DEVELOP GLOBAL LIMITED — Interim / Quarterly Report 2015

Oct 29, 2015

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ASX Announcement
ASX Code: VXR
Released: 30 October 2015
For further details
John Nitschke
Managing Director
T: +61 8 6389 7400
Board
Tony Kiernan
Chairman
John Nitschke
Non-Executive 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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QUARTERLY ACTIVITIES REPORT PERIOD ENDED 30 SEPTEMBER 2015

Optimisation Study for Pilbara Copper-Zinc Project nearing completion and due for release in early November as assessment of exploration and growth opportunities commences

Highlights

• Optimisation Study expected to deliver major improvements to the Pilbara Copper-Zinc Project

• Resource Upgrade completed for Kangaroo Caves

• Assessment of near-mine exploration targets underway

• Experienced mining executive John Nitschke appointed as Managing Director

• Production of Copper Cathode continues

OPTIMISATION STUDY – PILBARA COPPER ZINC PROJECT

General

The Optimisation Study being carried out on the Company’s 100%-owned Pilbara Copper-Zinc Project, located 162km south of Port Hedland in Western Australia, is currently in its final stages and is expected to be finalised and released to the market in early November 2015.

A review of the mining plan for the Sulphur Springs deposit by Entech Pty Ltd (an independent mining consultancy) has identified that the upper part of the mineralisation can be more economically mined using open pit mining rather than the underground methods proposed in the Feasibility Study completed in 2012 ( refer ASX release 18 December 2012 ).

Preliminary assessment has indicated that mining of a 50 million tonne open pit can be used to provide feed to the 1Mtpa processing plant for the first 4 to 5 years of the Project (see Figure 1), resulting in a substantial improvement to project economics.

The final results of this work, and a revised financial model for the Pilbara Copper-Zinc Project, will be included in the Optimisation Study.

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Figure 1: Long Section showing conceptual open pit overlying the underground mine from 2012 Feasibility Study

EXPLORATION

During the Quarter the Company commenced a re-evaluation of all six volcanogenic massive sulphide (VMS) deposits located within the Company’s three project areas. External geological and geophysical consultants with specific experience in finding VMS deposits have been engaged to work with the Company’s exploration personnel to define opportunities to target additions to the existing resource inventory which would further enhance overall project economics.

Sulphur Springs Project

Sulphur Springs Deposit

The Company’s consultant geophysicists are currently reprocessing all historical down-hole EM data using the latest processing and visualization software to refine targets for drill testing. In addition, the Company is collecting core samples from mineralised and un-mineralised rock units to enable petrophysical tests to be undertaken in order to determine the optimum down-hole and surface EM technique.

Only a few of the deeper holes have actually been surveyed using EM. The possibility to re-enter selected holes and carry out down-hole EM using the latest down-hole tools is currently being investigated.

Kangaroo Caves Deposit

During the Quarter the Company announced an upgrade in the Mineral Resource for the Kangaroo Caves copper-zinc deposit, which forms part of the Company’s Pilbara Base Metal Project ( refer ASX Release – 22 September 2015 ). All the earlier down-hole EM and MMR data has been collated and will undergo a detailed reinterpretation once results for Sulphur Springs have been received.

The geological model has highlighted several areas within the deposit that have not been adequately drilled due to the rugged topography and associated issues with access for surface drilling rigs (see Figure 2). The Company is also using modern analysis methods to re-analyse the data from historical EM geophysical surveys down 20 holes to determine if all conductors have been identified and adequately followed up.

Venturex Resources Limited : September 2015 Quarterly Activities Report

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Figure 2: Kangaroo Caves Resource model showing metal domains and drill spacing

	KANGAROO CAVES MINERAL RESOURCE	KANGAROO CAVES MINERAL RESOURCE	KANGAROO CAVES MINERAL RESOURCE
		September 2015
JORC Classification	Tonnes (‘000Mt)	Zn %	Cu %	Pb %	Ag g/t
Indicated	2.25	5.7	0.93	0.27	13.6
Inferred	1.3	6.5	0.50	0.40	18.0
Total	3.55	6.0	0.77	0.32	15.2

Table 1 – Kangaroo Caves Resource Estimate (Note: Rounding errors may occur)

Whim Creek Project

At the Whim Creek Project, the Company is collating all of the data gathered during a detailed review of past exploration work including geological mapping, drilling, surface sampling and geophysical surveys. Anomalies identified previously are being reviewed with a priority given to targets on or close to the strike extensions of mineralised surfaces on the known deposits.

