic and data density is lower. Cut-off grades were determined using log probability plots. The high grade zone wireframes were interpreted using a 0.8% Cu and 2% Zn cut- off. At Whim Creek the stinger/feeder zone was interpreted using 0.2% Cu cut-off.	Geological confidence is high for the main high grade stratabound. Cut-off grades were determined using log probability plots. At Salt Creek wireframes were interpreted by boundaries of massive sulphide for the Zn/Pb lenses and by 2% Cu cut-off for Cu wireframes.	Geological confidence is high for the main high grade stratabound. Wireframes were interpreted by using a 2% Cu cut-off and 5% Zn cut- off for high grade domains. Low grade domains were determined using a 0.03% Cu cut-off. Cut-off's were determined geostatistically.	Venturex developed a Vulcan format wireframe of the interpreted mineralisation and the surface topography. These wireframes were converted into Datamine format for resource estimation. No validation or modification of the wireframes was performed by Optiro. Surfaces were constructed for the base of complete oxidation (BOCO) and top of fresh rock (TOFR). The information contained in the historical geology logs as well as the collar file were combined with 29 down hole depths recorded for the TOFR and 9 depths for the BOCO.
Dimensions	At Mons Cupri the high grade stratabound zone measures ~300 metres (NW) by 160 metres (NE). It is approximately 30 metres thick and dips to the west at 30 degrees. The stringer feeder zone measures 350 metres (EW), 150 metres (down dip) and is generally 30 metres thick. At Whim Creek, the ore body measures ~500 metres (EW) by ~100 metres (NS). It averages 8 metres in thickness and dips ~30 degrees to the north.	At Salt Creek zinc-lead-silver massive sulphide lenses are 100- 150 metres x 200 metres with true widths of 1-5 metres. The lenses dip steeply to the north and pitch steeply to the east. The copper lenses have less clearly defined margins. They are sub-parallel to the zinc- lead-silver lenses and widen to around 7 metres true thickness in higher grade zones.	Two massive sulphide lenses (East and West) have been identified by drilling. The East Lens has a long axis length of approximately 150 metres, a vertical extent of 300 metres and plunges to the north at approximately 50 degrees. The larger West Lens has a long axis length of at least 250 metres, a vertical extent of 300 metres and plunges to the north at approximately 50 degrees. The maximum true width is approximately 30 metres with an average true width of approximately 10 metres.	Two massive sulphide lenses (North and South) have been identified by RC drilling. The North Lens has a long axis length of approximately 200 metres and plunges to the north at approximately 50 degrees. The larger South Lens has a long axis length of at least 300 metres and plunges to the north at approximately 40 degrees. The horizontal strike length is in the range 60‐ 125 metres and maximum true width is approximately 16 metres. The lens is open at depth and interpreted to extend below the North Lens.
Estimation & Modelling Techniques	Vulcan 8.0 software used. Parent cell measures 10 metres (X axis), 10 metres (Y) and 3 metres (Z) with sub-cells of 2 metres (X), 2 metres (Y), 0.5 metres (Z), appropriate given an average drill spacing of 20 metres. The estimation was performed using ordinary kriging. Search ellipse parameters determined using Snowden Supervisor software. Top cuts determined using log probability plots. At Mons Cupri a top cut of 4g/t Au and 2% Pb was used in the high grade domain and top cuts of 4% Zn and 1.5% Pb were used in the copper stringer/feeder zone. At Whim Creek top cuts of 15% Cu and 20% Pb were used in the transitional zone. The estimations were validated against original composite grades, by section andglobally.	The block model and estimations were conducted using Vulcan 8.0 software. At Salt Creek the block model had a parent cell measuring 2 metres (X axis), 10 metres (Y) and 10 metres (Z) with sub-cells of 0.5 metres (X), 2 metres (Y), 2 metres (Z). This block size is appropriate given an average drill spacing of 30 metres. The estimations were performed using ordinary kriging. Search ellipse parameters were derived from variograms using Snowden Supervisor software. At Salt Creek no top cuts were applied. The estimations were validated against original composite grades, by section and globally.	Vulcan software used. Parent cell measures 20 metres (X axis), 20 metres (Y) and 10 metres (Z) with sub- cells of 5 metres (X), 2 metres (Y), 2 metres (Z), appropriate given an average drill spacing of 20-30 metres. The estimation was performed using ordinary kriging. Search ellipse parameters determined using variography. No top cuts were used. The estimations were validated against original composite grades. Oxide ore was not estimated. Hard boundaries were used between domains. Minimum sample number per estimate is 1. Maximum sample number per estimate is 20. Discretisation was set to 5(Y) X 5(X) X 2(Z).	The resource calculation was conducted by Optiro Pty Ltd using data and interpretations supplied by Venturex. Grades were estimated using ordinary kriging. The deposit was modelled using a 5 mE by 10 mN by 10 mRL block size with sub-blocking to a minimum of 0.5 m in each dimension to correctly honour the volume of the lode and weathering horizons. A top-cut of 20% Cu was applied to copper grades in the oxide and transitional zones.
Moisture	Tonnages are estimated on a dry basis. Moisture content in ore is expected to be very low.
Bulk Density	For the Mons Cupri deposit assigned average specific gravity (SG) values were used in the resource estimation: 2.3 g/cm3for oxide waste (based on historical determinations), 2.8 g/cm3for fresh waste, 2.9 g/cm3 for the stringer/feeder zone, 3.0 g/cm3for the high grade copper zone and 3.2 g/cm3for the high grade zinc zone. SG was determined by the water immersion technique on drill core. For the Whim Creek deposit assigned specific gravity (SG) values were used in the resource estimation based on historical determinations: 2.67 g/cm3for oxide material, 2.76 g/cm3for transitional and fresh waste, 2.79 g/cm3for transitional ore and 2.91 g/cm3for fresh ore.	Assigned average specific gravity (SG) values were used in the resource estimation: 2.4 g/cm3for oxide, 2.78 g/cm3for fresh waste, 3.0 g/cm3for copper lenses, 3.2 g/cm3for the high grade zinc/lead in the western lenses and 4.1 g/cm3 for the high grade zinc/lead in the eastern lenses. SG was determined by the water immersion technique on drill core.	A very high proportion of the assayed samples also have a bulk density measurement. During 2000 and 2001, every sample submitted for assay had a density determination made on site. This was also the case during the Sipa programs from hole SSD013 onwards. Overall, approx. 79% of assayed samples in the sulphide lenses had a measured density value. This is adequate to support interpolation of density into resource models. Density measurements were made on site by the classical water immersion method, using the total cut core for each sample.	218 density determinations were determined using the pycnometer method. 66 values are inside the ore zone as defined by the wireframe, and 152 sit outside the ore wireframe. The overall average density value in the ore zone is 4.17 t/m3.
Classification	Classifications into Inferred, Indicated and Measured categories are based on a combination of average points, variography, drill density and geological confidence.			weighted distance from sample

