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VRX SILICA LIMITED Capital/Financing Update 2012

Sep 26, 2012

66022_rns_2012-09-26_2aaa1c25-2555-45e8-ac29-0de2cb14706d.pdf

Capital/Financing Update

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27 September 2012

ASX ANNOUNCEMENT

Exceptional High-grade Results Continue at Thaduna/Green Dragon Copper Project

Highlights:

ASX: VRX

  • Exceptional High-grade results continue in previously announced high-grade shoot under Thaduna pit

  • Significant copper sulphide intersections

  • Mineralisation extended at Green Dragon

  • Potential of the Thaduna/Green Dragon Copper Project still being realised

  • Maiden Resource estimate pending

Australian base metals company Ventnor Resources Limited ( ASX: VRX ) (“Ventnor” or ‘”the Company”) is delighted to announce more significant results from the previously announced high-grade zone of copper mineralisation at its flagship Thaduna/Green Dragon Copper Project, located 170km north of Meekatharra, Western Australia, in the Doolgunna district, and 40km east of Sandfire’s DeGrussa project.

Capital Structure

Shares on Issue 69.35 million Unlisted Options 25.4 million Market Cap @ 65 ¢ $79 million (Fully Diluted)

Cash on hand $5.4 million

(at 31 August 2012)

Corporate Directory

Paul Boyatzis

Non-Executive Chairman

Bruce Maluish

High grades intersected at Thaduna include:

  • 3 metres at 3.52% Cu

o including 0.64 metres at 13.76% Cu;

  • 13.3 metres at 2.50% Cu

o including 1.5 metres at 4.48% Cu and

o 5.3 metres at 4.53% Cu;

Managing Director

John Geary

Executive Director

Peter Pawlowitsch

Non-Executive Director

  • 8 metres at 4.12% Cu

  • including 5.0 metres at 6.28% Cu

High-grades intersected at Green Dragon include:

  • 17 metres at 2.95% Cu

o including 8.0 metres at 4.52% Cu and o 4.0 metres at 3.00% Cu

  • 5 metres at 4.44% Cu

  • including 3.2 metres at 6.60% Cu.

Company Projects

Thaduna/Green Dragon Copper project in the Doolgunna district, WA

Kumarina exploration project north of Meekatharra, WA

Warrawanda/Nickel Hills nickel project south of Newman, WA

Georgina Basin IOCG Project western Queensland

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The information included in this release covers an update from a previous announcement and new information from recent drilling at both Thaduna and Green Dragon.

Managing Director Bruce Maluish commented that these results continue to support the discovery of the high grade shoot under the Thaduna pit.

“These high-grade deeper intersections with significant copper sulphide minerals will be followed up with further drilling,” Mr Maluish said.

“We are also intersecting sulphides including bornite at the Green Dragon prospect with the potential of extending the identified mineralisation to the west, which is being followed up with additional drill holes.”

“We are encountering the highest grades and most significant sulphides in the project to date,” he said.

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The photo above is from THRC207 within a 10 metre sulphide zone from 283m to 293m downhole.

Sulphides pictured are semi-massive chalcopyrite and bornite within a quartz rich graphitic shale.

Core has been cut, samples are in the lab and results are pending in October 2012.

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Thaduna

Drilling to date at Thaduna comprises 218 RC holes for 28,142 metres with 44 Diamond Tails for 6,611 metres, totaling 34,753 metres.

On 1 August 2012 the results from a series of holes, THRC158-161, were announced, highlighting a new high-grade zone of strong bornite mineralisation at Thaduna. A series of holes were then planned to infill and extend this new mineralisation. Drilling is ongoing, but in a recently drilled hole, THRC195, on Section 1040m, semi-massive chalcopyrite in silicified greywacke has been intersected over 60m below the footwall of the Thaduna fault.

