Extracting Lithium Ore from Clays in Nevada USA

by Mike Fagan

Mike Fagan


 

Cypress Development Corp. (TSX-V: CYP)(OTC: CYDVF) — currently trading at approximately C$0.85 per share — is advancing its pilot plant program for the flagship Clayton Valley Lithium Project, Nevada, with an operational target date of July 2021. 

Exploration and development by Cypress has led to the discovery of a large, world-class resource of lithium-bearing claystone at Clayton Valley wherein the company is working toward a Feasibility Study and permitting of a mine.



The pilot plant program will test the feasibility of lithium extraction from clays as outlined in the company’s 2020 Prefeasibility Study. To that end, Cypress has entered into a services agreement with Ontario-based Chemionex Inc. to advise on the extraction process.

Cypress CEO, Dr. Bill Willoughby, commented via press release
 
“We are pleased to have access to Chemionex and their considerable expertise in chemical processing in support of our pilot plant. Along with the invaluable contributions from our other contractors, we look forward to advancing our concepts to develop a unique opportunity in lithium.”

Additionally, the company is proceeding with due diligence work with respect to its recently announced letter agreement for water rights with Nevada Sunrise Gold  (TSX-V: NEV) wherein the parties are working toward completion of a purchase agreement by the end of next week. 

Last year’s PFS (Prefeasibility Study) on the Clayton Valley Lithium Project outlined a mill-rate of 15,000 tonnes per day for 27,400 tonnes LCE (Lithium Carbonate Equivalent) per year over a 40-yr mine life and 4.4-yr capex payback period using US$9,500 per tonne LCE. 

The project’s after-tax NPV (-8%) came in at US$1.03 billion and 25.8% IRR. That’s essentially a US$1B valuation for a company with a current market cap below US$100 million.

The electric vehicle (EV) boom is here with lithium-based battery power expected to play an ever-increasing role. Just today, Ford announced that it expects 40% of its global sales to be EVs by 2030 under a new plan to increase investment in the technology to US$30 billion through 2025. 

With very few lithium mine projects on US soil, Cypress Development is making tremendous progress in proving out its world-class lithium resource in Nevada. 

If the pilot plant program proves successful, the 5,430-acre Clayton Valley Project could emerge as a premier lithium source with the potential to impact the supply of lithium for the fast-growing energy storage/EV market in the United States.

Naturally, we’ll be bringing you results of the pilot plant program along with any other key developments as they are released.

Click here to access our feature report on Cypress Development. 

Yours in profits,
Mike Fagan
Mike Fagan
Editor, Resource Stock Digest
 
Mike Fagan has mining in his blood. As a teenager he staked countless gold and silver properties in Nevada alongside his dad, Brian Fagan, who created the Prospect Generator model that’s still widely used today in the resource space. One of those staking projects was put into production by a major Canadian mining company — a truly rare and profitable experience. That background uniquely qualifies him as a mining stock speculator. One of the most well-known names in the business, Mike is now putting that experience to use for the benefit of Resource Stock Digest and Hard Asset Digest readers.

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