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29 February 2012

ASX Code  VRX

Ventnor Resources Limited

Speculative BUY

Increased share price target...maiden JORC resource projected in 1Q 2013...drilling continues at Thaduna

12 mnth target A$1.00 Capital Structure Sector


Share Price (A$)


Fully Paid Ordinary Shares (m)


Opt (ex 25c, exp 15/11/13) (m)


Opt (ex 25/26c, exp 6-8/14) (m)


Market Cap (undil) (A$m)


Share Price Year H-L (A$)


Approx Cash (A$m)


Directors & Management Paul Boyatzis

Non-Exec Chairman

Bruce Maluish

Managing Director

Paul Pawlowitsch John Geary

Non-Exec Director

Initial RC drilling in early 2011 indicated that the Thaduna and Green Dragon Projects were likely to comprise high-grade (+3% Copper) supergene enriched shoots within the oxide zone to a vertical depth in the order of 80-100 metres. In late CY 2011, however RC drilling at Thaduna outlined broad intersections of chalcopyrite mineralisation in three holes including THRC054 which intersected 142 metres @ 0.41% copper and terminated in visible chalcopyrite mineralisation. This broad, lower grade envelope contained a number of higher grade intersections including 19 metres @ 1.57% from 183 metres downhole. Similarly THRC 114 returned 62 metres @ 2.19% copper from 125 metres downhole. THRC058 and THRC059 also terminated at 228 metres and 233 metres respectively (limit of rig capability) with visible chalcopyrite at the end of hole and follow up drilling is currently underway.

Non-Exec Dir/Co Sec

Preliminary metallurgical testwork indicates that the majority of sulphide mineralisation is associated with coarse grained chalcopyrite which is likely to be amenable to coarse grinding and a simple flotation circuit.

Major Shareholders Goldbondsuper P/L <Goldbond S/F A/C>


NE Renes <ATF Est Late WJ Flint>


Mash Super P/L <Maluish Eng S/F A/C>


DM Schwann <P Schwan F/T A/C>


Analyst GT Le Page

Three phases of RC and diamond drilling at the Thaduna and Green Dragon (situated approximately 40 kilometres east of Sandfire Resources Ltd (ASX: SFR) DeGrussa deposit 14.6Mt @ 4.6% Cu, 1.6g/t Au for 1.1Mt Cu Equiv) have been successful in outlining potentially economic, open pittable copper mineralisation at two prospects.

+61 8 9488 0800

Share Price Performance

RM Research initial projection of a JORC compliant Resource is now likely to be pushed back to 1Q 2013 on the back of results from the phase 1 to 3 drilling programs. At Thaduna our current interpretation based on published assays, plans and cross sections is for a mineralised body within the top 200 metres, approximately 50 metres in width and striking for around 600 metres with an SG of approximately 2.7 giving a tonnage range in the order of 15.0Mt @ around 1% for 150,000 tonnes of contained copper. Green Dragon is projected to come in at around 50,000 tonnes of copper at a grade of approximately 3%. Our JORC resource projections at Thaduna and Green Dragon have therefore been upgraded from 50,000 tonnes (RM Research, Ventnor Resources, 8 August 2011) to 100,000 – 150,000 tonnes (RM Research, Ventnor Resources, 18 November 2011) to 200,000 tonnes of contained copper and on the back of four phases of RC and diamond drilling. From now until late April 2012, the Company is drilling a further 7,000 metres which will include approximately 4,500 metres of RC and 2,500 of Diamond drilling (more specifically diamond drilling to extend existing RC drill holes) at Thaduna. This will include four 300 metre deep holes at Thaduna. A total of 1,000 metres of RC will be undertaken at Green Dragon. RM Research has therefore upgraded our 12 month price target from A$0.80 to A$1.00 and we maintain a Speculative Buy.

Page 1  Copyright © 2012 RM Research 

29 February 2012

INVESTMENT CASE Exceptional Targets: Three phases of RC/Diamond drilling at Thaduna and Green Dragon have confirmed their potential to host high-grade potentially economic copper mineralisation that may be suitable for either toll treat (to DeGrussa) or a stand-alone operation. RM Research believes a maiden JORC Resource in excess of 50Kt of contained copper at Green Dragon and 300Kt of contained copper at Thaduna is likely mid CY 2012. Known Geology: Success phases of RC drilling and diamond drilling has increased the understanding of geological and structural controls and Thaduna and Green Dragon.