Pictured at right is the semi-massive chalcopyrite intersection in THRC195 from 324-324.64m down hole. This 0.64m of core assayed 13.76% Cu and is significant not just for the grade and the fact it lies >60m beyond the footwall of the Thaduna fault, but in the nature of the mineralisation. Invariably the high-grade mineralisation intersected at Thaduna is intimately associated with fault-hosted graphitic black shales. This high-grade intersection is hosted in a silicified greywacke with no graphite present and almost no contact metamorphism or alteration around the semi-massive veins. This is a new type of mineralisation encountered at Thaduna which may not be associated with the Thaduna fault-hosted mineralisation that has been intersected to date and may potentially add significant copper mineralisation to the resource. Multi-element assays are pending.

Thaduna Section 1040m, below shows the position of the intersection and has an interpretation showing it linked with a small footwall structure in THRC160 up dip. To further investigate the connection, a Geophysical survey crew have been mobilised to site to undertake a Down Hole Electromagnetic (DHEM) survey on this and other selected holes as well as a Fixed Loop Electromagnetic (FLEM) survey in the central Thaduna area. The purpose of these surveys is to test the inhole mineralised black shale and semi-massive chalcopyrite conductors to search for off-hole conductors which may indicate the presence of a larger massive sulphide mineralised structure.

Of particular note is that almost all sulphide mineralised intersections at Thaduna and Green Dragon, contain only copper sulphides, chalcopyrite/bornite/chalcocite, there are little or no other iron sulphides, and no base metal sulphides present. The core to the right therefore at a grade of 13.76% Cu is almost 40%, by mass, chalcopyrite.

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THRC195, 324-324.64m

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Thaduna Section 1040m

On section 1160m below, assays have been received for an additional hole THRC177, which further support the depth potential of the high-grade bornite mineralisation reported in that release. THRC177 intersected a high-grade +1% Cu zone of 5.0 metres @ 6.28% Cu, with individual 1-metre grades up to 12.77% Cu and 40g/t Ag, within black shales hosted in the Thaduna fault.

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Thaduna Section 1160m (Note: THRC165 intersection updated with lab assay; explanation below)

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Included in the announcement of 1 August 2012 Hand Portable XRF (HPXRF) preliminary results were reported for RC drill holes on section and in an intersection table; the assay results for these have been received and updated.

On each of the released drill sections, 800m, 1000m and 1160m, one RC hole on each was reported with HPXRF preliminary results to avoid unnecessary reporting delays due to laboratory turnaround. The final laboratory assays have been received and a comparison of the HPXRF vs. Laboratory Assay is tabulated below.

Laboratory Assay Result Laboratory Assay Result Laboratory Assay Result Laboratory Assay Result Preliminary HPXRF Result Preliminary HPXRF Result Preliminary HPXRF Result Preliminary HPXRF Result m x Cu%
Diff.
Hole Id From To DH m Cu% From To DH m Cu%
THRC174 222
227
5
0.40
241
247
6
0.77
222
227
5
0.28
240
247
7
0.61
146%
109%
THRC170 129
131
2
0.46
134
145
11
1.74
136
142
6
2.88
129
131
2
0.29
134
142
8
1.14
136
140
4
1.85
163%
210%
233%
THRC164 170
188
18
2.87
171
180
9
5.26
197
199
2
0.26
171
192
21
1.74
171
181
10
3.26
198
206
8
0.27
142%
145%
25%

The table above demonstrates the effectiveness of the HPXRF in supplying a robust estimate of the copper grades of RC samples. It is known by the Company that when using the procedures developed, the HPXRF typically underestimated the higher copper grades compared to the laboratory by between 125-200%, depending on the grade of the sample and its moisture content.

The long section below which models the grade accumulation, Cu% x metre, of all intersections in each hole, has been updated with all recent intersections which give further support to the development of the high-grade central zone.

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The inset below focuses on the high-grade shoot at depth where strong bornite mineralisation is reflected in high-grade assay results. The addition of these new holes reinforces the grades in this area.

