The Energy Report
Source: Streetwise Reports 05/15/2018
One of the largest deposits of lithium in North America appears to be extraction friendly.
Cypress Development Corp. (CYP:TSX.V; CYDVF:OTCQB; C1Z1:Frankfurt) recently released the maiden resource estimate for a lithium deposit at its 100%-owned Clayton Valley Lithium Project. It is unique due to its large size, which is 6.54 million tons of lithium carbonate equivalent (LCE). The Indicated resource is 597 million tons with a grade of about 0.09% lithium, or 2.857 million tons LCE. The inferred resource is 779 million tons at 0.089% lithium, or 3.683 million tons of lithium carbonate equivalent. It is one of the largest lithium deposits in North America.
Dr. Bill Willoughby, who joined Cypress as a consultant to commercialize and optimize the new lithium discovery and then became CEO, stated, “This is a major milestone for Cypress. To have advanced from drilling the first hole on Dean just over a year ago to the resources we have now is truly remarkable. It’s exciting not only to see validation to the size of deposit, which is something we’ve anticipated, but also all the other factors line up that affect how a project can become a mine. I’m looking forward now to the PEA next, which I anticipate based on the results today, we will work to complete as quickly as possible.”
Get our Weekly Commitment of Traders Report: - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Get Our Free Metatrader 4 Indicators - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
The metallurgy at the discovery site appears to be favorable to extraction, whereas some other claystone deposits have not been. “Preliminary test work conducted at SGS Canada Inc (Lakefield) and Continental Metallurgical Services, LLC has shown the material exhibits high lithium extractions with short leach times. Lithium extractions greater than 80% can be achieved in 4 to 8 hours using conventional dilute sulfuric acid leaching. Currently, Hazen Research Inc is conducting additional leach tests and preliminary results confirm high lithium extractions for new mineral zones,” the company noted.
“Cypress Development killed it with its maiden NI 43-101 compliant lithium resource estimate yesterday.” – Peter Epstein, Epstein Research
“The presence of acid leachable lithium presents a significant cost savings by avoiding calcine and regrind of material during processing. Preliminary results also show the consumption of sulfuric acid and other reagents are relatively low,” Cypress Development stated.
The deposit might have a theoretical 200 to 300-year old mine life, according to company representatives. At the moment, the company has not found the bottom of the deposit.
The asset is located in Nevada and is not far from the Tesla Gigafactory. Much of the world’s lithium production is located outside the U.S., so having such a large discovery occur in Nevada is especially noteworthy.
The deposit itself is a milestone but the company is also looking forward to more drilling success in the next 6-12 months. The completion of a preliminary economic assessment is expected by September.
Industry observers hailed Cypress’ maiden resource element. Peter Epstein of Epstein research wrote on May 2, Cypress Development “killed it with its maiden NI 43-101 compliant lithium resource estimate yesterday! The whisper number was 4 to 6 million Inferred tonnes of Lithium Carbonate Equiv. (LCE), (which would have been a tremendous result), but Global Resource Engineering Ltd. determined there’s an estimated 6.54 million metric tonnes LCE.”
“Management has delivered a blockbuster maiden resource, >6 million tonnes of LCE (combined Indicated & Inferred). Therefore, Cypress need never worry again about resource size; it already has huge scale,” Epstein concluded.
The Critical Investor noted on May 9 the speed at which Cypress Development is working: “Cypress Development is proceeding at breathtaking pace, going from its first drill hole at the Dean claystone lithium project in Nevada, U.S., to the very recent announcement of a maiden resource estimate on both Dean and Glory projects in just over a year.”
“As the resource of Dean/Glory is quite large, the potential for a project with very impressive economics could be realistic,” The Critical Investor stated.
The company has approximately 60 million shares outstanding, of which 20% are closely held.
In December 2017, the U.S. government designated lithium as a “critical mineral” of strategic importance. One driver of lithium consumption is its use in batteries for electric vehicles. Many countries around the world are interested in acquiring EVs or making their own because they dont produce toxic tailpipe emissions and run on electricity, not directly on fossil fuels. Batteries of all kinds utilize about half of all the world’s mined lithium.
Want to read more Energy Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.
1) Jake Richardson compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Cypress Development Corp. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.
Disclosures from Epstein Research, Cypress Development, May 2, 2018
At the time this interview was posted, Peter Epstein owned shares and/or stock options in Cypress Development Corp. and the Company was an advertiser on [ER]. Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. While the author believes he’s diligent in screening out companies that, for any reasons whatsoever, are unattractive investment opportunities, he cannot guarantee that his efforts will (or have been) successful. [ER] is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. [ER] is not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. [ER] is not an expert in any company, industry sector or investment topic.
Disclaimer: from The Critical Investor, Cypress Development, May 9, 2018
The author is not a registered investment advisor, and has a long position in this stock. Cypress Development is a sponsoring company. All facts are to be checked by the reader. For more information go to Cypress Development Corp. and read the company’s profile and official documents on Sedar, also for important risk disclosures. This article is provided for information purposes only, and is not intended to be investment advice of any kind, and all readers are encouraged to do their own due diligence, and talk to their own licensed investment advisors prior to making any investment decisions.
( Companies Mentioned: CYP:TSX.V; CYDVF:OTCQB; C1Z1:Frankfurt,