DEVELOP GLOBAL LIMITED — Regulatory Filings 2018

Jul 25, 2018

Building a Mid-Tier Base Metals Business

ASX/Media Release

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26 July 2018

QUARTERLY ACTIVITIES REPORT FOR PERIOD ENDED 30 JUNE 2018

OVERVIEW

Venturex Resources Limited (ASX: VXR; “Venturex” or “the Company”) reports on the June 2018 Quarter which saw continued strong progress towards the Company’s goal of advancing the Sulphur Springs Copper-Zinc Project in Western Australia towards production. Highlights of the Quarter included:

1. Environmental review document submitted to the Environmental Protection Authority (EPA), representing a key milestone in the approvals process.

2. Sulphur Springs feasibility study progressed with:

3. Metallurgical test work nearing completion.

4. Plant design, mine design and scheduling works well advanced.

5. Long-lead items identified and discussions with contractors and equipment manufacturers underway with a view to developing an early contractor engagement strategy.

6. New drilling program underway focused on three high-priority EM targets (X6, X8 and DHEM target) located on western flank of the Sulphur Springs VMS deposit.

7. Leading independent advisory group BurnVoir Corporate Finance engaged to assist with securing project finance.

8. Agreement to purchase the Spinifex Ridge camp, delivering a significant capital saving for the project compared to the cost estimate contained in the Value Engineering Study completed in February 2017.

9. Appointment of experienced mining executive Ajanth (AJ) Saverimutto as Managing Director to spearhead the project development.

SULPHUR SPRINGS COPPER-ZINC PROJECT

The Sulphur Springs Copper-Zinc Project, is located south-east of Port Hedland and 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 Sulphur Springs Project hosts a total Resource base (Sulphur Springs + Kangaroo Caves) comprising 17.4 million tonnes grading 1.3% copper, 4.2% zinc and 17g/t silver (refer ASX announcements 22 September 2015 and 21 March 2018).

EPA Document

The Sulphur Springs Environmental Review Document (ERD) was completed during the quarter with the final report submitted to the Environmental Protection Agency (EPA). The EPA has six weeks to review the ERD and request additional information.

DFS Update

A number of milestones were delivered during the Quarter towards the completion of the Sulphur Springs Definitive Feasibility Study (DFS). The DFS is aimed at providing a clear pathway to development at Sulphur Springs, with detailed technical work providing the foundation for near-term project execution.

T : +61 8 6389 7400 admin@venturexresources.com www.venturexresources.com

Venturex Resources Limited ASX: VXR ABN: 28 122 180 205

Level 2, 91 Havelock Street West Perth WA 6005

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Metallurgical test work on the open pit transitional and supergene material from Sulphur Springs is continuing with copper and zinc test work entering the final stages. All test work on the fresh material which makes up the underground component of Sulphur Springs is complete. Plant design is well advanced with strategies being developed to minimise capital cost and construction timelines.

Mine design and scheduling works are continuing with multiple opportunities identified to maximise both the efficiency and profitability of the project. Mining contractors have been invited to offer quotations against the mining schedules which will lead in to a formal tender process once the DFS is complete.

Tailings dam design is being completed and will be based on the design works and tailings management strategy outlined in the Venturex’s Environmental Review Document (see above).

Opportunities to reduce pre-production capital costs are currently being evaluated and a number of cost reduction measures are being incorporated into the study. Long-lead items have been identified and discussions with contractors and equipment manufacturers have already begun with a view to developing an early contractor engagement strategy. A number of contractor engagement methodologies and contract types are still being evaluated to minimise project construction timelines, reduce risk and maximise project returns.

As part of the DFS, an Operations Management & Implementation Strategy is being completed which, will feed into a Project Implementation Plan following completion of the study. This will also dovetail with Venturex’s recent environmental submission to provide a clear pathway for the project’s fast-tracked development.

Utilising the 2017 Value Engineering Study as a base, and with the addition of significant detailed data gained through the ongoing DFS work, Venturex is working to further optimise the mine plan and production schedule to add additional value to the financial models.

Financing

Leading independent advisory group BurnVoir Corporate Finance has been appointed as corporate advisor to assist with securing funding for the Sulphur Springs Project. BurnVoir has extensive experience in obtaining a wide variety of funding options.

Camp Purchase

Venturex has agreed to purchase the Spinifex Ridge camp from Young Australian Mines Ltd (formerly Moly Mines Ltd).

The camp acquisition agreement represents a significant capital saving for the project compared to the cost estimate contained in the Value Engineering Study completed in February 2017.

The camp is currently located approximately 150km by road from Sulphur Springs and includes:

• 100 rooms accommodation

• Wastewater treatment plant and reverse osmosis treatment plant

• Dry Mess General Arrangement

• First Aid Room

• Laundry/Linen/Cleaners Store

• Toilets

• Wet Mess Building

• Water tanks and generators

• All plant and equipment located within the Spinifex Ridge Camp Site

Exploration

A diamond drilling program commenced at Sulphur Springs on 6 June 2018 to drill test three high-priority EM targets and complete two geotechnical holes required for the open pit mining study component of the DFS.

