1. Summary

The company holds 100% of the Clayton Valley lithium project in Nevada. The company released a Preliminary Feasibility Study (PFS) in May, 2020. 

Clayton Valley highlights include: leachable with hydrochloric acid (“table salt acid”), sizable resource & proven tier one battery grade end product.

Net Present Value:

$1.6B

$12000/t LCE pricing. After-tax, 8% Discount rate

Resource Estimate:

6.3 Mt

Measured & Indicated

Market & Ticker

Canada (TSX-Venture) $CYP

The U.S (OTC) $CYDVF

Germany (Frankfurt) $C1Z1

Measured & Indicated

Clayton Valley Project

  • Project Location

    Nevada, USA

  • Completed Project Stage

    Preliminary Feasibility Study

  • Current Project Stage

    Pilot Plant, Definitive Feasibility Study

2. Project Highlights

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  • Project Location: World-Class Jurisdiction & Close to Potential Partners

    Located adjacent to the Silver Peak lithium brine operation of Albemarle, the world’s largest and most recognized lithium producer.

  • Breakthrough Technology: Low-Cost Zero-Carbon Lithium

    Currently evaluating an extraction method only needing water, electricity, and brine with high chloride content, in other words, a brine with high "table-salt” content. This could make the project one of the most sustainable projects in the lithium sector

  • Huge Resource: Supports 229 years of mining

    Indicated resource boosts 6.29 million tonnes Lithium Carbonate Equivalent. Making it the largest deposit for an advanced lithium junior (Post-PFS, M&I) in North America and one of the largest lithium deposits in the world where the indicated resource alone supports a 229 year mine life.

  • Project Economics: A Billion-Dollar Project

    The PFS presented a Net Present Value of US$1.63 billion using a $12,000 pricing, making it the one lithium juniors with the highest Net Present Value per tonne produced in North America

  • Pre-Feasibility Economics Only Accounts for 1/6th of The Total Resource

    The Pre-Feasibility Study was based on about 1/6th of Cypress Developments total resource (The Pre-Feasibility was based on a mine life production of 1.1 million tonnes: 27,400 tonnes LCE per year for 40 years)

  • Financials: Strong Cash Position Of +C$20M

    The company recently completed an oversubscribed bought-deal financing led by PI and raised C$19.55 million. This gives Cypress more than enough money to complete the current pilot plant and upcoming feasibility study.

  • Low-Cost Mining

    Near-surface deposit with lithium-bearing clay rock and very favorable waste to clay overburden ratio.

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3. Article: An Advanced Lithium Developer With A Turn-Key Saline Extraction Technology Suitable For Tesla

One of the Largest Resources Globally

Cypress Development Corp is an advanced junior mining developer that is focused on its sedimentary lithium project in Clayton Valley, Nevada.

The Company began to drill the property in 2017 and has since defined one of the largest lithium resources globally boosting a Measured and Indicated resource of 6.3 million tonnes of Lithium Carbonate Equivalents (LCE). The resource is located adjacent to Albemarle’s current Nevada lithium operations in Silver Peak and close to Tesla’s Giga factory in Reno, Nevada. 

Cypress Development boosts one of the largest deposits in the world
With a production of 27,400 tonnes of Lithium Carbonate annually, the indicated resource alone supports a 229 year mine life!

See how Cypress Development’s Resource Estimate compares to other North American Lithium Projects below Hover over the interactive chart to display all figures

See how Cypress Development’s Resource Estimate compares to other North American Lithium Projects below 

A Billion Dollar Project

In 2019 the company released a Preliminary Economic Assessment (PEA) together with its first resource estimate. In August 2020, Cypress Development presented a very positive Preliminary Feasibility Study (PFS) showing a Net Present Value (NPV – The total value of the project over the course of its mine life) of over US$1 billion using industry-low pricing of $9.500/tonne Lithium Carbonate Equivalent (LCE), which is 20% lower than the $12,000/tonne pricing often used by peers in similar studies. The Pre-Feasibility Study was based on a sulfuric acid leach process and a production of 27,400 tonnes of Lithium Carbonate per year.

