DEVELOP GLOBAL LIMITED — Interim / Quarterly Report 2016

Oct 30, 2016

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QUARTERLY ACTIVITIES REPORT FOR PERIOD ENDED 30 SEPTEMBER 2016

HIGHLIGHTS

• Initial drilling program commenced at the Whim Creek Zinc-Copper Project with 2,360m of drilling completed including pre-collars.

• Intersections of up to 43.9% Zn at Salt Creek confirm the very high grade and tenor of the deposit, and extend mineralisation towards surface.

• Processing of historical geophysical datasets identifies new targets representing possible down-plunge extensions at Salt Creek.

• Down-hole MMR surveys completed at Mons Cupri to test two zones of alteration and sulphide mineralisation that represent potential repeats of the Mons Cupri mineralisation.

• Blackrock copper cathode production of 238 tonnes.

• Successful $5M capital raising to accelerate zinc-copper exploration activities.

OVERVIEW

Venturex Resources Limited (ASX: VXR; “Venturex” or “the Company”) is pleased to report on an active September Quarter which saw further strong progress with its three-pronged strategy of:

1. Extending the existing sulphide zinc-copper Resources at Whim Creek and identifying opportunities to extract value from them;

2. Increasing and extending the income stream from the copper cathode produced at Whim Creek under its Access Agreement with Blackrock Metals Pty Ltd (“Blackrock”) for treating heap leachable resources; and

3. Ensuring that the Sulphur Springs Copper-Zinc Project is fully optimised and permitted ready for development, in order to take advantage of the improving sentiment in commodity prices.

WHIM CREEK ZINC- COPPER PROJECT

The Whim Creek Copper-Zinc Project, located 115km west of Port Hedland, includes the historical Whim Creek, Mons Cupri and Salt Creek mines, where 67,000t of copper has been produced from near-surface oxide ores, the Evelyn resource and 18,100ha of tenements in the highly prospective Whim Creek and Mallina VMS Basins.

MONS CUPRI

The Company continued to advance exploration and target definition on the Mons Cupri mineralised system. The Mons Cupri deposit, which is the largest Volcanogenic Massive Sulphide (“VMS”) system in the Whim Creek Field, is an extensive stockwork breccia copper system with zones of massive zinc-lead mineralisation.

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ASX Announcement
ASX Code: VXR
Released: 31 October 2016
For further details
John Nitschke
Managing Director
T: +61 8 6389 7400
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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Processing and analysis of data from the high-powered Induced Polarisation (IP) survey undertaken during the June quarter was finalised and a set of priority targets represented by anomalous chargeability identified. These targets represent potential repeats of the Mons Cupri mineralisation to the west of the two existing open pits as well as a previously unidentified area to the south of the main Mons Cupri open pit.

Two Reverse Circulation holes and two diamond holes for a total of 962 metres were drilled to test three of these targets. All holes intersected the Cistern conglomerate, which is the host of the Mons Cupri mineralisation. In three of the four holes, the conglomerate showed intense to weak alteration. One hole intersected a narrow zone of visual chalcopyrite ( refer ASX announcement 10 October 2016 ).

Down-hole magneto metric resistivity (DHMMR) surveys are being carried out in these holes to assess whether there are conductors that may indicate the presence of massive zinc sulphide mineralisation.

SALT CREEK

Six diamond holes for 918 metres were drilled aimed at extending the two near-surface high grade zinc-lead lodes at the Salt Creek deposit. This mineralisation can potentially be mined using open pit methods.

Assay results for three of the holes have been received ( refer ASX announcement dated 20 October 2016) .

Two holes returned exceptional zinc, lead and silver grades. They confirm the tenor of earlier drilling and extend the high grade mineralisation to within 65 metres of surface.

• 16VSCD001 intersected 1.64m at 43.9% Zn, 19.5% Pb, 551 g/t Ag and 0.8 g/t Au from 150.3m down-hole; and

• 16VSCD003 intersected 1.93m at 23.6% Zn, 13.3 Pb, 802 g/t Ag and 1.14 g/t Au from 78.4m down-hole.