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Below are the previously reported sections, 800m and 1000m, which have been updated with the Laboratory assays for the RC holes tabled above.

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Thaduna Section 800m

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Thaduna Section 1000m

Below is the current drill status plan at Thaduna showing the holes that have been completed and the diamond tails that are currently planned. All RC pre-collars have been completed for the currently planned 13 diamond tails to be drilled for a planned 3,200m. It is expected that this drilling will take until the end of October to complete. The current DHEM and FLEM surveys will be completed in the coming week followed by post-processing.

Additional targets generated from this survey may add to the current planned drilling.

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THRC207, ~150m south of THRC195, has intersected significant mineralisation over 50m into the footwall of the Thaduna fault. The mineralisation, pictured below, is the most significant core drilled to date at Thaduna. The intersection length is +10 metres down hole and is a mixture of strong chalcopyrite in graphitic shales and chalcopyrite and bornite in quartz infill. The chalcopyrite occurs as coarse vein and fracture fill and finely disseminated throughout the host rock mass. The bornite in quartz replaces chalcopyrite and is more purple in colour than the typical blue hue seen when it is associated with graphitic shales. Samples for this hole have been submitted to the laboratory and results are expected in October. The significance of this mineralisation is that in combination with THRC195 it adds another target below the Thaduna fault.

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A Geophysical survey crew has been mobilised to site to undertake a DHEM survey as well as a FLEM survey in the central Thaduna area which will include this hole THRC207. The purpose of this survey is to test the in-hole mineralised zone to search for off hole conductors which may indicate the presence of nearby larger massive sulphide mineralised structures.

Results included in the sections at Thaduna are tabulated below.

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Hole Id Northing Easting Az Dip From To DH m Cu% Ag ppm Type
THRC007
7175952
772759
94
-59
47.0
55.0
8.0
0.36
0.3
61.0
63.0
2.0
0.25
NSR
74.0
78.0
4.0
0.22
1.3
83.0
96.0
13.0
0.73
2.0
Incl.
93.0
96.0
3.0
2.02
6.2
RC Section 800m
THRC035
7175953
772768
91
-61
61.0
63.0
2.0
1.23
8.5
83.0
97.0
14.0
0.92
NSR
Incl.
83.0
85.0
2.0
1.59
1.5
Incl.
91.0
96.0
5.0
1.49
3.0
RC
THRC119
7175926
772686
60
-60
166.0
168.0
2.0
2.64
2.4
246.0
265.0
19.0
1.85
8.0
Incl.
250.6
255.9
5.3
1.39
4.7
Incl.
258.0
264.6
6.6
3.93
19.2
RC
NQ2
THRC130
7175989
772872
250
-60
81.0
90.0
9.0
1.07
NSR
Incl.
81.0
83.0
2.0
2.93
NSR
Incl.
86.0
88.0
2.0
1.25
NSR
98.0
100.0
2.0
0.23
NSR
104.0
110.0
6.0
1.63
2.3
Incl.
104.0
107.0
3.0
2.73
4.7
RC
THRC142
7175860
772723
35
-50
239.0
250.4
11.4
0.81
2.3
Incl.
242.0
243.0
1.0
1.59
5.9
Incl.
247.4
250.4
3.1
1.49
5.7
NQ2
THRC149
7175810
772619
35
-60
362.6
366.1
3.5
3.87
12.4
Incl.
362.6
365.7
3.0
4.39
14.3
NQ2
THRC174
7175857
772724
35
-60
222.0
227.0
5.0
0.40
0.6
(Updated with Lab Assay)
241.0
247.0
6.0
0.77
2.0
RC
THRC009
7176104
772673
92
-60
105.0
112.0
7.0
4.26
11.2
Incl.
106.0
111.0
5.0
5.70
15.2
RC Section 1000m
THRC018
7176114
772676
64
-55
49.0
58.0
9.0
0.60
0.3
75.0
91.0
16.0
2.72
6.6
Incl.
75.0
82.0
7.0
5.68
13.7
101.0
108.0
7.0
0.74
0.7
Incl.
101.0
103.0
2.0
1.41
1.3
RC
THRC037
7176106
772660
84
-60
101.0
103.0
2.0
0.25
0.6
114.0
126.0
12.0
1.53
2.7
Incl.
116.0
118.0
2.0
1.32
1.6
Incl.
121.0
124.0
3.0
4.47
9.7
RC
THRC112
7176105
772674
64
-61
67.0
69.0
2.0
0.67
NSR
72.0
74.0
2.0
0.34
NSR
94.0
101.0
7.0
4.22
11.3
Incl.
94.0
100.0
6.0
4.78
12.7
129.0
131.0
2.0
0.23
0.6
RC
THRC137
7176084
772639
50
-60
166.0
169.4
3.3
2.98
5.8
Incl.
168.0
169.4
1.3
6.68
14.4
NQ2
THRC170
7176051
772659
35
-50
129.0
131.0
2.0
0.46
0.0
(Updated with Lab Assay)
134.0
145.0
11.0
1.74
4.4
Incl.
136.0
142.0
6.0
2.88
7.8
RC
THRC159
7176066
772605
35
-60
246.0
256.0
10.0
1.16
1.3
Incl.
246.9
251.9
4.9
2.00
2.4
262.0
280.0
18.0
2.35
4.7
Incl.
263.0
278.0
15.0
2.74
5.6
295.4
297.0
1.6
0.37
NSR
313.0
327.4
14.4
4.22
13.5
Incl.
313.0
322.5
9.5
4.40
15.4
Incl.
325.0
327.4
2.5
7.36
19.9
334.3
347.3
13.0
3.57
6.6
Incl.
334.3
346.0
11.8
3.93
7.3
NQ2

