Cypress Development (CYP.V) has provided an update on its pre-feasibility study on the Clayton Valley lithium project in Nevada. Although the company originally anticipated it would have the PFS out by now, the company will need a little bit more time to continue to work on some value-adding initiatives.
Cypress has now engaged NORAM Engineering and Constructors to do some additional test work on a new concept that will be implemented in the downstream portion of the new flow sheet. NORAM will essentially be testing the new development on the metallurgical front which has been pre-announced by Cypress Development after it identified a new filtration-based process which will help the company to deal with the clay particles. As Cypress thinks this could have a positive impact on the recovery rate of the lithium as well as on recovering potentially viable by-products (like KCl and REEs), it’s perfectly understandable the company wants to spend some more time on fully understanding what this development could mean for the project and its economics.
And it shouldn’t take long. Cypress estimates this process will take approximately six weeks, so the results should be in by the end of this year (or early January) so we are now anticipating Cypress to be in a position to announce the results of its pre-feasibility study in the first quarter of 2020 (we think February would be a reasonable guess).
Disclosure: The author has a long position in Cypress Development. Cypress is a sponsor of the website.