RM Research have a 12 month target of A$1.25 per share

Undervalued: We have a twelve month price range of A$1.00 based on our current JORC Inferred and Indicated resource target of approximately 200,000 tonnes of contained copper and comparable copper explorers/developers valuation of A$438/tonne of JORC resources. Drilling Imminent: Ventnor Resources is gearing up for a fourth phase of infill and follow up RC and diamond drilling that is likely to provide valuable information on shoot geometry in addition to metallurgical and geotechnical data that will assist with mining and processing evaluation. A preliminary environmental impact assessment (PEIA) has been completed and water studies are also likely to commence as a precursor to a Scoping Study. Why Doolgunna-Goodin Dome Region? The 2009 discovery of DeGrussa which now stands at 14.6Mt @ 4.6% copper and 1.6 g/t gold for approximately 800,000 tonnes of Copper (equiv) provides investors with around A$6.70 Billion reasons to look for more! Enough said! Directors & Management: The Company is well placed to gain maximum leverage from this exciting discovery. Managing Director Bruce Maluish has 30 years mining and mineral exploration experience. David Reid has also been appointed Exploration Manager and brings 25 years experience in base metals including a stint at the Dikilushi Mine in the DRC.

COMPANY OVERVIEW FIGURE 1: Ventnor Resources project locations (source: Ventnor Resources ASX Announcement, RIU st Presentation, 21 February 2012).

Ventnor Resources Limited (“Ventnor Resources” or “the Company”) was listed on ASX in March 2011 with a focus on copper at Thaduna/Green Dragon (Copper), nickel at Warrawanda and Nickel Hills (Pilbara, Western Australia) and base metals and gold in the Georgina Basin (Mount Isa region, Queensland). Figure 1 sets out the Company’s tenement portfolio. Since listing, the Company has enjoyed remarkable success with its first two phases of drilling at the flagship Green Dragon/Thaduna Projects which comprise four Prospecting Licenses covering around 604Ha and two Exploration License covering 17 blocks. RM Research considers a maiden JORC resource in the range of 200K tonnes of contained copper is likely by mid CY 2012.

Page 2  Copyright © 2012 RM Research  Please refer to disclosures located at end of this report.

29 February 2012

EXPLORATION OVERVIEW Thaduna and Green Dragon Projects

FIGURE 2: Ventnor Resources Green Dragon and Thaduna project locations relative to other explorers/developers in the Doolgunna region (source: Ventnor Resources ASX Announcement, RIU st Presentation, 21 February 2012).

FIGURE 3: Ventnor Resources Thaduna Project showing mineralised zones, previous drilling and planned drill hole locations (source: Ventnor Resources ASX Announcement, RIU st Presentation, 21 February 2012).

Page 3  Copyright © 2012 RM Research  Please refer to disclosures located at end of this report.

29 February 2012 The abandoned 700 metre long, 80 metre wide Thaduna Copper Mine (Figure 1, 2) is situated approximately 40 kilometres east of Sandfire Resources’ (ASX: SFR) DeGrussa Project (14.6 Mt @ 4.6% Cu, 1.6 g/t Au) and is accessed from the Great Northern Highway by a dirt road for approximately 35 kilometres, and then by tracks for another 12 kilometres. Historical Exploration and Mining

FIGURE 4: Green Dragon open cut mine (source: Ventnor Resources Prospectus, 25 November 2010).

Thaduna produced 30,290 tonnes @ 8.7% Cu and has stockpiles of 48,400 tonnes @ 2.7% Cu and tailings of 20,500 tonnes @ 2.5% Cu. The nearby Green Dragon (Figure 1, 4) project was operated as a satellite deposit at the same time as Thaduna. In addition, the Ricci Lee copper mine, 3km southsouthwest of the Thaduna Mine, was worked from 1942 to 1970 for a production of 2,912 tonnes of ore and concentrates containing 287 tonnes of copper. The Rooney Mine, 5 kilometres northnorthwest of Thaduna, produced a small tonnage of cupreous ore, approximately 110 tonnes @ 7.7% Cu from small underground workings and a 3-m-deep pit. Open cut mining and limited underground mining took place from 1955 to 1971.