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Hole Id Northing Easting Az Dip From To DH m Cu% Ag ppm Type
THRC010
7176182
772638
90
-60
39.0
41.0
2.0
0.42
-
57.0
59.0
2.0
0.41
0.9
69.0
71.0
2.0
0.28
0.4
79.0
95.0
16.0
3.12
8.5
Incl.
80.0
94.0
14.0
3.51
9.5
RC Section 1040m
THRC038
7176148
772658
91
-61
2.0
4.0
2.0
0.24
NSR
80.0
82.0
2.0
0.55
NSR
91.0
93.0
2.0
0.40
NSR
97.0
110.0
13.0
2.23
5.6
Incl.
100.0
105.0
5.0
5.10
13.4
RC
THRC039
7176149
772643
85
-61
101.0
106.0
5.0
0.35
NSR
And
112.0
115.0
3.0
0.69
1.0
And
120.0
127.0
7.0
2.37
5.2
Incl.
122.0
126.0
4.0
3.85
9.0
And
138.0
140.0
2.0
0.57
1.1
And
153.0
155.0
2.0
0.44
NSR
RC
THRC040
7176180
772620
90
-61
120.0
125.0
5.0
0.57
0.5
And
141.0
148.0
7.0
1.53
3.2
Incl.
141.0
147.0
6.0
1.74
3.7
And
158.0
160.0
2.0
0.52
NSR
RC
THRC041
7176179
772600
87
-60
153.0
158.0
5.0
1.01
1.8
Incl.
154.0
156.0
2.0
1.78
3.0
And
166.0
174.0
8.0
0.74
1.0
RC
THRC160
7176097
772585
35
-60
225.7
234.0
8.3
4.36
10.5
Incl.
228.0
233.0
5.0
7.00
17.6
+5% cut Incl.
229.7
232.3
2.7
11.72
29.7
267.0
268.6
1.6
1.66
NSR
NQ2
THRC195
7176071
772557
35
-60
254.0
258.0
4.0
0.31
NSR
(New Intersections)
282.0
287.0
5.0
1.50
3.2
Incl.
283.0
286.0
3.0
2.13
5.0
314.0
319.0
5.0
0.37
NSR
322.0
325.0
3.0
3.52
N/A
Incl.
324.0
324.6
0.6
13.76
N/A
NQ2
THRC114
7176278
772576
67
-60
125.0
186.6
61.6
2.18
0.1
Incl.
127.0
159.0
32.0
3.10
0.2
Incl.
170.0
175.0
5.0
1.30
NSR
Incl.
180.0
186.6
6.6
2.90
NSR
RC Section 1160m
THRC115
7176291
772595
63
-60
24.0
26.0
2.0
2.06
NSR
RC
THRC147
7176216
772380
35
-60
359.0
362.0
3.0
3.11
2.3
NQ2
THRC164
7176227
772557
35
-60
170.0
188.0
18.0
2.87
0.7
(Updated with Lab Assay)
Incl.
171.0
180.0
9.0
5.26
1.5
197.0
199.0
2.0
0.26
0.0
RC
THRC165
7176203
772524
35
-60
223.0
236.3
13.3
2.50
6.2
(New Intersections)
Incl.
226.0
227.5
1.5
4.48
10.7
Incl.
230.0
235.3
5.3
4.53
12.3
NQ2
THRC177
7176146
772420
35
-60
328.0
336.0
8.0
4.12
11.2
(New Intersections)
Incl.
331.0
336.0
5.0
6.28
17.8
NQ2

