quarterly activities report for period …2011/10/27 · 1 quarterly activities report for period...

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QUARTERLY ACTIVITIES REPORT FOR

PERIOD ENDING 30 SEPTEMBER 2011

Highlights

Pilbara VMS Bankable Feasibility Study Advances

Key Management Appointments Made

Large Increase In Sulphur Springs Underground Reserve

Excellent Metallurgical Test Work Results

New VMS Alteration System Drilled Near Mons Cupri

Further Exploration on Gold Projects in Tapajós Region,

Brazil

PILBARA VMS COPPER-ZINC PROJECT

Bankable Feasibility Study

The Company continued to advance the Pilbara VMS Copper-Zinc

Project Bankable Feasibility Study (BFS).

Figure 1: Pilbara VMS Project – Key Locations

ASX Announcement

ASX Code: VXR

Released: 27 October 2011

For further details Dr Tim Sugden

Managing Director

T: +61 8 6389 7400

M: +61 407 085 032 [email protected]

Board

Tony Kiernan

Chairman

Tim Sugden

Managing Director

Allan Trench

Non-Executive Director

John Nitschke

Non-Executive Director

Anthony Reilly

Executive Director

Liza Carpene

Company Secretary

Contact Details

Registered Office

Suite 3, Level 1

127 Cambridge Street

West Leederville WA 6007

T: +61 8 6389 7400

F: +61 8 9463 7836 [email protected]

www.venturexresources.com

ABN: 28 122 180 205

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The Company’s diverse Pilbara assets offer a range of options for their commercial

exploitation. Work to date on the BFS indicates the highest returns will be derived from a

project comprising:

A 1.3-1.5tpa treatment plant at Whim Creek adjacent to the former Straits heap leach project, with a tailings storage facility;

Open pits near Whim Creek providing approximately 650,000 tonnes of ore per annum;

An underground mine at Sulphur Springs yielding approximately 850,000 tonnes of ore per annum to be hauled by road to Whim Creek;

Infrastructure to support the operations, including accommodation villages, workshops,

offices, roads, water supply and power generation capacity at both Whim Creek and

Sulphur Springs;

Annual production is targeted at 20,000 tonnes of copper and 40,000 tonnes of zinc in

concentrates, together with significant silver and gold credits.

Management

Mr Ian Suckling joined the Company as Chief Operating Officer (COO) in early October. This

key appointment bolsters Venturex’s in-house expertise in anticipation of the transition of the

project to the conclusion of the BFS and beyond; through construction and commissioning;

and into production.

Mr Suckling is a mining engineer with over 30 years’ experience in operational, technical and

project roles. It is his responsibility to advance the feasibility study work to a conclusion that

enables the assets to yield maximum returns; to ensure that critical risks are identified and

mitigated; and to carry the project forward.

Mr John Cooper has been appointed to the position of Sustainability Coordinator, bringing his

expertise in environmental science and his broad experience of environmental management

and permitting.

Further appointments will be made to broaden and strengthen the team at appropriate

points during this process.

Key consultants employed on the BFS include RMDSTEM, who have been managing and

coordinating the study; and GR Engineering Services Pty Ltd, who have managed the

metallurgical test work preparatory to advancing the process design and engineering. Others

include Snowden, Gijima AST, Mining Solutions, and Outback Ecology. These experts have

made progress on mine design and scheduling; metallurgical test work, process design, and

engineering of infrastructure; environmental and permitting work; and cost and financial

modelling. In-house expertise, with support from consultants, has been used to advance

considerations of resources and reserves; organisation and personnel; logistics and supply;

and safety and risk management.

The finalised BFS is expected to be delivered in the first quarter of the 2012 calendar year.

Resources

Final assay results were received for all holes in the Mons Cupri metallurgical sampling

program. MCD007, the last diamond drill in the program intersected:

15.7 metres @ 3.21% Cu, 0.48% Zn, 58.1g/t Ag and 1.64g/t Au [4.67% CuEQ]

This intersection is approximately 125 metres down dip of previously reported intersections:

MCD003: 121.75 metres @ 1.24 % Cu [1.45% CuEQ],

including 23.7 metres @ 2.69% Cu [3.35% CuEQ], and

MCD004: 102.7 metres @ 1.69% Cu [2.42% CuEQ],

including 60.75 metres @ 2.47% Cu [3.57% CuEQ].

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The true width of the MCD007 intersection is approximately 15 metres. The mineralisation is

shallower (from 110.3 metres down hole), wider and higher grade than previous

interpretations.

The higher grades intersected in the central part of the proposed open pit will further

enhance the economics of the BFS.

