Junior Firm Advancing Large-Scale Nevada Lithium Resource

by Mike Fagan

Mike Fagan

Cypress Development Corp. (TSX-V: CYP)(OTC: CYDVF) — currently trading at approximately C$1 per share — has entered into an LOI with a subsidiary of Nevada Sunrise Gold (TSX-V: NEV) on a US$3M water rights permit purchase for use on Cypress’ flagship Clayton Valley Lithium Project, Nevada.

The permit allows for 1,770 acre-feet of water for mining, milling, and domestic use per year, which is the max volume of permitted water available in Clayton Valley.  

Cypress CEO, Dr. Bill Willoughby, commented via press release

“Groundwater in the southwest U.S. is a limited resource, and it was known early on that acquiring water rights would be a sensitive and critical step for Cypress’ lithium project. We believe the timing is right to enter into this agreement given the advanced stage of our project. The water under this permit will provide a significant portion of the fresh water supply called for under our project’s Prefeasibility Study. We are very conscious, however, of the possible impacts and resources needed to support a new mine and are actively pursuing ways to conserve water. The data collected from our recent testing using a chloride leaching approach, for example. shows a large reduction in water use is possible. This LOI is a major step for Cypress in securing the water needs of the project.”

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 and metallurgical facility. 

Last year’s PFS (Prefeasibility Study) outlined a mill rate of 15,000 tonnes per day for 27,400 tonnes LCE/yr 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 boasting a current market cap of approximately US$100 million. 

With a robust treasury of approximately C$20 million, Cypress is well-funded to accomplish its stated goals for 2021, which include completing a pilot plant program and producing a Feasibility Study for its Clayton Valley Lithium Project. 

Be sure to check out our brand new report on Cypress Development here. 

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.