Using the peer standard of  US$12,000 per tonne LCE long-term pricing, Cypress Development boosts a Net Present Value over US$1.6 billion (Late March 2021, battery-grade lithium carbonate pricing were +US$12,625 per tonne)

See how Cypress Development’s Clayton Valley project compares to other North American Lithium Projects below (all using the same pricing forecast of $12,000/tonne LCE) 

Hover over the interactive chart to display all figures

A New Sustainable, Cost-Effective & Scalable Extraction Technology
Old process: The drawbacks of using sulfuric acid

The sulfuric acid process requires large amounts of the unstable molten sulfur to be transferred to the site, which acted as a bottleneck for production capacity in the PFS. To create the sulfuric acid, the molten sulfur is heated which has some bad side-effects such as odors. Cypress Nevada Neighbor, Lithium Americas Thacker Pass clay lithium project, will use sulfuric acid in their lithium extraction. The odor from the production of sulfuric acid and the disruption and pollution from truck traffic required to bring the sulfur to the site has brought a lot of protests from the people living in the close vicinity to that project. 

Lithium Americas' Thacker Pass has been criticized for the proposed sulfuric acid plant
New Process: Cheap, Scalable with Zero-Carbon Potential

In August 2020, Cypress revisited earlier testing using hydrochloric acid with the aim to replace the sulfuric acid process. The new hydrochloric acid process proposed by Cypress does not require sulfur to be shipped to the site but rather produced from the existing brines in the valley, greatly reducing the project’s environmental and social impacts. The hydrochloric acid can be produced on-site through an electrolysis process called the Chlor-Alkali process. only using table-salt, water & electricity.

As a result, the production capacity bottleneck that came with the sulfuric acid process is no longer an issue, and they can scale the process up as they wish. An interesting note is that the Pre-Feasibility Study was based on about 1/6th of Cypress Developments total resource (The Pre-Feasibility was based on a mine life production of 1.1 million tonnes: 27,400 tonnes LCE per year for 40 years) which means they’ve got the capacity to increase output multiple times the amount presented in the Pre-Feasibility Study.

If the electricity used is renewable, produced with solar-panels to name one suitable option in the Nevada desert, Cypress Developments hydrochloric acid process has the potential to become one of the most sustainable & cost-effective lithium operations in the world. Accessing Cypress Development’s end product might prove to be an Environmental, Social & Governance (ESG) advantage that’ll be sought after by most (if not all) of today’s EV manufacturers. 

Powering the new hydrochloric acid plant with renewable power could make the project carbon neutral
New process: The origin of Tesla’s “table-salt” Comment during Battery Day?

During Tesla’s Battery Day, Elon Musk announced a lithium-clay “table-salt” extraction method. The Battery Day event occurred one month after Cypress Development revisited its Hydrochloric Acid processing tests, with the hydrochloric acid produced only using table-salt, electricity & water.

Elon Musk mentions a new, saline clay-extraction during Battery Day in September, 2020.
New process: A Battery-grade end product, lower operating costs & an Albemarle connection

The company has already proven that the sulfuric acid process is suitable to produce tier-one battery-grade lithium hydroxide in large lab-scale tests. The recent choice to pursue the hydrochloric option for the new pilot plant proves with good confidence the company is able to get the same results using hydrochloric acid. Tests with the saline acid option also demonstrated a higher lithium extraction yield than the sulfuric acid process during the same leach conditions, which might indicate lower operating costs.

“The Company reported in its November 24, 2020 news release testing resulted in 85.3% total extraction when using hydrochloric acid to leach lithium-bearing claystone from the project. This result was higher than the 80.2% lithium extraction obtained when using sulfuric acid under the same conditions. Conditions included using a high sodium chloride solution instead of distilled water in leaching.”

Company News Release
3rd of December, 2020

Adding to the above quote, the leach solution has shown to separate on its own, not requiring any expensive equipment used to separate the solids from the liquids when using the sulfuric acid process. An important note is that during the leach tests, high sodium chloride solution was used instead of distilled water, conveniently enough, the adjacent operations in Silver Peak run by Albemarle have a lot of chloride-rich brine. 

The Clayton Valley project. Located adjacent to Albemarle's Silver Peak Lithium Operations
Positive Initial Environmental Studies

Initial environmental studies presented in a baseline biological report showed no endangered species or crops which de-risk the project substantially transitioning towards production.

