Hope this info is helpful.......go you good thing.....On the 9th...

Hope this info is helpful.......go you good thing.....

On the 9th of May (Friday), shareholders vote on the Creasy transaction, whereby Sirius is expected to receive approval to acquire the remaining 30% interest of the Nova-Bollinger project. We see the transaction as a significant catalyst. Moving to 100% ownership will simplify the funding structure, particularly for the potential debt and off-take providers.

Year-to-date, the ASX nickel producers have substantially outperformed Sirius. While we understand the arguments for their outperformance, the logic, in our view, is somewhat short-sighted. Sirius, in a short space of time, has moved from frontier explorer through to nearing completion of development studies (DFS due for release in July 2014).

The economics of the project are self-explanatory, offering scale (+27Ktpa Ni, +11Ktpa Cu), low operating costs (we estimate all-in cash costs of ~A$3.56/lb Ni, net of credits), and +10 year mine life. Once the Company moves to 100% ownership, the risks around project funding become low, and hence moving to production should be a certainty. We remain of the opinion that additional upside will come from more exploration success.

Crux-Centauri Targets to be Drill-tested in May

Sirius recently completed ground electromagnetic (EM) surveys over the high-priority Centauri and Crux prospects, located ~70km south-west of Nova. The surveys have identified broad conductive targets coincident with anomalous nickel and copper geochemistry, which are expected to be tested by drilling in the coming weeks (mid-May).

Centauri is planned to be the first target drilled. The EM conductor defined is shallow and flat-lying and importantly coincident to a nickel and copper geochem anomaly, directly beneath gossan outcrop, which graded 0.6% Ni and 0.1% Cu, which is highly encouraging. A broad EM conductor has been defined within the southern part of Crux, partially coincident to nickel and copper geochem anomaly. This target will be drilled after Centauri. Sirius has approvals in place for up to 100 drill holes, which in our view highlights the priority level of these two targets in the southern Fraser Range.

WMC Drilling Underway; Adjusted Nickel Prices Up - Buy

Drilling has recommenced on the Western Trend (Western Mafic Complex), located ~3km west of Nova within the mining lease application (MLA). Drilling is focused on delineating the full extent of near-surface nickel-copper mineralisation, with deep penetrating ground EM (Samson EM system) to be applied across the entire MLA. Samson has already been trialled over Bollinger will good effect, highlighting that the system can detect the deposit at ~450m depth and is expected to identify conductors within 600m of surface. The survey work is expected to commence in early May.

We have increased our nickel price assumptions (up 6.8% in A$ terms). We are now above the latest consensus estimates, but still well below the more bullish sell-side assumptions out in the market. Our updated NAV for SIR is now $3.24/s up from $3.08/s.

We maintain our Buy recommendation with an updated price target of $4.04/s (up from $3.76/s)