Cypress Development completes test at Noram

Feb 28, 2020

2020-02-27 10:18 ET – News Release

Dr. Bill Willoughby reports

CYPRESS TEST PROGRAM AT NORAM ENGINEERING COMPLETED FOR CLAYTON VALLEY LITHIUM PROJECT IN NEVADA

Cypress Development Corp. has noted that the test program at Noram Engineering and Constructors Ltd. is complete and initial results are positive. As reported in a Nov. 14, 2019, press release, Noram was contracted to examine the downstream portion of the revised extraction flow sheet for Cypress’ Clayton Valley lithium project in Nevada. Testing was conducted at BC Research Inc., a member of the Noram group of companies, in Richmond, B.C.

The program utilized both synthetic and actual solutions generated from Cypress’s large leach tests conducted at Continental Metallurgical Services (CMS) in Butte, Mont. The tests simulated the purification solution and concentration steps within a portion of the Noram-Cypress developed flow sheet. Initial results are positive, and indicate the target levels of lithium concentration and rejection of impurities in solution were achieved. The pending final report will be used to update the mass balance in the process flow sheet and complete the remaining step in the company’s continuing prefeasibility study on the project.

                   NORAM TEST RESULTS
 
Step      Li (ppm)  Mg (ppm)  Ca (ppm)  Fe (ppm)  Al (ppm)

Feed           380     3,340       339     2,270     1,395  
Purified       360        54        15        40        10

With respect to the PFS, the company and its consultants are actively working to complete the study. The resource model, pit design, production schedule, and site selection and infrastructure studies for the processing plant are completed.

The design is based on mining 15,000 tonnes per day of material in an effort to produce 25,000 tonnes per year of lithium carbonate equivalent (LCE). The mine area is designed to initially target the upper portions of the intercepts encountered in 2019 drilling (see drill intercepts table). This area of drilling represents a small portion of the overall lithium resource on the property and is expected to support the design basis of production for the first 18 years of the project. The large leach tests at CMS show lithium extractions of 84 per cent to 86 per cent and confirmed values for acid consumption from the 2018 preliminary economic assessment. Sulphuric acid remains a major consumable for the project. Quotations for an on-site sulphuric acid plant, sulphur supply and transportation were obtained. Issues related to leaching and filtration were resolved and the Noram test program completes the remaining critical design element required for the PFS process flow sheet.

                2019 DRILL INTERCEPTS
 
Hole    Top (m)  Bottom (m)  Interval (m)  Grade Li (ppm)

GCH-07        3          91            88           1,189     
GCH-08        3          87            85           1,226    
GCH-09        2          75            74           1,115    
GCH-10        3          54            51           1,130    
GCH-11        5          87            82           1,115    
GCH-12        2          81            80           1,252

The project’s PFS is limited to the Dean and Glory mining claim blocks totalling 4,780 acres. An additional 1,280-acre claim block was part of the company’s 2019 lawsuit against Centrestone Resources LLC and was excluded from the PFS. This contiguous claim block is located south and east of the project’s initial proposed mine area. These mining claims include the lands on which Centrestone Resources drilled two exploration holes. On Dec. 16, 2019, the district court entered an oral order granting summary judgment in favour of the company on its claims against Centrestone Resources. On Feb. 6, 2020, the district court entered its written order for summary judgment. The district court set a hearing on April 21, 2020, in Goldfield, Nev., to hear the company’s damage claim.

Todd Fayram, qualified person, of Continental Metallurgical Services LLC, is the qualified person as defined by National Instrument 43-101 and has approved the technical information in this release.

About Cypress Development Corp.

Cypress is an exploration company focused on developing the company’s 100-per-cent-owned Clayton Valley lithium project in Nevada. Exploration and development by Cypress has discovered a world-class resource of lithium-bearing claystone adjacent to Albemarle’s Silver Peak mine, North America’s only lithium-brine operation.

We seek Safe Harbor.

https://www.cypressdevelopmentcorp.com/