VANCOUVER, British Columbia, May 19, 2020 (GLOBE NEWSWIRE) — Cypress Development Corp. (TSX-V: CYP) (OTCQB: CYDVF) (Frankfurt: C1Z1) (“Cypress” or “the Company”) is pleased to announce positive results from a Prefeasibility Study (PFS) of the Company’s Clayton Valley Lithium Project in Nevada, U.S.A. The PFS was prepared by Continental Metallurgical Services (CMS) and Global Resource Engineering (GRE). Todd Fayram (CMS), Terre Lane (GRE), and Daniel Kalmbach are the authors.Highlights:Average production rate of 15,000 tonnes per day to produce 27,400 tonnes lithium carbonate equivalent (LCE) annually over a +40-year mine life.
 Capital cost estimate of US$493 million, pre-production, and operating cost estimate averaging US$3,392 per tonne LCE.
 After-tax net present value (NPV-8%) of US$1.052 billion at 8% discount rate and 25.8% internal rate of return (IRR).
 Production based on Probable Mineral Reserve of 222 million tonnes averaging 1,141 ppm Li (1.353 Mt LCE).
 Reserves and production plan derived from Measured and Indicated Mineral Resources of 593 million tonnes averaging 1,073 ppm Li (3.387 Mt LCE).Cypress CEO Dr. Bill Willoughby stated, “This PFS is a major milestone for Cypress. These positive results take us closer to our goal of developing a world-class lithium deposit.  Cypress’ land position and resources afford us the opportunity for a long-life project with low operating costs and potential to be a significant source of lithium for the United States.”The key features of the claystone deposit include its large size, surface exposure and flat-lying nature. These features allow mining with negligible strip ratio due to minimal overburden and no interbedded waste, and no drilling or blasting in excavation. Metallurgical testing indicates low cost processing can be achieved by leaching with low acid consumption and high lithium recovery. Self-generated power from a 2,500 tpd acid plant is included in the project’s costs.The project’s large resource allows the mineral resources and reserves to be derived from a portion of the property. All resources and reserves are pit-constrained by property and geologic boundaries, and are based on a cut-off grade of 900 ppm Li.Results for the PFS are:Average annual production of 27,400 tonnes per year LCEMine life for PFS of 40 yearsIndustry-low cash cost of US$3,329 per tonne LCEUS$1.052 billion NPV at 8% discount rate, after-tax basisAfter-tax internal rate of return (IRR) of 25.8%Payback period of 4.4 yearsThe economic evaluation is reported in terms of LCE using an average price of US$9,500 per tonne. The price assumption reflects variations expected over time due to start-up and pricing for lithium products.Sensitivity* to Price, Capex, and OpexMineral Resources
The Mineral Resource Estimate is based on all drilling results from the project, including six holes drilled in 2019.The reported Mineral Resource is pit constrained by an “ultimate” pit that extends to the property boundaries and uses slope angles determined from geotechnical study.The Mineral Resources total 432.4 million tonnes averaging 1,088 ppm lithium (Li) in the Measured Resource and 160.9 million tonnes at 1,032 ppm Li in the Indicated Resource, for a total of 593.3 million tonnes at 1,073 ppm Li in Measured and Indicated Resources. The constrained pit shell contains mostly Measured and Indicated tonnes, with only 2.3 million tonnes of Inferred Resource averaging 1,005 ppm Li.
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