Exploration in the 1970’s outlined three copper anomalies close to the mines

Reconnaissance exploration during the 1970’s was successful in outlining three copperanomalous close to the two mines. Successive phases of Diamond drilling in the mid 1960’s and in the late 1980’s/early 1990’s were intersected relatively narrow copper mineralisation beneath the Thaduna and Green Dragon open pit including a best intercept of 9 metres downhole @ 5.22% Cu. Limited metallurgical testwork on the waste and tailings dumps in 1993 showed relatively poor flotation tests but encouraging heap leach results with more than 80% of the Cu recoverable over a 70-100 day leach cycle. Geology and Mineralisation

FIGURE 5: Thaduna and Green Dragon Projects, regional geological setting (source: Ventnor Resources Prospectus, 25 November 2010).

Page 4  Copyright © 2012 RM Research  Please refer to disclosures located at end of this report.

29 February 2012

FIGURE 6: TRH 057 @ 259 metres downhole – blebby, vein and disseminated chalcopyrite within black shale (source: Ventnor Resources, ASX nd announcement, 22 December 2011).

FIGURE 7: Green Dragon and Thaduna Mine showing supergene enrichment model (source: Ventnor Resources ASX Announcement, RIU st Presentation, 21 February 2012).

Mineralisation at Thaduna/Green Dragon comprises high-grade, shear hosted shoots and lower-grade disseminated mineralisation over 140 metres wide in places. Mineralisation is hosted within a package of silts/shales and greywacke which broadly contain primary chalcopyrite as blebs, clast fill and vein fracture fill. Higher grade mineralisation is associated with black shales surrounded by lower grade sediments. Strong alteration zones of chlorite (after hematite) introduced by hydrothermal fluids envelope the mineralisation. The mineralisation is totally oxidised to a depth of around 50 metres. Secondary copper minerals include chrysocolla, malachite, azurite and cuprite with a supergene zone to 90 metres vertical depth containing chalcocite and lesser covellite. Chalcopyrite and bornite are the dominant copper bearing minerals in the primary zone (Figure 7). Supergene mineralisation is found to a vertical depth of 53 metres.

FIGURE 8: Green Dragon and Thaduna Mine location local geology and structure (source: Ventnor Resources ASX Announcement, RIU st Presentation, 21 February 2012).

Page 5  Copyright © 2012 RM Research  Please refer to disclosures located at end of this report.

29 February 2012 Structural Controls The controlling structures (Figure 4, 8) appear to be two graphitic shears trending 90° and 60° which are mineralised with cuprite-chalcocite-malachite at their intersection and form a 50 metre long shoot striking broadly east-west. Two other sub-parallel shoots returned elevated copper from drilling with widths ranging from 0.5-5.2 metres.

Mineralisation can be in excess of 140 metres in width in places

Recent Exploration Previous drilling in early CY 2011 by Ventnor Resources indicated that mineralisation at both Thaduna and Green Dragon was confined to a 3-5 metre wide mineralised zones surrounded by a 10-15 metre lower grade envelope. It was previously believed that mineralisation terminated at this footwall contact, however recent phases of drilling over late CY 2011 indicated that significant widths of mineralisation occur well beyond this footwall contact. For example, THRC054 returned 142 metres downhole @ 0.41% copper from 90.0 metres. This included several higher grade zones including 19.0 metres @ 1.57% copper from 183 metres downhole (Table 1). The Company was aiming to complete a JORC resource at both Thaduna and Green Dragon in October 2011 however the intersection of these broad zones of mineralisation as detailed in ASX releases on 18 November and 6 December 2011 (RM Research, Ventnor Resources, and 18 November 2011) saw an extended RC program eventuate.

Thaduna Project

TABLE 1: Thaduna Mine selected RC drill intersections (source: Ventnor Resources ASX th Announcement, 27 January 2012).

