CYDVF - Cypress Development (CYDVF)(CYP) - Clayton Valley Project to Source Lithium from Nevada Claystone
Initiating coverage with an Outperform rating. Cypress Development Corp. is advancing its 100%-owned Clayton Valley Lithium Project encompassing 6,500 acres in Esmeralda County near Silver Peak, Nevada. Cypress intends to mine Nevada claystone, produce a high-grade lithium concentrate solution and apply a licensed lithium extraction process based on ion-exchange to produce lithium carbonate or hydroxide. Clayton Valley offers several competitive advantages, including a large land package in a mining friendly state, an existing lithium carbonate equivalent resource base, well-developed infrastructure, direct lithium extraction technology, a leased facility permitted for pilot testing, and secured water rights.Significant existing mineral resource. A preliminary feasibility study, amended in March 2021, highlighted 1.304 billion tonnes of indicated resources, averaging 905 parts per million (ppm) lithium, including probable reserves of 213 million tonnes of probable reserves averaging 1,129 parts per million (ppm) lithium, or 1.28 million tonnes of lithium carbonate equivalent (LCE). The study affirmed the economic value of advancing the project based on significant resource potential, net lithium recoveries of 83% after extraction and processing, and attractive return potential.Well positioned to meet growing demand for lithium. Clayton Valley could go into production as early as 2025, following the completion of a feasibility study by year-end 2022, a two-year permitting period which could begin mid-year 2022, and one-year construction period. Based on planned mill throughput of 15,000 tonnes per day, the current mineral resource could support a mine life of at least 40-years. We have assumed commercial production commences in 2026.Well-qualified management team. Dr. William Willoughby, President, CEO, and Director has over 45 years of experience in natural resources development, production, and financing. The company’s six-member board is comprised of accomplished individuals with a broad range of industry, capital markets, and financial experience. Read More >>