Tuesday, June 14, 2022

Cypress Development (CYDVF)
Keeping an Eye on the Next Big Test

Mark Reichman, Senior Research Analyst, Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Lithium from Nevada claystone. Cypress Development is advancing its 100%-owned Clayton Valley Lithium Project near Silver Peak, Nevada. Cypress intends to mine Nevada claystone, produce a high-grade lithium concentrate solution and apply a licensed lithium extraction process based on ion-exchange to produce lithium carbonate or lithium hydroxide. Clayton Valley could go into production as early as 2025, following the completion of a feasibility study by year-end 2022, a two-year permitting period which could begin mid-year 2022, and one-year construction period. We have assumed commercial production commences in 2026.

Testing the production of lithium products. Approximately 4,000 liters of concentrated lithium chloride solution have been delivered from the company’s pilot plant to two Canadian laboratories. Each laboratory will further treat the solutions, one to produce lithium carbonate, and the other to produce lithium hydroxide. The results, which are expected within the next 4 to 5 weeks, will be used to assess if additional steps are needed to attain battery-grade standards and evaluate alternatives for producing these products in the feasibility study. The goal is to eventually produce lithium carbonate and/or lithium hydroxide on site….

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.