DEVELOP GLOBAL LIMITED — Interim / Quarterly Report 2016

Apr 27, 2016

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ASX Announcement
ASX Code: VXR
Released: 28 April 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 31 MARCH 2016

Highlights:

Whim Creek Access Agreement with Blackrock Metals Pty Ltd

• Agreement for production of copper cathode extended to December 2018

• Venturex NPI share increased to 30% for 2016 and 49% thereafter

• Evaluation of additional sources of heap leachable copper commenced

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

• Exploration team expanded with the appointment of Mr Stefan Gawlinski

• Review of historical exploration data completed

• Systematic identification of exploration targets commenced

- Sulphur Springs Copper Zinc Project

• Continued progress with permitting process for enhanced Sulphur Springs Project following highly successful optimisation completed last year.

OVERVIEW

Venturex Resources Limited (ASX: VXR) is pleased to report on an active March 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

During the Quarter, Venturex agreed to an extension of the existing Access and Oxide Ore Processing Agreement with Blackrock ("Agreement") at the Whim Creek Copper-Zinc Project for a further three years until 31 December 2018 ( refer ASX Announcement – 17 March 2 016). The terms of the extension are:

• The net profit interest ("NPI") paid to Venturex has increased from 15% to 30%, effective from 1 January 2016, and will be further increased to 49% effective from 1 January 2017;

• Blackrock will undertake activities designed to reactivate the leach dumps with the aim of returning production to previous levels; and

• Blackrock will evaluate, at their cost and risk, additional sources of heap leachable copper in the Whim Creek Project area.

During the Quarter, Blackrock commenced turning the existing heap leach dumps over and restacking them using an excavator. This is anticipated to result in an increase in production from the heap over the coming quarter. Blackrock has also commenced 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. Blackrock has the capability to treat chalcocite mineralisation using the existing facility, potentially unlocking an ore source that was never targeted by the previous operator and which offers the potential to further increase or extend production.

Blackrock has guaranteed a profit distribution of $500,000 from the extended Agreement to Venturex prior to 30 June 2016 ( refer ASX Announcement 14 April 2016 ). During the March 2016 Quarter, Blackrock produced approximately 203 tonnes of copper cathode:

	31 Mar	30 June	30 Sept	31 Dec	31 Mar 2016 Qtr
	2015 Qtr	2015 Qtr	2015 Qtr	2015 Qtr
Tonnes produced	170	395	343	251	203
NPI $	-	$265k	$212k	$71k	$250k

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

NEAR-TERM PRODUCTION – WHIM CREEK COPPER-ZINC PROJECT

The Whim Creek Copper-Zinc Project, located 122km 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 results of the Whim Creek Scoping Study carried out by Snowden in 2010 ( refer ASX Announcement 26 November 2010 ) are being updated to reflect current market conditions. The Company also continued to advance exploration and target definition ( refer ASX Announcement 20 January 2016 ).

Exploration work during the Quarter focused 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.

Based on the work completed to date, the Company believes there is excellent potential for extensions to the existing deposit, as well as repetitions within the extensive Mons Cupri Volcanic Breccia unit which hosts the deposit.

Venturex Resources Limited : March 2016 Quarterly Activities Report

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Work undertaken included processing and interpretation of historical down-hole magneto-metric resistivity (DHMMR) data for holes drilled in the vicinity of the Mons Cupri North West Pit. This identified a number of small off-hole conductors. Detailed re-logging of selected drill core holes from the main Mons Cupri and North West Pits to confirm the stratigraphy was also completed together with updating of cross section interpretation of mineralisation.

Petro-physical test work on core samples of barren and mineralised rock showed that the optimum geophysical method for detecting stock or stringer copper mineralisation was Induced Polarisation (IP), and confirmed that DHMMR was the best technique for massive zinc lead mineralisation. The next steps in defining new drill targets are structural mapping and the application of IP.

The Company has assembled an experienced team of geologists with a proven track record of discovery of VMS deposits to assist in exploration evaluation and targeting ( refer ASX Announcement 20 January 2016 ).

SULPHUR SPRINGS COPPER-ZINC PROJECT

The Sulphur Springs Copper-Zinc Project, located 162km 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.

The Optimisation Study on the Sulphur Springs Copper-Zinc Project ( see ASX Announcement 4 November 2015 ) delivered a number of significantly enhanced outcomes offering the potential for Venturex to advance the Project towards financing and development.

The Study identified the opportunity to utilise an open pit mining operation to extract the top portion of the Sulphur Springs deposit before moving to underground mining and to revert to the use of a conventional fully lined tailings storage facility. These changes significantly reduce the financial, startup and operational risks associated with the Project.

The proposed changes require permitting before they can be implemented and the necessary documentation to permit these changes is being developed in consultation with the Regulators.

CORPORATE

7,000,000 Performance Rights were issued to staff and contractors during the Quarter under the shareholder approved Performance Rights Plan.

Securities Information

As at 31 March 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 31 March 2016 was $0.665 million and it has no debt. Cash inflow from the NPI at Whim Creek has been guaranteed to be $500,000, which will be paid prior to 30 June 2016. The Pro-forma Appendix 5B – Statement of Consolidated Cash Flows is provided in a separate report.

John Nitschke Managing Director

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

Media:

Nicholas Read – Read Corporate Ph: (08) 9388 1474 Email: info@readcorporate.com.au

Venturex Resources Limited : March 2016 Quarterly Activities Report

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About Venturex Resources Limited

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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 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	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	E45/4447	100%
	E45/4692	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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