Cypress Development acquires South Bay project

Feb 18, 2014

CYPRESS ACQUIRES 100% INTEREST IN SOUTH BAY ZINC-COPPER-SILVER PROJECT AND REMAINING 20% INTEREST IN MCKENZIE ISLAND GOLD PROPERTY IN RED LAKE, NW ONTARIO

Cypress Development Corp. has acquired a 100-per-cent interest in the approximately 1,800-acre South Bay project that includes the former Selco South Bay zinc-copper-silver mine. The South Bay property is located in the Dent, Mitchell and Agnew townships, 80 kilometres east-northeast of Red Lake in Northwestern Ontario. Cypress has also acquired the remaining 20-per-cent interest in the 4,720-acre McKenzie Island gold property that the company did not previously own. The McKenzie Island property is located immediately adjacent to the west of Goldcorp’s Cochenour/Bruce Channel gold deposit in Red Lake in Northwestern Ontario.

Don Huston, president of Cypress, commented, “This relatively inexpensive transaction with Skyharbour gives Cypress two things: it adds a second zinc project to supplement the Gunman zinc project in Nevada and gives the company 100-per-cent exposure to its Red Lake gold property in Ontario.”

The former South Bay mine, located on the company’s 123498 claim block, produced approximately 1.6 million tons of 14.5 per cent zinc, 2.3 per cent copper and 3.5 ounces per ton silver to a vertical depth of 410 metres between 1970 and 1982. The South Bay deposit is a classic Archean volcanic-associated-massive-sulphide deposit that is hosted in an area known as the Confederation belt.

Note that the information regarding historic production statistics, including, but not limited to, reports of tonnage, grade and recoveries, was obtained from historic data and is not National Instrument 43-101 compliant. Although Cypress has not verified these data, management believes they are from a credible source.

Cypress believes that with current geophysical survey methods allowing exploration to depths in excess of 1,000 metres, there is significant potential to identify new, highly prospective precious and base metal settings at the South Bay project.

Based on previous work by Skyharbour, Cypress’s management believes that the South Bay project has potential to host economic zinc, copper and silver mineralization. The South Bay project will complement the company’s 100-per-cent-owned Gunman zinc-silver project in Nevada, where a coming drill program followed by an NI 43-101 resource estimate was recently announced (see news releases dated Jan. 21 and Feb. 3, 2014).

With the acquisition of the remaining 20-per-cent interest in the McKenzie Island gold property, Cypress will now hold a 100-per-cent interest in this project. The McKenzie gold property is strategically located immediately adjacent to the west of Goldcorp’s Cochenour/Bruce Channel deposit and to the west of Goldcorp’s/Premier Gold’s Rahill Bonanza joint venture. The property is ideally located to test for the potential extension of gold mineralization from the new mine horizon currently being developed by Goldcorp.

Cypress has acquired the 100-per-cent interest in the South Bay project and the 20-per-cent interest in the McKenzie Island property from Skyharbour Resources Ltd. in exchange for a payment to Skyharbour of $40,000 in cash and the issuance of one million common shares of Cypress. Note that the Cypress and Skyharbour boards have common directors.

The closing of the acquisitions is subject to standard conditions, including regulatory and TSX Venture Exchange approval.

Robert Marvin, PGeo, CPG, exploration manager for Cypress Development, is the qualified person as defined by National Instrument 43-101 and is supervising both the project fieldwork and the preparation of the technical information in this release.

http://www.cypressdevelopmentcorp.com/s/Home.asp