cypress development corp - investor presentation
TRANSCRIPT
Lithium Brine/Claystone Company Advancing Projects in Nevada
February 2017
5 km Zone of Strong Lithium Mineralization up to 3,800 ppm Li in highly soluble Claystone Discovered at Surface
Forward Looking Statements
Some of the statements in this document may be deemed to be "forward-looking statements". Allstatements on in this document, other than statements of historical facts, that address events ordevelopments that management of the Company expects, are forward-looking statements. Althoughmanagement believes the expectations expressed in such forward-looking statements are based onreasonable assumptions, such statements are not guarantees of future performance, and actualresults or developments may differ materially from those in the forward-looking statements. TheCompany undertakes no obligation to update these forward-looking statements if management'sbeliefs, estimates or opinions, or other factors, should change. Factors that could cause actualresults to differ materially from those in forward-looking statements, include market prices,exploration and development successes, continued availability of capital and financing, and generaleconomic, market or business conditions. Please see the public filings of the Company atwww.sedar.com for further information.
Qualified PersonRobert Marvin, P.Geo., Exploration Manager and Senior Project Geologist for Cypress Developmentis the Qualified Person as defined by National Instrument 43-101 and supervised both the projectfield exploration and the preparation of the technical information in this presentation.
Cypress Capital Structure
TSX Venture Exchange Symbol: CYP
US OTC Pink Symbol:
Frankfurt Exchange Symbol:
CYDVF
C1Z1
Shares Issued & Outstanding: 33.4 million
Fully Diluted Shares Outstanding: 47.0 million
Market Capitalization: $3.5 million
Year End: December 31st
Management Don C. Huston – President & CEO, Director
Don Huston is the President and CEO of Cypress Development Corp. He has been associated with the mineralexploration industry for over 30 years and has extensive experience as a financier and in-field manager of numerousmineral exploration projects in North America. He was born and raised in Red Lake, Ontario and spent 15 years as ageophysical contractor with C.D. Huston & Sons Ltd. as mineral exploration consultants in northern Ontario, Manitobaand Saskatchewan. Mr. Huston serves as a director of 5 Canadian public resource companies.
Jim G. Pettit – CFO, DirectorJim Pettit is the acting CFO and a Director of Cypress Development Corp. Mr. Pettit is currently serving as a director onthe Boards of 6 public resource companies and offers over 20 years of experience within the industry specializing infinance, corporate governance, management and compliance. He specializes in the early stage development of privateas well as public companies. His background over the past 20 plus years has been focused primarily within theresource sector where he has managed and directed junior resource companies through good times and bad. Jim waspreviously Chairman and CEO of Bayfield Ventures Corp. which was bought by New Gold Inc. in January 2015.
Donald G. Myers – DirectorDon Myers serves as a non-executive Director and audit committee member of Cypress Development Corp. He iscurrently serving on the board of directors of three and manages the investor relations and corporate communicationsof four publicly traded mineral exploration and development companies. He has 30 plus years of experience in publiccompany management and investor relations having helped raise over $350 million in venture capital for resource andtechnology companies listed on the TSX Venture, NASDAQ and Toronto Stock Exchanges.
Robert D. Marvin – P.Geo, Exploration Manager and Qualified PersonBob Marvin, P.Geo., Senior Project Geologist and Qualified Person, has been involved in mineral exploration andevaluation of lithium, gold, copper, zinc and uranium deposits throughout the Americas as an employee and as anindependent consultant. He graduated from the University of New Mexico with a Bachelor of Science degree in geologyin 1984. A third generation Nevada resource geologist, Bob has learned the business from the field starting at an earlyage. Always keen to explore high grade deposits, Bob has been involved in several successful gold-silver projects inCanada, most recently with Bayfield Ventures in the Rainy River gold district in Ontario but also at Meliadine and in theCommittee Bay Belt of the far north.
Cypress Lithium Brine/Claystone Projects in Nevada Cypress' 1,520 acre Glory Lithium Brine/Claystone Project is located in the heart of the Clayton
Valley lithium brine exploration area of Esmeralda County, Nevada. Cypress' highly prospective GloryLithium Project is located within a 0.5 mile (<1000m) south of current and past producing lithium brinewells belonging to the Albemarle Silver Peak Mine. Cypress' Glory Project shares its western boundarywith the lithium brine resource area of Pure Energy Minerals Clayton Valley South project.