NSR – No Significant Result

Intersections are based on greater than 0.2% Cu, minimum of 2 metres down hole length for RC drilling and less for diamond core, maximum of 2 metres of internal dilution. All intersections are down hole lengths. Included intersections in bold are based on greater than 1.0% Cu, minimum 2 metres down hole length, maximum of 2 metres of internal dilution. Assays for Cu and Ag are determined by a four acid digest with either an ICP-OES or ICP-AA finish. Coordinates are MGA Zone50J GDA. “Type” indicates either a Reverse Circulation (RC) intersection or NQ2-sized diamond core sample.

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Green Dragon

Drilling at Green Dragon to date comprises 94 RC holes for 12,732 metres with 4 Diamond Tails for 807 metres and 2 HQ Metallurgical diamond holes for 389.6 metres for a total of 13,929m over the four phases of drilling that commenced in April 2011.

During May 2012 a DHEM survey was completed at Thaduna and Green Dragon. At Green Dragon the survey tested GRC090 on the western edge of the drilling and was conducted to follow up better results in this hole; also tested was GDRC080, with 17m @ 2.95% Cu, incl. 8m @ 4.52% and 4m @ 3.00% Cu.

Recently, on Section 774720mE, below, a diamond tail was completed on GDRC093 which intersected a number of strong black shale horizons within the sedimentary sequence representing the Green Dragon mineralisation. The highest grade zones showed good visible chalcocite replacing bornite and returned the high grades seen below on the section. An additional series of holes have been drilled to follow up these results to test for an extension to mineralisation west of the known resource at Green Dragon.

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The Geophysical survey crew will include this hole in a DHEM survey as well to test the inhole mineralised zone to search for further off hole conductors.

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Green Dragon Project Section 774720mE

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Below is the current drill hole location plan at Green Dragon.

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Results included in the sections at Green Dragon are tabulated below.