Hole Id







DH m


Ag ppm

















































































































































THRC 058
















Incl. THRC114





Page 6  Copyright © 2012 RM Research  Please refer to disclosures located at end of this report.

29 February 2012

FIGURES 9-13: Thaduna Mine selected cross sections from 7175880mN (source: Ventnor Resources ASX Announcement, AGM th Presentation, 18 December 2011).

Drilling by Ventnor Resources over 20112012 have demonstrated the presence of multiple lodes at Thaduna

2011-2012 Exploration Program Over 2011-2012, the Company has completed 127 holes (15,888 metres) over three drill campaigns. Drilling during the Phase 3 program concentrated north of the Thaduna pit where the targets are shallower and were better suited for the smaller RC rig. In late CY 2011, two NQ2 diamond tails on THRC054 and THRC057 at Thaduna were completed. Figures 9-13 represent cross sections published over 2011-2012 however we anticipate the inclusion of recent drill data (in particular THRC054 which intersected 142 metres @ 0.4% copper) will reveal large zones of lower grade mineralisation interspersed with higher-grade copper mineralisation such as 37 metres @ 2.61% copper from 11 metres downhole (THRC 113) and 62 metres @ 2.19% copper from 125 metres downhole (THRC 114) (Ventnor Resources, th ASX Announcement, 24 January 2012). High-grade primary mineralisation remains open down dip.

Page 7  Copyright © 2012 RM Research  Please refer to disclosures located at end of this report.

29 February 2012

Preliminary metallurgical testwork is favourable

Metallurgy Preliminary mineralogical investigations (from THRC 058) at ALS Ammtec reveal that the majority of copper is associated pure coarse grained chalcopyrite, i.e. 98.4%, with minor bornite and covellite. While only limited sampling has been undertaken, the style of mineralisation is likely to support a relatively coarse grind of around 100µm and a high copper flotation concentrate grade from a relatively simple copper flotation circuit As stated above and in our last report (RM Research, Ventnor Resources, 18 November 2011), the significance of these results is that Thaduna now appears to have a significant primary source underlying a copper oxide cap. There was a widely held belief that both Thaduna and Green Dragon had more limited potential <150,000 tonnes of contained copper) however the last (phase 3) program has continued to confirm the presence of multiple highergrade lodes within a broader lower grade envelope with primary mineralisation remaining open at depth. Proposed Drilling From now until late April 2012, the Company is drilling a further 7,000 metres which will include approximately 4,500 metres of RC and 2,500 of Diamond drilling (more specifically diamond drilling to extend existing RC drill holes) at Thaduna. This will include four 300 metre deep holes at Thaduna.

Green Dragon Project The 330 metre long, 70 metre wide Green Dragon Prospect is located just 5 kilometres north of Thaduna.

FIGURE 14: Green Dragon Mine plan showing recent drill traverses undertaken by Ventnor Resources together with planned drillhole locations (source: Ventnor Resources ASX Announcement, RIU Presentation 21 February 2012).

Proactive Investors believe Green Dragon is on track for a JORC resource in excess of 50,000 tonnes of contained copper...

Page 8  Copyright © 2012 RM Research  Please refer to disclosures located at end of this report.

29 February 2012 Three phases of drilling (Figure 11, Figures 12-14, Table 2) comprising 76 holes for 10,481 metres have to date tested a strike length of approximately 500 metres and a depth of 200 metres at the Green Dragon Project. Hole Id

TABLE 2: Green Dragon significant copper intersections from Phase 1-3 RC drill programs (source: Ventnor Resources ASX Announcement, 20 February 2012).








DH m

Cu %

Ag g/t


















179 And Incl. Incl. 178 And Incl. Incl. And 183 And And Incl. 183 And Incl. And And 181 And Incl. And And Incl. And 179 And And And Incl. 185 And Incl. 174 And And Incl. And And Incl. And 178 Incl. And And And And 183 And Incl. Incl. And Incl. And Incl. And 277 Incl. 180 And Incl. Incl. 260 And And 247 Incl. Incl. 243 And 180 And Incl. And 174 And Incl. And 178 And Incl. 067 And Incl. 072 Incl.

