DEVELOP GLOBAL LIMITED — Regulatory Filings 2017

May 22, 2017

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SIGNIFICANT NEW EXPLORATION UPSIDE IDENTIFIED AT SULPHUR SPRINGS PROJECT

Review of historical exploration data reveals

Highlights

• Down-hole geophysical program planned to test for extension of west lode

• Disseminated sulphide zone identified in 2016 Sulphur Springs Resource update represents potential copper gold stock-work feeder zones

• Disseminated sulphides identified in historical drill holes to be sampled and assayed

• Potential for disseminated and stockwork copper-gold mineralisation identified adjacent to the planned open pit

Venturex Resources Limited (ASX: VXR "Venturex" or the "Company") is pleased to advise that it has identified a number of significant new exploration opportunities with the potential to grow the existing resource inventory at its 100%-owned Sulphur Springs Copper-Zinc Project, located in the Pilbara region of Western Australia

The targets were identified as part of an ongoing exploration program at Sulphur Springs, which is being progressed in parallel with the Company’s development strategy for this significant greenfields copper-zinc project.

Venturex recently released the results of a Value Engineering Study on Sulphur Springs (see ASX Release dated 16 February 2017) which demonstrated that the Project represents a robust development opportunity with compelling economics.

The Company has embarked on a work program that includes confirmatory drilling and metallurgical test work on the high grade, near-surface inferred supergene copper Resource identified in the 2016 Sulphur Springs Resource update, updating the existing environmental permits, and identifying funding options for the project.

Venturex plans to make a decision to commit to the Sulphur Springs development and have funding in place during the first half of 2018, which will see the project in production from the middle of 2019.

The exploration program is aimed at extending the existing Resource in a number of areas. A review of historical exploration of the Sulphur Springs deposit highlighted that limited use had been made of down-hole electro-magnetic (DHEM) surveys in the drillout of the deposit (see ASX release dated 11 December 2015).

Re-processing of the limited DHEM data available identified that the off-hole DHEM target identified in hole SSD044A represented a potential down-plunge extension of the mineralisation and in-hole DHEM conductor observed in SSDH 41 (see Figure 1 below).

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ASX Announcement
ASX Code: VXR
Released: 23 May 2017
For further details
John Nitschke
Managing Director
T: +61 8 6389 7400
admin@venturexresources.com
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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Figure 1: Re-processing of the limited DHEM data

Volcanogenic Massive Sulphide (VMS) systems such as Sulphur Springs can have multiple mineralising events and orebodies, and the Company’s exploration team believes that modern DHEM combined with down-hole Magnetometric Resistivity (DHMMR), which targets the less conductive zinc mineralisation, represent excellent tools to target this style of mineralisation.

This is supported by the successful extension of the mineralisation at Salt Creek, part of the Company’s Whim Creek Project, using these tools (see ASX release 12 January 2017).

The Company plans to re-enter as many of the eight holes shown in Figure 2 as possible and run DHEM and DHMMR surveys down them to test for further drill targets with the potential to extend the existing mineralisation. This will be undertaken in conjunction with the upcoming drilling program targeting the inferred supergene copper resource.

The 2016 Sulphur Springs Resource update also identified the presence of sporadic disseminated sulphide mineralisation in the footwall of the Sulphur Springs deposit (Figure 3). The stockwork copper-gold mineralisation included in this disseminated material represents potential feeder zones for the main orebody.

Further evidence for copper-gold stockwork mineralisation in the footwall of Sulphur Springs is the off-hole DHEM target identified in SSD01A (Figure 3) and the disseminated sulphide mineralisation observed in a water bore to the south (footwall side) of the planned open pit.

Many of the earlier drill holes had not penetrated very far into the footwall felsic volcanics to test for this style mineralisation. A preliminary review of some of the existing drill holes has identified disseminated sulphide mineralisation that was not sampled and assayed. All drill holes into the footwall zone of Sulphur Springs will therefore be reviewed and sampled and assayed where warranted as part of a program to better delineate the potential for stockwork copper-gold feeder systems to the deposit.

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These work programs are expected to demonstrate the prospectivity of the host stratigraphy at Sulphur Springs and generate robust drill targets that have the potential to add to the Resource.

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Figure 2: Sulphur Springs Long Section

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Hole SSD01A
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Figure 3: Off-hole DHEM Target

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Management Comment

Venturex’s Managing Director John Nitschke said: “We are very excited about the emerging exploration potential at our flagship Sulphur Springs Project. The recent work by our exploration team in unravelling some of the historical exploration data reinforces our view that there is significant upside to the existing Resource.

“The 2016 Sulphur Springs Resource update identified the supergene copper mineralisation that helped transform the project. The potential for stockwork copper-gold feeder zones adjacent to the open pit presents even more upside.

“This combined with the deeper geophysical targets which could represent significant extensions or repetitions of the VMS system down-plunge makes for a compelling development project with substantial exploration upside,” he said.

JOHN NITSCHKE Managing Director

For further information, please contact:

Media:

Investors Media: John Nitschke / Trevor Hart Nicholas Read – Read Corporate Venturex Resources Limited Ph: (08) 9388 1474 Ph: +61 (08) 6389 7400 Email: info@readcorporate.com.au Email: admin@venturexresources.com

About Venturex Resources Limited

Venturex Resources (ASX: VXR) is a rapidly growing Australian zinc company which is focused on the development of its advanced Sulphur Springs zinccopper project located 144 km to the south of Port Hedland in the premier Pilbara mining province of Western Australia. After recently releasing a Value Engineering Study on this project which showed compelling economics the company is committed to an aggressive work program aimed at having funding in place by the first quarter of CY 2018 which would see the project in production in the first quarter of 2019.

The Sulphur Springs Project is one of the most significant undeveloped zinc deposits in Australia and the company believes that it is now the right time to develop the project. A drilling and metallurgical test work program aimed at converting inferred supergene resources to indicated is planned along with activities to amend the existing environmental permits. A formal program to identify funding options for the project is in place with the target of being in production during the first half of CY 2019.

Exploration at the existing high-grade zinc, copper and lead resources at the Whim Creek Project is aimed at extending existing high grade copper, zinc and lead Resources at the Salt Creek and Mons Cupri deposits. 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 quickly and cheaply.

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 reflects this supply tightness, with smelters materially discounting treatment charges.

Competency Statements

The information in this announcement that relates to Exploration Results, Geophysical 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 ASX announcements on the 11 December 2015, 17 January 2017 and 16 February 2017.

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; and b. It is not aware of any new information or data that materially affects the information included in the 16 February 2017 announcement and that all material assumptions and technical parameters underpinning the estimate in the 16 February 2017 announcements continue to apply and have not materially changed.

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