“While no threatened or endangered species were found, mining by nature has a direct impact on the immediate and surrounding environment,” said Cypress CEO Bill Willoughby. “Cypress believes responsible and effective environmental management is an integral part of project development. The information in this report allows us to proceed with our pilot plant program and will provide important information for permitting as Cypress moves the project towards a feasibility study and our goal for future production.”

Company News Release
30th of December, 2020

The Clayton Valley project
Financing & Pilot Plant Initiation

In early March 2021, the company closed an oversubscribed C$19.55M bought deal to finance a pilot plant study & future feasibility study. In late March 2021, the company initiated the assembly of a pilot plant to perform large-scale tests on the hydrochloric acid process to identify and resolve potential issues when scaling the process up moving towards a Definitive Feasibility Study (DFS). In earlier interviews (CRUX interview link) Bill. W (CEO) claimed that the pilot plant studies were not so much for their own sake to know that their process works, but rather to satisfy potential partners & off-takers. 

“..The pilot plant project is not so much what we think we need to do, but what end-users need us to produce for them…”

CRUX interview
July, 2020

The Pilot Plant

“We’re confident at this point that we are in the process to produce a lithium solution which you can commercially convert at a production scale into lithium hydroxide already (!). What we need to know is what happens inside the plant as we circulate loads, various solution streams in the plant”

CRUX interview
July, 2020

3b. Article Update: May 2021

Cypress Signs Letter of Intent to Acquire Water Rights in Clayton Valley

In May 2021, Cypress Development entered a Letter of Intent (LOI) to acquire water rights from its neighbor Nevada Sunrise Gold Corp. The secured water rights de-risk the project substantially moving towards production since the Nevada Division of Water Resources has maintained that no new permits will be made available for water appropriation within the Clayton Valley basin.

 

“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”

“The water under this permit will provide a significant portion of the freshwater supply called for under our project’s Prefeasibility Study.”

Cypress CEO Bill Willoughby
May, 2021

Current Valuation
Amount of Lithium Per Dollar Invested

In the comparison below, you’re able to see how much lithium resource you get per dollar invested. It compares North American Lithium Companies and only account for company resource estimates with a high level of confidence (Measured & Indicated). 

Hover over the interactive chart to display all figures

Current Valuation in Relation to Project Value

In the chart below, you’re able to see how much of the project already is priced in by the market. The data compares public figures presented in the most recent technical study presented by each North American Lithium Company. All project are compared with the same pricing assumption: US$12000/tonne Lithium Carbonate (and for spodumene producers $750/tonne SC6) 

Hover over the interactive chart to display all figures

Potential Gain To Peer Average

Below we display Cypress Development Corp’s potential in relation to the peer average of other North American Lithium junior miners. 

The potential upside in percentage gain is also presented in the chart when hovered. 

Hover over the interactive chart to display all figures

4. Management Team

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William Willoughby

Director, CEO - PhD, PE

Donald C. Houston

Chairman, President

Abrahaam (Braam) Jonker

CFO - CPA

Donald G. Myers

Director, Corporate Communications

James G. Pettit

Non-Executive Director

Amanda Chow

Director - CPA, CMA

Cassandra Joseph, Esq.

Non-Executive Director

5. Technical Advisors

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Corby G. Anderson

Technical Advisor - PhD, CEng, FIMMM, FIChemE

Academic Awards:

Adam Knight

Project Manager

Daniel W. Kalmbach

Technical Advisor - CPG

William H. Breen

Land Manager - PGeo, BSc

Donald Mosher

Advisor, Corporate Development

Simon Dyakowski

Advisor, Corporate Development

6. Want to know more?

Crux Interview

Cypress Development Property Tour

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Company Documents

  • Pre-Feasibility Study - Effective Date August 5th, 2020 (Amended 15 March 2021)
  • Investor Presentation (March 2021)
  • Skärmavbild 2021-03-31 kl. 18.00.27
    Pre-Feasibility Study - Effective Date August 5th, 2020 (Amended 15 March 2021)
  • Skärmavbild 2021-03-31 kl. 18.00.27
    Investor Presentation (March 2021)