43 79 79 85 12 53 61 67 84 13 46 78 80 12 57 58 97 132 12 48 51 58 63 64 87 39 70 83 99 102 25 72 73 51 82 88 88 102 111 112 139 102 104 121 129 135 150 83 122 122 128 135 136 144 146 161 34 37 166 171 171 187 46 52 61 0 0 12 0 11 189 196 197 209 200 229 230 251 113 173 177 0 36 38 0 3

51 90 81 90 16 70 64 69 92 17 50 85 85 17 61 60 99 134 19 54 53 60 82 76 90 41 73 85 109 105 27 78 75 53 85 95 93 104 119 117 141 107 106 123 132 137 162 88 131 125 130 140 139 150 149 165 44 43 168 196 179 189 48 54 63 29 9 26 7 14 191 205 204 212 202 234 232 253 115 181 180 5 41 40 17 15

8 11 2 5 3 17 3 2 8 4 4 7 5 5 4 2 2 2 7 6 2 2 19 12 3 2 3 2 10 3 2 6 2 2 3 7 5 2 8 5 2 5 2 2 3 2 12 5 9 3 2 5 3 6 3 4 10 6 2 25 8 2 2 2 2 29 9 14 7 3 2 9 7 3 2 5 2 2 2 8 3 5 5 2 17 12

0.53 1.76 3.15 2.25 0.38 0.93 1.81 1.58 0.60 0.25 0.32 4.43 6.07 0.37 1.51 2.52 0.30 0.35 0.25 0.79 1.40 0.32 3.33 5.07 0.26 0.25 0.50 0.22 1.48 3.38 0.22 1.33 3.50 0.43 0.33 4.33 5.93 0.40 1.33 1.94 0.38 0.74 1.37 0.46 0.22 0.21 0.56 0.33 1.96 4.39 1.65 2.34 3.57 2.03 3.73 0.32 6.82 10.96 0.48 1.42 2.80 2.22 0.34 1.26 0.53 2.22 4.00 1.77 0.28 0.23 0.74 2.42 2.98 0.61 0.79 1.77 3.47 0.42 0.31 0.75 1.55 0.50 0.79 1.29 1.56 1.99

0.9 1.4 0.8 2.8 NSR 1.1 0.2 0.1 0.4 NSR NSR 5.3 7.4 NSR 2.3 3.5 NSR NSR 0.2 1.1 2.6 0.6 4.4 6.7 NSR NSR 0.4 NSR 2.2 5.0 NSR 2.2 6.0 NSR NSR 9.3 13.0 NSR 0.3 0.4 1.0 1.4 2.5 0.0 0.3 NSR 0.8 0.2 3.4 9.3 1.0 1.2 2.0 1.3 2.7 NSR 14.3 23.3 0.5 1.0 2.4 1.0 0.5 2.0 0.5 0.2 0.2 NSR 0.3 NSR 0.1 0.8 1.0 0.1 2.0 1.0 2.5 0.5 NSR 0.1 0.3 0.2 1.0 1.5 0.2 0.3







































The 2011-2012 has so far turned up additional mineralised horizons of potentially economic copper grades














-90 -60



-88 -61





The phase 3 drilling (134 RC holes for metres) at Green Dragon continued to return encouraging intersections as set out below (also refer Table 2) including; 

GDRC39 with 10 metres @ 6.82% Cu from 34 metres, including 6 metres @ 10.96% Cu from 37 metres downhole; GDRC187 metres @ 4.43% Cu from 75 metres (GDRC18), including 5 metres @ 6.07% Cu from 80 metres downhole; GDRC with 19 metres @ 3.33% Cu from 63 metres including 12 metres @ 5.07% Cu from 64 metres downhole;

RM Research is anticipating a maiden resource in the order of 2.50 million tonnes @ >3% Cu for approximately 50Kt of contained copper. Drilling over the last 12 months has consistently intersected high-grade copper mineralisation (2-12% Cu-Table 2, Figure 15-17) with infill drilling demonstrating generally good continuity between sections.