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Venturex Resources Limited : June 2018 Quarterly Activities Report

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The drilling program comprised of a total of four drill holes for 1200m, including two holes for 255m completed for the geotechnical program.

The exploration drilling is targeting two anomalies generated from the 2017 Excite™ heli-borne electromagnetic (EM) survey program (XA_6 and XA_8) and an off-hole conductor produced by historical surveying of drill hole SSD044A. Upon completion, the exploration drill holes will be cased to provide a platform for future down-hole geophysical surveys.

The Sulphur Springs exploration program is designed to test for new discoveries and extensions of the current Resource to the west and down-dip of the known mineralisation.

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Figure 1: Sulphur Springs Project area and tenement holdings

In addition to the drilling program, the Company has engaged a consultant to review historical geophysical surveys to assist with designing a ground EM program which, will be undertaken in conjunction with down hole EM at Sulphur Springs.

WHIM CREEK PROJECT

No exploration work was undertaking on the Whim Creek project during the Quarter.

Whim Creek Access Agreement with Blackrock

Turning and restacking of the existing heap leach dumps using an excavator continued through the Quarter. Turning and restacking of the residual ore will continue in 2018 and beyond as a means of sustaining production from the heap leach dumps.

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Venturex Resources Limited : June 2018 Quarterly Activities Report

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Production from the operation during the June 2018 Quarter was 186 tonnes of copper-in-cathode. Venturex does not manage this operation and therefore, does not provide guidance on the income it expects to receive from the operation.

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

	30 Sept	31 Dec	31 March	30 June	Project to Date
	2017 Qtr	2017 Qtr	2018 Qtr	2018 Qtr
Tonnes produced	221	246	193	186	3,943
NPI $	-	$87k	-	-	$1,183k

CORPORATE

During the Quarter, Venturex appointed experienced mining executive Ajanth (AJ) Saverimutto as Managing Director.

Mr Saverimutto is a Mining Engineer with extensive senior management experience, most recently as the founder and Managing Director of privately-held Australian company Salt Lake Mining Pty Ltd.

Mr Saverimutto commenced with the Company on 5 April 2018.

Anthony Reilly, who had assumed executive responsibility at Venturex on an interim basis in July 2017, will continue as an Executive Director with a focus on corporate matters.

Securities Information

As at 30 June 2018, the issued capital of the Company is 3,598,434,633 ordinary fully paid shares, 216,293,663 unlisted options and 8,215,600 unlisted performance rights.

Financial Information

The Company’s net cash position as at 30 June 2018 was $2.62 million and it has no debt. The Pro-forma Appendix 5B – Statement of Consolidated Cash Flows is provided in a separate report.

AJ Saverimutto Managing Director

For further information, please contact: AJ Saverimutto/Anthony Reilly/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 Sulphur Springs Project which includes the Sulphur Springs Project, Kangaroos Caves Resource 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 work with our partners Blackrock Metals to expand and extend the existing 4 tonne per day oxide copper heap leach and SXEW operation at Whim Creek, identify other near term production options at Whim Creek, Mons Cupri and Sulphur Springs and fully optimise the Sulphur Springs Project have it shovel ready to take advantage of forecast improvements in base metal prices.

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Venturex Resources Limited : June 2018 Quarterly Activities Report

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Competent Person Statement

The Company confirms that:

• a. The form and context of the material in this release 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 announcements and that all material assumptions and technical parameters underpinning the announcements continue to apply and have not materially changed.

The information in this announcement that relates to Exploration Results is based on information compiled or reviewed by Mr Stefan Gawlinski who is employed as a Consultant to the Company. Mr Gawlinski is a member of the Australian Institute of Geoscientists. Mr Gawlinski has sufficient experience with the style of mineralisation and the type of deposit under consideration. Mr Gawlinski consents to the inclusion in the report of the results reported here and the form and context in which it appears.

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Venturex Resources Limited : June 2018 Quarterly Activities Report

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INTERESTS IN MINING TENEMENTS

AREA OF INTEREST	TENEMENTS	GROUP ENTITY’S INTEREST	ACQUIRED DURING QUARTER	DISPOSED DURING QUARTER
Evelyn Project	E47/1209	100%
	M47/1455	100%
Whim Creek Project	E47/3495	100%
	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	M45/494	100%
	M45/587	100%
	M45/653	100%
	M45/1001	100%
	E45/4811	100%
	E45/4993	100%	Granted
	E45/5003	100%	Application
	L45/166	100%
	L45/170	100%
	L45/173	100%
	L45/179	100%
	L45/188	100%
	L45/189	100%
	L45/287	100%
Panorama Project	M45/1254	100%
	ML45/1265	100%	Application
	P45/2910	100%
	P45/2911	100%

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Venturex Resources Limited : June 2018 Quarterly Activities Report