In August 2016, Cypress optioned its flagship Glory Clayton Valley Project to Pure Energy Minerals withCypress remaining the operator until Pure Energy earns a 51% interest. The agreement allows theCompany to advance its flagship project while working with and utilizing the geological expertise of thePure Energy team.
A planned drilling program at Cypress' Glory Project targeting lithium-rich brines includes shallow holestargeting a 1 1/2 by 3 kilometer long zone of strong lithium mineralization (up to 3,800 ppm Li) in a highlysoluble non-hectorite claystone discovered at surface.
In September 2016, Cypress' reached an agreement to acquire a 100% interest in the 2,700 acre DeanLithium Brine/Claystone Project located immediately adjacent to the Albemarle Silver Peak Mine on itswest boundary, Pure Energy Minerals project on its southwest boundary and Cypress' Glory ClaytonValley Project on its southern boundary.
Recent surface sampling on the Dean Project has identified strong lithium mineralization of up to 3,700ppm Li in a highly soluble uplifted lakebed claystone in the 2 square kilometer Frontera Verde Zone.
Cypress also holds a 100% interest in the 1,780 acre Alkali Valley Lithium Brine Project located inEsmeralda County, Nevada. Cypress' Alkali Valley Lithium Brine Project covers the central and northeastportions of the bottom of the Alkali Lake Playa and is contiguous with claims of the Dajin ResourcesAlkali Lake lithium project.
Cypress Lithium Brine/Claystone Projects in Nevada
Glory Lithium Brine/Claystone Project in Nevada Cypress Glory Clayton Valley Lithium Brine/Claystone Project in Nevada is 1520 acres in size.
Cypress Glory Project is located within .5 mile south of lithium brine wells belonging to the only operating brine lithium mine in North America, the Albemarle (NYSE: ALB) Silver Peak Mine.
Cypress’ Glory Lithium Project shares its western boundary with Pure Energy Minerals’ (TSX-V: PE) lithium brine Northern Resource Area on their Clayton Valley South project.
In August 2016, Cypress announced it had optioned the Company’s flagship Glory Clayton Valley Lithium Project to Pure Energy Minerals (TSX-V: PE) with Cypress remaining the operator of the project until Pure Energy earns a 51% interest.
2016 results show a 1 ½ by 3 kilometer Zone of north-south strike of lithium-rich outcropping claystones that assayed up to 3,800 ppm Li and averages approximately 1,500 ppm Li.
Lab leach test results for extracting lithium directly from the claystones showed an impressive average of 35% Li recovery using a plain water leach and 95% Li recovery using a dilute Aqua Regia process. This work helps substantiates the potential to produce lithium directly from the mineralized claystones with a low cost and environmentally friendly approach without the need for costly mining and complex treatments.
The non-hectorite lithium-rich claystones are believed to represent uplifted portions of the lake bed stratigraphy within which the lithium brines of the basin are found and produced from.
A planned drilling program targeting lithium-rich brines at Cypress' Glory Clayton Valley project will also include shallow holes targeting the wide area of lithium-rich claystones discovered at surface.
Pure Energy & Cypress Glory Lithium Projects
2016 Glory Claystone Lithium Assay Results 2016 Glory sampling programs returned the highest reported assay result for lithium at surface (3830
ppm Li) known by the Company to be publicly reported Clayton Valley, Nevada.
2016 Glory sampling results show a 1 ½ by 3 kilometer zone of north-south strike of lithium-rich outcropping claystones that assay approximately 1,500 ppm Li on average.
Results suggest a strong possibility of a continuously mineralized volume of a highly leachable lithium-rich claystone at surface on the Cypress Glory Clayton Valley Project in a position immediately east of brine production wells at the Albemarle Silver Peak Mine and the lithium brine northern resource area of Pure Energy Minerals’ Clayton Valley South project.
A planned drilling program targeting lithium-rich brines at Cypress' Glory Clayton Valley Project will also include shallow holes targeting the wide area of lithium-rich claystones discovered in 2016 at surface.
