Potential Long-Term Low-Cost Producer of Lithium in Nevada
This Cypress Development profile is part of a paid investor education campaign.*
Electric vehicles aren’t just the hottest trend in Silicon Valley anymore. With wider cultural acceptance in green power alternatives, more accessible technologies and increasingly supportive legislative action, analysts expect this market and the demand for metals that supply it to climb to exponential highs.
In the United States, the government has named lithium a vital component in electric vehicle batteries and a strategic metal of importance. In 2021, President Joe Biden announced a US$2.3 trillion Infrastructure Plan, which outlines the intent to bring electric cars fully to the mainstream with investments of US$174 billion to promote this technology and construct necessary charging stations. This significant spending demonstrates exciting early-mover investment opportunities for lithium production companies and electric industries alike.
Cypress Development (TSXV:CYP, OTCQB:CYDVF) is an advanced-stage mineral exploration company focused on developing its 100 percent owned Clayton Valley lithium project in Nevada, USA. The company’s extensive exploration and development have led to discovering a world-class lithium-bearing claystone resource adjacent to the Albemarle (NYSE: ALB) Silver Peak mine, North America’s only lithium brine operation.
The company’s discovery of the massive resource made Clayton Valley a premium American source of lithium that has the potential to impact the supply of lithium for the fast-growing energy storage battery market.
“We’re in Nevada and we’re in a country that badly needs lithium. We would be the most environmentally friendly project, and the lowest acid consumer. We’re able to eliminate sulfuric acid in our process and that would make us an extremely environmentally friendly, large, inexpensive low cost producer in the heart of the United States.” said Cypress Development CEO Dr. Bill Willoughby.
Clayton Valley Lithium Project, Nevada claims map
The company is using environment-friendly mining alternatives through saltwater and hydrochloric acid instead of the traditional fresh water and sulfuric acid method. This significant proposal could mean Cypress will no longer compete for Nevada’s scarce fresh water supply for Nevada’s freshwater resources for project advancement when it comes time for mining.
In August 2020, Cypress released the results of its pre-feasibility report, which provided a positive snapshot of Clayton Valley’s prospective production scope. Probable reserves stand at 213 million tonnes at 1,129ppm lithium with an average annual production of 27,400 tonnes Lithium Carbonate Equivalent (LCE) and a mine life of over 40 years. After-tax IRR stands at 25.8 percent with a CAPEX of CAD$493 million.
“This PFS is a major milestone for Cypress. These positive results take us closer to our goal of developing a world-class lithium deposit. Cypress’ land position and resources afford us the opportunity for a long-life project with low operating costs and potential to be a significant source of lithium for the United States,” Dr. Willoughby said.
Lithium enriched claystone on surface at Clayton Valley Project, Nevada
The company recently initiated the selection and purchasing of materials to commission a pilot plant and extraction facility for the lithium-bearing claystone from its Clayton Valley Lithium Project in Nevada. The pilot plant is planned to operate at a rate of one tonne/day and will be designed for correct interaction and testing of the major components within the extraction process and assessment of the resulting lithium products.
Cypress Development’s Company Highlights
- Cypress Development is one of a handful of companies that are post-pre-feasibility, advancing towards production. The company is well advanced to become a long-term, low-cost lithium producer with potential expansive international reach.
- The Clayton Valley lithium project in Nevada has an extensive surface deposit in a unique setting adjoining Albemarle’s Silver Peak brine operation.
- Operating out of the prolific Nevada state provides the company with world-class exploration opportunities, mineral-rich geological resources and proximity to the Tesla gigafactory.
- In 2020, the company released strong economic standing with its pre-feasibility study, including a probable reserve estimate of 213 million tonnes at 1,129ppm lithium, IRR of 25.8 percent and CAPEX of CAD$493 million.
- Cypress possesses very favorable economic and geographic positioning in leveraging a present strong demand for lithium, world-class mining jurisdiction and an advanced stage operation in their flagship Clayton Valley lithium project.
- 2021 plans include the commissioning of the Clayton Valley lithium project’s pilot plant, which could see significant tonnage in lithium and clay production. Cypress is also looking to complete its feasibility study based on the data from this pilot plant operation.
Cypress Development’s Key Project
Clayton Valley Lithium Projec
The 100 percent owned Clayton Valley lithium project spans 5,430 acres in southwest Nevada and sits immediately east of the Albemarle’s Silver Peak mine, North America’s only lithium brine operation. The asset hosts tremendous potential with Cypress’ discovery of a world-class resource of lithium-bearing claystone adjacent to the brine field to the east and south of Angel Island.
Lithium enriched drill core from Clayton Valley Project, Nevada
Lithium mineralization occurs on the property within montmorillonite clays throughout the sediments to a depth of at least 150 meters. Metallurgical testing has indicated low-cost processing possibilities through leaching with low acid consumption of 126 kg/t and high lithium recovery over 85 percent lithium. This lithium claystone deposit’s unique large flat-lying nature allows for mining with a low strip ratio due to minimal overburden and no interbedded waste, which is hugely economically advantageous for Cypress.
Future plans for the Clayton Valley lithium project include commissioning of the pilot plant, which Cypress proposes could process one tonne a day continuously in 2021. The company also intends to use the data from the pilot plant towards the completion of the project’s feasibility study. Cypress also has the acquisition of water rights for Clayton Valley in the works, which pushes significant advancement in the 2021 and 2022 seasons.
Cypress Development’s Management Team
William Willoughby — Ph.D., PE, Director & CEO
Dr. William Willoughby is a mining engineer with 38 years of experience in all aspects of natural resource development. Since 2014, he has been principal and owner of consulting firm Willoughby & Associates, PLLC. Prior, he was the president and COO of International Enexco Ltd., which Denison Mines acquired in 2014. He previously held various positions with Teck (Cominco). Dr. Willoughby has been a professional engineer since 1985 and received his Doctorate in Mining Engineering & Metallurgy from the University of Idaho in 1989.
Donald C. Huston — Chairman & President
Don Huston has been associated with the mineral exploration industry for over 30 years. He has extensive experience as a financier and in-field manager of numerous mineral exploration projects in North America. He was born and raised in Red Lake, Ontario and spent 15 years as a geophysical contractor with C.D. Huston & Sons Ltd. as mineral exploration consultants in northern Ontario, Manitoba and Saskatchewan. Huston serves as a director of four Canadian public resource companies.
Abraham (Braam) Jonker — CPA, CFO
Abraham Jonker is an accomplished financial leader in the mining industry with almost 30 years of experience. He has played a pivotal role in several business recoveries and restructurings, was a key team member in management and at the board level in the strategic growth of several public companies and has participated, raised and overseen the raising of more than CAD$750 million in the form of equity and debt instruments in the mining industry. He is a registered Chartered Accountant in British Columbia, England, Wales and South Africa. Jonker is also a member of the Chartered Institute of Management Accountants in the United Kingdom and holds a Master’s degree in South African and International Tax from the Rand Afrikaans University, South Africa.
Donald G. Myers — Director, Corporate Communications
Don Myers serves as a non-executive director and audit committee member of Cypress Development Corp. He has 30 plus years of experience in public company management, providing corporate communications and investor relations for resource and technology companies listed on the TSX Venture, NASDAQ and Toronto Stock Exchanges.
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