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RESERVE ESTIMATION PARAMETERS	RESERVE ESTIMATION PARAMETERS	RESERVE ESTIMATION PARAMETERS	RESERVE ESTIMATION PARAMETERS
	Mons Cupri	Whim Creek	Sulphur Springs
Tenements	M47/238	M47/236 and M47/443	M45/494
Development Status	Component of Venturex VMS Feasibility Study. Pit designs by Mining Solutions Consultancy Pty Ltd.		Key component of Venturex VMS Feasibility Study. Mine design and scheduling by MineRP (Australia) Pty Ltd/Entech Engineering and Design.
Mining Method	Open pit.		Underground. Transverse longhole open stoping using paste fill combined with a modified Avoca method. 30m levels.
Mining Recovery	97% for both pits.		Stope recovery 79-92%, with additional factors of 95% applied in fault zones, and 65-80% in cavity zones.
Mining Dilution	Mons Cupri: 5% dilution @ zero grade Whim Creek: 2.5% dilution @ zero grade, 7.5% dilution @ 0.3% CuEQ grade		Varies by stope from 4.3% to 5.5% Hangingwall dilution in relevant stopes assigned grade of 1.0% CuEQ, all other dilution at zerograde
Cut-Off Grade	Mons Cupri: 1.50% CuEQ Whim Creek: 1.65% CuEQ		1.85% CuEQ
Metal Pricing	Cu: $US3.25/lb; Zn: US$1.00/lb; Pb: $1.00/lb; Ag: $32/oz; Au: $1500/oz		Cu: $US3.50/lb; Zn: US$0.95/lb; Ag: $25/oz; Au $1300/oz
$A/$US Rate	0.90		0.95
Process Recoveries	Cu: 92%; Zn 74%; Pb 60%; Ag: 81%; Au: 45%	Cu: 88%; Zn 54%; Pb 37%; Ag: 23%; Au: 10%	Cu: 95%, Zn: 89%, Ag: 46%, Au: 16%
Costs	Mining, haulage and processing costs are based on contractor estimates and first principle calculations. TC/RC costs are based on long term forecasts.

Competency Statements

The information in this report that relates to Exploration Results, Mineral Resources and Ore Reserves is based on information compiled or reviewed by Mr Michael Mulroney and Mr Steven Wood who are Members of the Australasian Institute of Mining and Metallurgy. Mr Mulroney and Mr Wood are full time employees of Venturex Resources Limited and have sufficient experience relevant to the style of mineralisation, type of deposit under consideration and to the activity being undertaking to qualify as Competent Persons as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Mulroney and Mr Wood consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

The information in this report that relates to Ore Reserves is based on information compiled or reviewed by Mr David Clark who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Clark is a full time employee of Minero Consulting and has sufficient experience relevant to the style of mineralisation, type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Clark consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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