Overview of Cypress Development's Exploration Projects in Nevada, U.S.A.
Cypress Development Corp. (TSX-V: CYP) is a publicly traded lithium and zinc exploration company whose main assets include the development of two projects located in the State of Nevada, U.S.A.
Cypress' flagship Clayton Valley Lithium Project is located immediately east of Albemarle’s Silver Peak mine, North America’s only lithium brine operation, which has been in continuous operation since 1966. Recent exploration by Cypress has discovered an extensive deposit of lithium-bearing claystone adjacent to the brine field to the east and south of Angel Island, an outcrop of Paleozoic carbonates protruding up through the lakebed sediments.
Cypress controls two claim blocks, Dean and Glory, totalling 4,220 acres. Lithium mineralization occurs within montmorillonite clays throughout the sediments to a depth of at least 125 meters. In June 2018, Cypress reported an Indicated Mineral Resource of 3.287 million tonnes of lithium carbonate equivalent (LCE) contained in 697 million tonnes at an average grade of 886 ppm Li and an Inferred Mineral Resource of 2.916 million tonnes of LCE contained in 643 million tonnes at an average grade of 852 ppm Li. The Dean & Glory deposit remains open at depth, with 21 of 23 drill holes ending in lithium mineralization.
Metallurgical tests have shown the claystone is weak acid leachable with lithium extractions over 80% in 4 to 8 hours in agitated leach tests using sulfuric acid. These high extractions indicate the dominant lithium-bearing minerals present are not hectorite, a refractory clay mineral which requires roasting to liberate the lithium.
Cypress believes these features, along with a favorable geographical setting and the size of the deposit makes Clayton Valley a premier target that has the potential to impact the future of lithium production in North America. With lithium mineralization tested by drilling over a seven kilometer trend, Cypress’ Clayton Valley Project could develop into a significant long-term source of supply in a politically stable and favorable mining jurisdiction.
Cypress has commenced a Preliminary Economic Assessment (PEA) on its 100%-held Clayton Valley Lithium Project in Nevada and has selected Global Resource Engineering Ltd. of Denver, Colorado to conduct the study. Results of the PEA are anticipated in August 2018.
Cypress holds a 100% interest in the approximately 1,100 acre Gunman Zinc / Silver Project located in White Pine County, northeast of Eureka, Nevada. Five RC drill programs totaling over 15,000 meters have been completed by Cypress on the Gunman Project with significant near surface grades up to 35% zinc and up to 425 g/t silver over considerable widths encountered at the main RH Zone. Additional drilling will include the RH South Target, located approx. 150 meters south of the main RH Zone, where mineralized outcrops assayed up to 41% zinc and 340 g/t silver.
In December 2017, Cypress entered into an agreement Pasinex Resources Limited whereas Pasinex can earn up to an 80% interest in Cypress' Gunman Project. Total consideration to acquire the 80% interest is staged over four years and includes US$675,000 in cash payments and 4.8 million Pasinex common shares. In addition, Pasinex must incur minimum exploration expenditures totaling US$2,950,000 over the same four-year period.
William Willoughby, PhD, PE, Chief Executive Officer & Director of Cypress Development Corp. is a Qualified Person as defined by National Instrument 43-101 and has approved the technical information on this website.