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Cypress Development Announces Positive Preliminary Economic Assessment (PEA) for Clayton Valley Lithium Project, Nevada
VANCOUVER, B.C., Sept. 06, 2018 (GLOBE NEWSWIRE) -- Cypress Development Corp. (TSX-V: CYP) (OTCQB: CYDVF) (Frankfurt: C1Z1) (“Cypress” or the “Company”) is plea
About this update from Century Lithium Corp
[{"type":"text","content":" VANCOUVER, B.C., Sept. 06, 2018 (GLOBE NEWSWIRE) -- Cypress Development Corp. (TSX-V: CYP) (OTCQB: CYDVF) (Frankfurt: C1Z1) (“Cypress” or the “Company”) is pleased to announce positive results from a Preliminary Economic Assessment (PEA) of the Company’s Clayton Valley Lithium Project in Nevada, U.S.A. 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: • Net present value of $1.45 billion at 8% discount rate and 32.7% internal rate of return on after-tax cash flow. • Lithium carbonate price of $13,000 per tonne based on Benchmark Research market study. • Average annual production rate of 24,042 tonnes of lithium carbonate over 40-year life. • Capital cost estimate of $482 million, pre-production and operating cost estimate averaging $3,983 per tonne of lithium carbonate. • 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.” PEA Summary After tax cash flow analysis (US Dollars) Internal rate of return (IRR) 32.7% Net present value (NPV-8%) $1.45 billion Cumulative cash flow, undiscounted $6.171 billion Payback period 2.7 years Operating rate 15,000 tpd for 40 years Capital cost estimate $482 million over 2 years Net lithium recovery 81.5% Base case price for lithium carbonate $13,000/tonne Average production lithium carbonate 24,042 tonnes Operating cost for lithium carbonate $3,983/tonne Sensitivity of Base Case to Lithium Price Price for lithium carbonate NPV-8% ($ Million) IRR $4,800/tonne - break-even --- 0 $8,000/tonne (-3...