The Global Resource For Connecting Buyers and Sellers

Lithium Explorer Files PEA, Launches PFS Work for Nevada Project

The company outlined the next steps for its lithium operation.

Cypress Development Corp. (CYP:TSX.V; CYDVF:OTCQB; C1Z1:FSE) filed an NI 43-101 compliant preliminary economic assessment (PEA) for its Nevada-based Clayton Valley lithium project, which CEO Bill Willoughby called “a significant milestone,” in a news release. The project advanced from the initial drill hole through the PEA stage in fewer than two years.

The company had announced the results for the PEA on September 6. As a reminder, the PEA for Clayton Valley outlined a 32.7% internal rate of return, a $1.45 billion net present value 8% and a 2.7-year payback period. It projected the mine would produce 15,000 tons per day of lithium carbonate for 40 years and initial capital costs would be about $482 million over two years.

The report, prepared by Global Resource Engineering (GRE) in Denver, Colo., is available at SEDAR and on Cypress Development’s website.

According to Cypress, next for Clayton Valley is a prefeasibility study, which will include additional infill drilling and various tests and studies—metallurgical, geophysical, hydrological and geotechnical—all aimed at fleshing out Clayton Valley’s economic assumptions.

“Our next steps have the potential to unlock shareholder value as we continue with infill drilling, further metallurgical studies, and a prefeasibility study to provide more detailed information related to the project’s economic assumptions,” Willoughby added.

The goals of metallurgical testing, already underway, are to define ideal leach conditions, configure the processing plant and “demonstrate production of high purity lithium carbonate suitable for battery usage,” the company stated.

With infill drilling, scheduled to start in one to two months, Cypress aims to upgrade resource categories and optimize the mine production schedule.

In the PEA, GRE recommended additional efforts. They include testing to determine the potential to mine, as byproducts, rare earth elements, most notably those identified during the PEA, scandium, neodymium and dysprosium. GRE also suggested Cypress evaluate different processing methods, such as membranes and ion exchange resins, and conduct “trade‐off studies related to capital and saleable electrical generation for the acid plant,” noted the news release.

The prefeasibility study, whose estimated budget is about $800,000, is expected to be finished in Q1/19.


1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her 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. 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.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
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.