Perth, April 12, 2017 AEST (ABN Newswire) - Cassini Resources (ASX:CZI) has provided an update to the market regarding on-going activities at the West Musgrave Nickel-Copper Project (WMP). Work to be completed this year includes:

- Metallurgical test work, transport logistics, energy and water study - underway;

- Resource extension drilling - April;

- Process plant design & resource modelling - 2Q17

- Mine optimisation - 3Q17; and

- Updated study results - 4Q17.

The WMP is a joint venture between Cassini and OZ Minerals Limited (ASX:OZL). OZ Minerals will earn up to a 70% interest in the WMP by exclusively funding a minimum of $36m on development and exploration. This will see Cassini free carried through to the completion of a DFS and a decision to mine.

Analyst Comment: Cassini and OZ Minerals continue to work diligently as the WMP takes shape. The resource extension drill program which commences shortly will target higher grade sections of the resource area. Assuming the program is successful, this could change the mine plan (Optimisation Study - 3Q17) resulting in higher grades, and therefore increased production earlier in the mine life compared to the previous study.

As OZ Minerals is a partner in the WMP capital constraints have largely been removed. This could result in the throughput (currently - 4Mtpa), increasing when the revised study is released (4Q17).

Cassini also reminded the market that in addition to nickel and copper, the WMP will produce cobalt (500tpa). With a current spot price in excess of US$54,000/t, even with a conservative payability of 50%, the WMP would generate revenue of around $18m pa.

Valuation: We increased our valuation to $0.20 / share (previous - $0.17/share). This is due increasing our cobalt price assumption in-line with the spot price (US$54,000/t). The information should not be the only trigger for your investment decision. We strongly recommend you seek professional financial advice whenever making financial investment decisions.

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About Cassini Resources Ltd

Cassini Resources ASX:CZICassini Resources Limited (ASX:CZI) is a base and precious metals explorer and developer. The Company's flagship West Musgrave Project, located in Western Australia was acquired from BHP Billiton in 2014 and hosts a number of nickel and copper deposits as well as providing significant exploration upside.


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The Sophisticated Investor

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Adam Kiley
TSI Capital Pty Ltd
E: adam.kiley@tsicapital.com.au

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