Figure 2: Mons Cupri Cross Section 7690860mN

Mining Studies

Open Pits

Mining engineering and geotechnical work was conducted preparatory to revision of the

open pit designs at Mons Cupri and Whim Creek upon receipt of the updated Mons Cupri ore

block model that will incorporate information from the recent diamond drilling programme as

well as potentially including the Northwest Mons Cupri mineralisation. This redesign work is

planned for the December quarter.

Underground

The Company has now completed the first stage of mine design at the Sulphur Springs

Copper-Zinc Deposit, resulting in an increase in the JORC Reserve. Scope remains for this

reserve to increase further as designs are optimised and refined.

SULPHUR SPRINGS PROBABLE RESERVE

Domain Tonnes Cu % Zn % Pb % Ag g/t CuEQ %

Copper 4,255,000 2.1 3.7 0.2 17 3.1

Zinc 1,408,000 1.1 6.0 0.3 23 2.6

Total 5,663,000 1.9 4.3 0.2 18 3.0

The Reserve is based on an economic cut-off grade of 1.85% CuEQ1. Metal prices used in the cut-off grade calculation are US$3.57 for

copper; US$1.12 for zinc and US$32 for silver with a $A/$US exchange rate of 0.94. Stope recovery ranges from 72% to 95% and

average stope dilution is estimated to be 6.6% @ 0.3% CuEQ. Flotation recoveries based on locked-cycle test work are 94% for

copper, 89% for zinc and 45% for silver. Mining, haulage and processing costs are based on contractor estimates and peer

comparisons. TC/RC costs are based on long term forecasts.

1 CuEQ = Cu% + Zn% x 0.2017 + Ag (ppm) x 0.01076

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Sulphur Springs will be developed as an underground mine. Mine access will be via a single

decline, which, after 450 lateral metres, will split into a twin decline system to allow access to

the eastern and western ore lodes.

The ore deposit is shallow, making early ore production possible. First production will be from

the 1100 RL eastern level which is located approximately 155 vertical metres below the portal.

Capital development costs also benefit from the shallow depth.

The principal mining method will be a modified Avoca transverse stoping method with

25 metre level intervals. In narrower zones a longitudinal method will be used. Detailed

production scheduling is currently being undertaken and this is likely to result in a production

rate of approximately 850,000 tonnes per annum.

Cost figures have been estimated as a basis for planning work, but final detailed mining

operating and capital costs will be calculated later in the BFS, which will include the final

mine design; the complete mining schedule; and confirmation of cost drivers. Operating

costs are expected to be within the lower quartile given:

the high ore tonnage per vertical metre (average 27,000 and up to 35,000 tonnes per vertical metre);

the relatively favourable orebody geometry that should allow for low dilution and high ore recovery;

mining methods that should yield high productivities from a small fleet;

the competent ground conditions expected; and

the shallow depth, resulting in low underground haulage costs;

The ore from Sulphur Springs will be hauled to a proposed centralised processing facility at

Whim Creek.

Figure 3: Sulphur Springs stoping panels with proposed mine development

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Metallurgical Test Work and Process Design

The Company has received metallurgical test results for Sulphur Springs Copper-Zinc ore.

Confirmatory testing of the Sulphur Springs flotation regime culminated in a nine cycle locked

cycle flotation test which provided the following averages:

95% copper recovery to a clean concentrate grading 26.4% Cu with low lead and zinc

values, and

90% zinc recovery to a clean concentrate grading 58.9% Zn with a low iron assay of 5.9%

Fe.

MASS COPPER ZINC SILVER LEAD

PRODUCTS RECOVERED % Grade % % dist Grade

% % dist

Grade

ppm % dist

Grade

% % dist

Copper ReCl Conc 1-3 6.3 26.38 95.1 1.28 2.0 74 25.3 1.09 39.2

Zinc ReCl Conc 1-3 6.3 0.52 1.9 58.94 90.3 56 19.1 0.22 7.7

Zinc Rougher Tails 87.4 0.06 3.0 0.36 7.7 12 55.6 0.11 53.1

Calculated Head 100.0 1.75 100.0 4.11 100.0 18 100.0 0.18 100.0

Assay Head 1.82 4.00 18 0.17

The tabulated results are the average of final three cycles of the locked cycle test. The test was conducted with a grind size of P80

45µm using Whim Creek aquifer water and stainless steel/mild steel grinding media. The test was performed by AMDEL Mineral

Laboratories and designed and supervised by GR Engineering Services.

BFS metallurgical test work is now focused on the Mons Cupri and Whim Creek VMS deposits,

which have several geometallurgical domains. Various batch and blended ore treatment

processes are being examined in order to determine the approaches that will result in the

best recoveries and yield marketable concentrates of maximum value.

Design of the Whim Creek processing facility is to follow the metallurgical test work, with the

plant being scaled to handle the annual combined production from the Sulphur Springs

underground mine (0.85 million tonnes) and the Mons Cupri and Whim Creek open pits

(approximately 0.65 million tonnes).

