DEVELOP GLOBAL LIMITED — Interim / Quarterly Report 2016

Jul 10, 2016

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ASX Announcement
ASX Code: VXR
Released: 11 July 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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QUARTERLY ACTIVITIES REPORT FOR PERIOD ENDED 30 JUNE 2016

HIGHLIGHTS

Whim Creek Access Agreement with Blackrock Metals Pty Ltd

• Quarterly payment by Blackrock to the Company of $250,000

• Cathode copper production of 194 tonnes

• Ion Exchange unit installed and being commissioned

• Evaluation of additional sources of heap leachable copper in progress

• The Company re‐iterates its guidance of 1200t copper output and A$1.6M of cash flow, from its share of the Blackrock Agreement in FY2017

Whim Creek Copper‐Zinc Project – near‐term production opportunities

• Detailed structural mapping of Mons Cupri open pits and surrounding areas has identified controls for high grade stringer style copper gold and massive zinc mineralisation, and potential for new zones of mineralisation

• Assessment of preliminary data from IP Survey identifies several promising anomalies

‐ Sulphur Springs Copper Zinc Project

• New Resource model increase copper content by 6% and identifies near surface supergene mineralisation

• Opportunity for staged development of project

• New underground mine plan identifies savings of $61M or 22% in mining costs

• MOU signed to enter into Farm‐in and Joint Venture with lithium focussed exploration company, subject to due diligence, on lithium rights at Sulphur Springs

OVERVIEW

Venturex Resources Limited (ASX: VXR Venturex or the Company) is pleased to report on an active June Quarter which saw strong progress with its three‐ pronged strategy of:

1. 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;

2. Identifying opportunities for near‐term production from the existing sulphide copper‐zinc Resources at Whim Creek. This would be in addition to the existing production by Blackrock; 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 forecast uplift in commodity prices.

WHIM CREEK ACCESS AGREEMENT WITH BLACKROCK METALS

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An Ion Exchange unit to recover copper from copper sulphate residue in the process and environmental ponds was installed and being commissioned at the end of the Quarter. This unit is forecast to add 1 tonne of copper metal a day to production.

Work commenced 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. A detailed search of historical records and site inspection of mineralised stockpiles has been completed. This work is all fully funded by Blackrock.

Blackrock continued turning the existing heap leach dumps over and restacking them using an excavator. Mechanical issues with the excavator and generators on site together with production interruptions due to tie ins of the Ion Exchange unit restricted production during the quarter to 194 tonnes of copper cathode.

	30 Sept	31 Dec	31 Mar	30 June	YTD	Project to date
	2015 Qtr	2015 Qtr	2016 Qtr	2016 Qtr	2015‐16
Tonnes produced	343	251	203	194	991	2,226
NPI $	$212k	$71k	$250k	$250K	$783k	$1,096k

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

NEAR‐TERM PRODUCTION – WHIM CREEK COPPER‐ZINC 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 Basin.

The Company is focused on achieving near‐term production from the existing copper‐zinc sulphide resources at the Whim Creek Project by:

1. Assessing the viability of production from the existing Resources in the prevailing favourable capital and operating cost environment; and

2. Increasing the size and/or grade of the existing Resources by exploration.

The Company continued to advance exploration and target definition on the Mons Cupri mineralised system. The Mons Cupri deposit is an extensive stock work breccia copper system with zones of massive zinc‐lead mineralisation and is the largest Volcanogenic Massive Sulphide ("VMS") system in the Whim Creek field.

Detailed structural mapping in and adjacent to the Mons Cupri Main and North West open pits identified the primary and secondary controls for the high grade stringer style copper gold mineralisation and overlying high grade zinc mineralisation together with new zones of alteration that indicate the potential for new areas of Volcanogenic Massive Sulphide (VMS) style mineralisation ( refer ASX Announcement 17 May 2016 ).

Preliminary assessment of the results of an Induced Polarisation (IP) survey around the Mons Cupri open pits identified promising anomalies that indicated the potential for extensions to known high grade VMS mineralisation to the west and down plunge and to the east at both the Main and North West Mons Cupri open pits. It also identified the previously unidentified potential for a repeat of Mons Cupri to the south and north of the open pits ( refer ASX Announcement 7 June 2016 ).

Evaluation of the results of the IP survey and the development of a new Resource model for Mons Cupri was ongoing at the end of the Quarter.

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The Company continued to build on its experienced team of geologists with the appointment of Stefan Gawlinski who has extensive experience in exploration, Resource development and production from VMS systems ( refer ASX Announcement 21 April 2016 ).

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.

An updated Resource model and estimate was developed for the Sulphur Springs deposit. This model contained 6% more copper metal and identified a near surface supergene Inferred Resource of 800,000 tonnes grading 4.2% copper containing 34,000 tonnes of copper metal ( refer ASX Announcement 11 May 2016 ).

The supergene material is expected to be amenable to treatment via heap leach methods and opens up the potential for another near term production and cash flow opportunity for the Company.

The new Resource model more accurately reflects the geology of the mineralisation and waste surrounding it and allows the potential risks associated with the treatment of transition mineralisation and the disposal of the various types of waste materials from the proposed open pit to be identified and mitigated.

A new mining plan based on the Resource model identified the opportunity to adopt a bulk mining method that afforded savings in capital and operating costs in the underground mine of $61 million or 22%. A revised Ore Reserve for Sulphur Springs was released ( refer ASX Announcements 28 June and 1 July 2016 ).

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.

EXPLORATION

A Memorandum of Understanding was signed with MacArthur Minerals Limited (TSX‐V:MMS) to enter into a Farm‐in and Joint Venture agreement (FJVA) on the lithium rights on the Company’s leases containing the Sulphur Springs Copper Zinc Project. Entering into the FJVA was subject to satisfactory completion of due diligence by both parties over two months. The due diligence is ongoing.

CORPORATE

Securities Information

As at 30 June 2016, the issued capital of the Company is 1,746,194,595 ordinary fully paid shares and 26,366,197 unlisted Performance Rights.

Financial Information

The Company’s net cash and receivables position as at 30 June 2016 was $0.728 million and it has no debt. The Pro‐forma Appendix 5B – Statement of Consolidated Cash Flows is provided in a separate report.

John Nitschke Managing Director

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For further information, please contact: John Nitschke / Trevor Hart Venturex Resources Limited Ph: +61 (08) 6389 7400 Email: admin@venturexresources.com

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Media:

Nicholas Read – Read Corporate Ph: (08) 9388 1474 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 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.

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)
	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

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