Quarterly Report

for the period ending 30 September 2015

Highlights

• Completion of successful reconnaissance exploration programs over recently granted prospects in Thailand

  
  

• Venture identifies high grade copper/lead/silver system at the Thali Prospect in Thailand

  
  

• On-going cost cutting measures sees Venture maintain a strong cash position of $3.2m

  
  

• Riley DSO Project on hold but remains ready and well positioned should future iron ore prices support a production decision

  
  

  Introduction

  The September Quarter saw Venture complete reconnaissance exploration over the Company's first two granted prospects namely 'Pak Yang' and 'Thali'. The two prospects are located in the highly prospective Loei Belt, in north eastern Thailand, host to world class copper and gold deposits.

  
  

  During the Quarter the Company received surface sampling results from the Thali Prospect. Results from the initial programs have delineated a significant and high grade copper/lead/silver system. The newly identified system hosts particularly high grade silver and lead, with grades peaking at 1,860g/t and 27% respectively. The mineralized zone has been defined over 300m of strike and remains open to the north and south.

  
  

  Venture continues to implement a series of substantial cost cutting measures including up to a 60% voluntary salary reductions for directors, management and staff. This strategy has seen the Company maintain a strong financial position, with cash at the end of the Quarter equating to $3.2m.

  
  

  During the Quarter the Company continued to keep the Riley DSO Project on hold due to the sharp fall in iron ore prices over the past 12 months. However, the Company has completed extensive pre-production work at the Riley Project affording Venture the opportunity to commence production, on relatively short notice, should future iron ore prices support a production decision.

  
  

  Venture Minerals Limited

  PO BOX 8234 Subiaco East WA 6008 288 Churchill Avenue Subiaco WA 6008

  Telephone: +61 8 9381 4222

  Fax: +61 8 9381 4211

  ACN 119 678 385

  ABN 51 119 678 385

  
  

  Venture Fast Facts

  ASX Code: VMS

  Shares on Issue: 287 million Market Cap: $6.3 million Current Cash: $3.2 million (30 Sept 2015)

  
  

  Recent Announcements

  Venture confirms high grade copper/lead/silver | Thali Prospect (22/10/2015)

  
  

  First pass exploration identifies rock chip assay 296g/t Silver

  | Thali Prospect, Thailand (08/09/2015)

  
  

  Riley DSO Project Approvals Upheld (26/06/2015)

  
  

  Copper Prospects Granted in Southeast Asia (18/05/2015)

  
  

  Exploration success defines additional target | Mt Lindsay (19/11/2014)

  
  

  EM defines New Targets (23/10/2014)

  Riley DSO Project Update (19/08/2014)

  Mining Lease Granted - Mt Lindsay Tin/Tungsten Project (03/07/2014)

  Riley DSO Project Update (11/06/2014)

  Riley DSO Project Appeal Lodged to Federal Court

  Judgement (06/06/2014)

  Riley DSO Project

  Federal Court Challenge Dismissed (16/05/2014)

  Federal Environment Minister Approves Riley DSO Project (05/08/13)

  Capital Items Secured and Mining Contract Signed

  (02/07/13)

  Riley DSO Project Receives EPA Approval and Conditions (16/05/13)

  
  

  W: www.ventureminerals.com.au E: [email protected]

  
  

  Mt Lindsay Project, North West Tasmania

  Introduction

  The Mt Lindsay Project (148km2) is located in north-western Tasmania (refer to Figure 1) within the contact metamorphic aureole of the highly perspective Meredith Granite. The project sits between the world class Renison Bell Tin Mine (Metals X Ltd/Yunnan Tin Group>231kt of tin metal produced since 1968) and the Savage River Magnetite Mine (operating for > 45 years, currently producing approximately 2.5 Mtpa of iron pellets). Mt Lindsay has excellent access to existing infrastructure including hydro-power, water, sealed roads, rail and port facilities.

  
  

  Venture owns 100% of the tenure that hosts both the Mt Lindsay Tin-Tungsten Deposit and all of the surrounding prospects.

  
  

  Figure 1 | Location Map for Mt Lindsay Tin-Tungsten Deposit/Riley DSO Deposit/Livingstone DSO Deposit

  
  

  
  

  Since commencing exploration on the project in 2007, Venture has completed approximately 83,000m of diamond core drilling at Mt Lindsay and defined JORC compliant Measured, Indicated and Inferred Resources.

