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    How CYP could benefit from SQMs quest for lithium dominance

    http://aheadoftheherd.com/Newsletter...-dominance.pdf

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      CYPRESS DEVELOPMENT ANNOUNCES POSITIVE PRELIMINARY ECONOMIC ASSESSMENT (PEA) FOR CLAYTON VALLEY LITHIUM PROJECT, NEVADA

      Cypress Development Corp. has released positive results from a preliminary economic assessment (PEA) of the company's Clayton Valley lithium project in Nevada. The PEA was prepared by Global Resource Engineering (GRE) of Denver, Colorado, an independent engineering services firm with extensive experience in mining and mineral processing. All dollar values are in US dollars.

      Highlights:

      {A •} Net present value of $1.45 billion at 8% discount rate and 32.7% internal rate of return on after-tax cash flow.

      {A •} Lithium carbonate price of $13,000 per tonne based on Benchmark Research market study.

      {A •} Average annual production rate of 24,042 tonnes of lithium carbonate over 40-year life.

      {A •} Capital cost estimate of $482 million, pre-production and operating cost estimate averaging $3,983 per tonne of lithium carbonate.

      {A •} Updated Resources from May 1, 2018 estimate:

      Indicated Resource of 831 million tonnes at 867 ppm Li, or 3.835 million tonnes lithium carbonate equivalent (LCE).

      Inferred Resource of 1.12 billion tonnes at 860 ppm Li, or 5.126 million tonnes LCE.

      Cypress CEO Dr. Bill Willoughby commented "This is another important milestone for the project and Cypress. The PEA outlines the steps necessary for a mine and mill at Clayton Valley, including a sulfuric acid plant which is the main driver in the costs. GRE uses a conventional approach in processing and developed a production schedule that utilizes only a small fraction of the total resources on the property. The end result is a project that has strong economics and the potential to generate significant cash flow."

      https://www.cypressdevelopmentcorp.c...roject-nevada/

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        You would think at some point the market would pick this one up and it will stop selling on news.

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          Yep, you'd think.

          rick

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            I own a lot of CYP shares. Have not sold any, will not. It's only going to get better, we have North America's largest lithium resource and it isn't encumbered by off-take agreements in any way, 100% owned no royalties.

            A pre-feas will show a dramatic change to the good imo. Presently the cost is $4,000.00 ton of LCE, notice there are no by-product credits yet. Those will significently bring down costs.

            Recovery numbers will, imo, rise to low 90% area.

            You literally could not have asked for better numbers, and to think they will only get better. Lots of news still to come.

            rick

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              I think day traders and naive investors read nervous nellies/weak hands got spooked by continuing metallurgical studies and all the disclaimers. No one is focused on the contents of the PEA, just the share price flucuations which over the long haul are meaningless IF the contents of the PEA reflect a world class lithium deposit, and imo it would be very difficult to argue they don't.

              CYP now has North America's largest lithium resource next door to Ablemarle's Silver Peak Clayton Valley Nevada lithium mine. CYP's deposit is unemcumbered with off-take or financing commitments, meaning they are free to deal with anyone, the deposit is 100% owned and there are no royalties.

              The PEA was, imo, as good as it gets. Remember this is a base, a starting point. There is a lot more to this then just these initial numbers. Remember these studies do not mean you go mining, they mean you move to the next study or step on the development path to a mine. The PEA is a great step, it absolutely confirms we move to the pre-feas study.

              With the pre-feas comes improved numbers. How do I know this? Well, in the PEA there are no by-product credits and recovery will improve by imo 10-12%. By-product credits in this clay are an important consideration for economics with the potential to pay for a large part of production costs, better recoveries means quicker payback, hard to beat 2.7 years but i think it will be lower yet. Recoveries are already better then the used 81%, they will get higher.

              I think CYP's property should be viewed in the same context to lithium battery production as Saudi Arabia is viewed to oil production.

              rick
              Last edited by rick; September 7th, 2018, 05:31 AM.

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                Hard to believe a company can put out such a positive PEA showing a NPV of $1.45B yet lose share price to be trading at a micro $22M MC.

                rick

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                  Retail investors just too fickle. need some institutional support.

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                    This thing trades like Sernova. Sell on news every time. Its predictable enough to make money on. Its as if no one reads to news and just sells.

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                      I was able to buy back in with this recent drop off but now it tanked even further from there. Have to agree this is just completely unrelated to the content of the release. Drops from like .40 to .28 with a great news release. I have to think that Rick is right long term if people are patient enough and can wait a few years. This thing could be many many multiples at that point once real earnings start happening.

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                        Good on you for the trade.

                        rick

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                          Ruling leaves Kidman, SQMs Australian lithium project in limbo

                          http://www.mining.com/ruling-leaves-...project-limbo/

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                            This is the deposit, one of them, Tesla has an offtake for Lithium hydroxide. Itll be shipped to China to supply batteries to the car plant Musk has bought property for.

                            Ruling leaves Kidman, SQMs Australian lithium project in limbo
                            http://www.mining.com/ruling-leaves-...project-limbo/

                            The lithium space has changed (for us for the better), drastically in the last little while.

                            !.Chilian water rights and usage study.

                            2.Argentinian 7.5% tax on revenue

                            3.US tariffs on Chinese lithium/Batteries.

                            4.Abelmarle building a lithium battery R&D center at Kings Mtn.

                            5.This is huge and deserves some serious DD, it could be the biggest game change in the industry - China has been able to produce only tech grade lithium. NOT battery grade, this explains price differential between China and ROW.

                            And now it appears projections of 40,000tpy has been taken away from the lithium bears story for an indefinite period of time. SQM dropped its Argentinian stuff to focus on Chile and Aus. They have a battle if they want to overtake Abelmarle to be the worlds largest lithium producer.

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                              Chile lawmakers mull additional mining tax for copper, lithium

                              http://www.mining.com/chile-lawmaker...opper-lithium/

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                                Cypress Development puts out blockbuster PEA

                                http://aheadoftheherd.com/Newsletter...buster-PEA.pdf

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