Page 9  Copyright © 2012 RM Research  Please refer to disclosures located at end of this report.

29 February 2012

FIGURE 15: Green Dragon Mine cross section on 774860mN (source: Ventnor Resources ASX Announcement, 20 February 2011).

A fourth phase of twelve RC holes (approximately 1,300 metres) will test mineralisation to the north, additional near surface mineralisation and for a possible second shoot that is interpreted to splay from the main lode. Two diamond holes (approximately 340 metres) will generate metallurgical and geotechnical data and provide further important structural information on shoot geometry. Mineralisation remains open down plunge and we believe there is potential for a mineable resource underground however the immediate potential is clearly an open pit to a depth of 150200 metres at a strip ratio between 10:1 and 12:1. A total of 1,000 metres of RC will be undertaken at Green Dragon between now and late April 2012.

FIGURE 16: Green Dragon Mine cross section on 774900mN (source: Ventnor Resources ASX Announcement, 20 February 2011).

Page 10  Copyright © 2012 RM Research  Please refer to disclosures located at end of this report.

29 February 2012

FIGURE 17: Green Dragon Mine cross section on 774940mN (source: Ventnor Resources ASX Announcement, 20 February 2011).

PEER ANALYSIS AND ESTIMATE OF VALUE RM Research has upgraded the resource target (Thaduna and Green Dragon) to a minimum of 200,000 tonnes of contained copper from our last report (RM Research, Ventnor Resources, 18/11/11).

FIGURE 18: EV/Tonne contained copper for selected ASX listed explorers/developers (source: RM Research internal modelling, February 2012).

Average EV/T Cu Equiv of A$438

Page 11  Copyright © 2012 RM Research  Please refer to disclosures located at end of this report.

29 February 2012


TABLE 3: ASX listed copper explorers/developers (source: RM Research internal modelling, February 2012).

EV/T Cu equiv ($)

Discovery Metals Ltd

Cu Equiv (Mt)

EV ($m)




$ 819.5




$ 168.2

Hillgrove Resources Ltd




$ 215.3

Havilah Resources Ltd








$ 178.2




$ 1,274.6

Cudeco Limited




$ 561.0

*Ventnor Resources Ltd





Intrepid Mines Ltd




$ 542.7

Altona Mining Ltd




$ 191.5

Rex Minerals Ltd

Exxco Resources Ltd Sandfire Resources Ltd

RM Research believes that the maiden JORC resource should come in around 200Kt of contained copper based on this third phase of drilling

Resource Tonnage (Mt)



*Assumes maiden JORC Resource of 200Kt of contained copper by mid CY 2012.

Furthermore, the recent results would indicate that the discount we were applying due to the smaller potential of Thaduna/Green Dragon was probably not warranted based on recent results.

Our EV/Cu tonne calculations indicate that Ventnor Resources has a 12 month target of A$1.00 per share

We derive a peer group average (Figure 18, Table 3) enterprise value per resource tonne of contained copper of A$438/tonne, with the higher grade deposits such as Sandfire Resources and Discovery Metals attracting a premium. Lower grad/larger tonnage deposits such as Intrepid Mines Tuju Bukit deposit (1,700Mt @ 0.41% Cu) have been discounted by the market. On this basis, and upon initiation of a scoping study, applying our average EV metric of around $438, we derive an enterprise value of around A$87 million or around A$1.00 per share representing an approximate premium to the current share price of 52% by the end of CY 2012. Given the deposit remains open at depth and along strike, we believe the maiden JORC resource may surprise on the upside.

Page 12  Copyright © 2012 RM Research  Please refer to disclosures located at end of this report.

29 February 2012

OTHER PROJECTS Warrawanda Nickel Project (Pilbara, Western Australia): The project is located approximately 40km south of Newman and is prospective for nickel-cobalt laterites, chrome and nickel sulphide mineralisation (Mt Keith style) and comprises an apparent 17km of lightly tested ultramafic rocks (Figure 19). FIGURE 19: Nickel Hills and Warrawanda Projects, regional geology and location (source: Ventnor Resources Prospectus, 25 November 2010).