  
  

  Tin-Tungsten Resources

  
  

  Table 1 | Tin-Tungsten Resources October 2012

  
  

  Lower Cut (Tin equiv)	Category	Tonnes	Tin Equiv. Grade	Tin Grade	Tungsten Grade (WO3)	Mass Recovery of Magnetic Iron (Fe) Grade	Copper Grade	Contained Tin Metal (tonnes)	Contained Tin/ Tungsten Metal (tonnes)
  0.20%	Measured	8.1Mt	0.6%	0.2%	0.1%	17%	0.1%	18,000	29,000
  	Indicated	17Mt	0.4%	0.2%	0.1%	15%	0.1%	32,000	43,000
  	Inferred	20Mt	0.4%	0.2%	0.1%	17%	0.1%	32,000	41,000
  	TOTAL	45Mt	0.4%	0.2%	0.1%	17%	0.1%	81,000	113,000
  0.45%	Measured	4.3Mt	0.8%	0.3%	0.2%	18%	0.1%	12,000	22,000
  	Indicated	5.2Mt	0.7%	0.3%	0.2%	15%	0.1%	14,000	22,000
  	Inferred	3.9Mt	0.6%	0.3%	0.1%	9%	0.1%	12,000	17,000
  	TOTAL	13Mt	0.7%	0.3%	0.2%	14%	0.1%	38,000	61,000

  Note: Reporting to two significant figures. Figures have been rounded and hence may not add up exactly to the given totals. Full details of the estimate are in the ASX announcement for the Quarterly Report on 17 October 2012.

  
  

  Notes:

  • The Sn equivalent formula used to calculate the Sn equivalent values for the Main and No.2 Skarns is as follows: Sn Equivalent (%) = Sn% + (WO3% x 1.90459) + (mass recovery % of magnetic Fe x 0.006510) + (Cu% x 0.28019). Whereas for the Sn equivalent formula used to calculate the Sn equivalent values for the Stanley River South and Reward Skarns is as follows: Sn Equivalent (%) = Sn% + (WO3% x 1.65217) + (Cu% x 0.34783).

  • The mass recovery of the magnetic iron is determined mostly by Davis Tube Results ('DTR').

  • The Sn equivalent formulae uses a tin metal price of US$23,000/t, an APT (Ammonium Para Tungstate) price of US$380/mtu (1mtu

    =10kgs of WO3), a magnetite concentrate price of US$110/t and a copper metal price of US$8,000/t.

  • Pilot scale metallurgical testwork has been completed on the Main and No.2 Skarns with results indicating the metallurgical recovery for tin is 72%, for WO3 is 83%, for iron in the form of magnetite is 98% and for copper is 58%. The results of this testwork are stated in the ASX announcement of August 31 2012.

  • It is the Company's opinion that the tin, WO3 and copper as included in the metal equivalent calculations for the Stanley River South and Reward Skarns have a reasonable potential to be recovered for when the Mt Lindsay Project goes into production.

The resource base at Mt Lindsay is hosted within two magnetite rich skarns (Main Skarn and the No.2 Skarn) which extend over a total strike of 2.8kms and remain open at depth. Additional indicated and inferred resources have been defined at the Reward and Stanley River South Prospects, which extend over an additional 1.1km of strike.

In 2012 the resource base at Mt Lindsay was the subject of a Bankable Feasibility Study ('BFS') which entertained a 1.75 million tonne per annum operation, producing concentrates of tin, tungsten, copper and magnetite. The study deliveredan NPV8 ofA$143m from a 9 year mine life with a capital cost estimate of A$198m. Full details of the reserve statement and BFS outputs and a list of assumptions are in the ASX announcement of 7 November 2012.

Over the past 12 months Venture has focussed efforts at Mt Lindsay on identifying additional high grade tin/tungsten targets in close proximity to the Mt Lindsay Deposit. The low cost exploration work is part of a broader strategy focussed on identifying high grade mineralization within trucking distance of the existing deposit that has the potential to further strengthen the economics of the Mt Lindsay Project.

Activities during the September Quarter

In recent Quarters Venture has successfully defined eight new targets considered prospective for high grade tin/tungsten mineralization as well as targets prospective for copper and nickel mineralization (refer to Figure 2). These targets are hosted within the broader skarn units identified throughout the Mt Lindsay area of which to date only 10% have been drill tested.

There were no field activities during the September Quarter.

Figure 2 | Mt Lindsay - recently identified exploration targets

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