RE:RE:PFS will "spill" into Q2Some important snipetts from the article dated March 29, 2020 :
Cypress is waiting on the final report from NORAM, but Willoughby is confident in the process based on the results so far. “Based on the solution grades we see after purification, the steps to reaching battery-grade product are predictable and industrially proven. The work throughout the PFS addressed the risk areas identified in the PEA and successfully found solutions to problems we encountered along the way.”
This news does not take all the risk out of CYP going into production, but, says Willoughby, with the PFS in hand, the Company will be ready to take the next steps which will include a pilot plant and permitting. “With more than $1 million in the treasury, Cypress has the resources to complete the PFS while taking steps to weather the present Covid-19 crisis.” The PFS is the foundation for further work, which Willoughby acknowledges opens it up to partnership agreements, financing deals, or even a buyout. “Obviously, we will need financial support to move forward past the PFS. We are optimistic that the PFS shows Cypress’ vision for the future.”
Rare earths potential
According to the 2018 PEA, Cypress has the potential to recover rare earths at its Clayton Valley Lithium Project. REEs were detected in the claystones ranging from 100 to 200 parts per million (ppm). The rare earths include scandium, dysprosium and neodymium, in order of economic value.
Cypress ran diagnostic leach tests and determined there is the potential to recover these elements, along with potassium, magnesium and other salts. From the PEA:
Using just the 1-hour leach test extractions and an annual feed rate of 5.475 million tonnes, the project, for example, could generate 10 to 15 tonnes of scandium, 25 to 40 tonnes of neodymium, and 5 to 10 tonnes of dysprosium in solution as potentially recoverable oxides. Additional test work is warranted.
When you think about the huge amount of ore available to be mined - it’s among the largest LCE resources in the world - and the valuable products that will be coming out of the relatively easy processing flow sheet at the end, we believe Cypress may have the most important mine in America in decades.
Don't forget, it’s in Nevada, one of the most mining-friendly jurisdictions in the world, with an experienced workforce and necessary mining infrastructure already in place, no tariffs, no potential supply chain issues to impact production such as a “black swan” pandemic.
Cypress is sitting on a massive potential lithium mine and the company is smartly taking all the right steps to de-risk it. The impressive resource estimate and PEA, both released last year, should have significantly boosted the stock price. Yet, in our opinion, it is still outrageously undervalued at $0.175 a share.
It also needs to be stressed, Cypress is the only advanced lithium project in North America without a strategic partner or offtake agreement. Obtaining either following a successful PFS, would be a significant catalyst for a market re-evaluation.
See where this all ends up...time will tell.
Be safe everyone, practice social isolation and we will get through this tough time, and reap rewards down the road.
Coop