The first stage of the tailings dam design has been completed. A tailings dam site has been

selected and a design scoped to accommodate and impound the tailings anticipated from

the treatment of all reserves.

Infrastructure

Substantial progress has been made on accommodation facilities, power supply and other

infrastructure requirements. The proximity of the operations to existing infrastructure and the

consequent incremental nature of additions is a key source of advantage for the Pilbara VMS

Copper-Zinc Project over comparable greenfield projects.

Environment and Permitting

Surveys of fauna, flora and ecosystems have been completed at Sulphur Springs.

Preliminary calculations have been made of water demand in order to inform work on water

exploration, drawdown testing and assessment of the adequacy of existing licences.

Hydrogeological studies at the proposed mining sites has been undertaken in order to

establish dewatering plans.

Relevant authorities including DMP, EPA, DEC and DoW have been consulted regarding

environmental assessment processes and related technical issues. Stakeholder consultation

has proceeded with a range of local government and other bodies in the Pilbara Region.

Labour Cost Study

Hays Resources were engaged to conduct a labour cost study for the BFS. This information,

inclusive of on-costs, anticipated salary growth rates and rosters has now been incorporated

into a draft financial model.

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Finance

Discussions are continuing with a number of national and international banks regarding the

provision of debt funding for the construction of the Pilbara VMS Copper-Zinc Project.

Project Timetable

The Company is on track to complete the BFS in the first quarter of 2012. Subject to Board

approval, finance and permitting, development is anticipated to commence in mid-2012

with first production towards the end of 2013.

Upside to Base Case BFS

In parallel to the Base Case BFS, several upside options are being evaluated. These include:

expansion of the Sulphur Springs underground reserve and production rate,

fast track development of the high grade Salt Creek Cu-Zn-Pb deposit for possible

production of direct shipping ore,

production of a lead (silver-gold) concentrate, and

production of a pyrite concentrate.

EXPLORATION

Exploration - Pilbara VMS Project

Mons Cupri South (Whim Creek Site)

During the quarter the Company reported highly encouraging results from exploration drilling

underway approximately 1km to the south of the existing Mons Cupri Copper-Zinc deposit.

Eleven RC/diamond holes (4,201.4 metres) were drilled to test induced polarisation (IP)

anomalies associated with the target Mons Cupri horizon.

Drilling has revealed that the dip of the Mons Cupri stratigraphy is shallower than expected

providing a large area of several square kilometres of near-surface exploration potential. The

thickness and intensity of alteration and abundance of stockwork and disseminated sulphide

mineralisation (mainly pyrite, chalcopyrite and sphalerite) intersected generally increases to

the south, suggesting the presence of a second mineralising centre in this direction.

The Company is highly encouraged by the broad and shallow extent of the target horizon –

and also by the extent of anomalous copper-zinc mineralisation revealed by the drilling thus

far. With a broad average drill spacing of approximately 300 metres, there remains great

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potential for a new discovery similar in dimensions to the Mons Cupri deposit. Significant

mineralisation in completed holes to date includes:

VWD001 intersected 2.0 metres of visible (~5 vol%) chalcopyrite and sphalerite mineralisation in the hanging wall Rushall Slate from 39 metres.

Hole VWD004 intersected 23 metres (from 170.4 metres) of disseminated pyrite (~3-7 vol%)

with minor chalcopyrite-sphalerite (<1 vol%) mineralisation associated with strong

chlorite-sericite alteration within the Mons Cupri unit, typical of the known Mons Cupri feeder system.

Hole VWD005 intersected 1.5 metres (from 175.5 metres) of disseminated chalcopyrite,

sphalerite and galena (~2-5 vol%) associated within chlorite-sericite alteration on the Rushall Slate – Mons Cupri unit contact.

Hole VWD010 intersected strong quartz-chlorite-sericite alteration in the Mons Cupri unit,

just below the Rushall Slate contact containing a narrow zone (0.2 metres from 208.2 metres) of strong stockwork chalcopyrite mineralisation (~5 vol%) (Photo 1).

Hole VWD011 intersected a 26.7 metre zone of strong chlorite-sericite alteration from

285.3 metres,) containing moderate disseminated pyrite (~3-6 vol%) followed by 4.4

metres (from 294.3 metres) of disseminated sphalerite and galena (~2-5 vol%)

mineralisation (Photo 2). A second 2.3 metre thick zone of disseminated sphalerite

mineralisation (~2-5 vol%) was intersected at 312 metres.

Hole VWD013 intersected a quartz reef from 276.1 to 282.3 metres containing minor

disseminated chalcopyrite, sphalerite and galena. Deeper in the hole at 460.95 metres a

30 cm wide zoned body of massive sphalerite and galena with minor chalcopyrite was

intersected.