October 2016 Glory Project Claystone
Sample Map
Maximum lithium value in rock: 3,830 ppm (0.82% Li2O);
Extended corridor of high lithium to 3km long by more than 1km wide;
9 Samples containing more than 2,000 ppm Li (>0.43% Li2O);
71 Samples containing more than 1,000 ppm Li (>0.22% Li2O); and
Anomalous boron (B) and potassium (K) trends that correlate with the high Li values.
Glory Lithium Leach Test Results of Claystones 2016 leach test performed by ALS Chemex Lab in Reno of the feasibility of extracting lithium
directly from the claystones showed an impressive average of 35% Li recovery using a water leach and 95% Li recovery using a dilute Aqua Regia process.
The lithium mineralization is contained within calcareous evaporite rocks, dominantly carbonate rich lake-bed claystones with interbedded volcanic ash units.
The exposed claystones are part of the basin filling Esmeralda Formation and are believed to represent uplifted portions of the lake-bed stratigraphy within which the lithium brines of the basin are found and produced.
47 samples were selected for the leach test previously averaged 1334 ppm lithium.
The 47 selected samples averaged 1276 ppm Li using a dilute Aqua Regia leach.
The dilute Aqua Regia leach method recovered an impressive 95% of the lithium on average found by the standard assay method.
The data indicates that a non-hectorite, readily soluble mineral form of lithium-rich claystone has been discovered over a wide area at surface at Cypress’ Glory Clayton Valley project in Nevada.
The leach test samples covered 2 kilometer strike length of exposed lithium claystone mineralization.
The goal of this work was to substantiate the potential to produce lithium directly from the mineralized claystones with a low cost and environmentally friendly approach without the need for costly mining and complex treatments.
Glory Clayton Valley Planned Drill Program
Cypress has received a drilling permit from the BLM, Nevada covering a planned drill program targeting potential lithium-rich brines and the lithium-rich claystones discovered in 2016 at surface on the Company's Glory Clayton Valley project.
The permit application contains reverse circulation ("R-C") drill holes targeting lithium brines within the Main Ash Aquifer projected to underlie the west and west-central portion of Cypress' Glory Clayton Valley project.
The Main Ash Aquifer is the primary target of the R-C holes. Cypress expects to intersect this zone at approximately 500 to 1,000 feet below surface.
Additional deeper targets will also be tested including the potential presence of a coarse gravel aquifer near the base of the basin fill evaporate sequence.
The planned drilling program will also include shallow auger holes targeting the 3 kilometer long zone of lithium-rich claystones discovered in 2016 at surface.
This shallow drilling should allow Cypress to begin to estimate size, lithium (Li) grade and tonnage in the claystones at its Glory Clayton Valley Project.
The surface sampling and reconnaissance geologic results received by Cypress to date are viewed as being highly encouraging for the presence of lithium-rich brines within the subsurface aquifers below the lithium-rich claystones discovered in 2016 at surface.
Pure Energy Lithium Project Seismic Data
Dean Clayton Valley Brine/Claystone Project, Nevada
Dean Clayton Valley Brine/Claystone Project, Nevada
Cypress' new 2,700 acre "Dean" Lithium Brine/Claystone Project is located immediately adjacent toAlbemarle's Silver Peak lithium brine mine on the west boundary, Pure Energy Minerals project on itssouthwest boundary and Cypress' Glory Clayton Valley Brine/Clay Project on its southern boundary.
Cypress' highly prospective Dean Project is located within 200 metres east of current producinglithium brine wells belonging to the Silver Peak Mine operated by Albemarle.
The Dean Lithium Project also abuts the Northern Resource Area of Pure Energy Minerals.
The Dean Project claims are also tied onto the immediate north of Cypress' Glory Clayton ValleyLithium Brine/Claystone Project where a detailed aggressive work program is underway.
2016 Phase 1 Dean Claystone Lithium Assay Results
In September, Cypress initiated a Phase 1 detailed sampling program on the Company's new DeanProject.
55 samples were collected and submitted for analysis for lithium content from the abundant, greenevaporite-rich volcanoclastic claystone exposure on the property.
