Cypress Development Corp. [CYP-TSXV, CYDVF-OTCBB, C1Z1-FSE] on Tuesday released more drilling results from the company’s Dean Lithium property in Clayton Valley, Nevada. Results released Tuesday March 13 include intersections of 126 metres averaging 1,068 parts per million (ppm) lithium in hole DCH-15 and 121 metres averaging 1,146 ppm lithium in DCH-16. The announcement comes after the company recently released the first three holes from a 2017 drill program at both the Dean and Glory Lithium properties in Clayton Valley.
Cypress holds a 100% interest in the 1,520-acre Glory Project. The Glory claims are located to the immediate south of the Dean Claims and less than 1,000 metres southeast of producing lithium brine wells owned by the Albemarle (ALB-NYSE) Silver Peak Mine.
Silver Peak remains the only operating brine-based lithium mine in North America.
Cypress also holds a 100% interest in the Dean Project, which covers 2,700 acres.
Both of those properties are close to a 26,000-acre Lithium Brine Project held by Pure Energy Minerals Ltd. [PE-TSXV, HMGLF-OTC, AHG1-FSE], which hosts an inferred resource of 247,000 tonnes of lithium hydroxide monohydrate (218,000 tonnes Lithium Carbonate Equivalent).
Surface and drill exploration at the Cypress Project has uncovered a 7-km long zone of up to 3,800 ppm lithium in a highly-soluble non-hectorite uplifted lakebed claystone.
The company has said it believes this new lithium source has the potential scale to significantly impact future production of lithium in the Clayton Valley.
It has also said the developing zone at the Dean and Glory Project could represent a long-term, reliable supply of lithium given the location, known size, chemistry and geometry of the discovery.
The two intersections announced on Tuesday targeted the southeastern corner of the Dean property and are the best the company has drilled to date in terms of contained lithium. They are significantly positive results as Cypress closes in on completing work on a maiden resource estimate, which is expected soon after final assays are received.
Previous results include 102.7 metres of 1,029 ppm lithium on the Dean property. The company said it completed five core holes in its fall program at Dean.
The company said all of the holes released so far clearly show a large, tabular, lithum-bearing formation underlying the Dean Property.
Drilling has now outlined a large area of mineralization of approximately 4 km in length and 2 km in width at Dean, the company said.
Laboratory work continues to test the solubility of the lithium-enriched claystone under varying conditions and reagents.
The fall 2017 program was planned for 12 to 14 holes, up to 1,500 metres of core. All holes are vertical and drilling is to be divided between the Dean and Glory properties. Together, the two properties cover a total area of 4,220 acres.
Drilling is continuing. One further hole, DCH-17, has been completed on Dean and assays are pending. Another hole, GCH-05, is nearing completion on the Glory claims, where at least one additional hole is planned before month end.
There is no ready market for lithium. Lithium prices are determined by the purity and chemistry of the material as well as the length of the contract between buyer and seller.
Brines (in salt ponds) and spodumene (hard rock) represent the two main sources of commercial lithium production.
Cypress Development shares fell 4.17% or $0.01 to 23 cents on Tuesday. The 52-week range is 34.5 cents and $0.08 cents.