Assay results for all holes are pending.

A downhole geophysics program undertaken concurrently with the drilling program has

highlighted a number of targets within the broader alteration zone.

Figure 4: Mons Cupri South West Exploration Area

(Cp = Chalcopyrite, Sp = Sphalerite)

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Figure 5: Cross Section on Mons Cupri to South West Exploration Area

Photo 1: Chalcopyrite intersected in exploration hole VWD010 - 0.2m from 208.2m

Photo 2: Disseminated sphalerite in VWD011 - 4.4m from 294.3m

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Sulphur Springs

At Sulphur Springs, the primary target area is the Bledisloe anomaly, located approximately

500 metres to the west of the main deposit. Previous drilling intersected stringer style copper

(SSD050: 16.9 metres @ 0.47% Cu) which is often peripheral to massive sulphide systems.

Diamond drilling commenced on 26 October 2011.

Figure 6: Long Section of the Sulphur Springs VMS Horizon showing the large Bledisloe target area

Gold Exploration - Brazil

During the September quarter, Venturex’s wholly owned subsidiary, CMG Mineração Ltda

(CMGM), concentrated its exploration activities on auger drilling at the Grande Canaã

Project and Serra Verde Project in the Tapajós district and completion of the aircore drilling

program at the Rio Pombo Project in Northern Mato Grosso.

Figure 7: Gold projects controlled by CMG Mineração Ltda in Mato Grosso and Pará, Brazil

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Rio Pombo Project

A program of 77 aircore holes for 1,242 metres was completed in August. In total, 481

samples were collected and analysed for gold by fire assay at Acme Laboratories. The rig

was generally unable to penetrate unweathered rock and the primary zone is considered to

be inadequately tested.

The best interval was 8 metres @ 4.37g/t Au from surface, but other results were generally low

grade. The list of significant intercepts below shows the intervals greater than 0.2g/t Au.

The drilling has also highlighted some areas of the project requiring another phase of surface

sampling to extend the soil grid, particularly to the west and to the south west.

Grande Canaã Project

Auger testing of the valley where garimpo sluicing activities uncovered quartz veining did not

return any significant results. An area adjacent to a channel sample result of 10 metres @

1.27g/t Au will be further evaluated by excavator trenching upon the granting of pending

environmental licences.

An area in the south of EL850079 was tested based on visually mineralised quartz veins. First

pass results, including a 13g/t Au rock chip sample and 0.21g/t Au auger sample, are

considered very encouraging. This area will be revisited with the aim of defining mineralised

veins and structures. Auger drilling may also be undertaken in November to define larger

regional structures.

Nova Canaã Project

Reconnaissance samples were collected from recent shallow workings. Results include a

channel sample of 5m @ 3.3g/t Au within a mineralised sericitic shear zone and a quartz vein

grab sample grading 8.15g/t Au. Initial results are encouraging and further sampling work will

be undertaken in November to ascertain the extent of the mineralisation.

Photos 3 & 4: Nova Canaã Project. 5m channel sample – 5m @ 3.33g/t Au and sericite schist sample 0.23g/t Au

Hole IDMax

DepthDip

Collar

Mag Az

WGS 84

East

WGS 84

NorthFrom To Intercept

11RPAC001 18 -60 155 745936.0 8824809.00 17 18 1m @ 3.68g/t

11RPAC012 20 -60 155 745845.4 8824668.82 0 4 4m @ 0.6g/t

11RPAC014 17 -60 155 745847.0 8824667.00 2 4 2m @ 2.9g/t

11RPAC031 6 -60 155 745958.0 8824342.00 4 6 2m @ 0.24g/t

11RPAC040 17 -60 155 745530.0 8823922.00 12 16 4m @ 0.22g/t

11RPAC044 6 -60 155 745148.0 8824583.00 0 4 4m @ 0.6g/t

11RPAC050 22 -60 155 744399.0 8824849.00 0 8 8m @ 4.37g/t

11RPAC069 26 -60 155 746371.0 8824087.00 8 12 4m @ 0.21g/t

11RPAC071 25 -60 155 746320.0 8824196.00 0 4 4m @ 0.4g/t

11RPAC075 13 -60 155 745172.7 8824564.92 8 13 5m @ 0.23g/t

0 43 4m @ 0.32g/t

11RPAC076 22 -60 155 745167.5 8824573.19 0 2 2m @ 0.4g/t

11RPAC077 16 -60 155 745941.9 8824789.86 0 4 4m @ 0.3g/t

12 14 2m @ 0.57g/t

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Serra Verde Project

The main activities at the Serra Verde project were line clearing, gridding and auger drilling.