A down-hole geophysical dataset collected in 2008 was processed and generated MMR and transient electromagnetic (TEM) plates that represent high priority drill targets which could extend the current Resource down-plunge. Specialist consultants have been engaged to refine the structural model and carry out three dimensional modelling of the deposit to fine tune these targets.

Drilling will recommence at Salt Creek in November.

EVELYN (VXR 70% increasing to 90%)

Two Reverse Circulation drill holes for 492 metres were drilled at the Quamby North Prospect to test airborne and ground EM conductor plates within the prospective stratigraphy. Results are being assessed.

WHIM CREEK ACCESS AGREEMENT WITH BLACKROCK METALS

Production of copper cathode increased during the quarter to 238 tonnes of copper cathode (June Quarter: 194 tonnes).

The ramp-up of production from the Fenix Ion Exchange unit was impeded by commissioning issues. Production from the unit has settled at levels or 600kg per day of copper cathode, which is less than planned due to different acid conditions than expected. A pump that will assist in better managing the acidity of the feed to the unit is being mobilised.

Venturex Resources Limited : September 2016 Quarterly Activities Report

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Turning and restacking of the existing heap leach dumps using an excavator recommenced following rectification of the mechanical issues with the excavator. Approximately 25% of the dump has been turned over and is progressively being put back under irrigation.

Low grade stockpiles were relocated to the top of the heap leach dumps and irrigation commenced late in the quarter. Work continued on the evaluation of oxide heap leachable mineralisation contained in mineralised stockpiles and remaining in-situ around the existing open pits at Whim Creek as potential sources of heap leachable copper.

The slower-than-expected ramp-up in production has impacted earnings from the operation and no net profit interest payment was received for the quarter. In light of this and the fact that it does not manage the operation, Venturex does not believe is appropriate to provide further guidance on the income it expects to receive from the operation at this stage.

	31 Dec	31 Mar	30 June	30 Sept	YTD	Project to date
	2015 Qtr	2016 Qtr	2016 Qtr	2016 Qtr	2015-16
Tonnes produced	251	203	194	238	991	2,464
NPI $	$71k	$250k	$250K	Nil	$783k	$1,096k

Table 1 – Copper Cathode Production and NPI for the 12 month period and Project to Date

SULPHUR SPRINGS COPPER-ZINC PROJECT

The Sulphur Springs Copper-Zinc Project, located 144km south-east of Port Hedland, includes the proposed Sulphur Springs and Kangaroo Caves mines together with tenements covering 27km of the Panorama trend that contain numerous advanced VMS-style exploration targets.

A drilling program has been developed to prove up the supergene mineralisation that sits on the top of the main zinc-copper sulphide resource at Sulphur Springs. It is not expected that this program will be completed until next year.

Work also commenced on the permitting process for the revised mine plan. Compilation of the results of the various studies conducted on the optimisation of the Sulphur Springs Project is ongoing.

This work continues to de-risk the Sulphur Springs Project and confirm that it is a valuable, development-ready base metal project which is highly leveraged to continued improvements in the zinc price.

OTHER

The Memorandum of Understanding (MOU) with MacArthur Minerals Limited (TSX-V: MMS) was expanded to include the Company’s Whim Creek Project. The MOU allows the companies enter into a Farm-in and Joint Venture agreement (FJVA) on the lithium rights on the Company’s leases at Sulphur Springs and Whim Creek. During the quarter, MMS geologists continued reviewing geological data on the projects.

CORPORATE

Securities Information

During the quarter, the Company successfully completed the $5 million capital raising with a $1 million placement to cornerstone investors of Euroz Securities Limited and a 2-for-5 entitlements issue to raise $4 million.

Venturex Resources Limited : September 2016 Quarterly Activities Report

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As at 30 September 2016, the issued capital of the Company is 2,611,369,096 ordinary fully paid shares, 432,587,326 unlisted options and 26,366,197 unlisted Performance Rights.