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Hole Id Northing Easting Az Dip From To DH m Cu% Ag ppm Type
GDRC007
7181042
774719
181
-59
73.0
75.0
2.0
0.22
NSR
139.0
141.0
2.0
0.56
NSR
RC Section 774720mE
GDRC008
7181059
774720
182
-61
87.0
89.0
2.0
0.47
NSR
RC
GDRC042
7181002
774720
177
-61
166.0
168.0
2.0
2.64
2.4
RC
GDRC043
7180997
774720
178
-60
80.0
82.0
2.0
0.38
NSR
RC
GDRC044
7181099
774720
180
-60
116.0
120.0
4.0
0.35
NSR
142.0
144.0
2.0
0.61
1.0
158.0
161.0
3.0
0.97
2.0
170.0
174.0
4.0
1.31
0.3
Incl.
170.0
172.0
2.0
2.20
0.5
RC
GDRC081
7181139
774720
180
-60
144.0
146.0
2.0
0.47
0.0
161.0
164.0
3.0
0.33
0.0
171.0
178.0
7.0
0.90
0.9
Incl.
172.0
174.0
2.0
2.10
2.0
185.0
188.0
3.0
0.51
0.0
RC
GDRC093
7181196
774720
200
-60
187.0
189.0
2.0
0.32
0.0
210.0
215.0
5.0
4.44
5.8
Incl.
211.0
214.2
3.2
6.60
9.0
220.0
223.0
3.0
2.97
4.4
Incl.
220.9
222.5
1.7
5.08
7.9
NQ2
GDRC080
7181136
774760
180
-60
135.0
137.0
2.0
0.54
1.0
163.0
180.0
17.0
2.95
3.5
Incl.
163.0
171.0
8.0
4.52
6.0
Incl.
175.0
179.0
4.0
3.00
2.8
RC
GDRC080
7181136
774760
180
-60
135.0
137.0
2.0
0.54
1.0
163.0
180.0
17.0
2.95
3.5
Incl.
163.0
171.0
8.0
4.52
6.0
Incl.
175.0
179.0
4.0
3.00
2.8
RC

NSR – No Significant Result

Intersections are based on greater than 0.2% Cu, minimum of 2 metres down hole length for RC drilling and less for diamond core, maximum of 2 metres of internal dilution. All intersections are down hole lengths. Included intersections in bold are based on greater than 1.0% Cu, minimum 2 metres down hole length, maximum of 2 metres of internal dilution. Assays for Cu and Ag are determined by a four acid digest with either an ICP-OES or ICP-AA finish. Coordinates are MGA Zone50J GDA. “Type” indicates either a Reverse Circulation, RC, intersection or NQ2-sized diamond core sample.

Competent Person’s Statement

The information in this release that relates to Exploration Results is based on information compiled by Mr David Reid who is a Member of the Australasian Institute of Mining and Metallurgy (MAusIMM). Mr Reid is an employee of Ventnor Resources Limited. Mr Reid has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the “2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Reid consents to the inclusion in this report of the matters based on information provided by him and in the form and context in which it appears.

For further information please contact:

Bruce Maluish, Managing Director [email protected] www.ventnorresources.com.au

Media: Warrick Hazeldine/Karen Oswald Purple Communications Tel: 0423 602 353 [email protected]

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ABOUT VENTNOR

Ventnor Resources is a base-metals focused explorer with copper targets at the historic Thaduna/Green Dragon project 170 km north of Meekatharra in Western Australia. Also in Western Australia, 40 km south of Newman, are the Warrawanda and Nickel Hills nickel projects and the extensive Kumarina exploration project 200 km north of Meekatharra. In Western Queensland, the Georgina Basin project lies within the Mt Isa Inlier which is well endowed with Iron Oxide Copper Gold (“IOCG”) systems and sulphide base-metal deposits. Ventnor also has holdings in the NT.

Known Copper and Nickel Mineralisation

The Thaduna/Green Dragon copper project has historic mine production; copper mineralisation has been confirmed with three phases of exploration drilling, with a fourth phase underway. The prospectivity of the Warrawanda and Nickel Hills nickel projects was increased when nickel copper gossans were identified in recent years. Further work is planned for late 2012.

Proven Management

The Ventnor directors have extensive experience in the management of publicly listed mining and exploration companies.

PROJECT LOCATIONS

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