Previous exploration at Warrawanda and Nickel Hills has identified large low grade MT Keith style nickel mineralisation

FIGURE 20: Nickel Hills Projects air photo showing nickel exploration targets (source: Ventnor Resources Prospectus, 25 November 2010).

Pacminex reported nickel-sulphide intersections in the 1970’s

The Warrawanda South Greenstone Belt, which hosts the Warrawanda Project, is a 30-kmlong, 200-800m-wide, easterly trending ultramafic body with in excess of 70 drill intersections >0.2% Ni in laterite. Results from a recent 2,494 metre RC drill program targeting EM and magnetic anomalies over the Warrawanda and Nickel Hills prospects identified a 15km long ultramafic body up to 400 metres in width with associated low grade nickel values (>0.20%). This included elevated grades up to 0.58% nickel over 4 metres downhole. The associated cobalt and iron is interpreted to be consistent with Indian style nickel-cobalt mineralisation. is anticipated shortly. The program was targeting large-tonnage, low-grade disseminated sulphide Ni deposits. Nickel Hills Project (Pilbara, Western Australia): Situated just 8 kilometres north of 2 Warrawanda, the project comprises two Exploration Licenses covering around 82km . Pacminex explored Nickel Hills in the early 1970s and three copper anomalies were identified (Figure 20). This included limited drilling over the ultramafic intrusion contact. One hole was reported to contain the nickel sulphides violarite, millerite and heazelwoodite. The Warrawanda North Greenstone Belt which hosts the Nickel Hills Project consists of an east-trending BIF, shale, schistose amphibolite and serpentinite. The tenements are mostly underlain by ultramafic lithologies. Drilling in the 1970s Pacminex reported nickel sulphide intercepts. The target is an ultramafic-mafic contact interpreted to be the base of a thick ultramafic volcanic flow. SRK have also confirmed the presence of gossanous sulphide float at surface. It is likely that the Company will commence exploration over previously identified high- grade zones in the coming quarter. Georgina Basin (Mount Isa Region, Queensland): The Project is situated approximately 200 kilometres southwest of Mount Isa, a world class Ag-Pb-Zn, iron-oxide copper-gold (“IOCGU”) and massive sulphide province. Ventnor Resources’ tenements have no outcrop of prospective rocks of the Mount Isa Inlier with the Proterozoic sequences covered by postProterozoic sedimentary basins. Geophysical surveys in 2008 highlighted several magnetic and gravity features broadly consistent with a concealed IOCG model and the Company has recently applied for co-funded drilling from the Queensland Government. Page 13  Copyright © 2012 RM Research  Please refer to disclosures located at end of this report.

29 February 2012


Copper has been improving as confidence slowly recovers

Follow-up drilling may not demonstrate sufficient continuity down-dip, up-dip and along strike to allow the calculation of a JORC Inferred Resource. Complex shoot geometry may require additional drilling and add to the discovery costs of copper resources.

The relatively small tenement holdings may cap the resource upside of Thaduna and Green Dragon with upside more limited to down plunge extensions which may require higher stripping ratios (and therefore higher mining costs) or more capital intensive underground mining methods.

The Company is primarily exposed to copper (and to a lesser extent at this stage, nickel) which has weakened from highs of just over US$10,000/tonne in February 2011, however copper has inched higher to US$8,500 on the back of improving economic conditions.

Further declines in equity markets may continue to put pressure on junior resource companies as investors switch out of “risk” into perceived safe haven investments such as cash, gold and counter cyclical equities. Our medium term view is that the risk premium has been eroded for many junior resource companies and we see near term upside.

A strengthening Australian dollar (as funds flow back into riskier currencies) may make the price of copper in local (Australian) currency terms less attractive. This could have negative influences on Australian copper miners however it is more relevant to producing companies.

Page 14  Copyright © 2012 RM Research  Please refer to disclosures located at end of this report.

29 February 2012




Mr Boyatzis has over 25 years experience in the investment and equity markets. He has assisted many listed mining companies to raise funds through the IPO process and secondary market. He is also currently Chairman of a London based company and was instrumental in assisting that company to raise funds from a number of London based fund managers. Mr Boyatzis is a member of the Securities and Derivatives Industry Association and a member of the Certified Practising Accountants of Australia.

