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DEVELOP GLOBAL LIMITED Regulatory Filings 2016

Nov 28, 2016

64801_rns_2016-11-28_7c8b1662-ade0-4ec9-b7c4-617c9c6caea3.pdf

Regulatory Filings

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ASX Announcement
ASX Code: VXR
Released: 29 November
2016
For further details
John Nitschke
Managing Director
T: +61 8 6389 7400
[email protected]
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
[email protected]
www.venturexresources.com
ABN: 28 122 180 205
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Thick Zone of Stringer Copper Sulphides Intersected at Salt Creek

Highlights

  • 45m of stringer copper sulphides intersected from 455m down-hole in hole 16VSCD008, which was targeting a down-plunge extension of the copper lode at Salt Creek.

  • Hole cased and prepared for down-hole geophysical testing.

  • Continues the recent exploration success at Salt Creek and demonstrates that the prospectivity of the Salt Creek VMS system potentially increases at depth.

  • Third hole currently underway targeting a down-plunge position of the western zinc lode.

Venturex Resources Limited (ASX: VXR "Venturex" and the "Company") is pleased to advise that the second hole of the current diamond drilling program at its 100%-owned Whim Creek Zinc-Copper Project , has intersected a broad zone of stringer copper sulphides in the copper lode at Salt Creek (1Mt at 7.0% Zn, 2.0% Cu, 2.1% Pb and 52g/t Ag see ASX release 30 September 2013 ).

This three hole program is designed to test the down-plunge extensions of the known high grade zinc and copper mineralisation at Salt Creek. Targets being tested were identified from processing of an historical geophysical dataset (including down-hole magneto-metric resistivity “DHMMR” and down hole transient electro magnetics “DHTEM” surveys), combined with the development of an updated structural model.

Diamond drill-hole 16VSCD008 intersected 45m of visual stringer copper sulphides from 455m down-hole. The stringer copper intersection is hosted within volcaniclastic siltstones associated with strong pervasive chlorite alteration.

Hole 16VSCD008 is the second hole within the program and was drilled to test a DHTEM plate modelled as a potential down-plunge extension of the copper sulphide rich massive sulphides observed in the Central Lode at Salt Creek (see Figure 1).

It follows the 5.6 metre massive sulphide intercept achieved in the recently completed first hole, 16VSCD007, which targeted the zinc-rich Eastern Lode ( see ASX release dated 22 November 2016 ).

While it is not clear whether the original plate has been adequately tested, the width of the mineralisation and alteration observed in hole 16VSCD008 suggest that the intersection is in an area of increasing exploration prospectivity. The hole has been cased to allow for down- hole geophysical testing.

Core from 16VSCD008 is being logged and sampled with assays to be released once available.

The Whim Creek Project is located 115km south-west of Port Hedland in Western Australia, and includes the Whim Creek, Mons Cupri, Salt Creek and Evelyn deposits plus 18,500 hectares of tenements covering the highly prospective Whim Creek basin. Total JORC Resources within the Whim Creek Project currently stand at 7.2Mt at 2.3% Zn and 1.3% Cu ( see ASX release dated 30 September 2013 ).

Management Comment

Venturex’s Managing Director, Mr John Nitschke, said the second hole continued the recent run of exploration success at Salt Creek and continued to build the Company’s understanding of the overall scale and potential of the Salt Creek zinc-copper-lead-silver deposit.

“Our drilling continues to demonstrate the potential to extend both the zinc and copper lodes beyond the known resource envelope,” he said.

“The width of the intersection in the latest hole, and the increasing strength of alteration observed, suggests that the prospectivity of the system is increasing at depth.

If confirmed by subsequent drilling, this could be a very exciting development for Salt Creek, opening up the potential to further increase the resource inventory,” he added.

JOHN NITSCHKE Managing Director

For further information, please contact:

Investors

John Nitschke / Trevor Hart Venturex Resources Limited Ph: +61 (08) 6389 7400 Email: [email protected]

Media: Nicholas Read – Read Corporate Ph: (08) 9388 1474 Email: [email protected]

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Figure 1: Salt Creek Schematic Long Section

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Table 1 Drill Collar Table

Hole ID MGA
North
MGA
East
RL Azi Dip End of
hole
Comment#
16VSCD008 7,704,540 573,877 14.5 330 -70 516.6 455-500m Chalcopyrite, pyrite stringer
mineralisation associated with strong
pervasive chlorite alteration and
patchyweak silica alteration.