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Articles & Coverage Reports

  • Skärmavbild 2021-03-31 kl. 17.55.20
    May 28, 2021 - The future of US lithium supply
  • Skärmavbild 2021-03-31 kl. 17.45.41
    April 22, 2021 - Lithium price rebound; flash in the battery metals pan, or stronger for longer?
  • Skärmavbild 2021-04-03 kl. 21.19.43
    April 13, 2021 - Couloir Coverage Report - Leveraging Balance Sheet Strength to Optimize Operations and Advance the Clayton Valley Project
    $CYP Fair Value: $3.31
  • LOGO [återskapat]
    April 1, 2021 - An Advanced Lithium Developer With A Turn-Key Saline Extraction Technology Suitable For Tesla
  • Skärmavbild 2021-03-31 kl. 17.49.28
    March 25, 2021 - 13 gute Gründe für unseren Top-Pick aus dem Lithium-Sektor
    In German
  • Skärmavbild 2021-03-31 kl. 17.49.28
    March 25, 2021 - 13 good reasons for our top pick from the lithium sector
    English Version
  • OrganizationLogo.7f745bcc
    March 14, 2021 - Cypress Development Undervalued Relative to Peers
  • iDdntscPf-nfWKqzHRGFmhVxZm4hZgaKe5oyFws-yzA
    February 15, 2021 - Cypress Development - Pennystock Looking to make a Big Impact in Lithium EV Space
  • OrganizationLogo.7f745bcc
    February 12, 2021 - Cypress Development 1 Trillion EV Market vs 1 Dollar Lithium Stock
  • Skärmavbild 2021-03-31 kl. 17.45.41
    February 8, 2021 - Cypress Development Corp Cracking the Clay Code of Nevadas Lithium Abundance
  • Skärmavbild 2021-04-03 kl. 21.19.43
    December 18, 2020 - Couloir Coverage Report
    $CYP Fair Value: $2.48
  • Skärmavbild 2021-03-31 kl. 17.55.20
    August 12, 2020 - Cypress Doubles Clayton Valley Lithium Resource
  • Skärmavbild 2021-03-31 kl. 17.55.20
    July 31, 2020 - Building Americas First Scalable Lithium Mine
  • May 28, 2021 - The future of US lithium supply
  • April 22, 2021 - Lithium price rebound; flash in the battery metals pan, or stronger for longer?
  • April 13, 2021 - Couloir 2nd Coverage Report
    Fair Value: $3.31
  • April 1, 2021 - An Advanced Lithium Developer With A Turn-Key Saline Extraction Technology Suitable For Tesla
  • March 25, 2021 - 13 gute Gründe für unseren Top-Pick aus dem Lithium-Sektor
    In German
  • March 25, 2021 - 13 good reasons for our top pick from the lithium sector
    English Version
  • March 14, 2021 - Cypress Development Undervalued Relative to Peers
  • February 15, 2021 - Cypress Development - Pennystock Looking to make a Big Impact in Lithium EV Space
  • February 12, 2021 - Cypress Development 1 Trillion EV Market vs 1 Dollar Lithium Stock
  • February 8, 2021 - Cypress Development Corp Cracking the Clay Code of Nevadas Lithium Abundance
  • December 18, 2020 - Couloir Coverage Report
  • August 12, 2020 - Cypress Doubles Clayton Valley Lithium Resource
  • July 31, 2020 - Building Americas First Scalable Lithium Mine

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Clayton Valley Project

7. Resources & Reserves

Resources

Reserves

Want to know how Cypress Development Corp resource & reserve compare to other project in North America?
Clayton Valley Project

8. Project Economics

Initial capital costs

$493M

After-tax IRR

33.9%

$12000/t LCE pricing, 8% Discount rate

Operating Cost

$3329/t

LCE, before by-products credit

Ownership

100%

Of the Clayton Valley project

Sensitivity Analysis : Forecasted pricing

Forecasted LCE pricingAfter-tax NPV(8%) After-tax IRR
$9500/t$ 1.05 B25.8%
$12000/t*$ 1.64 B33.9%
$14250/t$ 2.17 B41.1%
Cypress Development Corp: $CYP

9. Current valuation

See how much of the Clayton Valley project’s Net Present Value is priced in with todays valuation. The data is delayed 15-minutes.

Compare to other companies!

Want to know how the valuation of $CYP compare to other lithium companies in North America?

Boosted Content

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