Liberty-Indee Joint Venture (70%)

No fieldwork has been carried out during the September 2015 Quarter.

SX- EW Profit Share

Blackrock Metals Pty Ltd

Blackrock Metals Pty Ltd (“Blackrock”) has access rights to the existing Whim Creek oxide copper processing site to refurbish an existing five tonne per day SX-EW treatment facility and re-process the existing heap leach pads to recover copper metal. In return Blackrock is required to pay Venturex a fee based on the calculation of a 15% Net Profit Interest (“NPI”) .

During the September 2015 Quarter, Blackrock continued production at the nameplate capacity and produced approximately 342 tonnes of Copper Cathode. The NPI payable is currently being calculated and is due and payable by the end of October 2015.

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							30 Sept 2015 Qtr 342 TBC
	31 Mar	30 June	30 Sept	31 Dec	31 Mar	30 June	30 Sept 2015 Qtr
	2014 Qtr	2014 Qtr	2014 Qtr	2014 Qtr	2015 Qtr	2015 Qtr
Tonnes produced	80	80	140	370	170	395	342
NPI $	-	-	-	$47k	-	$263k	TBC

Table 2 – Copper Cathode Production and NPI

CORPORATE

Board Update

Subsequent to the end of the Quarter, experienced Australian mining executive Mr John Nitschke has been appointed full-time Managing Director, effective from 1 December 2015.

Subsequent to the Quarter, the Company released its 2015 Annual Report and Notice of Meeting, the Company’s AGM is scheduled for Friday, 27 November 2015.

Securities Information

The issued capital of the Company is 1,547,869,181 ordinary fully paid shares.

Financial Information

The Company’s net cash and receivables position as at 30 September 2015 was $0.6 million and it has no debt.

The Pro -forma Appendix 5B – Statement of Consolidated Cash Flows is provided in a separate report.

John Nitschke Acting Managing Director

For further information, please contact:

John Nitschke / Trevor Hart – Venturex Resources Limited on Ph: +61 (08) 6389 7400 or via Email: admin@venturexresources.com

Media:

Nicholas Read – Read Corporate on

Ph: (08) 9388 1474 or via Email: info@readcorporate.com.au

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 exploring for and developing VMS projects in the Western Pilbara through a proposed centralised processing hub at Sulphur Springs.

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 James Guy who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Guy is a consulting geologist engaged by Venturex Resources Limited and has 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 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Guy consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

Venturex Resources Limited : September 2015 Quarterly Activities Report

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Tenements INTERESTS IN MINING TENEMENTS

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AREA OF INTEREST	TENEMENTS	GROUP ENTITY’S INTEREST	ACQUIRED DURING QUARTER	DISPOSED DURING QUARTER
WESTERN AUSTRALIA
Liberty-Indee Project	E47/1209	70%(90% on decision to mine)
	E47/1796	70%(90% on decision to mine)
	M47/1455	70%(90% on decision to mine)
Whim Creek Project	E47/976	100%
	M47/236	100%
	M47/237	100%
	M47/238	100%
	M47/443	100%
	L47/36	100%
Salt Creek Project	E47/1088	0%		100%
	M47/323	100%
	M47/324	100%
Sulphur Springs Project	M45/494	100%
	M45/587	100%(Kangaroo Caves)
	M45/653	100%
	M45/1001	100%
	L45/166	100%
	L45/170	100%
	L45/173	100%
	L45/179	100%
	L45/188	100%
	L45/189	100%
	L45/287	100%
Panorama Project	P45/2609	100%
	P45/2610	100%
	P45/2611	100%
	P45/2612	100%
	P45/2613	100%
	P45/2614	100%
	P45/2616	100%
	P45/2910	100%
	P45/2911	100%
	ML45/1253	100%	Application
	ML45/1254	100%	Application

Venturex Resources Limited : September 2015 Quarterly Activities Report

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