The Company has arranged a sale facility for holders of unmarketable (market value less than A$500) parcels of shares which closed on the 21 November 2016

Financial Information

The Company’s net cash and receivables position as at 30 September was $4.442 million and it has no debt. The Pro-forma Appendix 5B – Statement of Consolidated Cash Flows is provided in a separate report.

Annual General Meeting

The Company’s Annual General Meeting has been scheduled for 10:00am, Friday 18 November 2016, at BDO Offices, 38 Station Street, Subiaco WA. The Notice of Meeting and Annual Report has been sent to shareholders.

John Nitschke Managing Director

For further information, please contact: 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

About Venturex Resources Limited

Venturex Resources Limited (ASX: VXR) is an exploration and development company with two advanced Copper Zinc Projects near Port Hedland in the Pilbara region of Western Australia. The two projects are the Panorama Project which includes the Sulphur Springs and Kangaroos Caves Resources plus 27km of prospective tenements on the Panorama trend and the Whim Creek Project which includes the Resources at the Whim Creek, Mons Cupri and Salt Creek mines together with the Evelyn project and 18,100 ha of prospective tenements over the Whim Creek basin. Our strategy is to restore the Sulphur Springs Project to shovel ready status, expand the Resources at Whim Creek and Mons Cupri and work with our partners Blackrock Metals to extend and expand the existing 5 tonne per day oxide copper heap leach and SXEW operation at Whim Creek.

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 has previously released in announcements to the ASX“. Mr Guy 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 Mineral Resources”. Mr Guy consents to the inclusion in the report of matters based on information in the form and context in which it appears.

Venturex Resources Limited : September 2016 Quarterly Activities Report

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TABLE OF RESULTS FROM HOLES COMPLETED TO DATE

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Hole ID	Type	North	East	RL	Azi	Dip	TD	Intersection	Intersection	Intersection	Intersection	Intersection	Intersection
								From m	To m	Width m	Cu %	Zn %	Pb%
Mons Cupri
16VMCD001	DD	7691076.3	583024.8	55.8	060o	-70o	180.8	Resultspending
16VMCD002	DD	7690559.9	583451.8	62.6	0o	-90o	200	Resultspending
16VMCR001	RC	7690010.0	584450.2	62.0	180o	-70o	250	Resultspending
16VMCR002	RC	7691345.3	583215.7	62.8	060o	-75o	172	Resultspending
Salt Creek
16VSCD001	DD	7704759.4	573754.3	7.9	330o	-60o	162	150.31	151.95	1.64		43.9	19.5
16VSCD002	DD	7704776.3	573833.6	9.8	330o	-60o	190	NSR
16VSCD003	DD	7704700.5	573615.8	7.3	330o	-60o	130	78.37	80.3	1.93		23.6	13.3
16VSCD004	DD	7704570.7	573403.3	8.4	330o	-60o	159	Resultspending
16VSCD005	DD	704777.0	573774.0	9.1	330o	-60o	147.6	Resultspending
16VSCD006	DD	7704593.2	573391.7	6.1	330o	-60o	129.1	Resultspending
Quamby
16VER001	RC	7670999	588603.5	100.	270o	-60o	320	Resultspending
16VERD002	RC	7671198.6	588595.7	106	270o	-60o	172	Resultspending

INTERESTS IN MINING TENEMENTS

AREA OF INTEREST	TENEMENTS	GROUP ENTITY’S INTEREST	ACQUIRED DURINGQUARTER	DISPOSED DURINGQUARTER
Liberty-Indee Project	E47/1209	70%(90% on decision to mine)
	E47/1796	70%(90% on decision to mine)		100%
	M47/1455	70%(90% on decision to mine)
Whim Creek Project	E47/3495	100%	Application
	M47/236	100%
	M47/237	100%
	M47/238	100%
	M47/443	100%
	L47/36	100%
Salt Creek Project	M47/323	100%
	M47/324	100%
Sulphur Springs Project	E45/4692	100%	Application
	E45/4811	100%	Application
	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 2016 Quarterly Activities Report

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