A 400 x 100 metre grid was established in order to undertake geochemical auger sampling in

the priority exploration areas between the Fofoca Velha, Doca and Paraiba veins. These

areas have potential for high grade veins or broad stockwork mineralisation. During the

gridding and clearing, further mapping and rock chip sampling will also be undertaken to

better define veins and structures. It is expected that about 72 auger holes will be completed

in the first pass.

Photos 5 & 6: Serra Verde Project. Shaft access to high grade vein and recent geochemical auger samples

Planned Exploration Activities in Brazil in the December Quarter

Following the Serra Verde program which is expected to be complete at the end of October,

the focus will return to Grande Canaã and Castelo de Sonhos to follow up on the initial auger

drilling results.

The CMGM exploration team continues to assess high quality new project areas within the

Tapajós region, and aim to strategically increase the portfolio of advanced exploration assets

which have been subject to significant garimpeiro activity and/or historical gold production.

CORPORATE

Securities Information

7,500,000 unlisted Employee Options were issued as per the ASX announcement on

10 October 2011.

The Company’s current capital on issue at 27 October 2011 stands at:

1,087,242,726 ordinary fully paid shares

67,447,368 unlisted options

Board and Management Changes

Mr John Nitschke, a mining engineer with over 35 years experience in the mining industry,

including substantial experience operating at senior management levels in large resource

companies, was appointed to the Board as a Non-Executive Director on 30 August 2011.

Mr Michael Mulroney resigned as a Non-Executive Director on 4 October 2011 to focus on

other business activities.

The Board structure now consists of:

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The Executive Management Team (EMT) was expanded with the appointment of Mr Ian

Suckling as the Chief Operating Officer on 10 October 2011.

The EMT now consists of Tim Sugden, Anthony Reilly, Ian Suckling and Liza Carpene.

Financial Information

The Company’s net cash position at the date of this report is ~$5.5 million (excluding

performance bonds) and it has no debt.

TIM SUGDEN

Managing Director

For further information, please contact:

Tim Sugden / Liza Carpene – Venturex Resources Limited on (08) 6389 7400

Tony Dawe – Professional Public Relations on 0405 989 743 / (08) 9388 0944

About Venturex Resources Limited

Venturex Resources Limited (ASX: VXR) is an exploration and development company with a portfolio of VMS projects

in the Western Pilbara. Venturex owns or controls the Whim Creek Copper Mine and all associated mining leases and

exploration tenements including copper, zinc, lead, silver and gold resources at Whim Creek, Mons Cupri, Salt Creek,

Liberty‐Indee and Sulphur Springs. Other assets include the Whim Creek Hotel, an accommodation village, crushing

circuit and various mining infrastructure. The Company is committed to a strategy of consolidating VMS projects in

the Western Pilbara and developing Whim Creek as a centralised processing hub. Venturex is also exploring for gold

in Brazil through its wholly owned subsidiary CMG Mineração Ltda.

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TABLE 1: CURRENT DRILL HOLE INFORMATION

Hole ID

Easting

(m)

Northing

(m)

RL

(m)

Depth

(m) Dip Azimuth Comments

VWD001 584200 7690001 61 370 -60 360 Assays pending








VWD012 583184 7689951 62 420.9 -70 360 Assays pending

VWD014 583575 7690111 65.7 415.3 -60 360 Assays pending

VWD013 583413 76894070 60 558.4 -70 360 Assays pending MGA Zone 50 (GDA94)

