Cypress Development Corp. (CYP:TSX.V; CYDVF:OTCQB; C1Z1:FSE) recently announced it has filed a National Instrument (NI) 43-101 Technical Report on SEDAR with the title "Resource Estimate Clayton Valley Lithium Project." Clayton Valley is the company's 100%-owned lithium project in Nevada, and the report describes the independent resource estimate conducted there by Global Resource Engineering (GRE), a Colorado-based firm. Included within the document is a recommendation for a Preliminary Economic Assessment (PEA), which GRE expects to complete in the next couple of months.
Some key report findings are:
- The mineral resources are reported using a cut-off grade of 300 ppm Li and constrained to pit shell reflecting a $15/tonne operating cost, $10,000/tonne of LCE price and 80% net recovery to LCE.
- Total Indicated Mineral Resource of 697 million tonnes at an average grade of 886 ppm Li, or 3.287 million tonnes of lithium carbonate equivalent (LCE).
- Total Inferred Mineral Resource of 643 million tonnes at an average grade of 852 ppm Li, or 2.916 million tonnes of LCE.
- Minor changes in the resource model occurred following the May 1, 2018 press release due to adjustments in model boundaries. The proportion of indicated to inferred tonnes increased somewhat while the net lithium tonnes in the model decreased slightly.
A database of 23 drill holes for 1,891 meters drilled by Cypress during 2017 and 2018 was employed by GRE to create the independent resource estimate. ALS Chemex or Bureau Veritas, which are ISO-9000 certified laboratories, assayed all the samples for the project.
Based on the results from laboratory testing and confirmation leach testing an overall lithium recovery of 80% was employed for the mineral resource. Early results have shown that lithium extractions of greater than 80% can be achieved.
The overarching finding from the work conducted by GRE is that the Cypress' Clayton Valley Lithium Project has the potential to be a major supplier of lithium products in the world.
Cypress Development Corp. is a mining company headquartered in Vancouver with lithium and zinc/silver projects in the state of Nevada.
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