Note: Hole collar surveyed by DGPS . #Descriptions of sulphide minerals made by a competent person

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About Venturex Resources Limited

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 report that relates to Exploration Results, Mineral Resources and Ore Reserves is based on information compiled or reviewed by Mr David Milton, Hardrock Mining Consultants Pty Ltd and Mr James Guy, James Guy Consulting, who are Members of the Australasian Institute of Mining and Metallurgy. Mr Milton and Mr Guy have 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 Milton and Mr Guy consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

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Notes relating to the Salt Creek Drilling

Section 1: Sampling Techniques and Data

(Criteria listed in the preceding section also apply to this section)

Criteria JORC Code Explanation Commentary
Sampling
techniques

Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry
standard measurement tools appropriate to the minerals under investigation, such as down
hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken
as limiting the broad meaning of sampling.

Include reference to measures taken to ensure sample representivity and the appropriate
calibration of any measurement tools or systems used.

Aspects of the determination of mineralisation that are Material to the Public Report.

In cases where ‘industry standard’ work has been done this would be relatively simple (e.g.
‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to
produce a 30 g charge for fire assay’). In other cases more explanation may be required, such
as where there is coarse gold that has inherent sampling problems. Unusual commodities or
mineralisation types(e.g. submarine nodules) may warrant disclosure of detailed information.
Current Drilling

Diamond drilling was used to test the Salt Creek deposit. Diamond coring was from surface.

The company used industry standard practices to measure and mark up the drill core.

Half diamond core was submitted to the laboratory for analysis
Historical Drilling
Several generations of drilling have been undertaken on the Salt Creek Deposit since the 1970s.
The drilling results detailed in this announcement were from drilling undertaken by Straits
Resources 2005-2007 and Venturex Resources 2010 - 2012 and reported under JORC 2004
reporting standard to the Australian Stock Exchange during 2010-2012.

Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka,
sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-
sampling bit or other type, whether core is oriented and if so, by what method, etc.).
Current Drilling
Diamond drilling at Salt Creek used HQ and NQ core sizes. Coring was from surface using HQ. Core
was changed to NQ when ground conditions were competent. All NQ core was orientated. All
diamond core is stored in industry standard core trays labelled with the drill hole ID and core
interval.
Historical Drilling
WSC and SCR series drilling was undertaken using an industry standard 5.5 inch face Reverse
circulation (RC) sampling hammer. SCD and WSD series drilling was undertaken using NQ2 sized
core bit.
Drill sample
recovery

Method of recording and assessing core and chip sample recoveries and results assessed.

Measures taken to maximise sample recovery and ensure representative nature of the samples.

Whether a relationship exists between sample recovery and grade and whether sample bias
may have occurred due to preferential loss/gain of fine/coarse material.
Current Drilling

Diamond core recoveries were recorded as a percentage of the measured core vs the
drilling interval. Core loss locations were recorded on core blocks by the drilling crew.

Diamond core was reconstructed into continuous runs where possible and metres checked
against the depth as recorded on core blocks by the drilling crew.
Historical Drilling

SCR and WSC series drilling:RC samples were collected to industry standards of the day.
The locations of intervals of damp or wet samples or low recovery were recorded and
entered into the database. The cyclone and splitter were routinely inspected and cleaned
during the drilling to ensure that excessive material build up. Care was taken to ensure the
split samples were of a consistent volume. There is no detected or material bias or
relationships of sample recovery and grade.

SCD series drilling:All operators recorded diamond drill core recovery as a percentage of
measured recovered cores versus drilled distance. Recoveries were generally high except
when cavities were encountered in the oxide zone.

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Criteria JORC Code Explanation Commentary
Logging
Whether core and chip samples have been geologically and geotechnically logged to a level of
detail to support appropriate Mineral Resource estimation, mining studies and metallurgical
studies.

Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.)
photography.

The total length and percentage of the relevant intersections logged.
Current Drilling
Diamond drill core was geologically logged for the total length of the hole using a graphic logging
method. All core was photographed and images are stored in the company database. Logging
routinely recorded weathering, lithology, mineralogy, mineralization, structure, alteration and
veining. Logs were coded using the company geological coding legend and entered into the
company database.
Historical Drilling
SCR WSC Series:RC drill holes were geological logged using a Company standard logging legend. All
holes were logged at one metre interval taking a sample from the bulk sample bag. One or two
metre samples were stored in chip trays for future reference.
SCD and WSD Series: Diamond drill holes were geologically logged in their entirety and
photographed. Diamond drilling was logged for geotechnical purposes. Logging was at an
appropriate detailed quantitative standard to support future geological, resource, reserve
estimations and technical/economic studies. All drill core and chip trays are stored at the
companies Whim Creek facilities.
Sub-sampling
techniques and
sample
preparation

If core, whether cut or sawn and whether quarter, half or all core taken.

If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.

For all sample types, the nature, quality and appropriateness of the sample preparation
technique.

Quality control procedures adopted for all sub-sampling stages to maximise representivity of
samples.

Measures taken to ensure that the sampling is representative of the in situ material collected,
including for instance results for field duplicate/second-half sampling.

Whether sample sizes are appropriate to the grain size of the material being sampled.
Current Drilling
No sampling of drill core has been undertaken as yet. Information released is based on visual
observations of drill core.
Historical Drilling
SCD and WSC Series: Diamond core was sawn with a diamond saw and half core samples taken for
assay.

SCR and WSC Series: 1 metre RC samples were collected and split off the drill rig using a
cone splitter. Approximately 90% of the samples were dry in nature. The sampling
techniques for collection of the sample to be submitted to the assay facility for both
diamond drilling and RC drilling are of consistent quality and appropriate. During drilling and
sampling operations Venturex had on site, technically competent supervision and
procedures in place to ensure sample preparation integrity and quality. Some field
duplicates were taken for RC drilling but not for diamond drilled samples. The sample sizes
are considered appropriate given the relatively fine grained nature of the sulphide
mineralisation which is not nuggetty in nature, the sampling methodology and the percent
assay value ranges involved.
Quality of assay
data and
laboratory tests

The nature, quality and appropriateness of the assaying and laboratory procedures used and
whether the technique is considered partial or total.

For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in
determining the analysis including instrument make and model, reading times, calibrations
factors applied and their derivation, etc.

Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external
laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision
have been established.
Current Drilling
No assay results are being reported.
Historical Drilling
For the majority of both diamond and RC drilling Venturex has used Ultratrace Laboratories Pty Ltd
(ALS). ALS has been used for the analysis of one batch of samples. Analytical techniques involve
either a three or a four acid digest with a multielement suite. SCR Series: Ultratrace analysed
elements Ag, Cu, Cr, Pb, Zn. As, Pb by ICPMS. Cu, Zn, Cr by ICPOES. ALS Laboratories Perth -
elements analysed Ag, Au, Cu, Pb, Zn. Au by Fire assay with an AAS finish. Ag, Cu, Pb, Zn four acid
digestion ICPES. SCD Series: ALS Laboratories Perth - elements analysed Au,Pt,Pd,Ag,Pb,Cu,Cr,

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Criteria JORC Code Explanation Commentary
In, Zn. Au, Pt, Pd by fire assay AAS finish. Ag, Pb, In by ICP103, and Cu, Cr, Zn by ICP 104. WSC and
WSD series: ALS Laboratories Perth, elements analysed Au, Ag, Al, As, Ba, Be, Bi, Ca, Cd, Co, Cr, Cu,
Fe, K, Mg, Mn, Mo, Na, Ni, P, Pb, S, Sb, Sr Ti, V, W ,Zn. Au was by fire assay(Method AA25) and AAS.
The rest were analysed by ICPAES (Method MEICP61). An ore grade method (OG62) was used on
the known mineralised intervals. Elements were Ag, As, Cd, Cu, Fe, Mg, Pb, S, Zn. All methods of
analysis are considered to provide total assay values. No geophysical tools were used to determine
any element concentrations reported. Field duplicates were submitted by the company. Only
laboratory inserted blanks and reference standards were inserted for QA/QC checks. The available
results of this QA/QC work indicate no material bias to assay results used by this report.
Verification of
sampling and
assaying

The verification of significant intersections by either independent or alternative company
personnel.