All assays returned very positive lithium results ranging between 340 ppm Li to 2,940 ppm Li withan overall average grade of 925 ppm Li achieved.
Initial surface sampling of the Dean Claims Group has revealed a large area of strong lithiummineralization in calcareous, volcanoclastic, mudstones, claystones and volcanic ash units.
The mineralization is essentially identical to the Glory Project now being jointly explored by Cypressand Pure Energy Minerals on the south boundary of the Dean Claims.
Cypress is proceeding with solubility studies with the Dean assays to determine the amount oflithium extraction possible from the claystones.
November 2016 Dean Claystone Lithium
Assay Results
.
Maximum value in claystone was 3,730 ppm lithium (0.82% Li20 equivalent);
8 samples assayed greater than 2000 ppm lithium (>0.43% Li20 equivalent);
29 samples assayed greater than 1000 ppm lithium (>0.22% Li20 equivalent);
An area of >2 square kilometers has been identified as a new high-grade zone;
New high-grade Frontera Verde Zone open for expansion to the north and south;
BLM permitting underway in preparation for drilling of the new zone.
Dean Lithium-Rich Claystones in Clayton Valley, NV
Clayton Valley Location & Infrastructure
Well maintained state highways connect Silver Peak to the main road network in Nevada.
Nevada has fostered a thriving mining industry with associated development expertise, construction and operations services and a mature regulatory environment.
Single best mining jurisdiction in the U.S. and ranked 3rd globally by the respected “Fraser Institute’s annual Survey of Mining Countries”.
Graded and maintained gravel roads link Silver Peak to the southern half of Clayton Valley.
Nearest rail system is in Hawthorne, Nevada, approximately 90 miles by road.
Public use airport in Tonopah with two runways.
Electrical connection is possible at the sub-station in Silver Peak.
Water supply is currently served by the Silver Peak municipal water supply.
Lithium Timing
The energy storage revolution is generating high demand for lithium, with analysts forecasting demand increases for the product (Li) in the near future.
Battery giants are scaling up lithium-ion production with mega-factories and are actively acquiring the raw material through off take agreements.
Companies already producing lithium are attempting to increase production.
Rockwood Holdings was purchased by Albemarle Corporation (NYSE: ALB) in 2014 for $6.2 billion USD. This purchase included the Silver Peak lithium producer located in Clayton Valley, Nevada.
July 2015, Pure Energy Minerals (TSX-V: PE) reported an inferred resource of 816,000 metric tonnes of lithium carbonate equivalent in NI 43-101 technical report based on drilling two boreholes in there North Resource Area of its claims.
Tesla Motors is building a $5 billion battery gigafactory outside Reno, Nevada. A large amount of the supply of lithium carbonate will have to come from Nevada production because of the major tax incentives Tesla received ($1.3 billion tax incentives over the next 10 years for Tesla).
Electric vehicles and energy storage has become a huge demand driver for the increased production in Clayton Valley and for the exploration and discovery of more lithium deposits in Nevada.
Lithium Uses
The most important use of lithium is in rechargeable batteries for mobile phones, laptops, digital cameras and electric vehicles. Lithium is also used in some non-rechargeable batteries for things like heart pacemakers, toys and clocks.
Lithium metal is made into alloys with aluminium and magnesium, improving their strength and making them lighter. A magnesium-lithium alloy is used for armour plating. Aluminium-lithium alloys are used in aircraft, bicycle frames and high-speed trains.
Lithium oxide is used in special glasses and glass ceramics. Lithium chloride is one of the most hygroscopic materials known, and is used in air conditioning and industrial drying systems (as is lithium bromide). Lithium stearate is used as an all-purpose and high-temperature lubricant. Lithium carbonate is used in drugs to treat manic depression, although its action on the brain is still not fully understood. Lithium hydride is used as a means of storing hydrogen for use as a fuel.
.Contact:
Don Huston – President & CEO Don Myers – Director, Investor Relations
Suite 1610, 777 Dunsmuir StreetVancouver, BC, V7Y 1K4, CANADA
Tel: (604) 687-3376Fax: (604) 687-3119