TABLE 2: METALLURGICAL TEST WORK ASSAY RESULTS AND COLLAR COORDINATES

Hole ID Domain From To Metres CuEQ

%

Cu

%

Zn

%

Pb

%

Ag

g/t

Au

g/t

MCD003 HG Zn/Cu 80.25 82.9 2.7 3.74 2.16 2.31 1.68 62.74 0.18

HG Cu 82.9 104 21.1 3.30 2.76 0.52 0.14 28.46 0.29

Sub-Total HG Zn/Cu 80.25 104 23.8 3.35 2.69 0.72 0.32 32.28 0.28

Upper Stringer 104 158 54.0 1.22 1.12 0.04 0.01 8.17 0.05

Lower Stringer 158 202 44.0 0.85 0.75 0.06 0.03 6.86 0.04

Total Stringer 104 202 98.0 1.05 0.95 0.05 0.02 7.58 0.05

Total Zones 80.25 202 121.8 1.45 1.24 0.18 0.08 12.40 0.09

MCD004 HG Zn/Pb 51.5 52.65 1.2 7.45 0.22 13.46 7.98 196.74 0.63

HG Cu/Zn 52.65 113.4 60.8 3.57 2.47 1.98 0.49 42.74 0.27

Total Stringer 113.4 155.3 41.9 0.76 0.56 0.27 0.12 9.07 0.06

Total Cu Zones 52.65 155.3 102.7 2.42 1.69 1.28 0.34 29.00 0.18

MCD005 Zn/Pb 124.5 135 10.5 0.81 0.06 1.68 0.59 17.55 0.07

HG Zn/Pb 129.2 135 5.8 0.95 0.01 2.18 0.82 18.50 0.08

MCD006 HG Cu 112.25 126 13.8 2.56 2.04 0.54 0.22 27.01 0.23

Stringer 126 145.7 19.7 1.04 0.86 0.22 0.06 9.35 0.08

MCD007 HG Cu 110.3 126 15.7 4.67 3.21 0.48 0.22 58.15 1.64

Stringer 126 129 3.0 1.27 0.64 0.91 0.40 25.67 0.20

Hole ID Easting Northing RL Depth Dip Azimuth

MCD003 583888 7690843 89 229 -61 270

MCD004 583878 7690885 92 175 -65 270

MCD005 583720 7690824 75 155 -61 027

MCD006 583720 7690824 75 192 -55 060

MCD007 583720 7690824 75 160 -73 012

Competency Statements

The information in this report that relates to Exploration Results (Australia) and Mineral Resources (including Whim Creek and

Sulphur Springs) is based on information compiled by Mr Steven Wood and Dr Timothy Sugden BSc PhD, who are Members of

the Australasian Institute of Mining and Metallurgy. Mr Wood and Dr Sugden are fulltime employees of Venturex Resources

Limited and have sufficient experience relevant to the style of mineralisation, type of deposit under consideration and to the

activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the “Australasian Code

for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Wood and Dr Sugden consent to the inclusion

in the report of the matters based on their information in the form and context in which it appears.

The information in this report that relates to Ore Reserves is based on information compiled or reviewed by Mr David Clark

who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Clark is a full time employee of RMDSTEM Limited

and has sufficient experience relevant to the style of mineralisation, type of deposit under consideration and to the activity

being undertaken 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 Clark consents to the inclusion in the report of the matters

based on his information in the form and context in which it appears.

The information in this report that relates to Brazil Exploration Results is based on information compiled by Mr Karl Weber who

is a Member of the Australasian Institute of Mining and Metallurgy. Mr Weber is a fulltime employee of CMG Mineração Ltda,

a wholly owned subsidiary of Venturex Resources Limited, and has sufficient experience relevant to the style of

mineralisation, 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 Weber consents 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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Appendix 1 - Resources & Reserves as at 30 September 2011

