This morning Cypress Development announced the most significant step towards de-risking its Clayton Valley Lithium Project since it delivered its maiden PEA last year. Pre-feasibility level of metallurgy is more robust than PEA (scoping study) and this latest metallurgy provides positive confirmation of the economic parameters (operating costs) indicated in the PEA.
Not only were the PEA recovery rates confirmed, but the acid consumption was lower which could potentially mean that operating costs will be lower than envisioned in the PEA. Cypress will now turn its focus to producing a saleable lithium product:
“The focus for the remaining work for the PFS is not further optimization of leaching, but to demonstrate lithium production from the PLS into a saleable form. In the PEA process flowsheet, this is accomplished by purification, evaporation and crystallization steps.”
This thorough metallurgical study confirms the findings of the PEA and could mean that the PFS numbers will be at least as good, or better than the PEA numbers.
Cypress CEO Bill Willoughby went on to state:
“We are very pleased with progress on the first phase. While it was time consuming, the information gained on the behavior of the clay during leaching is invaluable and represents a huge step forward in our understanding of the leaching process. With this as a foundation, we are confident in moving forward to the next phase of testing in the PFS.”
The next steps for Cypress will be to complete infill drilling and complete the next phase of testing for a maiden-PFS which is anticipated to be completed in late May or early June.
Perhaps one of the reasons for the recent softness in the share price is the fact that roughly 10 million shares from the October private placement at $.22 will come free trading tomorrow. However, these shares are not in the money at the current share price and any selling from the PP will likely get chewed through over the coming days.
This gives investors an opportunity to get in at lower levels than the October private placement buyers at a point in time when Cypress has substantially de-risked its Clayton Valley Lithium Project, and is on the verge of delivering a positive maiden PFS.
From a technical chart vantage point CYP shares are sitting on strong long term support near $.18:
With roughly 50% of short term (2-3 months) upside as Cypress advances towards delivering its maiden-PFS, CYP shares look very attractive both from a fundamental and technical standpoint.
Disclosure: Author is long CYP shares at the time of publishing and may buy or sell at any time without notice.
The article is for informational purposes only and is neither a solicitation for the purchase of securities nor an offer of securities. Readers of the article are expressly cautioned to seek the advice of a registered investment advisor and other professional advisors, as applicable, regarding the appropriateness of investing in any securities or any investment strategies, including those discussed above. Cypress Development Corp is a high-risk venture stock and not suitable for most investors. Consult Cypress Development Corp’s SEDAR profile for important risk disclosures.
EnergyandGold has been compensated for marketing & promotional services by Cypress Development Corp so some of EnergyandGold.com’s coverage could be biased. EnergyandGold.com, EnergyandGold Publishing LTD, its writers and principals are not registered investment advisors and advice you to do your own due diligence with a licensed investment advisor prior to making any investment decisions.
This article contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). Certain information contained herein constitutes “forward-looking information” under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expects”, “believes”, “aims to”, “plans to” or “intends to” or variations of such words and phrases or statements that certain actions, events or results “will” occur. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed by such forward-looking statements or forward-looking information, standard transaction risks; impact of the transaction on the parties; and risks relating to financings; regulatory approvals; foreign country operations and volatile share prices. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Actual results may differ materially from those currently anticipated in such statements. The views expressed in this publication and on the EnergyandGold website do not necessarily reflect the views of Energy and Gold Publishing LTD, publisher of EnergyandGold.com. Accordingly, readers should not place undue reliance on forward-looking statements and forward looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.com for important risk disclosures. It’s your money and your responsibility.