DEVELOP GLOBAL LIMITED — Capital/Financing Update 2016

Aug 25, 2016

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ASX Announcement
ASX Code: VXR
Released: 26 August 2016
For further details
John Nitschke
Managing Director
T: +61 8 6389 7400
admin@venturexresources.com
Board
Tony Kiernan
Chairman
John Nitschke
Managing Director
Anthony Reilly
Non-Executive Director
Darren Stralow
Non-Executive Director
Trevor Hart
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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Major New Zinc‐Copper Drill Program to Commence Next Week

Strong upcoming news‐flow expected with drilling aiming to grow the existing zinc Resource

Highlights

• Major new drill program imminent at Whim Creek Zinc‐Copper Project

• Objective is to grow the existing Resource inventory

• Focus of drilling is on the extension of known high‐grade zinc and precious metal dominant sulphide zones

• High‐priority IP targets identified at Mons Cupri will also be tested

• Identification of new drilling targets aimed at extending existing sulphide Resources at Salt Creek and discovering potential repeats of the Evelyn style deposit well advanced

• Strong news‐flow expected between now and the end of the year

• $5M capital raising at 0.6c currently being completed following closure of 2‐for‐5 rights issue on 24 August 2016

Venturex Resources (ASX: VXR "Venturex" and the "Company") is pleased to advise that a major new drill program is set to commence next week at its 100%‐owned Whim Creek Zinc‐Copper Project , located 115km south‐west of Port Hedland in WA. The Whim Creek Project includes the Whim Creek, Mons Cupri, Salt Creek and Evelyn deposits plus 18,500 hectares of tenements covering the highly prospective Whim Creek basin (see Figure 1).

A Reverse Circulation (RC) drill rig and a diamond drill rig are currently mobilising to site. Drilling is expected to continue at Whim Creek for the rest of the year with the objective of growing the existing Resource (see Table 1) with particular focus on extending known high‐grade zinc and precious metal dominant sulphide zones.

Zinc accounts for most of the metal endowment in the Whim Creek Project area. The Project has extensive infrastructure and a long mining history, and Venturex therefore considers Whim Creek to offer the best leverage for shareholders to the improving zinc price.

The upcoming drilling program (see ASX Release 4 July 2016) will test targets at Mons Cupri, which was historically the major producer in the Whim Creek Field, including:

• Potential extensions of the known high‐grade massive zinc‐copper‐silver‐ gold sulphide mineralisation contained within the Resource at the Mons Cupri deposit; and

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• A number of new high‐priority exploration targets identified by the recent successful IP geophysical surveys and structural mapping at Mons Cupri that represent potential repetitions of the Mons Cupri mineralised system.

Re‐interpretation of the mineralisation, together with analysis and assessment of historical geophysical data at the Salt Creek and Evelyn deposits, is well advanced and is expected to identify opportunities to both extend the existing high‐grade sulphide Resource at Salt Creek and identify potential repetitions of the Evelyn style mineralisation. Targets generated by this exercise will also be drilled.

Venturex’s Managing Director John Nitschke, said the start of drilling at Whim Creek marked the beginning of a significant new chapter in the Company’s history.

“The work we have completed at Whim Creek in the past six months has completely transformed our perception of this project, which has in some respects been skewed by its long mining history. This work has revealed a huge untapped exploration potential that has barely been touched in more than three decades.

“We believe there is a fantastic opportunity to extend the known high‐grade sulphide Resources at a number of deposits such as Mons Cupri, Salt Creek and Evelyn, and quickly add additional high‐grade tonnes to our Resource base.

“Our focus will unashamedly be on high‐grade zinc and precious metal dominant zones, which we believe offer our shareholders the best leverage to growth against the backdrop of a steadily appreciating zinc price.

“The long‐predicted shortfall in the zinc market is growing in size and the price is reacting accordingly. By reacting quickly to this situation and adding to our existing high‐grade Resources at Whim Creek, we see a clear pathway to potentially bring them into production within the next two years.

“Given its prime location, its extensive resource inventory and the abundance of infrastructure, Whim Creek represents a standout opportunity amongst Australian zinc‐focused companies, and we intend to do it justice by implementing an intensive drilling program over the next six months.”

JOHN NITSCHKE Managing Director

For further information, please contact:

Investors

John Nitschke / Trevor Hart Media: Venturex Resources Limited Nicholas Read – Read Corporate Ph: +61 (08) 6389 7400 Ph: (08) 9388 1474 Email: admin@venturexresources.com Email: info@readcorporate.com.au