Ind

ica

ted

967

1.4

1.2

0.2

8.8

0.1

1.8

Pro

ba

ble

687

1.7

1.1

0.2

8.9

0.1

2.1

Infe

rre

d4

0.5

2.3

0.6

13.9

0.1

1.1

Su

b-t

ota

l9

72

1.4

1.2

0.2

8.8

0.1

1.8

Su

b-t

ota

l6

87

1.7

1.1

0.2

8.9

0.1

2.1

Me

asu

red

1,2

73

1.5

1.7

0.8

41.1

0.3

2.4

Ind

ica

ted

3,2

86

0.7

1.1

0.4

17.7

0.1

1.2

Pro

ba

ble

2,8

15

1.1

1.8

0.8

32.1

0.2

1.9

Infe

rre

d48

0.7

0.6

0.1

9.0

0.0

0.9

Su

b-t

ota

l4

,60

70

.91

.30

.52

4.1

0.1

1.5

Su

b-t

ota

l2

,81

51

.11

.80

.83

2.1

0.2

1.9

Zn

In

dic

ate

d475

0.2

14.1

4.4

107.1

0.5

6.4

Pro

ba

ble

361

0.2

12.8

4.2

109.2

0.5

6.0

Ind

ica

ted

423

3.7

0.9

0.1

2.7

0.1

4.0

Pro

ba

ble

236

4.1

1.3

0.2

3.2

0.1

4.6

Infe

rre

d105

3.5

0.1

0.0

1.5

0.0

3.6

Zn

/Cu

Su

b-t

ota

l1

,00

32

.07

.02

.15

2.0

0.3

5.1

Su

b-t

ota

l5

97

1.8

6.6

2.1

53

.10

.34

.8

Ind

ica

ted

453

2.2

4.5

0.4

42.0

0.9

4.0

Pro

ba

ble

361

2.2

4.5

0.4

40.7

0.9

4.0

Infe

rre

d204

1.0

1.8

0.2

22.4

0.4

1.8

Su

b-t

ota

l6

57

1.8

3.7

0.3

35

.90

.83

.3Su

b-t

ota

l3

61

2.2

4.5

0.4

40

.70

.94

.0

Me

asu

red

4,2

60

1.7

3.4

0.2

18.2

0.0

2.5

Ind

ica

ted

9,6

21

1.3

3.8

0.2

18.2

0.0

2.2

Pro

ba

ble

5,6

63

1.9

4.3

0.0

18.0

0.0

3.0

Infe

rre

d5,1

54

0.7

2.0

0.2

13.9

0.0

1.3

Su

b-t

ota

l1

9,0

35

1.2

3.2

0.2

17

.00

.02

.05

,66

31

.94

.30

.01

8.0

0.0

3.0

Me

asu

red

5,5

33

1.6

3.0

0.3

23.4

0.1

2.5

Ind

ica

ted

15,2

26

1.2

3.3

0.4

20.6

0.1

2.2

Pro

ba

ble

10,1

23

1.7

3.6

0.4

25.0

0.1

2.8

Infe

rre

d5,5

15

0.8

1.9

0.2

13.9

0.0

1.3

Tota

l Su

lph

ide

Re

sou

rce

s2

6,2

74

1.2

3.0

0.3

19

.80

.12

.1To

tal Su

lph

ide

Re

serv

es

10

,12

31

.73

.60

.42

5.0

0.1

2.8

MIN

ER

AL

RESO

UR

CES

OR

E R

ESER

VES

Loc

atio

nTo

nn

es

x 1

,00

0

Cu

wt%

Zn

wt%

Pb

wt%

Ag

g/t

Au

g/t

Cu

EQ

wt

%

Salt Creek

Cu

Liberty-

Indee

Cu

EQ

wt

%

Whim

Creek Mons Cupri

Ton

ne

s

x 1

,00

0

Cu

wt%

Zn

wt%

Pb

wt%

All Locations

JO

RC

Cla

ssific

atio

n

JO

RC

Cla

ssific

atio

n

Sulphur

Springs

Ag

g/t

Au

g/t

No

te: F

ull

Re

sou

rce

an

d R

ese

rve

Est

ima

tio

n P

ara

me

ters

are

co

nta

ine

d in

th

e 2

01

1 A

nn

ua

l R

ep

ort

(p

ag

es

15

-16).

Mo

ns

Cu

pri/W

him

Cre

ek/L

ibe

rty-I

nd

ee

: C

uEQ

= C

u +

(Zn

X 0

.19

47

) +

(A

g X

0.0

11

04)

+ (

Au

X 0

.48

3)

Sa

lt C

ree

k:

Cu

EQ

= C

u +

(Zn

X 0

.28

) +

(P

b X

0.2

6)

+ (

Ag

X 0

.00

8)

+ (

Au

X 0

.51

3)

Su

lph

ur

Sp

rin

gs:

C

uEQ

= C

u +

(Zn

X 0

.20

17

) +

(A

g X

0.0

10

76)

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Appendix 5B

Mining Exploration Entity Quarterly Report

+ See chapter 19 for defined terms. 17/12/2010 Appendix 5B Page 1 of 5

Rule 5.3

Appendix 5B – 1st Quarter 2012


Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10, 17/12/10.

Name of Entity:

Venturex Resources Limited (ASX Code: VXR)

ABN: Quarter Ended ('Current Quarter')

28 122 180 205 30 September 2011

Consolidated Statement of Cash Flows

Current Quarter

$A’000

Year to Date (3 months) $A’000

Cash Flows Related to Operating Activities

1.1 Receipts from product sales and related

debtors

- -

1.2 Payments for: (a) exploration and evaluation(1)

(b) development (c) production (d) administration

(2,404) - -

(610)

(2,404) - -

(610) 1.3 Dividends received - - 1.4 Interest and other items of a similar nature

received

204

204

1.5 Interest and other costs of finance paid - - 1.6 Income taxes paid - - 1.7 Other (increase in bank guarantees) (18) (18) Other (stamp duty) (1,204) (1,204)

Net Operating Cash Flows (4,032) (4,032)

Cash Flows Related to Investing Activities

1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets

- -

(11)

- -

(11)

1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets

- - -

- - -

1.10 Loans to other entities - - 1.11 Loans repaid by other entities - - 1.12 Other - -

Net Investing Cash Flows (11) (11)

1.13 Total Operating and Investing Cash Flows (carried forward)

(4,043) (4,043)

Venturex Resources Limited has five controlled entities incorporated in Australia, (Venturex Pilbara Pty Ltd, Venturex Sulphur Springs Pty Ltd, Jutt Resources Pty Ltd, Juranium Pty Ltd and CMG Gold Ltd) and one controlled entity incorporated in Brazil, CMG Mineração Ltda. The Consolidated Statement of Cash Flows covers Venturex Resources Limited and its controlled

entities.

