Cypress Development Files Prefeasibility Study for Clayton Valley Lithium Project in Nevada
Suite 1610 - 777 Dunsmuir Street, Vancouver, BC, Canada, V7Y 1K4
www.cypressdevelopmentcorp.com
TSX Venture Exchange Symbol: CYP
Email: [email protected]
Telephone: (604) 687-3376
Facsimile: (604) 687-3119
NEWS RELEASE
June 3, 2020
Cypress Development Files Prefeasibility Study for Clayton Valley
Lithium Project in Nevada
Vancouver, BC - Cypress Development Corp. (TSX-V: CYP) (OTCQB: CYDVF)
(Frankfurt: C1Z1) (“Cypress” or “the C ompany”) is pleased to announce , further to
its News Release on May 19, 2020, the full Prefeasibility Study (PFS) of the Clayton
Valley Lithium Project in Nevada, U.S.A. was filed on SEDAR and is available on the
Company’s web site . The PFS was prepared by Continental Metallurgical Servic es
(CMS) and Global Resource Engineering (GRE) and has an Effective Date of May
19, 2020. Todd Fayram (CMS), Terre Lane (GRE), and Daniel Kalmbach are the
authors.
Highlights from the PFS and news release are as follows:
• Average production rate of 15,000 tonnes per day to produce 27,400 tonnes
lithium carbonate equivalent (LCE) annually over a +40-year mine life.
• Capital cost estimate of US$493 million, pre-production, and operating cost
estimate averaging US$3,329* per tonne LCE. (* see Note)
• After-tax net present value at an 8% disc ount rate (NPV-8%) of US$1.052
billion and an after-tax internal rate of return (IRR) of 25.8% based on a price
of $9,500/tonne for lithium carbonate.
• Production based on Probabl e Mineral Reserve of 2 22 million tonnes
averaging 1,141 ppm Li (1.353 Mt LCE).
• Mineral Reserves and production p lan derived from Measured and Indicated
Mineral Resources of 593 million tonnes averaging 1,073 ppm Li (3.387 Mt
LCE).
Next Steps:
Throughout 2019 and 2020, the C ompany focused on completing the PFS . During
this time, the Company engaged with interested parties in discussing ways to move
the project forward. With the next step a pilot plant program, as recommended in the
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PFS, Cypress intends to invite propo sals that can add value to the project and the
Company through financial, technical, operating or marketing capabilities.
“We are extremely pleased with the effort of Cypress’ staff and consultants to bring
the project to this level of interest and look forward to securing a partner to achieve
the next step in develop ment”, noted Cypress CEO Bill Willoughby. “We thank the
authors of th e PFS, Mr . Fayram, Ms. Lane and Mr. Kalmbach, and are grateful for
the assistance of Dr. Brereton and Mr. Mielke from NORAM Engineering and
Constructors Ltd. (NORAM), and input from our technical a dvisor, Dr. Corby
Anderson."
In prep aration for the pilot pla nt program, the following work is underway , core
logging and analyses on se veral drill holes , supplemental metallurgical tests, and
environmental studies. In the past week, another lar ge sample w as leached and
filtered at Continental Metallurgical Services (CMS) in Butte, Montana and the filtrate
shipped to NORAM in Vancouver , BC for further work to test the NORAM-CMS
flowsheet under varying conditions. Testing thus far has yielded concentrated lithium
solution suitable for producing high purity lithium hydroxide. The recommendations in
the PFS are to study the process with a pilot plant and simulate all key functions of a
full-scale operation. Planning for the collection of material for the pilot plant program
is underway.
The time frame and cost for the pilot plant program are estimated in the PFS at six
months and US$ 6.75 million . Cypress CEO Bill Willoughby notes “Our team
consistently met the challenges presented to us throughout the PFS. Every step was
a learning process and we are confident that appreciation for this work and our asset
base in Clayton Valley will carry the project forward through the next phase”.
Note: The May 19, 2020 New Release contained two typographic errors where the production
cost was listed as $3,392/tonne. The correct value is $3,329/tonne.
Qualified Persons:
Todd Fayram, MMSA-QP, of Continental Metallurgical Services, LLC., Terre Lane,
MMSA-QP, of Glo bal Resource Engineer ing, and Daniel Kalmbac h, CPG, are the
qualified persons as defined b y National Instrume nt 43-101 and ha ve approved the
technical information in this release.
About Cypress Development Corp.:
Cypress Development Corp. is a publicly tra ded exploration com pany foc used on
developing t he Company's 100%-owned Clayton V alley Li thium Project, loca ted
immediately east of Albemarle's Silver Peak mine, North America's only lithium brine
operation. Exploration and development by Cypress ha s discov ered an extensive
deposit of lithiu m-bearing clay stone adjacent to the brine field. The size of t he
resource makes t he Project a premier target with the potential t o impact the future
supply of lithium for the fast-growing global lithium-ion battery market.
Cypress Development Corp. has approx. 90.1 million shares issued and outstanding.
To find out more about Cypress Development Corp. (TSX-V: CYP), visit our website
at www.cypressdevelopmentcorp.com.
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CYPRESS DEVELOPMENT CORP.
“Dr. Bill Willoughby”
WILLIAM WILLOUGHBY, PhD., PE
Chief Executive Officer
For further information contact myself or:
Don Myers
Cypress Development Corp.
Director, Corporate Communications
Telephone: 604-639-3851
Toll Free: 800-567-8181
Facsimile: 604-687-3119
Email: [email protected]
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE
CONTENT OF THIS NEWS RELEASE.
This release includes certain statements t hat may be de emed to be " forward-looking
statements". All statements in this relea se, othe r than statements of historical fac ts, that
address e vents or d evelopments that management of t he Company expects, a re forwa rd-
looking st atements. Although management believes the expectations expres sed in such
forward-looking statements are based on reasonable assumptions, such statements are not
guarantees of future performance, and actual results or developments may differ materially
from those in the forward -looking statements. The Company undertakes no obligation to
update these forward -looking statements if management's beliefs, estima tes or opinion s, or
other factors, should change. Factors th at could cause actual results to differ materially from
those in forwar d-looking sta tements, inc lude mar ket prices, exploration and development
successes, continued availability of capital and fin ancing, and ge neral economic, market or
business conditions. Please see the publi c filing s of the Comp any at www.sedar.com for
further information.