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Figure 1

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Table 1 *

		WHIM CREEK BASIN ‐ MINERAL RESOURCES	WHIM CREEK BASIN ‐ MINERAL RESOURCES	WHIM CREEK BASIN ‐ MINERAL RESOURCES	WHIM CREEK BASIN ‐ MINERAL RESOURCES	WHIM CREEK BASIN ‐ MINERAL RESOURCES	WHIM CREEK BASIN ‐ MINERAL RESOURCES
Deposit		JORC Classificatio	Tonnes ,000	Cu %	Zn %	Pb %	**Ag g/t **	**Aug/t **	Tonnes Copper	Tonnes Zinc
Whim Creek		Indicated	967	2.1	1.1	0.2	10.3	0.1
		Inferred	4	0.5	2.3	0.6	13.9	0.1
		Subtotal	971	2.1	1.1	0.2	10.3	0.1	20,300	10,700
Mons Cupri		Measured	1273	1.5	1.7	0.8	41.1	0.3
		Indicated	3286	0.7	1.1	0.4	17.7	0.1
		Inferred	48	0.7	0.6	0.1	9	0
		Subtotal	4607	0.9	1.3	0.5	24.1	0.1	42,400	58,100
Salt Creek	Zn	Indicated	475	0.2	14.1	4.4	107	0.5
	Cu	Indicated	423	3.7	0.9	0.0	2.7	0.1
	Zn/Cu	Inferred	105	3.5	0.0	0	1.5	0
		Subtotal	1003	2.0	7.1	2.1	52.0	0.3	20,300	70,800
Evelyn (1)		Indicated	453	2.2	4.5	0.4	42	0.9
		Inferred	204	1	1.8	0.2	22.4	0.4
		Subtotal	657	1.8	3.7	0.3	35.9	0.7	12,000	24,100
Total		Measured	1273	1.5	1.7	0.8	41.1	0.3
		Indicated	5604	0.8	1.8	0.4	14.4	0.1
		Inferred	361	6.0	2.2	0.1	17.6	0.3
		Total	7238	1.2	1.8	0.5	19.3	0.2	87,700	131,300

1 Venturex interest in Evelyn is 70% increasing to 90%

• Refer ASX announcement (8 October 2013 – Company Resource and Ore Reserve Statement Amendment)

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About Venturex Resources Limited

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Venturex Resources (ASX: VXR) is a rapidly growing Australian zinc company which is focused on the exploration and development of its two advanced zinc‐copper projects located near Port Hedland in the premier Pilbara mining province of Western Australia. After recently completing a $5 million capital raising, Venturex has embarked on a major new drilling program aimed at further expanding its resource inventory, which comprises more than 900,000t of contained zinc and 320,000t of contained copper.

Its initial exploration focus is on extending the existing high‐grade zinc, copper and lead resources at the Whim Creek Project, where it has identified a range of targets adjacent to the Salt Creek and Mons Cupri deposits. Drilling commenced in late August and will continue through until the end of the year, generating strong ongoing news‐flow. The successful extension of the known Resources at Whim Creek will result in a project that is compelling at spot prices. The existing infrastructure at Whim Creek means that any such project could be producing zinc, copper and lead concentrates during the first half of calendar 2018.

Venturex is continuing to progress permitting and pre‐development activities for its Sulphur Springs Project, one of the most significant undeveloped zinc deposits in Australia. On‐going value engineering of the 2013 Feasibility Study has resulted in a potential low‐risk copper‐zinc project with attractive economics and a proposed low‐CAPEX Stage 1 development based on a near‐surface high grade supergene copper zone.

Venturex also receives an ongoing income stream from a profit share in an SX/EW heap leach operation recovering copper from the heap leach dumps at Whim Creek. Venturex received $780,000 in FY2016 from 990,000t of copper metal production. This cash flow covers the bulk of the Company’s overheads and is expected to continue for the next 2‐3 years.

About Zinc

Zinc is a blue‐grey metal which readily forms alloys with metals including copper, aluminium and magnesium. Zinc is primarily used for its corrosion resistance in galvanising which accounts for approximately half of global zinc consumption. Galvanised materials (commonly iron and steel) are used extensively in transport, construction and appliance manufacturing purposes. Metallic zinc is also used in dry cell batteries, die‐casting, roof cladding and in the production of zinc oxide.

Zinc demand is dominated by China at 6.9Mt or 49%. Global consumption is forecast to grow at a CAGR of 2% over 2016‐2020, with the strongest demand growth coming from China at 2% and also the US and India. Following recent mine closures and this increasing demand growth, the current zinc market is tight with declining global inventories and a supply deficit forecast in coming years. Zinc prices have responded accordingly rallying above the top of the global mine cost curve. The concentrate market also reflects this supply tightness, with smelters materially discounting treatment charges.

Competency Statements

The information in this announcement that relates to Exploration Results, Mineral Resources and Ore Reserves is based on information compiled or reviewed by Mr James Guy who is a Member of the Australasian Institute of Mining and Metallurgy. The information contained in this announcement was previously released in announcements “Company Resource and Reserve Statement – Revised” released 8 October 2013. The Company confirms that:

a. The form and context of the material in this presentation has not been materially modified from the above previous announcements;

b. It is not aware of any new information or data that materially affects the information included in the 8 October 2013 announcement and that all material assumptions and technical parameters underpinning the estimate in the 8 October 2013 announcement’s continue to apply and have not materially changed; and

c. It is uncertain that following further exploration and evaluation that the historical estimates will be able to be reported as mineral resources or ore reserves in accordance with the JORC 2012 Code.

The information in this announcement that relates to Geophysical Exploration Results is based on information compiled by Mr Russell Mortimer, who is employed as a Consultant to the Company through geophysical consultancy Southern Geoscience Consultants Pty Ltd. Mr Mortimer is a member of the Australian Institute of Geoscientists and a member of the Australian Society of Exploration Geophysicists and has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Mortimer consents to the inclusion in the report of matters based on information in the form and context in which it appears.

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