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Appendix 5B



Current Quarter

$A’000

Year to Date (3 months) $A’000

1.13 Total Operating and Investing Cash Flows (brought forward)

(4,043) (4,043)

Cash Flows Related to Financing Activities

1.14 Proceeds from issues of shares, options, etc. - - 1.15 Proceeds from sale of forfeited shares - - 1.16 Proceeds from borrowings - - 1.17 Repayment of borrowings - - 1.18 Dividends paid - -

1.19 Other – Capital raising costs - -

Net Financing Cash Flows - -

Net Increase / (Decrease) in Cash Held

(4,043)

(4,043)

1.20 Cash at beginning of quarter/year to date 10,600 10,600 1.21 Exchange rate adjustments to item 1.20 - -

1.22 Cash at End of Quarter (2)

6,557 6,557

(1)Actual exploration and evaluation includes $970k for the Bankable Feasibility Study.

(2)At 30 September 2011 Venturex Resources Ltd had $1.6m utilised to cash back environmental bonds and rental guarantees that

does not appear in the cashflow

Payments to Directors of the Entity and Associates of the Directors

Payments to Related Entities of the Entity and Associates of the Related Entities

Current Quarter $A'000

1.23 Aggregate amount of payments to the parties included in item 1.2 199

1.24 Aggregate amount of loans to the parties included in item 1.10 -

1.25 Explanation necessary for an understanding of the transactions

Item 1.23 includes aggregate salaries, directors’ fees, corporate advisory & consulting fees at normal commercial rates

Non-Cash Financing and Investing Activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

-

2.2 Details of outlays made by other entities to establish or increase their share in projects in

which the reporting entity has an interest

-

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Appendix 5B



Financing Facilities Available

Add notes as necessary for an understanding of the position.

Amount Available $A’000

Amount Used $A’000

3.1 Loan facilities - -

3.2 Credit standby arrangements - -

Estimated Cash Outflows for Next Quarter

$A’000

4.1 Exploration and evaluation 850(3)

4.2 Development -

4.3 Production -

4.4 Administration 900

Total:

1,750

(3)Estimated exploration and evaluation includes $700k for the Bankable Feasibility Study.

Reconciliation of Cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.

Current Quarter $A’000

Previous Quarter $A’000

5.1 Cash on hand and at bank 53 130

5.2 Deposits at call 6,504 10,470

5.3 Bank overdraft - -

5.4 Other (provide details) - -

Total: Cash at End of Quarter (item 1.22) 6,557 (3)

10,600 (3)

(3)

At 30 September 2011 Venturex Resources Ltd had $1.6m utilised to cash back environmental bonds and rental guarantees that does not appear in the cashflow

Changes in Interests in Mining Tenements

Tenement Reference

Nature of Interest (note 2)

Interest at Beginning of Quarter

Interest at End of Quarter

6.1 Interests in mining tenements relinquished, reduced or lapsed

Serra Verde 850336

Under Application

100%

0%

6.2 Interests in mining tenements acquired or increased

Serra Verde 850173 850336

850359

850564

Granted Granted

Agreement to Acquire -Granted Granted

100% 100%

100%

100%

100% 100%

100%

100%

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Appendix 5B



Issued and Quoted Securities at End of Current Quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

Total Number Number Quoted Issue Price Per Security

(cents) (see note 3)

Amount Paid Up Per

Security (cents)

(see note 3)

7.1 Preference +Securities (Description)

- -

7.2 Changes During Quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions

7.3 +Ordinary Securities

1,087,242,726 1,087,242,726

7.4 Changes during quarter (a) Increases through issues

(b) Decreases through returns of capital, buy-backs

7.5 +Convertible debt securities (Description)

7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted

7.7 Options (Description and Conversion Factor) VXRAO VXRAI VXRAK VXRAD

21,000,000 12,000,000 18,947,368

8,000,000

- - - -

Exercise Price

10 cents 15 cents 9.5 cents 15 cents

Expiry Date 12 Jan 2012 6 Dec 2012 31 Jan 2012 28 Nov 2013

7.8 Issued during quarter

Exercise Price

Expiry Date

7.9 Exercised during quarter

7.10 Expired during quarter

Exercise Price

Expiry Date

7.11 Debentures (totals only)

7.12 Unsecured notes (totals only)

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Appendix 5B



Compliance Statement 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5). 2 This statement does give a true and fair view of the matters disclosed. Sign Here: ______________________ Company Secretary Date: 27 October 2011 Print Name: Liza Carpene

Notes

1 The quarterly report provides a basis for informing the market how the entity’s activities have

been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining

tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1

and 7.3 for fully paid securities.

4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral

Resources and AASB 107: Statement of Cash Flows apply to this report.

5 Accounting Standards ASX will accept, for example, the use of International Financial

Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

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