rm research 12 mnth target a$1.00

You can download the complete report here - http://www.ventnorresources.com.au/investor-centre/research-reports.html

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.

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.

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.

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.



Speculative BUY
12 mnth target A$1.00
Capital Structure
Sector Materials
Share Price (A$) 0.66
Fully Paid Ordinary Shares (m) 61.8
Opt (ex 25c, exp 15/11/13) (m) 23.2
Opt (ex 25/26c, exp 6-8/14) (m) 2.2
Market Cap (undil) (A$m) 40.8
Share Price Year H-L (A$) 1.02-0.12
Approx Cash (A$m) 5.7