In the last year Cypress Development (TSX-V:CYP, OTC:CYDVF) has rapidly moved towards a maiden resource estimate at its Clayton Valley, Nevada lithium projects (The Dean & Glory Projects). The latest drill program at both Dean & Glory returned thick mineralized intercepts on all holes drilled and serves to expand the mineralized zone. All of the results from the winter 2017/18 drill program are expected to be incorporated in the maiden resource estimate which should be out by the end of April.
While 2018 has been a rough year for the lithium sector, Cypress shares have held support near C$.20 and held up relatively well to other lithium juniors (many of which have fallen more than 50% during this tumultuous period in the sector).
Cypress now has a clear path forward and shareholders can expect some major steps forward before the end of the year:
Maiden resource estimate within a month.
Metallurgical testing throughout the summer.
Maiden PEA by the end of the year
The maiden resource estimate for Dean & Glory is a huge milestone for Cypress, and considering the high grade nature of this project and its world class location the PEA could demonstrate robust economics. Metallurgical testing, which will take place during the summer, could put to bed any final doubts as to the viability of extracting lithium from the Clayton Valley mudstones; so far the Clayton Valley mudstones are proving to be different from other mudstone projects in terms of carbonate content and acid consumption, and most importantly there is no hectorite (the most adverse element usually found in lithium bearing mudstones) in the mudstones at Dean & Glory.
In addition, the maiden resource estimate will allow interested parties (large lithium producers etc.) to better gauge the value of what Cypress has in the Clayton Valley. My opinion is that it would make a lot of sense for major lithium producer Albemarle (which has the Silver Peak lithium project right next door) to consider making an offer for Dean & Glory once the resource estimate is out, but before Cypress has completed its PEA (which would likely make a buyout much more costly for the acquiror).
Disclosure: Author is long CYP shares at time of publishing and may buy or sell at any time without notice. Do your own due diligence, it’s your money and your responsibility.
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