Bruce Maluish, BSc (Surv), Dip Met Min

Bruce has in excess of 30 years experience in exploration and mining


Bruce Maluish has more than 30 years’ experience in the mining industry with numerous roles as Managing Director and General Manager with companies such as the Monarch Group of Companies, Matilda Minerals, Abelle, Hill 50 and Forsyth Mining, while mining a variety of commodities such as gold, nickel and mineral sands from both open pits and underground. His experience includes the set up and marketing of IPOs, from commencement of exploration to full production, to the identification, development and expansion of projects including mergers and acquisitions. His qualifications include credentials in Surveying, Mining, Project Planning and Finance.

Peter Pawlowitsch, B.Com, MBA, CPA


Peter Pawlowitsch holds a Bachelor of Commerce from the University of Western Australia, is a member of the Certified Practising Accountants of Australia and holds a Masters of Business Administration (Curtin University). He has more than ten years’ experience in accounting, and more recently in business management and the evaluation of mining projects. As an Executive Director of Comdek Ltd (now Resource Generation Ltd) and Maverick Energy Ltd (now Triangle Energy Ltd), he was instrumental in formulating a change in strategic direction of both companies.

John Geary B. Bus, Grad. Dip Acctg, Grad Dip Adv.


John Geary has forty years’ experience in the mineral exploration industry in Australia and overseas. His experience includes prospecting and the evaluation, acquisition, maintenance and compliance requirements associated with mining tenements. He has been actively engaged in the planning and implementation of many exploration programmes and his experience as a contract driller has enabled him to recognise and identify potential resource value. Hs experience and qualifications have been invaluable in the promotion, prospectus preparation and listing of a number of exploration companies (IPOs) on ASX. He has held the position of Executive Director and Company Secretary for a number of ASX-listed exploration companies in recent years.


We anticipate a maiden resource in mid CY 2012 well in excess of 200,000 tonnes of contained copper

The last two phases of RC and diamond drilling have continued to re-affirm the view of RM Research that the intersection of multiple shoots of both secondary (supergene enriched) and primary sulphide mineralisation at Thaduna is likely to increase our maiden JORC resource projection from our initial 50-100K tonnes (August 2011) to approximately 150,000 tonnes. Green Dragon is likely to remain a higher-grade (3% Copper) supergene enriched copper orebody with a target in the range of 50,000 tonnes of contained copper. Along with Sipa Resources (ASX: SRI), and Sandfire Resources (ASX: SFR) RM Research anticipates continuing investor appetite in this new copper province. Our 12 month share price target is A$1.00 based on an Enterprise Value/Tonne of contained copper of around A$438/tonne. We anticipate that the news flow may slow over the coming months as detailed diamond drilling will take place in order to resolve what may be complex shoot geometry. In our view, a resource approaching this size with favourable metallurgical characteristics has a good chance of justifying a stand-alone operation and we expect Scoping/Pre-Feasibility studies to follow suit.

Page 15  Copyright © 2012 RM Research  Please refer to disclosures located at end of this report.

29 February 2012

Registered Offices Perth L2, 6 Kings Park Road West Perth WA 6005

Email / Website PO Box 154 West Perth WA 6872

Phone: +61 8 9488 0800 Fax: +61 8 9488 0899

RM Research Recommendation Categories Care has been taken to define the level of risk to return associated with a particular company. Our recommendation ranking system is as follows: Buy

Companies with ‘Buy’ recommendations have been cash flow positive for some time and have a moderate to low risk profile. We expect these to outperform the broader market.

Speculative Buy

We forecast strong earnings growth or value creation that may achieve a return well above that of the broader market. These companies also carry a higher than normal level of risk.


A sound well managed company that may achieve market performance or less, perhaps due to an overvalued share price, broader sector issues, or internal challenges.


Risk is high and upside low or very difficult to determine. We expect a strong underperformance relative to the market and see better opportunities elsewhere.

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Ventnor Resources Limited  
Ventnor Resources Limited  

Increased share price target...maiden JORC resource projected in 1Q 2013...drilling continues at Thaduna