The use of twinned holes.

Documentation of primary data, data entry procedures, data verification, data storage
(physical and electronic) protocols.

Discuss any adjustment to assay data.
Current Drilling

No drill hole intersections are being reported.

No twinned holes have been drilled.

Visual estimates of chalcopyrite, sphalerite and galena have been made by a geologist with
more than 30 years experience.

Geological descriptions are recorded in long hand prior to being summarised for digital data
capture.
Historical Drilling
The drill intersections reported in this announcement are based on the the results previously
reported in the company’s June 2010 announcements to the ASX. No specific twinned holes have
been drilled. Data recording used a set of standard Excel templates on a data logger and uploaded
to note book computer. The data were sent to the Perth office for verification and compilation into
an SQL database by the in-house database administrator. Full copies are stored offsite. Full
database verification of all historical information has been completed by the company.
Location of data
points

Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys),
trenches, mine workings and other locations used in Mineral Resource estimation.

Specification of the grid system used.

Quality and adequacy of topographic control.
Current Drilling

Drill hole collar were located using a DGPS operated by company personnel by the company.

Diamond drill holes were down hole surveyed by a single shot camera every 30m.
Historical Drilling

Drill hole collars were surveyed by a DGPS.

Holes were downhole surveyed by single shot Eastman camera and downhole gyroscopic
surveys.

Detailed surface control has been established by photogrammetery.
Data spacing and
distribution

Data spacing for reporting of Exploration Results.

Whether the data spacing and distribution is sufficient to establish the degree of geological and
grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s)
and classifications applied.

Whether sample compositing has been applied.
Current Drilling
Hole 16VSCD007 was drilled to test a poorly resolved DHMMR conductor down plunge from the
existing resource outline.
Hole 16VSCD008 was drilled to test a poorly resolved DHTEM conductor down plunge from the
existing resource outline.
Further drilling will be required before there is sufficient confidence in the geology and grade
continuityfor the mineralisation can be included in the resource calculation.

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Criteria JORC Code Explanation Commentary
Historical Drilling
Diamond and Reverse Circulation drill spacing at the Salt Creek deposit ranges from 20m to 100m
spacing.
Orientation of
data in relation to
geological
structure

Whether the orientation of sampling achieves unbiased sampling of possible structures and the
extent to which this is known, considering the deposit type.

If the relationship between the drilling orientation and the orientation of key mineralised
structures is considered to have introduced a sampling bias, this should be assessed and
reported if material.
Current and Historical Drilling
The majority of the drilling at Salt Creek is inclined to the north-west which is considered
appropriate for the geometry of the deposit.
Sample security
The measures taken to ensure sample security.
Drill core is stored at the secure Venturex Whim Creek yard. The samples are collected from site by
a transport company and delivered to the assay laboratory in Perth. Online tracking is utilised to
track the progress of batches of samples.
Audits or reviews
The results of any audits or reviews of sampling techniques and data.
No reviews have been undertaken.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria JORC Code explanation Commentary
Mineral tenement
and land tenure
status

Type, reference name/number, location and ownership including agreements or
material issues with third parties such as joint ventures, partnerships, overriding
royalties, native title interests, historical sites, wilderness or national park and
environmental settings.

