Cypress Development
Developing Nevada’s Next Lithium Resource
Cypress Development (TSX-V: CYP) (OTCQB: CYDVF) is focused on developing the Company’s 100%-held Clayton Valley Lithium Project in Nevada, U.S.A. Exploration by Cypress has discovered a world-class resource of a leachable lithium-bearing claystone adjacent to the Albemarle Silver Peak mine, North America’s only lithium brine operation. The size of the resource makes the Clayton Valley Project a premier target that has the potential to impact the future supply of lithium for the fast-growing global lithium-ion battery market.
Clayton Valley Lithium Project, Nevada, U.S.A.:
Cypress’ flagship Clayton Valley Lithium Project is located immediately east of Albemarle’s Silver Peak mine, North America’s only lithium brine operation, which has been in continuous operation since 1966. Exploration and development by Cypress has discovered an extensive deposit of lithium-bearing claystone adjacent to the brine field to the east and south of Angel Island, an outcrop of Paleozoic carbonates protruding up through the lakebed sediments.
The Company controls two claim blocks, Dean and Glory, totalling approx. 5,700 acres. Lithium mineralization occurs within montmorillonite clays throughout the sediments to a depth of at least 120 meters. Metallurgical tests have shown the claystone is weak acid leachable with lithium extractions over 80% in 2 to 8 hours in agitated leach tests using sulfuric acid. These high extractions indicate the dominant lithium-bearing minerals present are not hectorite, a refractory clay mineral which requires roasting to liberate the lithium.
Cypress believes these features, along with a favorable geographical setting and the size of the deposit makes Clayton Valley a premier target that has the potential to impact the future of lithium production in North America. With lithium mineralization tested by drilling over a seven-kilometer trend, Cypress’ Clayton Valley Project could develop into a significant long-term source of supply in a politically stable and favorable mining jurisdiction.
In September 2018, Cypress announced positive results from a Preliminary Economic Assessment (PEA) of the Company’s Clayton Valley Lithium Project. The PEA was prepared by Global Resource Engineering (GRE) of Denver, Colorado, an independent engineering services firm with extensive experience in mining and mineral processing.
GRE reported an updated total Indicated Mineral Resource of 3.835 million tonnes of Lithium Carbonate Equivalent (LCE) contained in 831 million tonnes at an average grade of 867 ppm Li and an Inferred Mineral Resource of 5.126 million tonnes of LCE contained in 1.12 billion tonnes at an average grade of 860 ppm Li. The Clayton Valley deposit remains open at depth with 21 of 23 drill holes ending in lithium mineralization.
GRE used a conventional approach in processing and developed a production schedule that utilized only a small fraction of the total resources on the property. The result is a project that has strong economics and the potential to generate significant cash flow.
PEA Highlights:
- Net Present Value of $1.45 billion at 8% discount rate and 32.7% internal rate of return on after-tax cash flow.
- Lithium Carbonate price of $13,000 per tonne based on Benchmark Research market study.
- Average annual production rate of 24,042 tonnes of Lithium Carbonate over 40-year life.
- Operating cost estimate averaging $3,983 per tonne of Lithium Carbonate.
- Capex payback period of 2.7 years.
View Full GRE Report: NI 43-101 PEA Technical Report
Cypress has announced a Prefeasibility Study (PFS) is underway for its Clayton Valley Lithium Project with results anticipated in the 1st quarter of 2020. The PFS will include infill drilling to upgrade resource categories and optimize the mine production schedule within the initial pit area. Additional metallurgical testing will include determining optimum leach conditions and the configuration of the process plant as well as further testing to demonstrate the production of high purity lithium carbonate and lithium hydroxide suitable for battery usage.
