Cypress Development Corp. Presentation
- 1. Clayton Valley Nevada’s Next Lithium Resource
- 2. Forward Looking Statements Some of the statements in this document may be deemed to be "forward-looking statements." All statements in this document, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information. 2
- 3. Qualified Persons William Willoughby, PhD, PE, Director and Chief Executive Officer of Cypress Development, is the Qualified Person as defined by National Instrument 43-101 and supervised the preparation of the technical information in this presentation. 3
- 4. Management • William Willoughby, PhD, PE – Director, Chief Executive Officer • Donald C. Huston – Chairman, President • James G. Pettit – Director, Chief Financial Officer • Donald G. Myers – Director, Investor Relations • Amanda Chow, CPA, CMA – Director • Donald Mosher – Corporate Development 4
- 5. Cypress Capital Structure • TSX Venture Exchange Symbol: CYP • US OTC Pink Symbol: CYDVF • Frankfurt Exchange Symbol: C1Z1 • Shares Issued and Outstanding: 56.0 million • Fully Diluted Shares Outstanding: 79.1 million • Market Capitalization: 12.3 million • Year End: December 31st 5
- 7. Lithium Companies Market Caps Source: ASX, TSX.V, CSE as of February 2018 7
- 8. Lithium Carbonate Price Trend 8
- 9. 2018 Primary Global Lithium Uses Batteries account for nearly half of the world’s demand for lithium Source: USGS 9
- 10. Key Events • 2014 - Albemarle Corporation (NYSE: ALB) acquires Rockwood Holdings for $6.2B - purchase includes Silver Peak Lithium Mine located in Clayton Valley • 2015 - Tesla Motors breaks ground on USD $5 billion, 35 GWh factory near Reno • 2016 • January - Cypress acquires Clayton Valley lithium brine project • February – Cypress reports 3,070 ppm Li in surface sample of claystone • Mar-Dec - Cypress receives drilling permit, conducted surface sampling and permitting • March 2017 – Drilling commences on Dean property • Sept 2017 – Begins leach testing on Dean drill core. 10
- 11. Project Highlights • Two claim blocks, Dean & Glory Properties consisting of 4,200 acres, located south and east of the Albemarle brine field • Drilling at Dean in 2017 encountered mineralization averaging 921 ppm Li over an average thickness of 77 meters in 14 holes drilled • Lithium occurs in illite and montmorillonite clays throughout the sediments to a depth of at least 112 meters • Metallurgical tests have shown the claystone is acid leachable with lithium extractions ranging up to 80% in agitated leach using sulfuric acid. 11
- 13. Geology • Extensive volcanic-derived claystone east and south of brine field and Angel Island • Lithium in illite and montmorillonite clays to depth of at least 112 m below surface • Fault bounded to east and west and east • Shallow redox boundary. 13
- 14. 2017 Drilling Oxidized claystone, DCH-09 Reduced claystone, DCH-09 14 14
- 15. 2017 Results Drill Hole Thickness (m) ppm Li DCH-01 32 1146 DCH-02 112 852 DCH-03 77 860 DCH-04 71 1051 DCH-05 80 1063 DCH-06 38 903 DCH-07 77 777 DCH-08 75 714 DCH-09 98 963 DCH-10 64 1014 DCH-11 103 1029 DCH-12 66 678 DCH-13 107 1135 DCH-14 79 724 • 14 NQ core holes on Dean • Average 77 meters 921 ppm • Area 4.2 km x 1.4 km (6 million sq.meters) 15
- 16. Lithium Recovery • Initial testing on surface samples showed up to 35% of Li is water soluble • Subsequent testing on core showed subsurface material is not water soluble • XRD and acid leach tests showed mineralogy is not hectorite • Testing shows up to 80% of lithium is soluble in sulfuric acid solution • Test work is on-going to refine leach conditions and characterize material across the deposit. 16
- 17. Leach Kinetics at 50⁰ C 17
- 18. Going Forward 2018 Jan Feb Mar Apr May Jun Jul Aug Sep Initial Resource Estimate In-fill and step-out drilling Bench tests and process engineering Preliminary Economic Assessment and resource update Baseline Studies 18
- 19. Contact Bill Willoughby – Chief Executive Officer Don Huston - President Don Myers - Investor Relations Suite 1610, 777 Dunsmuir Street Vancouver, BC, V7Y 1K4, CANADA Tel: (604) 687-3376 Fax: (604) 687-3119 info@cypressdevelopmentcorp.com www.cypressdevelopmentcorp.com 19 19