The security of the tenure held at the time of reporting along with any known
impediments to obtaining a licence to operate in the area.
The Salt Creek deposit is located within M47/233 the registered owner of the tenements are
Venturex Pilbara Pty Ltd, a wholly owned subsidiary of Venturex Resources Ltd.
The tenement is within land where native title has been determined. The traditional owners of the
land are the Ngarluma People. The grant of the tenement predates native title, and is not subject
to native title claim.
There is a 2.5% NSR royalty payable to a third party on any production from the tenement.
The tenements are granted Mining Lease in good standing and no known impediments exist.
Exploration done
by other parties

Acknowledgment and appraisal of exploration by other parties.
Previous exploration has been undertaken by a number of parties going back over 30 years.
Modern exploration has been undertaken by Texasgulf Australia Pty Ltd, Aberfoyle Limited, Elf
Aquitaine Australia PtyLtd and Straits Resources Ltd.
Geology
Deposit type, geological setting and style of mineralisation.
The Salt Creek deposit is a Volcanogenic Massive Sulphide Deposit.

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Criteria JORC Code explanation Commentary
Drill hole
Information

A summary of all information material to the understanding of the exploration results
including a tabulation of the following information for all Material drill holes:

easting and northing of the drill hole collar

elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole
collar

dip and azimuth of the hole

down hole length and interception depth

hole length.

If the exclusion of this information is justified on the basis that the information is not
Material and this exclusion does not detract from the understanding of the report, the
Competent Person should clearly explain why this is the case.
Details of the drill holes are provided in table 1 within the body of this report
Data aggregation
methods

In reporting Exploration Results, weighting averaging techniques, maximum and/or
minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually
Material and should be stated.

Where aggregate intercepts incorporate short lengths of high grade results and longer
lengths of low grade results, the procedure used for such aggregation should be stated
and some typical examples of such aggregations should be shown in detail.

The assumptions used for any reporting of metal equivalent values should be clearly
_stated. _
Results reported in this release relate to visual observations of drill core specifically the
identification of common sulphide minerals, chalcopyrite, sphalerite and galena. No estimate of
grade or concentration of the minerals is provided.
Relationship
between
mineralisation
widths and
intercept lengths

These relationships are particularly important in the reporting of Exploration Results.

If the geometry of the mineralisation with respect to the drill hole angle is known, its
nature should be reported.

If it is not known and only the down hole lengths are reported, there should be a clear
_statement to this effect (e.g. ‘down hole length, true width not known’). _
The Salt Creek deposit is steeply dipping; the drill holes are all inclined 60 to 70 degrees to intersect
the mineralisation.
Only down hole intersections are reported.
Diagrams
Appropriate maps and sections (with scales) and tabulations of intercepts should be
included for any significant discovery being reported These should include, but not be
_limited to a plan view of drill hole collar locations and appropriate sectional views. _
A long section of the Salt Creek deposit is presented as Figure 1 in this announcement which shows
the spatial relationship of the current drilling to the mineralisation.
Balanced
reporting

Where comprehensive reporting of all Exploration Results is not practicable,
representative reporting of both low and high grades and/or widths should be practiced
_to avoid misleading reporting of Exploration Results. _
Only visual results of holes 16VSCD007 and 008 are being reported. Analytical results for the hole
will be reported once received from the laboratory.
Other substantive
exploration data

Other exploration data, if meaningful and material, should be reported including (but not
limited to): geological observations; geophysical survey results; geochemical survey
results; bulk samples – size and method of treatment; metallurgical test results; bulk
density, groundwater, geotechnical and rock characteristics; potential deleterious or
contaminating substances.
The Salt Creek deposit has had a significant body of work completed on it, including geophysical
studies, metallurgical test work geotechnical and ground water studies.
Previous drilling on the deposit has allowed the company to calculate a JORC 2012 compliant
resource on the deposit. The resource stated is 1,003,000tonnes grading 2.0% Cu, 7.0% Zn, 2.1%
Pb, 52.0g/t Ag, and 0.3g/t Au_refer ASX announcement 30 September 2013._
Further work
The nature and scale of planned further work (e.g. tests for lateral extensions or depth
extensions or large-scale step-out drilling).

Diagrams clearly highlighting the areas of possible extensions, including the main
geological interpretations and future drilling areas, provided this information is not
commercially sensitive
Following completion of the hole the company has cased the hole with PVC in order to undertake
downhole geophysical surveys at the completion of the current program. Once the data has been
processed and interpreted, it is anticipated further drilling will be undertaken. The Company is also
planning to undertake further drill testing of deep, downhole geophysical targets below the current
limit of drilling.

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